HomeMy WebLinkAbout09252018 City Council Work Session - Laydown - Oral Statement of Eric Meyerske :-�sCD
Oral Statement of
Eric Myers
on behalf of
The Alaska Railbelt Transco Formation Working Group
Before the
Alaska House of Representatives
Special Committee on Energy
Good Morning Chair Vasquez, Chair Colver, Representative Nageak, Representative Talerico,
Representative Tilton, Representative Claman, and Representative Wool. My name is Eric
Myers and I am Manager of Business Development for the American Transmission Co., a
transmission -only electric utility owned by cooperative, municipal, and investor owned utilities
and headquartered in Waukesha, Wisconsin. American Transmission Co. was founded in 2001,
as the first multi -state, transmission -only utility (sometimes called a Transco) in the United
States. Unlike most other utilities, we have a single focus: transmission. Our transmission
system allows energy producers to transport electric power from where it's generated to where
it's needed. It's similar to the interstate highway system, with high -voltage electricity traveling
on the transmission system wires like vehicles on the highway.
The goal of my remarks today is to update the Committee and other stakeholders on the
substantial progress to date of voluntary efforts by the Railbelt's six utilities to identify and
where possible achieve improvements to the region's transmission assets and associated
benefits from more efficient utilization of generation resources. As I have described in prior
testimony before this Committee, ATC began conversations in 2013 with each of the Railbelt's
utilities about how ATCs experience in forming a transmission -only utility through the
collaborative effort of multiple utilities might work in Alaska. Before the Railbelt utilities can
determine whether a Transco is the right model for improving transmission access, system
reliability and the efficient use of generating resources, the utilities have committed to
understanding the achievable economic benefits, including both local and regional impacts. In
2014, the Railbelt utilities endorsed a set of guiding principles for Transco formation. The
General Managers also designated a senior staff Working Group supported by collaboration
among subject matter experts from the six Railbelt utilities as well as from American
Transmission Co. The charge to the Working Group includes validation of the potential benefits
of improving economic dispatch, as well as the benefits and costs of shared ownership of a
regional Transco. Significant progress has been made through unprecedented utility
collaboration which is a demonstration of the utility commitment to positive solutions and
ATC's ability to facilitate the team's progress. The Railbelt Utilities have committed to working
with ATC (under the Working Group) to complete a process that informs an ultimate decision
on whether to form a Transco. Key objectives of this process are:
1) Validate and/or verify the potential general (Railbelt-wide) and specific (utility -level)
benefits of improvements in the Railbelt's efficient utilization of generating resources
(the economic dispatch analysis).
2) Design an effective transmission -only utility to operate, maintain, and as necessary
improve the Railbelt's transmission infrastructure, including an understanding of its
associated cost (the Transco business model);
3) Identify a tariff and cost allocation methodology that can provide open access to
network transmission service while allocating the costs of that network equitably (tariff
and cost allocation);
4) Support the development of approaches to settling power transactions under a pooled
or unified dispatch of generation, including equitable allocation of the benefits of those
transactions (the settlement process).
The Railbelt utilities have committed substantial staff and consultant resources to addressing
each of these items. Before any Railbelt utility can make a decision on how best to proceed, all
of the utilities have committed to completing this process and providing the results to the
leaders and associated governance organizations.
I understand a copies of the September, 2015 and December, 2015 progress reports
provided to the Regulatory Commission of Alaska by the Working Group have been made
available to the Committee and will be included as part of the record. I look forward to
answering questions you may have today or as part of future hearings or discussions. This
concludes my prepared remarks.