(a) A precedent agreement or contract entered into by a public utility with the Alaska Gasline Development Corporation or its successors or assigns may contain a covenant for the public utility to establish, charge, and collect rates sufficient to meet its obligations under the contract. If the precedent agreement associated with the contract is approved by the commission under Alaska Stat. Chapter 42.08, the rate covenant in the associated contract is valid and enforceable.
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Terms Used In Alaska Statutes 42.05.433

  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Precedent: A court decision in an earlier case with facts and law similar to a dispute currently before a court. Precedent will ordinarily govern the decision of a later similar case, unless a party can show that it was wrongly decided or that it differed in some significant way.
(b) A public utility negotiating to purchase natural gas to be shipped through an in-state natural gas pipeline regulated under Alaska Stat. Chapter 42.08 shall submit the contract to the commission before the contract takes effect.
(c) A public utility negotiating to contract for the storage of natural gas shipped in an in-state natural gas pipeline regulated under Alaska Stat. Chapter 42.08 shall submit the contract to the commission before the contract takes effect.
(d) The commission shall review and may conduct an investigation and hearing to determine whether a contract submitted under (b) or (c) of this section is just and reasonable. The review and determination shall be conducted as provided in Alaska Stat. § 42.08.320(b) – (d). The commission shall either approve the contract as presented or, if the commission finds that a contract is not just and reasonable, disapprove the contract. Notwithstanding Alaska Stat. § 42.05.175, if the commission has not acted within 180 days after the contract is submitted, the contract shall be considered approved and shall take effect immediately. The commission may, by order, extend the 180-day review period by the duration of a delay caused by a failure of the public utility to submit supplemental information that is available to the public utility. A contract that is approved or considered approved under this section is not subject to further review by the commission.
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