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SB150 • 2026

NET METERING PROGRAM & FUND

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.

Energy
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
SENATE RULES BY REQUEST OF THE GOVERNOR
Last action
2026-05-01
Official status
(S) L&C
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details on how the Net Metering Reimbursement Fund will be funded or managed beyond its establishment.

Net Metering Program and Fund

This act establishes a net metering program for consumer-generators with generating capacity of 25 kilowatts or less, allowing them to receive credits for excess energy generated. It also creates a reimbursement fund to help utilities recover losses from the program.

What This Bill Does

  • Creates a net metering program that allows eligible consumers who generate their own electricity to get credit on their utility bills for any extra power they produce and send back to the grid.
  • Defines 'consumer-generator' as someone who generates electric energy using renewable sources like solar, wind, or hydroelectric power, with a capacity of 25 kilowatts or less, and whose system is connected to the main electricity network.
  • Establishes that utilities must provide net metering services unless the regulatory commission finds it necessary to limit participation for reasons related to system reliability or fair pricing for non-participating customers.
  • Sets up a Net Metering Reimbursement Fund to help utilities recover any financial losses they might incur due to offering net metering services.

Who It Names or Affects

  • Electric utility companies
  • Customers who generate their own electricity using renewable energy sources with a capacity of up to 25 kilowatts

Terms To Know

consumer-generator
A customer of an electric utility that generates its own electricity and uses it to offset part or all of its electrical use.
renewable energy source
Energy sources like solar, wind, hydroelectric, biomass, geothermal, ocean thermal, and other similar environmentally friendly power generation methods.

Limits and Unknowns

  • The bill does not specify how the Net Metering Reimbursement Fund will be funded or what happens if there are insufficient funds to cover utility losses.
  • It is unclear how the regulatory commission will determine when it is necessary to limit consumer-generator participation in net metering services.

Bill History

  1. 2026-05-01 Text

    (S) Heard & Held

  2. 2026-05-01 Text

    (S) LABOR & COMMERCE at 01:30 PM BELTZ 105 (TSBldg)

  3. 2026-03-20 Text

    (S) Heard & Held

  4. 2026-03-20 Text

    (S) LABOR & COMMERCE at 01:30 PM BELTZ 105 (TSBldg)

  5. 2026-02-25 Text

    (S) Heard & Held

  6. 2026-02-25 Text

    (S) LABOR & COMMERCE at 01:30 PM BELTZ 105 (TSBldg)

  7. 2026-02-18 Text

    (S) Heard & Held

  8. 2026-02-18 Text

    (S) LABOR & COMMERCE at 01:30 PM BELTZ 105 (TSBldg)

  9. 2026-02-04 Min

    (S) Minutes (SL&C)

  10. 2026-02-04 Text

    (S) <Bill Hearing Canceled>

  11. 2026-02-04 Text

    (S) LABOR & COMMERCE at 01:30 PM BELTZ 105 (TSBldg)

  12. 2025-03-28 639

    (S) REFERRED TO LABOR & COMMERCE

  13. 2025-03-28 639

    (S) GOVERNOR'S TRANSMITTAL LETTER

  14. 2025-03-28 639

    (S) FN2: ZERO(CED)

  15. 2025-03-28 639

    (S) FN1: ZERO(CED)

  16. 2025-03-28 639

    (S) L&C, FIN

  17. 2025-03-28 639

    (S) READ THE FIRST TIME - REFERRALS

Official Summary Text

NET METERING PROGRAM & FUND
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.

Current Bill Text

Read the full stored bill text
SB0150A -1- SB 150
New Text Underlined [DELETED TEXT BRACKETED]

34-GS1571\A

SENATE BILL NO. 150

IN THE LEGISLATURE OF THE STATE OF ALASKA

THIRTY-FOURTH LEGISLATURE - FIRST SESSION

BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR

Introduced: 3/28/25
Referred: Labor and Commerce, Finance

A BILL

FOR AN ACT ENTITLED

"An Act relating to a net metering program; relating to reduced rates in the form of 1
credits for consumer-generators; establishing a net metering re imbursement fund; and 2
providing for an effective date." 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 4
* Section 1. AS 42.05.391(a) is amended to read: 5
(a) Except as provided in AS 42.05.306 and 42.05.395, a public utility may 6
not, as to rates, grant an unreasonable preference or advantage to any of its customers 7
or subject a customer to an unr easonable prejudice or disadvant age. A public utility 8
may not establish or maintain an unreasonable difference as to rates, either as between 9
localities or between classes of service. A municipally owned u tility may offer 10
uniform or identical rates for a public utility service to cust omers located in different 11
areas within its certificated service area who receive the same c la s s o f se r v ic e . A ny 12
uniform or identical rate shall, upon complaint, be subject to review by the 13
commission and may be set aside if shown to be unreasonable. 14
34-GS1571\A
SB 150 -2- SB0150A
New Text Underlined [DELETED TEXT BRACKETED]

* Sec. 2. AS 42.05 is amended by adding a new section to read: 1
Sec. 42.05.395. Net metering. ( a ) A lo a d - s er v in g e n tity th a t is s e r ve d by a n 2
electric reliability organization and has total retail sales ex ceeding 5,000,000 kilowatt-3
hours during a calendar year shall provide a net metering service that 4
(1) on a monthly basis, credits a consumer-generator's account in an 5
amount equal to the consumer's excess electric energy generatio n multiplied by the 6
rate per kilowatt-hour that would apply if the consumer was not a consumer-generator; 7
in this paragraph, the rate per kilowatt-hour may be a seasonal or time-of-use rate; and 8
(2) allows a consumer-generator to accrue and use account cred it for 9
the consumer-generator's own consumption on an annual cycle tha t ends March 31 of 10
each year, after which date all accrued and unused credit expires. 11
(b) A consumer-generator may elect to receive net metering ser vice for 12
generating capacity installed be fore July 1, 2025, or to contin ue receiving service 13
under tariff terms in effect when the generating capacity was installed. 14
(c) A load-serving entity may not limit consumer-generator participation in the 15
net metering service within its service territory unless the co mmission, after a hearing, 16
finds that limitation is necessary to protect system reliabilit y or to prevent rates for 17
customers that are not consumer-generators from being unjust and unreasonable. 18
(d) A load-serving entity providing a net metering service may seek recovery 19
of revenue losses attributable to the entity's net metering ser vice by application to the 20
Alaska Energy Authority under AS 42.45.015. 21
(e) The commission shall adopt regulations to implement this section that, at a 22
minimum, establish standards and procedures for calculating a l oad-serving entity's 23
revenue losses eligible for recovery under (d) of this section. 24
(f) In this section, 25
(1) "consumer" means a customer of an electric utility that co nsumes 26
electricity purchased from the electric utility; 27
(2) "consumer-generator" means a consumer that generates elect ric 28
energy 29
(A) on premises owned by, leased by, rented to, or licensed to 30
the consumer at a location where an electric utility provides service; 31
34-GS1571\A
SB0150A -3- SB 150
New Text Underlined [DELETED TEXT BRACKETED]

(B) that has a capacity of 25 kilowatts or less; 1
(C) through a generation system that produces the electric 2
energy from solar photovoltaic and solar thermal energy, wind energy, biomass 3
energy, hydroelectric energy, ge othermal energy, hydrokinetic e nergy, ocean 4
thermal energy, or other renewable energy source that has a sim ilar 5
environmental impact; 6
(D) that is interconnected and operates in parallel with the load-7
serving entity; and 8
(E) that offsets part or all the consumer's own electrical use; 9
(3) "electric reliability organization" has the meaning given in 10
AS 42.05.790; 11
(4) "load-serving entity" has the meaning given in AS 42.05.790. 12
* Sec. 3. AS 42.05 is amended by adding a new section to read: 13
Sec. 42.45.015. Net metering reimbursement fund. ( a ) T h e n e t m e t e r i n g 14
reimbursement fund is established as a separate fund. The fund consists of 15
(1) money appropriated to the fund by the legislature; 16
(2) gifts, bequests, contributions from other sources, and fed eral 17
money; and 18
(3) interest earned on the fund balance. 19
(b) The authority shall adminis ter the fund and serve as the f iduciary of the 20
fund under AS 37.10.071. 21
(c) Subject to appropriation, the authority may make payments from the fund 22
to a load-serving entity eligible for recoverable costs under A S 42.05.395 and 23
implementing regulations adopted by the Regulatory Commission of Alaska. 24
(d) Nothing in this section creates a dedicated fund. 25
* Sec. 4. This Act takes effect July 1, 2025. 26