Proposed Bill Would Allow for Automatic Approval of Some Renewable Energy Projects

Electric utility rates are approved through the Regulatory Commission of Alaska, or RCA. A new pre-filed bill in the State legislature proposes that any project for renewable energy would not need to be approved by the RCA, if it meets certain criteria.

The bill would apply to renewable energy projects approved by a cooperative board of directors, like that of Matanuska Electric Association, the electricity supplier for the Upper Valley.

Renewable energy projects would also need to be less than 15 megawatts in size to forgo the RCA’s approval. MEA’s Chief Strategy Officer Julie Estey, says they are reviewing this size requirement to determine if it’s right for their customers.

Any project more than 15 megawatts must first be approved by the Alaska Railbelt Reliability Council, a group of representatives from the five utilities and private power producers serving Alaska’s railbelt communities. MEA is part of the Council. Estey says these larger projects have the potential to impact the bigger utility system so they are already required to undergo that extra check.

While the new rule would allow more flexibility for those smaller projects, Estey says utility rate-payers would lose that double check from the RCA. And that some details would need to be clarified in the bill’s language to ensure companies are not gaming the system.

The State legislature session begins next week so this bill will likely be discussed some time in the next few months. Estey says MEA is interested to hear from its members about the proposed bill.