1. (a) An application for certification as an electric reliability organization must include

   1. (1) the applicant's mailing address, business telephone number, electronic mail address, legal name and name under which it proposes to do business, and if applicable, business address and facsimile number;

   2. (2) the applicant's type of business structure, including

      1. (A) proof of incorporation, registration, or certification, if applicable;
      2. (B) the name, mailing address, telephone number, and electronic mail address of the applicant's registered agent, if applicable;
      3. (C) an organization chart detailing the applicant's organizational structure; and
      4. (D) a description of the applicant's expected personnel positions, including key management, financial, and technical positions;
   3. (3) the name, title, telephone number, mailing address, and electronic mail address of the individual who is available to provide the commission with information about the application;
   4. (4) a verification signed by a person authorized to sign on behalf of the applicant that information provided in the application is true, accurate, and complete;
   5. (5) a list of qualifications of directors, and of employees or committee members, if available, who satisfy the requirements of 3 AAC 46.460(a)(1);

   6. (6) a proposed tariff that includes at a minimum the provisions of 3 AAC 46.360(a)(1) - (3), (5), and (6) and a plan for completing the proposed tariff; a plan filed for completing a proposed tariff must include

      1. (A) a list of anticipated tariff provisions, including provisions that are in addition to those required by 3 AAC 46.360(a), if applicable;
      2. (B) a work plan and budget for developing the items in (A) of this paragraph, including proposed dates of filing; and
      3. (C) the applicant's process, consistent with AS 42.05.762(3)(D), for developing reliability standards, including a description of how the applicant will identify and directly notify potentially affected parties so that they can participate in the organization's reliability standards development process;
   7. (7) the location in this state where the applicant's books, accounts, papers, and records will be held;
   8. (8) a code of conduct or other document establishing expectations for ethical conduct that satisfies the requirements of 3 AAC 46.110;
   9. (9) the applicant's rules that comply with the requirements of AS 42.05.762(3)(C);
   10. (10) if different from the requirements of 3 AAC 46.160(c), a proposed method of allocating administrative costs to load-serving entities served by the electric reliability organization;

   11. (11) proposed rules that ensure that the electric reliability organization is able to comply with the requirements of AS 42.05.762 and the commission's exercise of its authority under AS 42.05.767; the proposed rules must include

       1. (A) processes for amending the rules that implement AS 42.05.762(3);
       2. (B) board and each committee's voting procedures;
       3. (C) rules governing the scheduling, noticing, and conduct of public meetings and executive sessions and that satisfy the requirements of 3 AAC 46.460(a)(4)(K) and (L) and (5); and
       4. (D) rules required by 3 AAC 46.460(a);
   12. (12) a narrative explaining the applicant's proposed rules that, separately and in totality, ensure compliance with the requirements of AS 42.05.762(3);

   13. (13) the applicant's proposed

       1. (A) board member required qualifications; and
       2. (B) criteria for determining a board or committee member's ability to contribute to the technical support required under 3 AAC 46.460(a)(l);
   14. (14) a narrative explaining the applicant's technical ability to satisfy the requirements of AS 42.05.762(1) and (2);
   15. (15) a description of committees and their responsibilities;
   16. (16) a board and executive compensation plan, if applicable; and

   17. (17) a proposed plan for developing and filing the electric reliability organization's initial integrated resource plan; the proposed plan must contain

       1. (A) a work plan and budget for satisfying the requirements of the integrated resource plan, including a proposed date of filing; and
       2. (B) the applicant's process, consistent with AS 42.05.762(3)(D), for developing the integrated resource plan, including a description of how the applicant will identify and directly notify potentially affected parties so that they can participate.
2. (b) In addition to the application information required under this section, the commission may require that the applicant provide supplemental or clarifying information that the commission determines is necessary.
3. (c) In its order approving the application, the commission will require an electric reliability organization to file an initial tariff as a new tariff filing.
4. (d) An applicant that seeks certification with an independent board under AS 42.05.762(4)(B)(i) or combination independent and balanced stakeholder board under AS 42.05.762(4)(B)(iii) must describe its processes to remove and replace a director that fails to meet the requirements of 3 AAC 46.070(a).

5. (e) Except as provided in (f) of this section, an applicant that seeks certification with a balanced stakeholder board under AS 42.05.762(4)(B)(ii) or combination independent and balanced stakeholder board under AS 42.05.762(4)(B)(iii) must provide the following:

   1. (1) a table listing each director's designated stakeholder class;
   2. (2) an explanation why each director listed in (1) of this subsection has sufficient association with, is drawn from, and understands and can articulate the interests of its designated stakeholder class;
   3. (3) an explanation of the process by which each director designated to a stakeholder class was selected;
   4. (4) an explanation of how the applicant's stakeholders are classified;
   5. (5) a description of additional factors identified under 3 AAC 46.060(d)(l)(C)(iv) that the applicant believes importantly and differentially affect stakeholder interests;
   6. (6) a description of whether and, if so, how each factor in 3 AAC 46.060(d)(l) differentially affects stakeholder interests in reliability standards, standards set out in AS 42.05.770(1), or integrated resource plans, and the resultant stakeholder classification described in (4) of this subsection;
   7. (7) an explanation, that considers the distinguishing consequences that the applicant describes in (6) of this subsection, of which stakeholder classes were determined to require designated board members;
   8. (8) an explanation of why some stakeholder classes lack designated directors that satisfy the criteria in 3 AAC 46.060(b)(3), if applicable;
   9. (9) an explanation of mechanisms to ensure that the relevant interests of stakeholder classes without designated directors that satisfy the criteria in 3 AAC 46.060(b)(3) will be adequately considered; these mechanisms may include composition or independence of technical advisory committees, electric reliability organization staffing, programs to recruit qualified directors for future board membership, or other means;
   10. (10) an explanation of how voting procedures for the board and its committees help to avoid undue amplification or attenuation of stakeholder class interests;
   11. (11) an explanation of how the applicant satisfies the requirements of 3 AAC 46.060(b)(4)(B), through committee composition and procedures, levels of director compensation, levels of electric reliability organization staffing, or other electric reliability organization mechanisms and structures;
   12. (12) a description of the electric reliability organization's procedures to meet the requirements of 3 AAC 46.060(b)(5);
   13. (13) if the application is for a combination independent and balanced stakeholder board formed under AS 42.05.762(4)(B)(iii), a description of processes to remove and replace a director that fails to meet the requirements of 3 AAC 46.070(a); and
   14. (14) additional information that makes specific reference to the factors set out in 3 AAC 46.060(d).

6. (f) If the applicant files its application under 3 AAC 46.080(a),

   1. (1) the commission will waive the filing requirements of (e)(4) - (10) of this section; and

   2. (2) the applicant must submit

      1. (A) an explanation of how its classification of its stakeholders is consistent with 3 AAC 46.080(a)(l); and
      2. (B) a declaration of the numerical value, as calculated under 3 AAC 46.080(a)(2)(D), of each director's provider interest and consumer interest.
7. (g) If an applicant proposes a classification that includes a hybrid stakeholder class, the applicant must provide an explanation of why the relevant hybrid stakeholder interests cannot be adequately presented or considered if the hybrid stakeholders are exclusively classified as a provider stakeholder or consumer stakeholder.
8. (h) The commission will consider an application in a docket of investigation under the procedures set out in 3 AAC 48.645.

(Eff. 3/11/2022, Register 241)

Authority: AS 42.05.141, AS 42.05.760, AS 42.05.770, AS 42.05.151, AS 42.05.762