(a) The commission may issue a certificate to
an applicant formed with a balanced stakeholder board under AS
42.05.762(4)(B)(ii) only after the commission finds that the stakeholder board
is balanced.
(b) A stakeholder
board is balanced if
(1) the composition of
the board is based on a stakeholder classification;
(2) each board member has a single
stakeholder class to which it is designated;
(3) each board member is associated with,
drawn from, and understands and can articulate the interests of its designated
stakeholder class;
(4)
consideration and the avoidance of undue attenuation or amplification of
relevant stakeholder class interests are ensured through
(A) membership in and composition of the
board;
(B) board and committee
voting procedures and requirements; and
(C) the sufficiency of resources available to
board members to effectively participate in the electric reliability
organization; and
(5)
its organization has procedures to ensure that the requirements of (4) of this
subsection continue to be satisfied as relevant stakeholder class interests
change; these procedures must
(A) allow a
person to propose an additional or different stakeholder
classification;
(B) enable
evaluation of whether the requirements of (4) of this subsection continue to be
satisfied; and
(C) allow the
organization to timely modify board composition, applicable committee voting
procedures, or the resources available to board members or take other actions
to satisfy the requirements of (4) of this subsection.
(c) A stakeholder must be
classified as a provider stakeholder, consumer stakeholder, or hybrid
stakeholder. A stakeholder must be further classified according to relevant
factors in (d)(1) of this section so that, with regard to the effects of
electric reliability organization reliability standards, standards set out in
AS 42.05.770(1), or integrated resource plans, stakeholders within each class
have a shared interest that distinguishes them from stakeholders in other
classes.
(d) In determining whether
an applicant's board is balanced, the commission will consider each of the
following factors:
(1) how stakeholder
interests in reliability standards, standards set out in AS 42.05.770(1), or
integrated resource plans are differently affected by the following
characteristics:
(A) for provider
stakeholders, whether the stakeholder class members
(i) stand to profit from construction of new
facilities used to provide electrical service for compensation;
(ii) have assets that the state primarily or
entirely owns;
(iii) own or operate
assets involved in two or more functions of electricity distribution,
transmission, generation, and storage;
(iv) own or operate assets involved in only
one function of electricity distribution, transmission, generation, and storage
and, if so, the particular function; and
(v) are assured, by virtue of their ability
to modify tariff rates under
AS
42.05.411, the opportunity to recover their
prudently incurred costs of providing service;
(B) for consumer stakeholders,
characteristics regarding the
(i) amount of
power they consume;
(ii) amount of
energy they consume;
(iii)
variability in energy or power that they consume;
(iv) economic or public safety consequences
for them of disruptions in electricity service;
(v) ability of members of the stakeholder
class to modify when and how they consume electricity; and
(vi) preference regarding non-price aspects
of how electricity service is provided;
(C) for provider stakeholders or consumer
stakeholders,
(i) the combined effects of
geographic location, degree of transmission system redundancy, or relative
proximity of consumer loads to interconnected bulk-electric system generating
resources;
(ii) the certainty with
which provider resources can be dispatched to meet consumer needs;
(iii) the degree to which a load-serving
entity has excess resources to meet consumer needs; and
(iv) other factors that the applicant
presents; and
(D) for
hybrid stakeholders, how the factors in (A) - (C) of this paragraph
apply;
(2) how
stakeholders of the interconnected bulk-electric system should be classified as
being sufficiently similar to, or distinguished from, one another with regard
to their interests in electric reliability organization reliability standards,
standards set out in AS 42.05.770(1), or integrated resource plans, in light of
the characteristics listed in (1) of this subsection;
(3) whether stakeholders, consistent with (2)
of this subsection, have designated directors that help enable the board to
avoid undue amplification or attenuation of relevant stakeholder class
interests;
(4) whether each
designated director has sufficient association with, is drawn from, and
understands and can articulate the interests of its designated stakeholder
class; in its assessment the commission will consider, among other issues, the
process by which each director designated to a stakeholder class is
selected;
(5) if a stakeholder
class does not have a designated director that satisfies the criteria in (b)(3)
of this section, the reasonableness of this omission and the means by which the
particular and relevant interests of that stakeholder class will be adequately
considered;
(6) how voting
procedures for the board and committees help to avoid undue amplification or
attenuation of relevant stakeholder class interests;
(7) whether all board members have resources
sufficient to ensure adequate consideration, and avoid undue amplification or
attenuation, of relevant stakeholder class interests;
(8) whether the electric reliability
organization has adequate procedures to ensure that the requirements of (b)(4)
of this section continue to be satisfied as relevant stakeholder
classifications and interests in the electric reliability organization
reliability standards, standards set out in AS 42.05.770(1), or integrated
resource plans change; and
(9)
other factors as determined by the commission.
(e) 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, if the waiver
does not also require a waiver of the requirements set out in AS 42.05.760 -
42,05.790.