Alaska Administrative Code
Title 3 - Commerce, Community, and Economic Development
Part 7 - Regulatory Commission of Alaska
Chapter 46 - Electric Reliability Organizations and Integrated Resource Planning
Article 1 - Certification and Practice of Electric Reliability Organizations
3 AAC 46.080 - Balanced board safe harbor

Universal Citation: 3 AK Admin Code 46.080

Current through February 27, 2024

(a) An application for a certificate for an electric reliability organization with a balanced stakeholder board consistent with AS 42.05.762(4)(B)(ii) or combination independent and balanced stakeholder board consistent with AS 42.05.762(4)(B)(iii) has a rebuttable presumption that the board meets the requirements of 3 AAC 46.060(b)(1) and (4)(A) and (B), if the application satisfies each of the following conditions:

(1) stakeholders that have designated directors are classified so that
(A) provider stakeholder classes are sub-classified, as distinguished by
(i) whether a class's stakeholders stand to profit from the construction of new facilities used to provide electrical service for compensation;

(ii) whether the assets of a class's stakeholders are primarily or entirely owned by the state;

(iii) whether a class's stakeholders own or operate assets involved in two or more functions of electricity distribution, transmission, generation, and storage, regardless of whether the assets are part of an interconnected electric energy transmission network; and

(iv) whether a class's stakeholders own or operate assets involved in only one function of electricity distribution, transmission, generation, and storage, and if so, the particular function; and

(B) consumer stakeholder classes are sub-classified, as distinguished by
(i) whether a class's stakeholders are primarily residential;

(ii) whether a class's stakeholders are primarily commercial;

(iii) whether a class's stakeholders are primarily industrial; and

(iv) whether a class's stakeholders have a primary interest in attributes, other than price or reliability, in how electricity service is provided;

(2) voting directors on the board each have one vote on matters before the board, and
(A) are odd in number;

(B) include at least one director designated to a provider stakeholder class and at least one director designated to a consumer stakeholder class;

(C) are constituted so that the number of directors representing a single stakeholder class, as sub-classified, is less than 50 percent of all voting directors; and

(D) are composed in number and type so that total provider interests and total consumer interests are equal; for purposes of this subparagraph, a director's provider interest and consumer interest are determined as follows:
(i) if the director's designated provider stakeholder class, as subclassified, either does not profit from construction of new facilities or has assets primarily or entirely owned by the state, the director will be assigned fractional provider interests and fractional consumer interests, such that the maximum consumer interest is one-half and the director's fractional provider and consumer interests sum to one;

(ii) if the director's designated provider stakeholder class, as subclassified, profits from construction of new facilities used to provide electrical service for compensation, and does not have assets primarily or entirely owned by the state, the director will be assigned a provider interest of one and a consumer interest of zero;

(iii) if the director is designated to a consumer stakeholder class, the director will be assigned a provider interest of zero and a consumer interest of one;

(iv) if the director is independent, the director will be assigned a provider interest of zero and a consumer interest of zero;

(3) the board has rules to ensure that each member of the board of directors is entitled to designate a qualified representative to serve on a committee.

(b) In considering the application for a certificate as an electric reliability organization and a protest or complaint regarding that application, the commission may determine that good cause exists to investigate whether the rebuttable presumption described in (a) of this section is overcome. After a hearing, and upon a finding by the commission that the rebuttable presumption has been overcome, the commission will determine whether the applicant's board satisfies the requirements of 3 AAC 46.060(b)(1) and (4)(A) and (B).

Authority:AS 42.05.141

AS 42.05.151

AS 42.05.760

AS 42.05.762

AS 42.05.770

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