3 AAC 46.100 - Commission formation of an electric reliability organization

(a) The commission will open a docket to form an electric reliability organization for an interconnected bulk-electric system if

(1) required under AS 42.05.760(e);

(2) the certificate of the electric reliability organization serving an interconnected bulk-electric system expires under 3 AAC 46.050(b); or

(3) the commission has revoked, under 3 AAC 46.050(e), the certificate of the electric reliability organization serving an interconnected bulk-electric system.

(b) When it opens a docket under (a) of this section, the commission will

(1) designate all interconnected load-serving entities in the interconnected bulkelectric system as parties to the docket;

(2) permit an interested user, owner, or operator of the interconnected bulkelectric system to become a party to the docket upon the filing of a notice of participation; and

(3) allow other interested persons to petition to intervene in the docket under the procedures set out in 3 AAC 48.110.

(c) After an opportunity for the parties in the docket to be heard, the commission will initiate formation of an electric reliability organization for an interconnected bulk-electric system by developing articles of incorporation under AS 10.20 as a nonprofit corporation exempt from federal taxation under the United States Internal Revenue Code (26 U.S.C.), as that federal law exists at the time. The corporation's purpose is to become the electric reliability organization of the interconnected bulk-electric system, consistent with (i) of this section. The chair of the commission shall appoint three commissioners to serve as interim directors. Interim directors shall file the articles of incorporation, and serve as voting directors of the nonprofit corporation, until they are replaced with directors who are selected under the process required by (d) - (h) of this section.

(d) The commission will solicit applications from persons interested in serving as directors of the corporation that will become the electric reliability organization for the interconnected bulk-electric system. The commission will notify the general public that applications for three positions as directors of the electric reliability organization are being accepted. In the notice, the commission will describe

(1) the minimum qualifications for the director positions, including the qualifications set out in 3 AAC 46.460(a)(1);

(2) the application process and requirements;

(3) the closing date for applications; and

(4) the selection process.

(e) Applications must be accompanied by

(1) a resume of the applicant's education and work experience; and

(2) a narrative explaining how the applicant's education and work experience qualify the applicant to be an effective director of the electric reliability organization.

(f) The commission will accept applications only from persons who would qualify as independent directors under 3 AAC 46.070. The commission will return an application of a person who does not qualify as an independent director under 3 AAC 46.070 to the applicant, with an explanation of why the applicant does not qualify as an independent director. If the commission determines that the number of qualified applicants is insufficient, the commission will solicit additional applications.

(g) After the final closing date for applications and a commission determination that the number of applications is sufficient, the commission will notify the general public that comments are being accepted on the applications received.

(h) After review of public comments and interviews with applicants the commission will select three directors.

(i) Upon selection of directors by the commission under (h) of this section, the interim directors shall appoint the persons selected by the commission to be directors of the electric reliability organization and resign from their position as interim directors. Upon the resignation of the interim directors and their replacement by directors selected under (h) of this section, the commission will grant the nonprofit corporation a certificate to be the electric reliability organization of the interconnected bulk-electric system. Any amendments to or restatement of articles of incorporation, or electric reliability organization bylaws or rules, or modifications of those documents, that the electric reliability organization seeks to adopt must be submitted to and approved by the commission before being finalized.

(j) Not later than 21 days after the date of the order announcing the commission's selection, the directors shall meet to develop a proposed budget for organizing the electric reliability organization. In the proposed budget, the directors shall include the costs to develop the materials required for an applicant under 3 AAC 46.090(a), including director compensation, if any. The proposed budget must be filed in the electric reliability organization docket established under (a) of this section. After providing parties an opportunity to be heard on the proposed budget, the commission may approve or modify the proposed budget. The electric reliability organization may file for commission approval of an initial surcharge to recover its budgeted costs. The requirements of 3 AAC 46.420 - 3 AAC 46.430 do not apply to the initial surcharge filing.

(k) Not later than 180 days after its budget is approved, the electric reliability organization shall file the materials required of an applicant under 3 AAC 46.090(a). The commission may open a new docket of investigation to consider a filing made under this subsection.

(l) The commission may waive or modify by order the requirements of this section, in whole or in part, upon application and a showing of good cause or on the commission's own motion. A waiver granted under this subsection does not limit the burden of an applicant to prove the applicant's ability to comply with the requirements of AS 42.05.762.

Notes

3 AAC 46.100

Eff. 3/11/2022, Register 241, April 2022

Authority:AS 42.05.141

AS 42.05.151

AS 42.05.760

AS 42.05.762

AS 42.05.767

AS 42.05.770