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Alaska Certificate of Public Convenience and Necessity (8-AK-c)

Information current as of 2022
In Alaska, a public utility may need a Certificate of Public Convenience and Necessity from the Regulatory Commission of Alaska (the "Commission") before commencing with utility operations and receiving compensation for providing services to customers. A "public utility" or "utility" includes every corporation whether public, cooperative, or otherwise, company, individual, or association of individuals, their lessees, trustees, or receivers appointed by the court, that owns, operates, manages, or controls any plant, pipeline, or system for furnishing, by generation, transmission, or distribution, electrical service to the public for compensation. Alaska Stat. § 42.05.990(6 ). As such, on-site electrical generation does not require a Certificate of Public Convenience and Necessity (CPCN) from the Commission if the load is used entirely on-site. However, a public utility must obtain a CPCN from the Commission in order to sell excess capacity to the electrical grid.

The Commission regulates the construction of electric utilities pursuant to the Alaska Stat. § 42.05 and Alaska Admin. Code, tit. 3 § 48. In addition, activities related to transmission facilities, bulk transmission, and grid interconnection are regulated through Alaska's CPCN process.

Hydropower: The Federal Energy Regulatory Commission (FERC) has jurisdiction over most hydroelectric projects, including primary transmission lines required for the project. However, a developer may need to obtain a CPCN from the Commission for transmission line extension projects. This Certificate of Public Convenience and Necessity process is identical to that process for generation outlined in 7-AK-c .



Certificate of Public Convenience and Necessity Process


8-AK-c.1 - Is the Project Exempt from the Certificate of Public Convenience and Necessity (CPCN) Requirement?

Certain projects may be exempt from Alaska’s Certificate of Public Convenience and Necessity (CPCN) requirement. For example, a plant or facility that generates electricity entirely from renewable energy resources (i.e., wind, solar, geothermal, waste heat recovery, hydrothermal, wave, tidal, river in-stream, or hydropower) is exempt from regulation under the Alaska Stat. § 42.05 if:

  • The plant or facility is first placed into commercial operation on or after August 31, 2010, and before July 1, 2028, and does not generate more than 65 megawatts of electricity;
  • The electricity generated by the plant or facility is sold only to one or more electric utilities that are regulated by the Commission; and
  • The person that constructs, owns, acquires, or operates the plant or facility has not received from the state: (i) a grant that was used to generate the electricity from the renewable energy resources; or (ii) a tax credit related to the generation of electricity from the renewable energy resources. Alaska Stat. § 42.05.711(r).

A joint action agency established under AS 42.45.310 is exempt from regulation under the Alaska Stat. § 42.05, including the requirement to obtain a Certificate of Public Convenience and Necessity (CPCN) under Alaska Stat. § 42.05.221, for the operation of, sale of power from, and other activities related to the power project the joint action agency purchases from the Alaska Energy Authority until the wholesale agreement and any related contract assigned by the authority becomes subject to review or approval by the Commission under Alaska Stat. § 42.05.431. A joint action agency is formed by two or more public utilities that purchase power from a power project acquired or constructed as part of the former energy program for Alaska and owned by the Alaska Energy Authority. Alaska Stat. § 42.45.310. The exemption extends to repairs and improvements to the power project the joint action agency purchases from the authority but does not extend to any other power project or other activity of the joint action agency. Alaska Stat. § 42.05.711(o).

The Commission may also exempt a utility, a class of utilities, or a utility service from all or a portion of the Alaska Public Utilities Regulatory Act if the Commission determines that an exemption is in the public interest. Alaska Stat. § 42.05.711(d).

8-AK-c.2 - No CPCN Required; Continue with Project

If the project falls within an exemption listed in Alaska Stat. § 42.05.711, the developer is not required to obtain a CPCN under the Alaska Stat. § 42.05.

8-AK-c.3 - Arrange for Publication of Notice in Newspaper

If the developer is required to apply for and obtain a CPCN, the developer should arrange for notice of the CPCN application to be published in a newspaper of general circulation within the state. Alaska Admin. Code tit. 3 § 48.648(e) requires that a developer submit a purchase order, demonstrating that the developer has arranged for the publication of notice, with the developer’s CPCN Application.


8-AK-c.4 - Application for a Certificate of Public Convenience and Necessity (CPCN)

To obtain a CPCN, the developer must submit to the Commission a CPCN Application, a proposed Notice of the developer’s application, and a purchase order demonstrating that the developer has arranged for notice of the Application to be published in a newspaper of general circulation within the state. The proposed Notice of the application must include the following:

  • General description of the service proposed by the application;
  • Request that interested parties file public comments with the Commission at the address specified in the notice;
  • Deadline for the public comment period of 21 days from the date of publication of the notice;
  • Statement that indicates whether any motions for waiver or petitions for confidentiality will be filed with the application, along with a description of the information subject to the motion for waiver or petition for confidentiality;
  • The developer’s mailing address and telephone number;
  • The Commission's mailing address and website address;
  • Statement that the Commission has not determined whether the application is complete;
  • Statement of the deadline for the Commission to determine whether the application is complete; and
  • Statement that the Application will be available for review at the offices of the Commission upon filing, along with a statement of the date that the application will be filed with the Commission. Alaska Admin. Code tit. 3 § 48.648(e).

8-AK-c.5 – Publish Notice of Developer’s CPCN Application

Within five (5) days after the developer files a CPCN Application, the Commission arranges for notice of the Application to be published in a newspaper of general circulation within the state. Alaska Admin. Code tit. 3 § 48.648(f). The published notice invites interested members of the public to comment on the developer’s CPCN Application and announces that any person proposing to file an application to furnish the same or similar services must file an application within 30 days of the date the original application is noticed to the public. Alaska Admin. Code tit. 3 § 48.645(b).

8-AK-c.6 – Comment on Developer’s CPCN Application

Interested members of the public have 21 days to comment on the developer’s CPCN Application. See Alaska Admin. Code tit. 3 § 48.648(e)(3).

8-AK-c.7 – Is the Developer’s CPCN Application Complete?

An Application is considered complete when filed with the Commission, unless:

  • The Commission rejects it as incomplete within 15 business days of filing (see Alaska Admin. Code tit. 3 § 48.650(a);
  • Accompanies a request from the developer to waive a filing requirement, and the Commission denies the developer’s request;
  • Accompanies a petition from the developer for confidential treatment that is subsequently denied by the Commission, and the records filed under seal are withdrawn under the procedures stated at Alaska Admin. Code tit. 3 § 48.047; or
  • Does not include a proposed public notice of the Application that complies with (e) of this section.

Alaska Admin. Code tit. 3 § 48.648(b).

The Commission may dismiss an application that:

8-AK-c.8 - Order Explaining Dismissal for Incompleteness

If the Commission determines that the developer’s CPCN Application is incomplete, the Commission will issue an order explaining why the Application is being dismissed. Alaska Admin. Code tit. 3 § 48.650 (2012 Supplement).


8-AK-c.9 – Order Finding Application Complete

If the Commission determines that the developer’s CPCN Application is complete, the Commission issues an order finding the Application to be complete. See Alaska Admin. Code tit. 3 § 48.652.

8-AK-c.10 to 8-AK-c.11 – Does the Commission Require Supplemental or Clarifying Information?

After the Commission issues an order finding the developer’s CPCN application complete, the Commission may require that the developer submit supplemental or clarifying information the Commission determines is necessary in order for the Commission to reach a decision on the application. The developer must respond to the Commission’s request for additional information on or before the date specified in the Commission’s request. Alaska Admin. Code tit. 3 § 48.652.

8-AK-c.12 - Issue Final Order

The Commission must issue a final order, approving or disapproving the developer’s Application for a CPCN, no later than 180 days after the Commission determines the developer’s Application is complete. Alaska Stat. § 42.05.175.


8-AK-c.13 – Appeal Commission’s Decision (If Applicable)

Any interested party not satisfied with the Commission’s decision may file a notice of appeal within 30 days of the date on which the Commission issues the final order. All final orders of the Commission are subject to judicial review in accordance with Alaska Stat. § 44.62.560 – 44.62.570.


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