Although the question of direct ownership is not before the city, there is still a great deal of public interest in how the ownership of Alaska Electric Light &Power gets transferred, particularly when publicly-financed infrastructure is involved. We former Assemblymembers are writing to strongly recommend that the City and Borough of Juneau intervene with the Regulatory Commission of Alaska to protect Juneau’s public interest. The CBJ government is the most appropriate intervenor to represent and protect the public interest in a utility sale that will impact Juneau for decades. It is extremely important to have a seat at the table to advance conditions of transfer that protect current and future generations of Juneau citizens.
Below are some conditions that CBJ should consider as an intervenor for Juneau’s public interest to the Regulatory Commission of Alaska.
Snettisham 1: The Snettisham Hydropower facility, transmission infrastructure, and Thane substation should remain in public ownership and no private third party can ever exercise or own these federally funded, federally built assets. According to Congressman Don Young, the congressional intent at the time the U.S. government transferred these assets to state of Alaska ownership was that Snettisham remain in American public ownership.
Snettisham 2: Recalling the rate increases that put our economy and capital at risk when two avalanches took down the power line, we suggest an appropriate multi-million-dollar bond to be financed by Hydro One. We further suggest that the bond be held by the Alaska Industrial Development and Export Authority for the sole use of making emergency repairs to the Snettisham facilities in the event of a natural disaster.
Non-discriminatory tariffs and open access to transmission: Require Hydro One and Avista to operate all their transmission on a non-discriminatory tariff and open access basis. This simple requirement prevents transmission owners from using transmission as a market barrier to block or manipulate renewable energy generation. The CBJ need not negotiate the business terms of cooperation, rather just require timely open access to other suppliers of electrical generation.
Limited rate of return: AEL&P receives a substantially higher rate of return than any other operation of Hydro One and Avista and as such could unfairly subsidize lower rates elsewhere. CBJ should seek a no harm clause to Juneau so that Juneau will be treated equally to Ontario and Washington ratepayers.
Integrated resource plan: Because energy is so central to a community’s economic vitality and outlook, there is a significant local desire for participation in energy planning. A public process Integrated Resource Plan is a usual and customary utility tool to properly plan utility operations. Avista conducts an Integrated Resource Plan every two years in Washington. CBJ should advocate that AEL&P conduct a Juneau Integrated Resource Plan to the same standards that Avista applies in Washington. Advocating for constructive public input is a most appropriate role for CBJ.
Juneau land: Avista owns vast tracks of non-utility lands in Juneau under various entities that with the Snettisham infrastructure total over 6,000 Juneau acres. By being at the table, CBJ could explore the divestiture of non-utility land assets that may enable development of these resources. (E.g. the Juneau sea walk).
To one degree or another, we’ve all been charged to protect the public’s interest in the functioning of our city. We feel there is enough public interest expressed in the conditions above to warrant CBJ being at the table. As such, we strongly encourage the CBJ to intervene in the sale of AEL&P/Avista to Hydro One. Another step toward protecting the public interest would be to request the RCA to hold a public hearing on this transfer case. We also highly recommend that the CBJ request the RCA to hold a public hearing in Juneau.
• Karen Crane is writing on behalf of former CBJ Assemblymembers Johan Dybdahl, Kate Troll, Randy Wanamaker and Jim Powell. She is a former Assemblymember.
