Sec. 43.90.170. - Application evaluation and ranking.
(a) The commissioners shall evaluate all applications determined to be complete under AS 43.90.140 , consider public comments received under AS 43.90.160 (a), and rank each application according to the net present value of the anticipated cash flow to the state from the applicant's project proposal using the factors in (b) of this section and weighted by the project's likelihood of success based on the commissioners' assessment of the factors listed in (c) of this section.
(b) When evaluating the net present value of anticipated cash flow to the state from the applicant's project proposal, the commissioners shall use an undiscounted value and, at a minimum, discount rates of two, five, six, and eight percent, and consider
(1) how quickly the applicant proposes to begin construction of the proposed project and how quickly the project will commence commercial operation;
(2) the net back value of the gas determined by the destination market value of the gas and estimated transportation and treatment costs;
(3) the ability of the applicant to prevent or reduce project cost overruns that would increase the tariff;
(4) the initial design capacity of the applicant's project and the extent to which the design can accommodate low-cost expansion;
(5) the amount of the reimbursement by the state under AS 43.90.110(a)(1)(A) and (B) proposed by the applicant under AS 43.90.130(9);
(6) economic value resulting from payments required to be made to the state under the terms of the proposal; and
(7) other factors found by the commissioners to be relevant to the evaluation of the net present value of the anticipated cash flow to the state.
(c) When evaluating the project's likelihood of success, the commissioners shall consider
(1) the reasonableness, specificity, and feasibility of the applicant's work plan, timeline, and budget required to be submitted under AS 43.90.130 , including the applicant's plan to manage cost overruns, insulate shippers from the effect of cost overruns, and encourage shippers to participate in the first binding open season;
(2) the financial resources of the applicant;
(3) the ability of the applicant to comply with the proposed performance schedule;
(4) the applicant's organization, experience, accounting and operational controls, technical skills or the ability to obtain them, and necessary equipment or the ability to obtain the necessary equipment;
(5) the applicant's record of
(A) performance on projects not licensed under this chapter;
(B) integrity and good business ethics; and
(6) other evidence and factors found by the commissioners to be relevant to the evaluation of the project's likelihood of success.