RCA says it can review utility costs for LNG import proposals but not facility siting

The House Energy Committee on April 30 heard an update on informational docket I26001, opened by the Regulatory Commission of Alaska to collect data on competing liquefied natural gas (LNG) import proposals for the Kenai area.

John Espindola, chair of the RCA, outlined the docket's history: public meetings in 2025 identified competing proposals from Chugach Electric Association, NSTAR Natural Gas Company and Cook Inlet LNG; the commission voted unanimously on Jan. 28, 2026 to open an informational docket to gather public and confidential material. "This docket is open and we have been provided both public and confidential information by Chugach and NSTAR about the projects they are evaluating," Espindola said.

Espindola told the committee the commission concluded it has jurisdiction to review costs that utilities may seek to recover in rates if those costs are associated with using LNG import facilities, citing FERC precedent in analogous circumstances. "Because FERC has exclusive jurisdiction over the siting, construction, expansion, and operation of LNG import facilities under the Natural Gas Act, we needed to determine whether we had jurisdiction over costs... We concluded we have jurisdiction to do so," he said. He emphasized that while the RCA can assess the prudence of passing costs to ratepayers, it does not have authority to approve or bar construction of LNG terminals.

RCA staff have also requested and received briefing from the utilities on whether the commission can compel utilities to coordinate on a single LNG import facility to maximize efficiency and minimize consumer costs; no decision has yet been made on the extent of that authority. Committee members asked whether conclusions in an informational docket can influence later adjudicatory dockets; Espindola said the informational docket is explicitly designed to gather evidence that may inform whether to open an adjudicatory (U) docket and that any adjudicated decision would be conveyed in a formal commission order.

The committee requested a short tutorial and direct links to I26001 and related dockets; Espindola said staff could provide that as early as the next day. The commission said it is currently evaluating the filed material to determine next steps.