AEA tells Senate committee SB150 would create Railbelt net‑metering program and reimbursement fund
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Summary
Alaska Energy Authority Director Curtis Thayer told the Senate Labor and Commerce Committee SB150 would establish a Railbelt net‑metering program with monthly credits (annual reset March 31), grandfather existing systems installed before 2025, and create an AEA‑administered reimbursement fund to offset eligible utility revenue losses under RCA regulation.
Curtis Thayer, executive director of the Alaska Energy Authority, told the Senate Labor and Commerce Committee on Feb. 18 that Senate Bill 150 would establish a Railbelt net‑metering program to integrate behind‑the‑meter renewable generation and credit consumers for excess power.
Thayer said the bill authorizes monthly credits for excess generation at the rate a consumer would pay for the same power, allows utilities to set specific net‑metering rates (including seasonal or time‑of‑use options) under RCA tariff review, and provides that credits would “expire or reset every March 31” to allow annual accounting of generation and use. He added the bill would grandfather systems installed before 2025 under their prevailing tariff terms.
The bill also would create a reimbursement fund administered by AEA to cover eligible revenue losses that utilities would otherwise recover through rates; Thayer described the fund as “a separate non‑dedicated fund consisting of appropriations, gifts, and interest” and said the RCA would adopt regulations to calculate eligible revenue losses and determine payments to utilities.
Sen. Bjorkman raised concerns that some net‑metering programs have led to cross‑subsidization, citing Hawaii’s experience, and asked what safeguards SB150 contains to prevent customers without on‑site generation from paying more to subsidize those who can generate. Thayer said Alaska’s smaller scale and RCA oversight make the state’s approach different and called for a cautious rollout: “we’re taking a little bit more cautious approach,” and he emphasized the RCA’s role in oversight.
Committee members asked whether utilities had taken positions on the bill. Thayer said AEA has consulted with Railbelt and rural utilities; he reported MEA and Golden Valley had been among the more favorably disposed in his discussions, while some utilities were reserving judgment until final text is available.
No formal action or vote was taken. Committee members asked AEA and the RCA to continue stakeholder discussions and to provide follow‑up information on program details and potential distributional impacts; AEA staff on the record included Connor Erickson (director of planning) and others who were available to answer technical questions.