Regulatory Commission of Alaska outlines limits, actions as Cook Inlet gas supply tightens

The Regulatory Commission of Alaska told the House Energy Committee on Feb. 11 that it has authority over in‑state pipelines, natural gas and LNG storage utilities, and contracts between regulated utilities and gas suppliers — but not over natural gas production or royalty decisions, which fall to the Department of Natural Resources and the Alaska Oil and Gas Conservation Commission.

RCA Chair John Espindola said, “the commission is a quasi judicial body created by statute AS4204 and is compelled by statute to regulate public utilities under AS4205, pipeline carriers under AS4206 and an in state pipeline contract carrier with AS4208.” He added the commission also calculates the power cost equalization amount under AS4245 and that its decisions must stay within the jurisdictional boundaries set by the legislature.

Why it matters: Rail‑belt communities rely on Cook Inlet gas for heat and power. The commission described both actions it has taken —calling utilities into public meetings, investigating filings and approving storage expansions— and the limits on what it can do when supply and production decisions lie with other agencies.

The commission described recent and approved actions intended to bolster storage and short‑term resilience. Utility Master Analyst Julie Vogler said, “In 02/2011, the commission granted the application filed by Cook Inlet Natural Gas Storage Alaska LLC or CINCSA for a new certificate of public convenience and necessity, which provides for 11 BCF of working gas.” She told the committee that a 2023 firm storage service expansion agreement added about 2 BCF to CINCSA service for NSTAR and that the expansion was complete with service commencing in December 2024, increasing NSTAR’s maximum storage quantity in CINCSA to about 10.775 BCF.

RCA staff also told the committee about a special contract approved in 2024 that made Homer Electric a gas‑sales customer of NSTAR; under that contract Homer assigned 0.125 BCF of storage capacity to NSTAR and NSTAR agreed to provide between 3 and about 4.5 BCF of gas to Homer in the 2024–25 period. Becky Aldi with the commission said the agency would evaluate any future formal filings on their merits and noted that it had not, as of the hearing date, received a formal filing from a redeveloper of the Kenai LNG terminal.

The commission said it is calling utilities into public sessions to get routine updates on storage, supply plans and contingency curtailment plans. Commissioner John Springsteen told the committee the RCA has repeatedly asked rail‑belt utilities for updates and has called for presentations on alternative energy options, including advanced nuclear, carbon capture on fossil plants, and renewables. Rich Gasly (RCA staff) told the committee the agency can require utilities to provide reasonably reliable service and can call for plans for curtailments, but the commission does not dictate how a utility composes its generation portfolio.

On pending filings, the commission told the committee it had suspended an NSTAR filing to pass costs for evaluating future gas supply and project costs and opened docket U‑25‑004 for further investigation; staff said a public pre‑hearing conference would soon set procedural steps. Chair Espindola said he had assigned himself docket manager to expedite that matter.

Limits and statutory roles came up repeatedly. Espindola said the RCA has no role in royalty relief decisions and noted the agencies that directly manage resource development. Springsteen reiterated that natural gas production and management are primarily matters for the Alaska Department of Natural Resources and the Alaska Oil and Gas Conservation Commission, and the RCA’s role is narrower — oversight of storage, tariffs, contracts and public‑utility rates.

The committee asked whether royalty relief granted by DNR should be considered by the RCA when reviewing rates; commissioners answered that they must be careful discussing pending dockets but indicated that negotiated agreements and cooperative utilities typically press consumer‑interest considerations in negotiations and that any public claims of lower rates tied to royalty relief would be part of the public record in a docket when relevant.

The commission said it will continue to call for public presentations from utilities, investigate filings related to supply and storage, and pursue public hearings to create a record for decisions. Committee members requested written follow‑up from the RCA after a planned internal commission meeting on a broader policy approach.