00                            SENATE BILL NO. 143                                                                         
01 "An Act relating to smart meters for natural gas or electric utility service."                                          
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1. AS 42.05 is amended by adding a new section to article 3 read:                                        
04 Sec. 42.05.355. Smart meters. (a) Except as provided in (b) of this section, a                                        
05 utility furnishing natural gas or electrical service may install a smart meter on a                                     
06 customer's premises if the utility sends written notice by first class mail, separate from                              
07 any billing mailing, to the customer's address at least 60 days before installing the                                   
08       smart meter. The notice must                                                                                      
09                 (1)  state the intent of the utility to install a smart meter;                                          
10                 (2)  explain the process for a customer to elect not to have a smart                                    
11       meter installed under (b) of this section; and                                                                    
12                 (3)  explain the fees the utility may charge a customer electing not to                                 
13       have a smart meter installed under (c) of this section.                                                           
14            (b)  A customer may elect not to have a smart meter installed, or require the                                
15       removal of a smart meter, by notifying the utility in writing.                                                    

01 (c)  The commission shall set the maximum surcharge that a utility furnishing                                           
02 natural gas or electrical service may charge a customer who elects to have a smart                                      
03 meter removed or not to have a smart meter installed. The surcharge may include a                                       
04 one-time fee and a monthly fee reflective of the costs incurred by a utility to remove,                                 
05 install, read, maintain, or service the meter of a customer who elects to have a smart                                  
06 meter removed or not to have a smart meter installed. The commission may reduce or                                      
07 eliminate the surcharge under this subsection for individuals who qualify for a public                                  
08       assistance program under AS 43.23.240.                                                                            
09 (d)  A utility shall provide the commission with a copy of the written notice                                           
10       and a list of customers that were notified under (a) of this section.                                             
11 (e)  Unless required by court order or law, a utility furnishing natural gas or                                         
12 electrical service may not disclose a customer's energy use data from a smart meter to                                  
13       a third party without the written consent of the customer.                                                        
14 (f)  A utility furnishing natural gas or electrical service shall ensure data from a                                    
15 smart meter is secured and securely transmitted so that the data cannot be intercepted                                  
16       by a person other than the utility.                                                                               
17 (g)  In this section, "smart meter" means a device that is capable of measuring                                         
18       energy use and recording, storing, and transmitting energy use data.                                              
19    * Sec. 2. AS 42.05.711(b) is amended to read:                                                                      
20 (b)  Except as otherwise provided in this subsection and in (o) of this section,                                        
21 public utilities owned and operated by a political subdivision of the state, or electric                                
22 operating entities established as the instrumentality of two or more public utilities                                   
23 owned and operated by political subdivisions of the state, are exempt from this                                         
24       chapter, other than AS 42.05.221 - 42.05.281, 42.05.355, and 42.05.385. However,                              
25 (1)  the governing body of a political subdivision may elect to be                                                      
26       subject to this chapter; and                                                                                      
27 (2)  a utility or electric operating entity that is owned and operated by a                                             
28 political subdivision and that directly competes with another utility or electric                                       
29 operating entity is subject to this chapter and any other utility or electric operating                                 
30 entity owned and operated by the political subdivision is also subject to this chapter;                                 
31 this paragraph does not apply to a utility or electric operating entity owned and                                       

01       operated by a political subdivision that competes with a telecommunications utility.                              
02    * Sec. 3. AS 42.05.711(e) is amended to read:                                                                      
03 (e)  Notwithstanding any other provisions of this chapter, any electric or                                              
04 telephone utility that does not gross at least $50,000 annually is exempt from                                      
05 regulation under the provisions of this chapter other than AS 42.05.355, unless the                             
06       subscribers petition the commission for regulation under AS 42.05.712(h).                                         
07    * Sec. 4. AS 42.05.711(f) is amended to read:                                                                      
08            (f)  Notwithstanding any other provisions of this chapter, an electric or                                    
09       telephone utility that does not gross at least $500,000 annually may elect to be exempt                       
10       from the provisions of this chapter, other than AS 42.05.221 - 42.05.281 and                              
11       42.05.355, under the procedure described in AS 42.05.712.                                                     
12    * Sec. 5. AS 42.05.711(g) is amended to read:                                                                      
13 (g)  A utility, other than a telephone or electric utility, that does not gross at                                  
14 least $150,000 annually may elect to be exempt from the provisions of this chapter,                             
15 other than AS 42.05.221 - 42.05.281 and 42.05.355, under the procedure described in                                 
16       AS 42.05.712.                                                                                                     
17    * Sec. 6. AS 42.05.711(h) is amended to read:                                                                      
18            (h)  A cooperative organized under AS 10.25 may elect to be exempt from the                                  
19       provisions of this chapter, other than AS 42.05.221 - 42.05.281 and 42.05.355, under                          
20       the procedure described in AS 42.05.712.