REGULATORY COMMISSION OF ALASKA Notice of Utility Tariff Filing Notice of Utility Tariff FilingThe REGULATORY COMMISSION OF ALASKA (Commission) gives notice that Golden Valley[...]

REGULATORY COMMISSION OF ALASKA - Notice of Utility Tariff Filing

Notice of Utility Tariff Filing

The REGULATORY COMMISSION OF ALASKA (Commission) gives notice that Golden Valley Electric Association, Inc. (GVEA) filed TA382-13, requesting Commission acknowledgement of a Lease Agreement with Petro Star, Inc. (PSI), for PSI to construct two fuel storage tanks with a capacity of 30,000 bbls (barrels) each on GVEA property (lease agreement). GVEA also filed a Storage Operation Agreement with PSI for PSI to provide fuel storage service to GVEA (operation agreement).

Under the lease agreement, GVEA will pay an initial non-refundable fee of $500,000 for PSI's supervision and oversight of the construction of the fuel tanks. Once construction of the first fuel storage tank is complete, GVEA will begin paying PSI a monthly payment of $241,666.67 for 60 months, for an estimated total cost of $14.5 million. The monthly payment amount may be adjusted once the second fuel storage tank is complete to represent actual costs. The lease agreement was made effective October 28, 2024, and is anticipated to be in effect until September 30, 2037, at which time GVEA will have the option of renewing the lease for an additional 10-year term or terminating the lease and purchasing the completed fuel tanks at their remaining depreciated book value.

Under the operation agreement, GVEA will pay PSI a flat monthly fee of $100,000 the date services begin, or October 1, 2025, whichever comes first. Any additional costs will be invoiced to GVEA with a 10 percent markup. The operation agreement takes effect three days after acknowledgement by the Commission and will terminate at (i) the termination or expiration of the lease agreement, (ii) by the mutual agreement of GVEA and PSI, or (iii) as otherwise required by the terms of the operation agreement

This notice does not contain all requested revisions, and the Commission may approve a rate or classification that varies from those proposed. You may obtain more information about this filing by contacting Daniel Heckman, GVEA Regulatory Manager, at PO Box 71249, Fairbanks, AK 99707; phone: (907) 458-5706. The complete filing is also available for inspection at the Commission's office, at 701 West 8^th Avenue, Suite 300, Anchorage, AK 99501; phone: (907) 276-6222, or may be viewed at the Commission's website at http://rca.alaska.gov by typing "TA382-13" in the Find a Matter search box.

To comment on this filing, please file your comments by 5:00 p.m., November 19, 2024, at either the Commission address given above or at its website:

https://rca.alaska.gov/RCAWeb/WhatsNew/PublicNoticesComments.aspx

Please reference TA382-13 and include a statement that you have filed a copy of the comments with GVEA at its address given above. Individuals or groups of people with disabilities, who require special accommodations, auxiliary aids or service, or alternative communication formats, please contact Sam Vukasin at (907) 276-6222, toll-free at 1-800-390-2782, or TTY/Alaska Relay: 7-1-1 or 1-800-770-8973 or send a request via electronic mail to [email protected] by November 12, 2024.

DATED at Anchorage, Alaska, this 5^th day of November, 2024.

REGULATORY COMMISSION OF ALASKA

John Manaois
Engineering Section Manager