00                 SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 122                                                              
01 "An Act relating to electric and telephone cooperatives, including expansion activities                                 
02 and political activities of certain large electric and telephone cooperatives that are                                  
03 exempt from regulation; and providing for an effective date."                                                           
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1.  AS 10.25.010 is amended by adding new subsections to read:                                           
06            (c)  An unregulated electric or telephone cooperative that has more than 30,000                              
07       members may only include the cost of expansion activity in its rates to a member if the                           
08       cooperative, before including the cost in the rates,                                                              
09                 (1)  advised its members that a portion of the rates would be used for                                  
10       expansion activities;                                                                                             
11                 (2)  identified for members how much of the rate would be used for                                      
12       expansion activities;                                                                                             
13                 (3)  advised members that the cooperative would not discriminate                                        
14       against or refuse to serve a member who opposed including the cost of expansion                                   

01       activity in rates; and                                                                                            
02                 (4)  received approval of a majority of the cooperative's board of                                      
03       directors for including the cost of expansion activity in rates.                                                  
04            (d)  An unregulated electric or telephone cooperative that has more than 30,000                              
05       members may only include the cost of political activity in its rates to a member if the                           
06       cooperative, before including the cost in the rates,                                                              
07                 (1)  advised its members that a portion of the rates would be used for                                  
08       political activities;                                                                                             
09                 (2)  identified for members how much of the rate would be used for                                      
10       political activities;                                                                                             
11                 (3)  advised members that the cooperative would not discriminate                                        
12       against or refuse to serve a member who opposed including the cost of political                                   
13       activity in rates; and                                                                                            
14                 (4)  received approval of a majority of the cooperative's board of                                      
15       directors for including the cost of political activity in rates.                                                  
16            (e)  This section may not be construed to modify or change the provisions of                                 
17       AS 15.13.                                                                                                         
18            (f)  In this section,                                                                                        
19                 (1)  "expansion activity" means an activity that is intended to attract                                 
20       customers for service to an electric or telephone cooperative from customers of                                   
21       another public utility;                                                                                           
22                 (2)  "political activity" means an activity intended to advocate for a                                  
23       political or policy position not directly related to the certificated services of the                             
24       cooperative;                                                                                                      
25                 (3)  "unregulated electric or telephone cooperative" means an electric                                  
26       or telephone cooperative that is exempt from regulation under AS 42.05 under the                                  
27       provisions of AS 42.05.711 and includes a cooperative that is subject to AS 42.05.221                             
28       - 42.05.281.                                                                                                      
29    * Sec. 2.  AS 42.05.381 is amended by adding a new subsection to read:                                             
30            (k)  An unregulated telephone or electric cooperative, as defined in                                         
31       AS 10.25.010, that has more than 30,000 members may only include the cost of                                      

01       expansion activity or political activity, as defined in AS 10.25.010, in its rates if it has                      
02       complied with AS 10.25.010.                                                                                       
03    * Sec. 3.  This Act takes effect immediately under AS 01.10.070(c).