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RCA explains RTO certification, net‑metering rulemaking and pending renewables dockets for Rail Belt

2281278 · February 11, 2025
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Summary

Regulatory Commission of Alaska officials described their role certifying a regional transmission organization, managing an open access transmission tariff, and rulemaking on net metering and community energy facilities during a Feb. 11 House Energy Committee presentation.

At a Feb. 11 House Energy Committee hearing, Regulatory Commission of Alaska officials outlined the commission’s roles in certifying a Rail Belt transmission organization (RTO), reviewing a single‑rate transmission cost recovery mechanism and an open access transmission tariff, and pursuing rulemaking to raise net‑metering aggregation limits.

Chair John Espindola told the committee the RCA opened docket U‑24‑0242 to investigate certification of the RTO after the organization filed an application on Dec. 30, 2024; the commission scheduled a public pre‑hearing conference for Feb. 18 and said it will issue a final decision on certification by June 8, 2025. Espindola said, regarding the RTO, the commission “will certificate the RTO, review and approve a single rate transmission cost recovery mechanism developed and filed by the RTO, and review and approve the RTO's open access transmission tariff along with any future updates.”

Why it matters: Certification and the open access transmission tariff establish how independent power producers connect to and pay for access to the Rail Belt transmission system and set a process for recovering transmission costs across the region.

The commission described the open access tariff as a nondiscriminatory mechanism that allows independent power producers to interconnect under uniform tariff rules. Rich Galloway (RCA staff) said an open access transmission charge is “basically just a non discriminatory tariff that allows people to access the transmission tariff and the rates… set forth in the tariff of the transmission organization.”

Net metering and distributed generation: the commission said it adopted Alaska‑specific net‑metering regulations in 2010 and opened a regulations docket in 2024 to consider substantially increasing the aggregate limit for customer‑sited generation connected to utility systems. Espindola said the current cap is 1.5% and the regulations docket has proposed a 20% cap to reduce the need for utilities to seek waivers; the commission is seeking public feedback in that docket.

Power purchase agreements and renewables dockets: Utility Master Analyst Julie Vogler summarized recent and pending filings the commission is reviewing, noting the RCA has approved multiple power purchase agreements in recent years including agreements involving Chugach Electric/Fire Island Wind, Matanuska Electric/Energy 49, and Golden Valley Electric/University of Alaska Fairbanks. Vogler also listed pending dockets the commission is considering for large energy facilities and certificates of public convenience and necessity, including a Solstice Energy petition for the Puppy Dog Lake solar farm, a Homer Electric request to buy Puppy Dog Lake solar output, and an application from Juno Hydropower Inc.

Commission staff told the committee that, after certification, the RTO must file its transmission cost recovery mechanism and open access tariff for RCA review and approval. The commission holds a non‑voting, ex officio seat on the Rail Belt Reliability Council board and said it reviews tariff, integrated resource plan and surcharge filings related to the Electric Reliability Organization.

Committee members asked whether the RCA has tools and staffing to handle increasing complexity in rate cases and interconnection filings; Espindola said the commission will discuss statutory and policy changes internally and invited specific policy input from the legislature for consideration in a public meeting.