00                             HOUSE BILL NO. 31                                                                          
01 "An Act relating to net energy metering for retail electricity suppliers and customers;                                 
02 and providing for an effective date."                                                                                   
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 42.45 is amended by adding a new section to read:                                                 
05            Sec. 42.45.047. Net energy metering. (a) A retail supplier of electricity                                  
06       providing service to residential or commercial customers shall offer to a customer, at                            
07       the same proportional fee as a standard meter, the option of net energy metering that is                          
08       capable of registering the flow of electricity in two directions if the customer owns or                          
09       operates an electric generation facility that                                                                     
10                 (1)  is located on the customer's premises;                                                             
11                 (2)  has a capacity of not more than 25 kilowatts;                                                      
12                 (3)  uses solar, wind, tidal, geothermal, or hydropower as its fuel;                                    
13                 (4)  operates in parallel with the distribution facilities of the retail                                
14       supplier of electricity; and                                                                                      

01                 (5)  is intended primarily to offset part or all of the customer's                                      
02       requirements for electricity.                                                                                     
03            (b)  If, during any billing period, a customer's facility that uses a net energy                             
04       meter generates more energy than the customer consumes, the retail supplier of                                    
05       electricity shall credit the customer in kilowatt-hours, based on the negotiated firm                             
06       purchase power rate paid by the retail supplier for energy, for the excess amount of                              
07       energy and apply the credits to reduce amounts owed by the customer to the retail                                 
08       supplier during the following billing period or periods until the credits are used.                               
09       Credits applied during a billing period must be the oldest credits that a customer has                            
10       generated.                                                                                                        
11            (c)  The customer may sell to the retail supplier of electricity kilowatt-hour                               
12       energy credits described in (b) of this section that are not applied under (b) of this                            
13       section. The customer may sell credits at the negotiated firm purchase power rate paid                            
14       by the retail supplier for energy, as determined and approved by the Regulatory                                   
15       Commission of Alaska for the retail supplier. Credits expire one year after the billing                           
16       period in which the credits were generated.                                                                       
17            (d)  A retail supplier of electricity that is organized as a cooperative under                               
18       AS 10.25 is exempt from the provisions of this section. A cooperative organized under                             
19       AS 10.25 may waive exemption from this section if the majority of its membership                                  
20       votes in favor of waiving the exemption. The Regulatory Commission of Alaska shall                                
21       adopt by regulation a procedure for an exemption waiver vote for a retail supplier of                             
22       electricity described in this subsection.                                                                         
23            (e)  The provisions of (a) - (c) of this section do not apply to a retail supplier of                        
24       electricity if, except for carbon fuel based generation for standby and emergency                                 
25       power, 100 percent of its power generation is provided by an alternative energy                                   
26       system, as that term is defined in AS 46.11.900.                                                                  
27    * Sec. 2. This Act takes effect January 1, 2010.