Alaska § 42.45.180 - Grants for utility improvements.

§ 42.45.180. Grants for utility improvements.

 (a) The authority may make a grant from the fund for an eligible utility for a small power project that will reduce the cost of generating or transmitting power to the customers of the utility. The amount of the grant may not exceed 75 percent of the cost of the project. The authority may not make a grant under this section unless the eligible utility has secured financing for 25 percent of the cost of the project from a source other than the power cost equalization and rural electric capitalization fund, as provided under (c) of this section.

 (b) The authority may not allocate more than three percent of the balance in the fund to grants under this section in a fiscal year.

 (c) In determining whether an eligible utility has secured financing for 25 percent of the cost of the project from a source other than the power cost equalization and rural electric capitalization fund, the authority shall accept solicited and unsolicited proposals for third party financing or for a joint venture between the utility and an entity from the private sector provided that the private sector participant has        (1) a valid state business license;

 (2) a resolution or letter of agreement executed by the eligible utility agreeing to participation by the private sector participant;

 (3) a business plan that illustrates how the proposed project will reduce the cost of generating or transmitting power to the customers of the utility.

 (d) In this section,        (1) “eligible utility” has the meaning given in AS 42.45.150 ;

 (2) “project” includes             (A) power generation systems;

 (B) transmission systems;

 (C) distribution systems;

 (D) metering systems;

 (E) energy store systems;

 (F) energy conservation programs; and

 (G) bulk fuel storage facilities;

 (3) “small power project” means a new or modified project that will either generate, store, or conserve no more than 1.5 megawatts of power or provide a metering system, transmission system, distribution system, or bulk fuel storage facility that has an estimated cost of less than $3,000,000.