HomeMy WebLinkAbout06092025 City Attorney RTO slidesRailbelt
Transmission
Organization
(RTO)
Overview
•What is the RTO?
•Why does Seward care?
•Where is the RTO at in its process?
•What are the next steps?
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Analogy - the RTO is an attempt to get rid
of the electric equivalent of toll roads
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What is the RTO?
•Organization created by House Bill 307
•Has a few primary functions:
•Holding and administering a nondiscriminatory open access transmission tariff for the backbone transmission system (AS 44.83.710(a))
•Replace wholesale charges assessed by unit with a new mechanism that fairly recovers and equitably allocates backbone transmission system costs (AS 44.83.700)
•Pool backbone transmission costs and allocate on a coincident peak or load ratio share basis or a combo of both (AS 44.83.710)
•Provide for the recovery of transmission costs and related ancillary services (AS 44.83.700)
•Pass costs directly and transparently to utility customers (AS 44.83.710)
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Why Does Seward Care?
•Electric Costs
•Eliminate wheeling charge (electric “tolls”)
•Charge based on demand (usage during “rush hour”)
•Transmission upgrade costs are spread out throughout State (Theory is that long term costs will go down for everyone)
•Deals with cost portion of significant Electric Project Planning that is done by the Electric Reliability Organization
•Ongoing tariff revisions and filings
•Introduces some regulation by Regulatory Commission of Alaska
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Where is the RTO at in its process?
•Certificate of Public Convenience and Necessity has been granted
•Governance Committee has approved Backbone Transmission System (freeway system)
•Still working on many aspects of the tariff in preparation for RCA adjudication
•June 13th and 20th Meetings to make decisions
https://www.akenergyauthority.org/What-We -Do/Railbelt-Energy/Railbelt-Transmission-Organization/RTO-Schedule
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What are the next steps?
•July 1 tariff filing will kick off an RCA hearing. As a new tariff, the proceeding will likely take over one year to adjudicate
•Individual utilities and intervenors can make arguments before the RCA on the process
•RCA hearing will determine next steps and when the tariff goes into effect (when the road opens!)
•Can provide more substantive update at upcoming meetings
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