1. (a) To ensure that the electric reliability organization and its directors act independently of the users, owners, and operators of the interconnected electric energy transmission network, directors, employees, and members of committees shall abide by rules that must, at a minimum, include

   1. (1) explicit prohibitions of

      1. (A) the use of electric reliability organization equipment or tools for unauthorized projects or activities;
      2. (B) payment or acceptance of bribes, kickbacks, or other improper payments while conducting the business of the electric reliability organization; and
      3. (C) the use of position, title, or employment status at the electric reliability organization to exert inappropriate influence for personal gain or benefit, or the gain or benefit of an individual's employers;

   2. (2) explicit requirements

      1. (A) to faithfully pursue the interests of the electric reliability organization; the requirements must include duties to

         1. (i) provide impartial consideration of, and due weight to, the interests of all stakeholder classes, regardless of whether a given stakeholder class has a designated director on the board;
         2. (ii) exercise first loyalty to the mission of the electric reliability organization, rather than the interest of a particular stakeholder class;
         3. (iii) refrain from promoting the director's own financial or other interests or the interests of a particular person or organization; and
         4. (iv) act in a manner consistent with the electric reliability organization's bylaws, code of conduct, policies, and procedures;
      2. (B) for recusal of a person from voting on an alleged violation of a reliability standard by, or on an associated penalty on, the person's employer; and
      3. (C) to provide a public, written explanation addressing how interests articulated in the development of a rule, reliability standard, or integrated resource plan were considered and balanced, and to which a director may append a dissent;

   3. (3) procedures to ensure adherence to the rules that implement the requirements of AS 42.05.762(3)(A); those procedures must include

      1. (A) a process by which an interested person may initiate a complaint alleging a potential violation of those rules; and
      2. (B) processes for implementing sanctions against violations of those rules;
   4. (4) a requirement that an employee of the electric reliability organization not be a voting member of an electric reliability organization certificated under 3 AAC 46.070(a) or (b); and
   5. (5) if the electric reliability organization is governed by a balanced stakeholder board or combination independent and balanced stakeholder board, a requirement that the board may approve a reliability standard, enforcement of a reliability standard, or an integrated resource plan only if the proposed action receives an affirmative vote from directors designated to at least three different stakeholder classes; for purposes of this paragraph, an independent director is designated as a stakeholder class.
2. (b) An electric reliability organization's rules may not preclude an interested member of the public from serving in a non-voting capacity on an advisory committee of the electric reliability organization, subject to reasonable qualification and confidentiality requirements.

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

Authority: AS 42.05.141, AS 42.05.175, AS 42.05.762, AS 42.05.151, AS 42.05.760, AS 42.05.770