1. (a) When making a written determination under 3 AAC 106.110 regarding the financial feasibility of a project, the authority will consider

   1. (1) the revenue-generating capability of the project, including the local need for power from the project within any interconnected transmission grid;

   2. (2) whether the applicant has, or will have, sufficient revenue from all sources to

      1. (A) repay the loan;
      2. (B) complete the project; and
      3. (C) operate and maintain the project;
   3. (3) whether the collateral provided is sufficient to secure repayment of the loan, including whether the loan is secured by a means other than by a pledge or revenues of the project;
   4. (4) whether the applicant has obtained regulatory approval for any proposed power sales agreement;
   5. (5) the relationship between the estimated user fees or charges upon completion of the project and the estimated user fees or charges if consumers of services provided by the project would have continued to receive services from existing sources; and;
   6. (6) the relationship between the estimated user fees or charges upon completion of the project and the present or estimated user fees or charges for similar services in the state;

2. (b) When making a determination under 3 AAC 106.120(a)(1) regarding whether to reduce the interest rate for a loan below the interest rate set out in AS 42.45.010(f)(2)(A), the authority will consider

   1. (1) the criteria identified in (a) of this section;
   2. (2) for electric power projects, whether and the amount by which the local cost of energy exceeds the weighted average retail residential rate in Anchorage, Fairbanks, and Juneau under AS 42.45.110(c)(2);
   3. (3) the financial impact on nonindustrial ratepayers expected to use energy or heat produced by the project;
   4. (4) whether the project will provide immediate benefits to support the stability and sustainability of local energy or heat systems, including replacement of failing generation systems; and
   5. (5) whether the project will help meet new load demands or diversify the local energy system's energy resource portfolio.

(Eff. 4/8/2015, Register 214)