00 HOUSE BILL NO. 37 01 "An Act relating to the net metering of electric energy for electric utilities subject to 02 economic regulation by the Regulatory Commission of Alaska and for a utility's retail 03 consumers; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05  * Section 1. AS 42.05 is amended by adding a new section to read: 06 Sec. 42.05.686. Net metering of electrical energy. (a) This section applies to 07 every electric utility that is subject to exercise of the jurisdiction of the commission 08 that extends to matters concerning rates and charges for public utility services. 09 (b) The commission may modify or waive a requirement in this section, in 10 whole or in part, by order. The commission may act on an application for modification 11 or waiver and a showing of good cause or on the commission's own motion. An 12 application for modification or waiver under this section must be in writing and must 13 set out the pertinent facts in sufficient detail to support a finding by the commission 14 that no legitimate public interest will be served by enforcing the requirement 01 designated in the application. Under the authority set out in this subsection, the 02 commission may not modify or waive a requirement in another provision of AS 42.05. 03 (c) The commission may adopt by regulation additional requirements 04 pertaining to safety, power quality, and interconnection standards for consumer 05 generation systems participating in the net metering program if the commission 06 considers the requirements to be necessary to protect public safety and system 07 reliability. 08 (d) This section does not apply to the following systems of an electric utility 09 that is otherwise subject to exercise of the jurisdiction of the commission described in 10 (a) of this section: 11 (1) an independent electric system owned and operated by an electric 12 utility if 13 (A) except for fossil fuel generation for standby and emergency 14 power, 100 percent of the independent electric system's power is supplied by a 15 facility described in (l)(1) of this section; or 16 (B) the independent system had total retail sales of less than 17 5,000,000 kilowatt-hours during the previous calendar year; or 18 (2) any portion of the distribution system of the electric utility if and to 19 the extent the electric utility demonstrates to the commission that limiting net metering 20 installations in that portion of its distribution system is reasonably necessary to 21 address system stability constraints or other operational issues. 22 (e) Except as provided in (f) or (j) of this section, an electric utility subject to 23 this section shall 24 (1) make a net metering program available to each of its retail 25 consumers that requests interconnection; and 26 (2) allow eligible consumer generation systems complying with (l) of 27 this section to be interconnected to the electric utility's facilities in accordance with 28 interconnection standards approved or accepted by the commission. 29 (f) An electric utility may refuse to interconnect with a consumer that requests 30 net metering if interconnection would cause the total nameplate capacity of all eligible 31 consumer generation systems participating in the net metering program to exceed 1.5 01 percent of the electric utility's average retail demand. The utility shall notify the 02 commission if it refuses to interconnect with a potential net metering consumer under 03 this subsection. 04 (g) An electric utility that has a decrease in average retail demand that results 05 in the total nameplate capacity of eligible consumer generation systems exceeding 1.5 06 percent of average retail demand shall allow existing net metering consumers to 07 continue participating in the net metering program. 08 (h) By March 1 of each year, an electric utility shall submit a tariff filing 09 stating the number of kilowatts equivalent to 1.5 percent of the electric utility's 10 average retail demand for the previous calendar year and the total nameplate capacity 11 of eligible consumer generation systems participating in the net metering program at 12 the time of filing. The commission may require the filing to be made using a tariff 13 advice letter with accompanying tariff sheet. 14 (i) An electric utility may submit a tariff filing requesting an increase in the 15 limit on total nameplate capacity of eligible consumer generation systems participating 16 in the net metering program above 1.5 percent of the electric utility's average retail 17 demand. The commission may require the filing to be made using a tariff advice letter. 18 (j) An electric utility may deny participation in a net metering program to an 19 electric consumer that 20 (1) participates in another program if the program allows the consumer 21 to collect, through voluntary contributions from other participating consumers of the 22 utility, more than the non-firm power rate a kilowatt-hour for the sale of electric 23 energy; or 24 (2) sells electric energy under an existing contract if the contract 25 allows the consumer to collect more than the non-firm power rate a kilowatt-hour for 26 the sale of electric energy. 27 (k) An electric utility may install additional metering equipment for net 28 metering consumers. The electric utility 29 (1) is responsible for all costs related to the purchase, installation, and 30 maintenance of the additional metering equipment; and 31 (2) may not assess a recurring charge for the additional metering 01 equipment. 02 (l) To be eligible for interconnection under a net metering program, a 03 generation system must 04 (1) be a facility that produces electric energy derived from one or more 05 of the following sources: 06 (A) solar photovoltaic and solar thermal energy; 07 (B) wind energy; 08 (C) biomass energy; 09 (D) hydroelectric energy; 10 (E) geothermal energy; 11 (F) hydrokinetic energy; 12 (G) ocean thermal energy; 13 (H) landfill gas or biogas produced from organic matter, 14 wastewater, anaerobic digesters, or municipal solid waste; and 15 (I) other sources, as approved by the commission, that 16 generally have similar environmental effects; 17 (2) be operated and owned or leased by the consumer and 18 (A) have a total nameplate capacity of not more than 25 19 kilowatts for each consumer premises; 20 (B) be located on or adjacent to the consumer's premises; 21 (C) be used primarily to offset part or all of the consumer's 22 requirements for electric energy; and 23 (D) include a device that converts direct current power into 24 alternating current power to ensure the generated power is compatible with 25 power generated by an electric utility; 26 (3) include an electric generator and its accompanying components 27 that connect the electric generator to a utility's electric distribution system, including 28 interface equipment and interface equipment controls, switchgear, inverter, and other 29 interface devices; and 30 (4) be physically interconnected to the consumer's side of the meter 31 from which electric service is provided by the utility to the consumer. 01 (m) Each electric utility with a consumer participating in a net metering 02 program shall measure the net electric energy during each monthly billing period, and 03 (1) if the utility supplied more electric energy to the consumer than the 04 consumer supplied to the utility during the monthly billing period, the electric utility 05 shall bill the consumer for the number of kilowatt-hours of net electric energy supplied 06 by the utility to the consumer at the applicable rates contained in the utility's currently 07 effective tariff; or 08 (2) if the consumer supplied more electric energy to the utility than the 09 utility supplied to the consumer during the monthly billing period, the electric utility 10 shall credit the consumer's account with an amount derived by multiplying the 11 kilowatt-hours of net electric energy supplied by the consumer to the utility by the 12 non-firm power rate contained in the utility's currently effective tariff, unless a 13 different rate has been established in a commission-approved contract; the electric 14 utility shall credit dollar amounts to the account of a net metering consumer for 15 furnishing electric energy to the utility under this paragraph and use the credits to 16 reduce dollar amounts owed by the consumer in subsequent monthly billing periods; 17 the credits do not expire or otherwise revert to the utility. 18 (n) Except as otherwise provided in (m) of this section regarding kilowatt- 19 hour charges, the electric utility may bill a net metering consumer for all applicable 20 charges authorized by the electric utility's approved tariff. 21 (o) An electric utility administering a net metering program may not charge a 22 consumer participating in the net metering program any additional fee for standby, 23 capacity, interconnection, or other net metering expense unless approved by the 24 commission. 25 (p) An electric utility may petition the commission to change electric rate 26 designs, consistent with regulations adopted by the commission, including appropriate 27 rate classes for net metered consumers. The commission shall allow the charge if the 28 utility can demonstrate an adverse material rate effect on utility consumers that do not 29 participate in the net metering program. 30 (q) In this section, 31 (1) "average retail demand" is the number of kilowatts determined by 01 dividing the total retail sales of the utility, measured in kilowatt-hours, for a calendar 02 year 03 (A) with 365 days, by 8,760 hours; or 04 (B) with 366 days, by 8,784 hours; 05 (2) "consumer" means a customer of an electric utility described in (a) 06 of this section that consumes the electricity purchased from the utility; 07 (3) "consumer premises" means all buildings and associated grounds 08 owned or leased by a consumer at a single location where an electric utility provides 09 service through one or more utility meters; 10 (4) "electric system" means an integrated electrical system that 11 includes, at a minimum, generation and distribution of electric energy; 12 (5) "independent electric system" means an electric system that is not 13 interconnected with another electric system; 14 (6) "nameplate capacity" means the maximum rated output of a 15 generator, prime mover, or other electric power production equipment under specific 16 conditions designated by the manufacturer; 17 (7) "net electric energy" means, as metered by the electric utility for a 18 specified period and expressed in kilowatt-hours, the amount by which the quantity of 19 electric energy supplied by the 20 (A) utility to the consumer exceeds the quantity of electric 21 energy supplied by the consumer to the utility; or 22 (B) consumer to the utility exceeds the quantity of electric 23 energy supplied by the utility to the consumer; 24 (8) "non-firm power rate" means the rate updated quarterly in an 25 electric utility's tariff in accordance with regulations adopted by the commission or 26 another non-firm power rate as may be authorized by the commission; 27 (9) "retail sales" means sales of electricity to the end-use consumer, 28 exclusive of any wholesale sales. 29  * Sec. 2. This Act takes effect January 1, 2012.