Claire Knudsen-Latta
73:33 - 74:57
“proposed statutory revisions with HB 381 require that for a project to be eligible for tax abatement under AS 43, 59-010, it must include a spur line to the City of Fairbanks and Fairbanks North Star Borough, and the cost of the spur line must be allocated in a just, reasonable, and not unduly discriminatory manner across all consumers system-wide.”
- Speaker
- Claire Knudsen-Latta
- Timestamp
- 73:33 – 74:57
- Community
- Alaska News
- Location
- Juneau
- Captured at
From the transcript
Slide number 7. Unique to HB 381 is language added to AS 4205 that provides explicit pricing guidelines for gas supply contracts between between utilities and the owner or operator of a gas pipeline advanced, operated, or owned in whole or in part by AGDC. If passed, the price of gas sold in a contract approved by the Commission could not exceed $16 per million British thermal units, or MMBTUs, with annual adjustments for inflation. Additionally, the Commission would be barred from approving any gas supply contracts that required utility customers to assume cost overruns from construction of an Alaska LNG project or included provisions that would increase commission-approved rates if pipeline throughput decreased. Like SB 2001, proposed statutory revisions with HB 381 require that for a project to be eligible for tax abatement under AS 43, 59-010, it must include a spur line to the City of Fairbanks and Fairbanks North Star Borough, and the cost of the spur line must be allocated in a just, reasonable, and not unduly discriminatory manner across all consumers system-wide.
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