2025-03-28                     House Journal                      Page 0564
HB 164                                                                                                                        
HOUSE BILL NO. 164 by the House Rules Committee by request of                                                                   
the Governor, entitled:                                                                                                         
                                                                                                                                
    “An Act relating to a net metering program; relating to reduced                                                             
    rates in the form of credits for consumer-generators; establishing a                                                        
    net metering reimbursement fund; and providing for an effective                                                             
    date.”                                                                                                                      
                                                                                                                                
was read the first time and referred to the House Special Committee on                                                          
Energy and the Finance Committee.                                                                                               
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1. Zero, Dept. of Commerce, Community, & Economic                                                                               
 Development                                                                                                                    
2. Zero, Dept. of Commerce, Community, & Economic                                                                               
 Development                                                                                                                    
                                                                                                                                
The Governor’s transmittal letter dated March 27 follows:                                                                       
                                                                                                                                
“Dear Speaker Edgmon:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 18 of the Alaska                                                                    
Constitution, I am transmitting a bill to create a statutory net metering                                                       
program, provide credits for participating consumer-generators, and                                                             
establish a net metering reimbursement fund.                                                                                    

2025-03-28                     House Journal                      Page 0565
This legislation incentivizes renewable energy systems by requiring                                                             
certain electric utilities to provide invoice credits to participating                                                          
customers who install renewable energy generation systems that                                                                  
provide excess energy to the local grid. The bill allows an electric                                                            
utility to offer credits to these “consumer-generators” without the rate                                                        
reduction constituting an unreasonable preference or advantage under                                                            
the utility statutes.                                                                                                           
                                                                                                                                
Through AS 42.05.395, load-serving electric utilities must provide a                                                            
monthly credit to customers with an eligible renewable energy                                                                   
generation system equal to the excess electricity they                                                                          
produce, multiplied by the rate they would otherwise pay.                                                                     
Participating consumers can accrue bill credits over an annual cycle                                                            
ending each March 31, at which point any unused credits expire.                                                                 
                                                                                                                                
Because these credits may reduce utility revenue, sections 2 and 3                                                              
establish a net metering reimbursement fund to allow utilities - subject                                                        
to appropriation, Regulatory Commission of Alaska regulations, and                                                              
an application process overseen by the Alaska Energy Authority - to                                                             
recover lost revenue without raising rates.                                                                                     
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Mike Dunleavy                                                                                                                   
Governor"