HB 164 — An Act relating to a net metering program; relating to reduced rates in the form of credits for consumer-generators; establishing a net metering reimbursement fund; and providing for an effective date.

34-GH1571\N34-GH1571\A CS FOR HOUSE BILL NO.

164(ENE)164 IN THE LEGISLATURE OF THE STATE OF ALASKA THIRTY-FOURTH LEGISLATURE - SECOND SESSION BY THE HOUSE SPECIALRULES COMMITTEE ONBY ENERGYREQUEST Referred:OF THE GOVERNOR Introduced:

Finance3/28/25 Sponsor(s):Referred:

HOUSEHouse RULESSpecial COMMITTEECommittee BYon REQUESTEnergy, OFFinance THE GOVERNOR A BILL FOR AN ACT ENTITLED "An Act relating to a net metering;metering program;

HB0164bHB0164a -1- CSHBHB 164(ENE)164 New Text Underlined [DELETED TEXT BRACKETED] 34-GH1571\N34-GH1571\A * Sec.

AS 42.05.391(a), as amended by sec.

1 of this Act, is amended to read:

(a) Except as provided in AS 42.05.306 [AND 42.05.395], a public utility may not, as to rates, grant an unreasonable preference or advantage to any of its customers or subject a customer to an unreasonable prejudice or disadvantage.

A public utility may not establish or maintain an unreasonable difference as to rates, either as between localities or between classes of service.

A municipally owned utility may offer uniform or identical rates for a public utility service to customers located in different areas within its certificated service area who receive the same class of service.

Any uniform or identical rate shall, upon complaint, be subject to review by the commission and may be set aside if shown to be unreasonable.

* Sec.

3.

(a) A load-serving entity that is served by an electric reliability organization and has total retail sales exceeding 5,000,000 kilowatt- hours during a calendar year shall provide a net metering service that (1) on a monthly basis, credits a consumer-generator's account in an amount equal to the consumer's excess electric energy generation multiplied by the rate per kilowatt-hour that would apply if the consumer werewas not a consumer-consumer-generator; generator;

in this paragraph, the rate per kilowatt-hour may be a seasonal or time-of-time-of-use use rate;

and (2) allows a consumer-generator to accrue and use account credit for the consumer-generator's own consumption on an annual cycle that ends March 31 of each year, after which date all accrued and unused credit expires.

(b) A consumer-generator may elect to receive net metering service under this section for generating capacity installed before AprilJuly 1, 2027,2025, or continue to receivecontinue receiving service under tariff terms in effect when the generating capacity was installed.

(c) A load-serving entity may not limit consumer-generator participation in the net metering service within theits load-serving entity's service territory unless the commission, after a hearing, finds that the limitation is necessary to protect system reliability or to prevent rates for customers that are not consumer-generators from being unjust and unreasonable.

(d) A load-serving entity thatproviding provides a net metering service may apply to the Alaska Energy Authority under AS 42.45.015 to seek torecovery recoverof revenue losses CSHBattributable 164(ENE)to -2-the HB0164bentity's Newnet Textmetering Underlinedservice [DELETEDby TEXTapplication BRACKETED] 34-GH1571\N attributable to the entity'sAlaska netEnergy meteringAuthority service.under AS 42.45.015.

(e) IfThe fundscommission areshall notadopt availableregulations into theimplement netthis meteringsection reimbursementthat, fundat establisheda underminimum, ASestablish 42.45.015standards and revenueprocedures lossesfor attributablecalculating to a load-serving entity's netrevenue meteringlosses serviceeligible would require the entity to request approval from the commission to increase rates for customersrecovery whounder are(d) not consumer-generators by more than two percent annually, the entity may request approval of thethis commissionsection. to modify rates for consumer-generators.

A(f) rateIn modification under this subsectionsection, may(1) not"consumer" increasemeans ratesa forcustomer consumer-generatorsof morean thanelectric isutility necessarythat toconsumes avoidelectricity increasingpurchased ratesfrom bythe moreelectric thanutility; two percent annually for customers who are not consumer- generators.

(f)(2) A"consumer-generator" consumer-generatormeans maya notconsumer electthat togenerates receiveelectric netenergy metering(A) serviceon underpremises thisowned sectionby, forleased generatingby, capacityrented installedto, on or afterlicensed Aprilto 1,the 2037.consumer at a location where an electric utility provides service;

AHB consumer-164 generator-2- mayHB0164a onlyNew continueText toUnderlined receive[DELETED netTEXT meteringBRACKETED] service34-GH1571\A under(B) thisthat sectionhas (1)a until April 1, 2037, for generating capacity installedof before25 Aprilkilowatts 1,or 2030;less;

or(C) (2)through fora upgeneration tosystem seventhat yearsproduces after the generatingelectric capacityenergy wasfrom installed,solar forphotovoltaic generatingand capacitysolar installedthermal onenergy, wind energy, biomass energy, hydroelectric energy, geothermal energy, hydrokinetic energy, ocean thermal energy, or afterother Aprilrenewable 1,energy 2030source andthat beforehas Aprila 1,similar 2037.environmental impact;

(g)(D) Thethat commissionis shallinterconnected adopt regulations to implement this section that, at a minimum, establish standards and proceduresoperates forin calculatingparallel awith load-servingthe entity'sload- revenueserving lossesentity; eligible for recovery under (d) of this section.

(h)and The(E) commission may not adopt a regulation that limitsoffsets participationpart inor aall load-serving entity's net metering service based on the totalconsumer's capacityown ofelectrical generationuse; systems used by consumer-generators participating in the service.

This subsection does not limit the authority of an electric reliability organization or the commission under AS 42.05.760 - 42.05.790.

(i) This section applies only to load-serving entities that are served by an electric reliability organization and have total retail sales exceeding 5,000,000 kilowatt-hours during a calendar year.

(j) In this section, (1) "consumer" means a customer of a load-serving entity who consumes electricity purchased from the load-serving entity;

HB0164b -3- CSHB 164(ENE) New Text Underlined [DELETED TEXT BRACKETED] 34-GH1571\N (2) "consumer-generator" means a consumer who generates electric energy (A) on premises owned by, leased by, rented to, or licensed to the consumer at a location where a load-serving entity provides service;

(B) through a generation system (i) with a capacity of 25 kilowatts or less;

(ii) that produces the electric energy from solar photovoltaic and solar thermal energy, wind energy, biomass energy, hydroelectric energy, geothermal energy, hydrokinetic energy, ocean thermal energy, or other renewable energy source that has a similar environmental impact;

and (iii) that is interconnected and operates in parallel with the load-serving entity;

and (C) that offsets part or all the consumer's own electrical use;

4.3.

AS 42.4542.05 is amended by adding a new section to read:

(c) Subject to appropriation, the authority may make payments from the fund to a load-serving entity eligible for recoverable costs under AS 42.05.395 and implementimplementing regulations adopted by the Regulatory Commission of Alaska.

5.4.

ASThis 42.05.395Act andtakes ASeffect 42.45.015July are repealed April 1, 2044.2025.

CSHBHB0164a 164(ENE)-3- -4-HB HB0164b164 New Text Underlined [DELETED TEXT BRACKETED] 34-GH1571\N * Sec.