3 AAC 52.470. Engineering standards; energy purchase contracts

(a) A utility shall construct, maintain, and operate its plant in accordance with accepted engineering practices to reasonably assure service reliability, service quality, and the safety of persons and property.

(b) A utility shall design, construct, and maintain generation, transmission, and distribution facilities in conformance with the state minimum electrical safety standards as adopted in AS 18.60.580 .

(c) A utility shall normally maintain generating capacity supplemented by the electric power regularly available from other sources, sufficient to meet all reasonable demands for service and provide a reasonable reserve for emergencies. In addition to any other standards imposed by the commission, noninterconnected utilities shall maintain, at a minimum, adequate reserve capacity to cover the loss of the utility's largest generating unit. Generating capacity assigned to interruptible customers may be considered for reserve capacity determination.

(d) Before entering into a contract with a regulated utility for the purchase of energy, including electrical energy or capacity, natural or manufactured gas, diesel oil or gasoline, or any other fuel source, for a term exceeding 12 months, a utility shall request commission approval in accordance with 3 AAC 48.200 - 3 AAC 48.390 and provide the following information:

(1) a copy of the proposed contract;

(2) the load forecasting data that justifies the need for the contract; and

(3) documentation that the proposed contract is the most feasible means available to the utility for meeting the forecasted load.

(e) Upon entering into a contract with a nonregulated vendor, other than a contract with a qualifying facility as defined in 3 AAC 50.820(11) , for the purchase of energy, including electrical energy or capacity, natural or manufactured gas, diesel oil or gasoline, or any other fuel source, for a term exceeding 12 months, a utility shall file with the commission the following information:

(1) a copy of the contract;

(2) the load forecasting data which justifies the need for the contract; and

(3) documentation that the contract is the most feasible means available for meeting the forecasted load.

History: Eff. 1/1/87, Register 100; am 1/11/2004, Register 169

Authority: AS 42.05.141

AS 42.05.151

AS 42.05.291

AS 42.05.691

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