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SSHB 122: "An Act relating to electric and telephone cooperatives, including expansion activities and political activities of certain large electric and telephone cooperatives that are exempt from regulation; and providing for an effective date."

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).