ALLOWED COSTS IN ELECTRIC COOP RATES

Plain English Breakdown

The official source material does not provide specific details on the approval process by the board of directors.

Electric Co-op Costs for Renewable Energy

This act allows electric cooperative utilities to include certain costs related to renewable energy and battery storage in their rates if approved by the board of directors.

What This Bill Does

• Allows electric co-ops to add costs from new or purchased renewable energy facilities into their rates if approved by the board of directors.
• Requires that these costs must be for facilities with a capacity under 15,000 kilowatts.
• Includes battery storage systems and power bought from such systems in the allowed costs.

Who It Names or Affects

• Electric cooperative utilities organized under Alaska law
• Customers of these electric co-ops

Terms To Know

renewable energy facility

A place that makes electricity from natural resources like wind, solar, or water.

battery energy storage system

A system that stores electrical power for later use.

Limits and Unknowns

• The act does not specify how the costs will be approved by the board of directors.
• It is unclear if there are limits on how much these costs can increase rates for customers.

Official Summary Text

ALLOWED COSTS IN ELECTRIC COOP RATES
An Act relating to costs incurred by certain electric utilities for renewable energy and battery energy storage.

Current Bill Text

SB0032A -1- SB 32
New Text Underlined [DELETED TEXT BRACKETED]

34-LS0307\N

SENATE BILL NO. 32

IN THE LEGISLATURE OF THE STATE OF ALASKA

THIRTY-FOURTH LEGISLATURE - FIRST SESSION

BY SENATOR GIESSEL

Introduced: 1/22/25
Referred: Resources, Finance

A BILL

FOR AN ACT ENTITLED

"An Act relating to costs incurred by certain electric utilitie s for renewable energy and 1
battery energy storage." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. AS 42.05.431 is amended by adding a new subsection to read: 4
(i) Costs incurred by an electric cooperative utility organize d under AS 10.25 5
that participates in an electric reliability organization certi ficated by the commission 6
under AS 42.05.760 must be allowed in the rates charged by the utility if the costs are 7
approved by the utility's board o f directors in connection with a n e w o r p u r c h a s e d 8
renewable energy facility or battery energy storage system with a nameplate capacity 9
of less than 15,000 kilowatts or power purchased from a renewab le energy facility or 10
battery energy storage system with a nameplate capacity of less than 15,000 kilowatts. 11
In this subsection, "renewable energy facility" means a facilit y that generates 12
electricity from geothermal, wi nd, solar, hydroelectric, hydrok inetic, tidal, or biomass 13
energy or another renewable energy resource. 14