Comments by StevenPorter
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Posted on April 10 at 10:07 p.m. (Suggest removal)
Your question about the 20 "must haves" is an important one. The "must haves" can be broken down into four groups.
1) Those that really belong in the RFA and not in the statute or those that only apply to an AGIA applicant:
AS 43.90.130(1) - deadline for filing an application
AS 43.90.130(2) - describe the project proposal
AS 43.90.130(8) - explain the ownership of the gas treatment plant
AS 43.90.130(9) - propose the percentage and dollar amount for the State's reimbursement
AS 43.90.130(11) - describe the means of preventing cost overruns
AS 43.90.130(16) - waive the right to appeal the State's decisions
AS 43.90.130(18) - commit that the state's reimbursement won't be included in the applicant's rate base
AS 43.19.130(19) - provide a detailed description of the applicant and its partners
AS 43.90.130(20) - demonstrate the applicants readiness to perform the activities specified in the application
2) Those that all applicants will probably agree to perform:
AS 43.90.130(3)(B)- commitment to use the FERC prefiling procedures
AS 43.90.130(8) - seek FERC jurisdiction over the gas treatment plant
AS 43.90.130(12) - commit to a minimum of 5 delivery points
AS 43.90.130(13(B) - commit to comply with the federal law that requires distance-sensitive rates
AS 43.90.130(14) - commit to establish a local headquarters in Alaska
AS 43.90.130(15) - commit to local hire and contracting
AS 43.90.130(17) - commit to negotiate project labor agreements
3) Those that require the applicant to do something by a certain date:
AS 43.90.130(3)(A) - conduct a binding open season within 36 months
AS 43.90.130(3)(C) - apply for a FERC certificate of public convenience and necessity by a certain date.
AS 43.90.130(4)(A) - if the project is subject to the RCA conduct a binding open season within 36 months
AS 43.90.130(4)(B) - apply for an RCA certificate of public convenience and necessity by a certain date.
AS 43.90.130(5)- assess market demand for additional capacity at least every two years.
4) Those that the applicant might not otherwise do unless obligated by the state:
AS 43.90.130(6) - commit to expand the project in reasonable engineering increments.
AS 43.90.130(7) - commit to propose rolled-in rates for expansions.
AS 43.90.130(13)(A) - commit to offer firm transportaion service for in state regardless of whether any shipper bid for it.
The above is a representative analysis of the requirements of AGIA. People can differ on which category they would place a "must have" in, but the important thing to remember is that not all AGIA "must haves" are equal. Almost half the AGIA "must haves" don't apply to a non-AGIA project proposal.
As we evaluate the different proposals it is important to understand how each proposal benefits the people of Alaska and what risks they subject the State to by complying or not complying with the "must haves."
Steve Porter
Page 1 of 1
Posted on May 31 at 4:45 p.m. (Suggest removal)
I agree that the ideal success scenario is a partnering between TransCanada and the producers.
One way to reduce the risk of the withdrawn partner issue is to have the producers own 100% of the pipeline in Alaska and TransCanada own some or all of the pipeline in Canada.
On Statements and promises