AS Title 42, Chapter 5: Alaska Public Utilities Regulatory Act

Article 1. Powers and Duties of the Commission. Chapter 05. Alaska Public Utilities Regulatory Act. Secs. 42.05.010 — 42.05.131. Establishment of Public Utilities Commission. [Repealed, § 5 ch 113 SLA 1970; § 24 ch 25 SLA 1999.] Sec. 42.05.141. General powers and duties of the commission. (a) The Regulatory Commission of Alaska may do all things necessary or proper to carry out the purposes and exercise the powers expressly granted or reasonably implied in this chapter, including (1) regulate every public utility engaged or proposing to engage in a utility business inside the state, except to the extent exempted by AS 42.05.711 ; (2) investigate, upon complaint or upon its own motion, the rates, classifications, rules, regulations, practices, services, and facilities of a public utility and hold hearings on them; (3) make or require just, fair, and reasonable rates, classifications, regulations, practices, services, and facilities for a public utility; (4) prescribe the system of accounts and regulate the service and safety of operations of a public utility; (5) require a public utility to file reports and other information and data; (6) appear personally or by counsel and represent the interests and welfare of the state in all matters and proceedings involving a public utility pending before an officer, department, board, commission, or court of the state or of another state or the United States and to intervene in, protest, resist, or advocate the granting, denial, or modification of any petition, application, complaint, or other proceeding; (7) examine witnesses and offer evidence in any proceeding affecting the state and initiate or participate in judicial proceedings to the extent necessary to protect and promote the interests of the state. (b) The commission shall perform the duties assigned to it under AS 42.45.100 — 42.45.190 and AS 44.83.700 — 44.83.720. (c) In the establishment of electric service rates under this chapter the commission shall promote the conservation of resources used in the generation of electric energy. (d) When considering whether the approval of a rate or a gas supply contract proposed by a utility to provide a reliable supply of gas for a reasonable price is in the public interest, the commission shall (1) recognize the public benefits of allowing a utility to negotiate different pricing mechanisms with different gas suppliers and to maintain a diversified portfolio of gas supply contracts to protect customers from the risks of inadequate supply or excessive cost that may arise from a single pricing mechanism; and (2) consider whether a utility could meet its responsibility to the public in a timely manner and without undue risk to the public if the commission fails to approve a rate or a gas supply contract proposed by the utility. (e) The commission may not designate a local exchange carrier or long distance telephone company as the carrier of last resort. In this subsection, “local exchange carrier” and “long distance telephone company” have the meanings given in AS 42.05.890 . (f) The commission may designate an eligible telecommunications carrier consistent with 47 U.S.C. 214(e). (g) Nothing in this chapter limits the authority of the commission under this section or AS 42.05.151 necessary to implement provisions that remain applicable under AS 42.05.321 (b) or 42.05.711. (h) The commission shall, as required under AS 44.88.850 (b), determine whether the sale price in a gas sales agreement for gas produced through a project partially or fully funded by a loan under AS 44.88.850 constitutes a just and reasonable immediate delivery price for gas. (i) Except as provided in AS 42.05.711 (q) and (s), the commission shall regulate under this chapter the service of natural gas storage and the service of liquefied natural gas storage, including storage furnished by operating a natural gas storage facility that is part of a pipeline facility operated by a pipeline carrier, or a natural gas pipeline facility operated by a natural gas pipeline carrier. In this subsection, “natural gas pipeline carrier,” “natural gas pipeline facility,” “pipeline carrier,” and “pipeline facility” have the meanings given in AS 42.06.630 . Sec. 42.05.145. Telecommunications regulation policy; restriction on regulation of telephone directories. (a) A utility that provides local exchange or interexchange telecommunications service in the state affects the public interest. Regulation of these utilities shall, consistent with this chapter, seek to maintain and further the efficiency, availability, and affordability of universal basic telecommunications service. (b) Notwithstanding other provisions of this chapter, the commission may not regulate the production and distribution of telephone directories. Sec. 42.05.150. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.151. Regulations and hearing procedures. (a) The commission may adopt regulations, not inconsistent with the law, necessary or proper to exercise its powers and to perform its duties under this chapter. (b) The commission shall adopt regulations governing practice and procedure, consistent with due process of law, including the conduct of formal and informal investigations, pre-hearing conferences, hearings, and proceedings, and the handling of procedural motions by a single commissioner. The regulations must provide for the hearing or, when a hearing is not required, other consideration of a matter in accordance with AS 42.04.080 . Technical rules of evidence need not apply to investigations, pre-hearing conferences, hearings, and proceedings before the commission. The commission shall provide for representation by out-of-state attorneys substantially in accordance with Rule 81, Alaska Rules of Civil Procedure. (c) The commission, each commissioner, or an employee authorized by the commission may administer oaths, certify to all official acts, and issue subpoenas, subpoenas duces tecum, and other process to compel the attendance of witnesses and the production of testimony, records, papers, accounts, and documents in an inquiry, investigation, hearing, or proceeding before the commission in any part of the state. Each commissioner is authorized to issue orders on procedural motions. The commission may petition a court of this state to enforce its subpoenas, subpoenas duces tecum, or other process. Sec. 42.05.160. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.161. Application of Administrative Procedure Act. (a) The administrative adjudication procedures of AS 44.62 (Administrative Procedure Act) do not apply to adjudicatory proceedings of the commission except that final administrative determinations by the commission are subject to judicial review under that Act as provided in AS 42.05.551 (a). (b) AS 44.62 (Administrative Procedure Act) applies to regulations adopted by the commission. Sec. 42.05.170. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.171. Formal hearings. A formal hearing that the commission has power to hold may be held by or before a hearing panel appointed under AS 42.04.080 , a hearing examiner, or an administrative law judge designated for the purpose by the chair of the commission. In appropriate cases, a formal hearing may be held before an arbitrator or mediator designated for the purpose by the commission. The testimony and evidence in a formal hearing may be taken by the panel, by the hearing examiner, by the arbitrator, by the mediator, or by the administrative law judge to whom the hearing has been assigned. A decision of a hearing examiner, an arbitrator, a mediator, or an administrative law judge is not final until approved by the commission. A commissioner who has not heard or read the testimony, including the argument, may not participate in making a decision of a hearing panel. A party may file a petition for reconsideration of, or an administrative appeal of, a decision by a hearing examiner, an arbitrator, a mediator, or an administrative law judge that has been approved by the commission, or a decision of a hearing panel. The full commission shall act on the petition for reconsideration or the appeal. In determining the place of a hearing, the commission shall give preference to holding the hearing at a place most convenient for those interested in the subject of the hearing. Sec. 42.05.175. Timelines for issuance of final orders. (a) The commission shall issue a final order not later than 180 days after a complete application is filed for an application (1) for a certificate of public convenience and necessity; (2) to amend a certificate of public convenience and necessity; (3) to transfer a certificate of public convenience and necessity; and (4) to acquire a controlling interest in a certificated public utility. (b) Notwithstanding a suspension ordered under AS 42.05.421 , the commission shall issue a final order not later than 270 days after a complete tariff filing is made for a tariff filing that does not change the utility's revenue requirement or rate design. (c) Notwithstanding a suspension ordered under AS 42.05.421 , the commission shall issue a final order not later than 450 days after a complete tariff filing is made for a tariff filing that changes the utility's revenue requirement or rate design. (d) The commission shall issue a final order not later than 365 days after a complete formal complaint is filed against a utility or, when the commission initiates a formal investigation of a utility without the filing of a complete formal complaint, not later than 365 days after the order initiating the formal investigation is issued. (e) The commission shall issue a final order in a rule-making proceeding not later than 730 days after a complete petition for adoption, amendment, or repeal of a regulation under AS 44.62.180 — 44.62.290 is filed or, when the commission initiates a rule-making docket, not later than 730 days after the order initiating the proceeding is issued. (f) The commission may extend a timeline required under this section if all parties of record consent to the extension or if, for one time only, before the timeline expires, the (1) commission reasonably finds that good cause exists to extend the timeline; (2) commission issues a written order extending the timeline and setting out its findings regarding good cause; and (3) extension of time is 90 days or less. (g) The commission shall file quarterly reports with the Legislative Budget and Audit Committee identifying all extensions ordered under (f) of this section during the previous quarter and including copies of the written orders issued under (f)(2) of this section. (h) If the commission does not issue and serve a final order regarding an application or suspended tariff under section (a), (b), or (c) of this section within the applicable timeline specified, and if the commission does not extend the timeline in accordance with (f) of this section, the application or suspended tariff filing shall be considered approved and shall go into effect immediately. (i) In adjudicated docket matters that come before the commission under state law or federal law and are not subject to a timeline under federal law or (a) — (e) of this section, the commission shall issue a final order not later than 180 days after the filing of an initiating petition. If the matter is commenced on the commission's own motion, the commission shall issue a final order not later than 365 days after the issuance of an order opening the docket. This subsection does not apply to a complaint against a utility, a petition to revoke a certificate of public convenience and necessity, or a functionally equivalent filing. (j) If the commission does not issue and serve a final order governed by (i) of this section within the applicable timeline specified, including any extension granted by the commission in accordance with (f) of this section, the initiating petition shall be considered approved and shall take effect immediately, or, if the matter was commenced by the commission, the docket shall be closed with no action taken. (k) If proceedings subject to different timelines under this section are consolidated or if a single proceeding implicates more than one timeline, the latest applicable deadline for the issuance of a final order shall apply. (l) The commission may not evade the requirement of this section by terminating a proceeding in a docket and opening a proceeding in another docket on substantially the same matter. (m) For purposes of this section, “final order” means a dispositive administrative order that resolves all matters at issue and that may be the basis for a petition for reconsideration or request for judicial review. (n) For purposes of this section, an application, tariff filing, formal complaint, or petition is complete if it complies with the filing, format, and content requirements established by statute, regulation, and forms adopted by the commission under regulation. Sec. 42.05.180. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.181. Notice and hearing before final orders. A final order of the commission compelling affirmative action, denying a right or privilege, or granting a right or privilege over protest of the public utility or any party of record may not be entered without giving the interested party reasonable notice and an opportunity to be heard. Sec. 42.05.190. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.191. Contents and service of orders. Every formal order of the commission shall be based upon the facts of record. However, the commission may, without a hearing, issue an order approving any settlement supported by all the parties of record in a proceeding, including a compromise settlement. Every order entered pursuant to a hearing must state the commission's findings, the basis of its findings and conclusions, together with its decision. These orders shall be entered of record and a copy of them shall be served on all parties of record in the proceeding. Secs. 42.05.193 — 42.05.196. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.200. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.201. Publication of reports, orders, decisions, and regulations. All reports, orders, decisions, and regulations of the commission shall be in writing. The commission shall apprise all affected utilities and interested parties of these reports, orders, decisions, and regulations as they are issued and adopted, and, when appropriate to do so, shall publish them in a manner that will reasonably inform the public or the affected consumers of any public utility service. The commission may set charges for costs of printing or reproducing and furnishing copies of its reports, orders, decisions and regulations. The publication requirement, as it pertains to regulations, does not supersede the requirements of AS 44.62 (Administrative Procedure Act). Sec. 42.05.210. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.211. Annual report. The commission shall, by November 15 of each year, publish an annual report reviewing its activities during the previous fiscal year and notify the legislature that the report is available. The report must address the regulation of public utility service in the state as of June 30 and must contain details about the commission's compliance with the requirements of AS 42.05.175 (a) — (e), with the timeline extensions made by the commission under AS 42.05.175 (f), and with other performance measures established by the commission. Sec. 42.05.220. [Repealed, § 5 ch 113 SLA 1970.] Article 2. Certificate of Public Convenience and Necessity. Sec. 42.05.221. Certificates required. (a) A public utility may not operate and receive compensation for providing a commodity or service without first having obtained from the commission under this chapter a certificate declaring that public convenience and necessity require or will require the service. Where a public utility provides more than one type of utility service, a separate certificate of convenience and necessity is required for each type. A certificate must describe the nature and extent of the authority granted in it, including, as appropriate for the services involved, a description of the authorized area and scope of operations of the public utility. (b) All certificates of convenience and necessity issued to a public utility before July 1, 1970, remain in effect but they are subject to modification where there are areas of conflict with public utilities that have not previously been required to have a certificate or where there is a substantial change in circumstances. (c) A certificate shall be issued to a public utility that was not required to have one before July 1, 1970, and that is required to have one after that date, if it appears to the commission that the utility was actually operating in good faith on that date. Such a certificate is subject to modification where there are areas of conflict with other public utilities or where there has been a substantial change in circumstances. (d) In an area where the commission determines that two or more public utilities are competing to furnish identical utility service and that this competition is not in the public interest, the commission shall take appropriate action to eliminate the competition and any undesirable duplication of facilities. This appropriate action may include, but is not limited to, ordering the competing utilities to enter into a contract that, among other things, would: (1) delineate the service area boundaries of each in those areas of competition; (2) eliminate existing duplication and paralleling to the fullest reasonable extent; (3) preclude future duplication and paralleling; (4) provide for the exchange of customers and facilities for the purposes of providing better public service and of eliminating duplication and paralleling; and (5) provide such other mutually equitable arrangements as would be in the public interest. (e) If the commission employs professional consultants to assist it in administering this section, it may apportion the expenses relating to their employment among the competing utilities. (f) [Repealed, § 12 ch 136 SLA 1980.] Sec. 42.05.230. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.231. Application. Application for a certificate shall be in writing and shall be in the form and contain the information required by the commission by regulation. Sec. 42.05.240. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.241. Conditions of issuance. A certificate may not be issued unless the commission finds that the applicant is fit, willing, and able to provide the utility services applied for and that the services are required for the convenience and necessity of the public. The commission may issue a certificate granting an application in whole or in part and attach to the grant of it the terms and conditions it considers necessary to protect and promote the public interest including the condition that the applicant may or shall serve an area or provide a necessary service not contemplated by the applicant. The commission may, for good cause, deny an application with or without prejudice. Sec. 42.05.250. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.251. Use of municipal public ways. Public utilities have the right to a permit to use public streets, alleys, and other public ways of a municipality upon payment of a reasonable permit fee and on reasonable terms and conditions and with reasonable exceptions the municipality requires. The fee may not exceed the actual cost to the municipality of the utility's use of the public way and of administering the permit program. A dispute as to whether fees, terms, conditions, or exceptions are reasonable shall be decided by the commission. The commission may require a utility to add the amount of any permit fee paid as a pro rata surcharge to its bills for service rendered at locations within the boundaries of any municipality that requires payment of a permit fee. Sec. 42.05.253. Public utility regulatory cost charge. [Repealed, § 36 ch 2 FSSLA 1992.] Sec. 42.05.254. Public utility regulatory cost charge. (a) A regulated public utility or a certificated utility that provides telecommunications services operating in the state shall pay to the commission an annual regulatory cost charge in an amount not to exceed the maximum percentage of adjusted gross revenue that applies to the utility sector of which the utility is a part. The regulatory cost charges that the commission expects to collect from all regulated utilities and certificated utilities providing telecommunications services may not exceed the sum of the following percentages of the total adjusted gross revenue of all regulated public utilities and certificated utilities providing telecommunications services derived from operations in the state: (1) not more than .98 percent to fund the operations of the commission, and (2) not more than .22 percent to fund operations of the public advocacy function under AS 42.04.070 (c) and AS 44.23.020 (e) within the Department of Law. An exempt utility that does not provide telecommunications services shall pay the actual cost of services provided to it by the commission. (b) The commission shall by regulation establish a method to determine annually the amount of the regulatory cost charge for a public utility. If the amount the commission expects to collect under (a) of this section and under AS 42.06.286 (a) exceeds the authorized budgets of the commission and the Department of Law public advocacy function under AS 42.04.070 (c) and AS 44.23.020 (e), the commission shall, by order, reduce the percentages determined under (h) of this section so that the total amount of the fees collected approximately equals the authorized budgets of the commission and the Department of Law public advocacy function under AS 42.04.070 (c) and AS 44.23.020 (e) for the fiscal year. (c) In determining the amount of the regulatory cost charge imposed under (a) of this section, (1) a utility selling utility services at wholesale shall modify its gross revenue by deducting payments it receives for wholesale sales; (2) a local exchange telephone utility shall modify its gross revenue by deducting payments received from other carriers for settlements or access charges; (3) an electric utility shall reduce its gross revenue by subtracting the cost of power; in this paragraph, “cost of power” means the costs of generation and purchased power reported to the commission. (d) The commission shall calculate the total regulatory cost charges to be levied against all regulated electric utilities under this section. The commission shall allocate the total amount among the regulated electric utilities by using an equal charge per kilowatt hour sold at retail. (e) The commission shall administer the charge imposed under this section. The Department of Revenue shall collect and enforce the charge imposed under this section. The Department of Administration shall identify the amount of the operating budgets of the commission and the Department of Law public advocacy function under AS 42.04.070 (c) and AS 44.23.020 (e) that lapse into the general fund each year. The legislature may appropriate an amount equal to the lapsed amount to the commission and to the Department of Law public advocacy function under AS 42.04.070 (c) and AS 44.23.020 (e) for operating costs for the next fiscal year. If the legislature does so, the commission shall reduce the total regulatory cost charge collected for that fiscal year by a comparable amount. (f) The commission shall allow a public utility to recover all payments made to the commission under this section. The commission may not require a public utility to file a rate case in order to be eligible to recover the regulatory cost charge. (g) The commission may adopt regulations under AS 44.62 (Administrative Procedure Act) necessary to administer this section, including requirements and procedures for reporting information and making quarterly payments. The Department of Revenue may adopt regulations under AS 44.62 (Administrative Procedure Act) for investigating the accuracy of filed information, and for collecting required payments. (h) The commission shall by regulation establish a method to determine annually the maximum percentage of adjusted gross revenue that will apply to each regulated public utility sector, the certificated telecommunications utility sector, and the regulated pipeline carrier sector. Other than the cost of services provided to exempt utilities that do not provide telecommunications services, the method established shall allocate the commission's costs, and the Department of Law's certified costs of its public advocacy function under AS 42.04.070 (c) and AS 44.23.020 (e), among the regulated public utility sectors, the certificated telecommunications utility sector, and the regulated pipeline carrier sector based on the relative amount of the commission's annual costs and the Department of Law's certified costs that is attributable to regulating each sector. For purposes of this subsection, the Department of Law shall annually certify to the commission the costs of its public advocacy function under AS 42.04.070 (c) and AS 44.23.020 (e). (i) In this section, (1) “adjusted gross revenue” means the gross revenue of a utility as modified under (c) of this section, if appropriate; (2) “exempt utility” means a public utility that does not provide telecommunications services and is certificated by the commission under AS 42.05.221 — 42.05.281 but, in accordance with AS 42.05.711 , is exempt from other regulatory requirements of this chapter; (3) “gross revenue” means the total operating revenue from intrastate services, as shown in a utility's annual report required by the commission by regulation; (4) “regulated utility” means a public utility that is certificated by the commission under AS 42.05.221 — 42.05.281 and that is subject to the other regulatory requirements of this chapter; (5) “wholesale sales” means sales to another utility for resale under circumstances that make revenue from the resale subject to the regulatory cost charge imposed under this section. Sec. 42.05.260. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.261. Discontinuance, suspension, or abandonment of certificated service. (a) Except as otherwise provided in this section, a public utility may not discontinue or abandon a service for which a certificate has been issued by the commission unless upon the application of the public utility and if, after notice and opportunity for hearing, the commission finds that the continued service is not required by public convenience and necessity. Any interested person may file with the commission a protest or memorandum of opposition to or in support of discontinuance or abandonment. The commission may authorize temporary suspension of a service or of part of a service. (b) Upon complaint or upon its own motion, the commission may reinvestigate a previously authorized discontinuance, abandonment, or suspension of a service of an operating public utility. If, after providing notice and an opportunity for a hearing, the commission finds that the public convenience and necessity require the service to be resumed, it may order the public utility to again provide the service. Sec. 42.05.270. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.271. Modification, suspension, or revocation of certificates. Upon complaint or upon its own motion the commission, after notice and opportunity for hearing and for good cause shown, may amend, modify, suspend, or revoke a certificate, in whole or in part. Good cause for amendment, modification, suspension, or revocation of a certificate includes (1) the requirements of public convenience and necessity; (2) misrepresentation of a material fact in obtaining the certificate; (3) unauthorized discontinuance or abandonment of all or part of a public utility's service; (4) wilful failure to comply with the provisions of this chapter or the regulations or orders of the commission; or (5) wilful failure to comply with a term, condition, or limitation of the certificate. Sec. 42.05.280. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.281. Transfer of certificate. A certificate may not be sold or leased, rented, transferred or inherited without the prior approval of the commission. Sec. 42.05.290. [Repealed, 5 ch 113 SLA 1970.] Article 3. Services and Facilities. Sec. 42.05.291. Standards of service and facilities. (a) Each public utility shall furnish and maintain adequate, efficient, and safe service and facilities. This service shall be reasonably continuous and without unreasonable interruption or delay. (b) Subject to the provisions of this chapter and the regulations or orders of the commission, a public utility may establish reasonable rules and regulations governing the conditions under which it will render service. (c) The commission may upon its own motion or upon complaint, after providing reasonable notice and opportunity for hearing, adopt as to service and facilities, including the crossing of facilities, just and reasonable standards, classifications, regulations, and practices to be furnished, imposed, observed, and followed by public utilities; adopt adequate and reasonable standards for the measurement of quantity, quality, pressure, initial voltage, or other conditions pertaining to the supply of the service of public utilities; adopt reasonable regulations for the examination and testing of the service, and for the measurement of it; adopt or approve reasonable regulations, specifications, and standards to secure the accuracy of meters and appliances for measurement; and provide for the examination and testing of appliances used for the measurement of a service of a public utility. In doing so, the commission shall conform to the standard practices of the industry. (d) If the commission upon its own motion or upon complaint, after providing reasonable notice and opportunity for hearing, finds that the service or facilities of a public utility are unreasonable, unsafe, inadequate, insufficient, or unreasonably discriminatory, or otherwise in violation of this chapter, the commission shall prescribe, by regulation or order, the reasonable, safe, adequate, sufficient service or facilities to be observed, furnished, enforced, or employed, including all repairs, changes, alterations, extensions, substitutions, or improvements in facilities that are reasonably necessary and proper for the safety, accommodation, and convenience of the public. Sec. 42.05.296. Telecommunications services for certain disabled subscribers. (a) The commission shall adopt regulations to require telecommunications utilities to provide service to subscribers who are deaf, hard of hearing, and speech disabled that permits the subscriber to communicate by one or more telecommunications devices with persons of normal hearing and that makes available reasonable access of all phases of public telecommunications service to subscribers of telecommunications services who are deaf, hard of hearing, and speech disabled. The regulations must provide for cost recovery through surcharges added to the rate for each telecommunications service. The commission shall hold hearings to determine the most cost-effective method of providing this service. (b) A telecommunications service subscriber is eligible for the service required by (a) of this section if the subscriber is a person who is certified as deaf, hard of hearing, or speech disabled by a licensed physician, a speech-language pathologist licensed under AS 08.11 , an audiologist, or the Department of Health or if the subscriber is an organization that represents or has a principal purpose to provide services to persons who are deaf, hard of hearing, or speech disabled as determined by the commission. Sec. 42.05.300. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.301. Discrimination in service. Except as provided in AS 42.05.306 , a public utility may not, as to service, make or grant an unreasonable preference or advantage to any person or subject any person to an unreasonable prejudice or disadvantage. A public utility may not establish or maintain or provide an unreasonable difference as to service, either as between localities or as between classes of service, but nothing in this section prohibits the establishment of reasonable classifications of service or requires unreasonable investment in facilities. Sec. 42.05.306. Discounted service and reduced rate. A public utility may provide a discounted service or a reduced rate for essential local exchange telecommunication services to individuals who receive benefits from a means test social services assistance program administered by the state or federal government. The commission may not require a utility to provide a discounted service or reduced rate or to incur uncompensated costs or administrative burdens for services provided under this section. Sec. 42.05.310. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.311. Joint use and interconnection of facilities. (a) A public utility having sewers, conduits, utilidors, poles, pole lines, pipes, pipelines, mains, or other distribution or transmission facilities shall, for a reasonable compensation, permit another public utility to use them when the public convenience and necessity require this use and the use will not result in substantial injury to the owner, or in substantial detriment to the service to the customers of the owners. The cost of modifications or additions necessary to a joint use shall be at the expense of the public utility requesting the use of the facilities. (b) A telecommunications utility shall permit connection to be made and service to be furnished between a system operated by it and the system or toll facilities operated by another public utility or with the communications facility or system of a nonutility, or between its toll facilities and the toll facilities of another public utility, when public convenience and necessity require the connection and the connection will not result in substantial injury to the owner or other users of the facilities of either public utility or in substantial detriment to the service of either public utility. (c) The tariff of a public utility shall include rules setting out the terms and conditions under which it will construct, or permit its customers or subscribers to construct, and install lines, cables, radio links, or pipes from its existing facilities to the premises of applicants for service. Sec. 42.05.320. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.321. Failure to agree upon joint use or interconnection. (a) In case of failure to agree upon the joint use or interconnection of facilities or the conditions or compensation for joint use or interconnections, the public utility, including any municipality, or an interested person may apply to the commission for an order requiring the interconnection. If, after investigation and opportunity for hearing, the commission finds that public convenience and necessity require the joint use or connection, and that the use or connection will not result in substantial injury to the owner utility or its customers, or in substantial detriment to the services furnished by the owner utility, or in the creation of safety hazards, it shall (1) order that the use be permitted; (2) prescribe reasonable conditions and compensation for the joint use; (3) order the interconnection to be made; (4) determine the time and manner of the interconnection; (5) determine the apportionment of costs and responsibility for operation and maintenance of the interconnection. (b) This section and AS 42.05.311 apply to all utilities whether or not they are exempt from other regulation under AS 42.05.711 . Sec. 42.05.325. Registration and regulation of alternate operator services. Sec. 42.05.330. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.331. Standards for measurement. The commission shall establish by regulation adequate, fair, and realistic standards for the measurement of quality, pressure, voltage, or other conditions of utility services and shall prescribe reasonable regulations for examination and testing of the service and the accuracy of the devices used to measure it. Sec. 42.05.340. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.341. Testing of meter standards. The commission shall provide by regulation for the periodic testing and certification of meter standards by laboratories acceptable to the commission. The commission shall also provide by regulation for the taking of appeals to the commission from the findings of a utility that tests its own meters or appliances for measurement. Sec. 42.05.350. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.351. Testing of appliances. The commission shall provide for the examination and testing of appliances used for the measuring of a service of a public utility and may purchase equipment, apparatus, and standards required for this purpose. The commissioner of transportation and public facilities may assign the examination and testing function to appropriate staff of the Department of Transportation and Public Facilities under AS 45.75 . Upon the payment of a reasonable fee established by the commission, a consumer may have an appliance that is used by the consumer tested. The commission shall establish by regulation allowable tolerances with respect to the functioning or operation of the appliance. If the measuring appliance does not perform within these tolerances, the utility concerned shall pay the costs of the test by reimbursing the person requesting the test for the fee paid by that person. This reimbursement shall be made no later than at the time of the next regular billing following the test. Sec. 42.05.360. [Repealed, § 5 ch 113 SLA 1970.] Article 4. Rates and Rate Schedules. Sec. 42.05.361. Tariffs, contracts, filing, and public inspection. (a) Under regulations the commission shall adopt, every public utility shall file with the commission, within the time and in the form the commission designates, its complete tariff showing all rates, including joint rates, tolls, rentals, and charges collected and all classifications, rules, regulations, and terms and conditions under which it furnishes its services and facilities to the general public, or to a regulated or municipally owned utility for resale to the public, together with a copy of every special contract with customers which in any way affects or relates to the serving utility's rates, tolls, charges, rentals, classifications, services, or facilities. The public utility shall clearly print, or type, its complete tariff and keep an up-to-date copy of it on file at its principal business office and at a designated place in each community served. The tariffs shall be made available to, and subject to inspection by, the general public on demand. (b) The tariffs of a public utility which are also subject to the jurisdiction of a federal regulatory body shall correspond, so far as practicable, to the form of those prescribed by the federal regulatory body. (c) The commission may reject the filing of all or part of a tariff that does not comply with the form or filing regulations of the commission. A tariff or provision so rejected is void. If the commission rejects a filing, it shall issue a statement of the reasons for the rejection. Unless the utility and the commission agree to an extension of time, the commission may not reject a filing under this subsection after 45 days have elapsed from the date of filing. (d) The commission may require a telecommunications carrier to make tariff filings related to telecommunications services provided to inmates in the custody of the Department of Corrections. Notwithstanding (a) — (c) of this section, the commission may not require a telecommunications carrier to make other tariff filings. Sec. 42.05.365. Interest on deposits. (a) A public utility may collect and retain a deposit for contracted recurring monthly service. A public utility that collects and retains a deposit of over $100 for recurring monthly service shall pay interest on that deposit at or before the time it is returned. Interest paid under this section shall be at the legal rate of interest at the time the deposit is made. However, if the deposit is placed in an interest bearing account, the utility shall pay the interest rate of the interest bearing account. (b) If delinquent payments result in interruption of service, a public utility is not required to pay interest under (a) of this section for 12 months after reestablishment of service. Sec. 42.05.370. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.371. Adherence to tariffs. The terms and conditions under which a public utility offers its services and facilities to the public shall be governed strictly by the provisions of its currently effective tariffs. A legally filed and effective tariff rate, charge, toll, rental, rule, regulation, or condition of service may not be changed except in the manner provided in this chapter. If more than one tariff rate or charge can reasonably be applied for billing purposes the one most advantageous to the customer shall be used. Sec. 42.05.380. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.381. Rates to be just and reasonable. (a) All rates demanded or received by a public utility, or by any two or more public utilities jointly, for a service furnished or to be furnished shall be just and reasonable; however, a rate may not include an allowance for costs of political contributions, or public relations except for reasonable amounts spent for (1) energy conservation efforts; (2) public information designed to promote more efficient use of the utility's facilities or services or to protect the physical plant of the utility; (3) informing shareholders and members of a cooperative of meetings of the utility and encouraging attendance; or (4) emergency situations to the extent and under the circumstances authorized by the commission for good cause shown. (b) In establishing the revenue requirements of a municipally owned and operated utility the municipality is entitled to include a reasonable rate of return. (c) A utility, whether subject to regulation by the commission or exempt from regulation, may not charge a fee for connection to, disconnection from, or transfer of services in an amount in excess of the actual cost to the utility of performing the service plus a profit at a reasonable percentage of that cost not to exceed the percentage established by the commission by regulation. (d) A utility shall provide for a reduced fee or surcharge for standby water for fire protection systems approved under AS 18.70.081 which use hydraulic sprinklers. (e) The commission shall adopt regulations for electric cooperatives and for local exchange telephone utilities setting a range for adjustment of rates by a simplified rate filing procedure. A cooperative or telephone utility may apply for permission to adjust its rates over a period of time under the simplified rate filing procedure regulations. The commission shall grant the application if the cooperative or telephone utility satisfies the requirements of the regulations. The commission may review implementation of the simplified rate filing procedure at reasonable intervals and may revoke permission to use the procedure or require modification of the rates to correct an error. (f) A local exchange telephone utility may adjust its rates in conformance with changes in jurisdictional cost allocation factors required by either the Federal Communications Commission or the Regulatory Commission of Alaska upon a showing to the Regulatory Commission of Alaska of (1) the order requiring the change in allocation factors; (2) the aggregate shift in revenue requirement, segregated by service classes or categories, caused by the change in allocation factors; and (3) the rate adjustment required to conform to the required shift in local revenue requirement. (g) The commission shall allow, as a necessary and reasonable expense, all payments made to the Department of Environmental Conservation under AS 46.14.240 — 46.14.250. The commission shall allow the public utility to recover these fees through a periodic fuel surcharge rate adjustment. (h) An electric or telephone utility that has overhead utility distribution lines and that provides services in a municipality with a population of more than 200,000 must spend at least one percent of the utility's annual gross revenue from retail customers in that municipality to place existing overhead utility distribution lines in that municipality underground. In determining the annual gross revenue under this subsection, only revenue derived from the utility's distribution lines in the municipality shall be considered. (i) An electric or telephone utility that is implementing a program to place existing overhead utility distribution lines located in a municipality underground may amend its rates for services provided to customers in the municipality to enable the utility to recover the full actual cost of placing the lines underground. Notwithstanding AS 42.05.411 — 42.05.431, an amendment to a utility's rates under this subsection is not subject to commission review or approval. A utility amending its rates under this subsection shall notify the commission of the amendment. This subsection applies to an undergrounding program to the extent that the costs do not exceed two percent of the utility's annual gross revenue. If an undergrounding program's costs exceed two percent, the commission may regulate rate increases proposed for the recovery of the amount above two percent. (j) When an electric utility or a telephone utility is implementing a program to place existing overhead utility distribution lines located in a municipality underground, any other overhead line or cable in the same location shall be placed underground at the same time. Each entity whose lines or cables are placed underground shall pay the cost of placing its own lines or cables underground. (k) The cost to the utility of storing gas in a gas storage facility or storing liquefied natural gas in a liquefied natural gas storage facility that is allowed in determining a just and reasonable rate shall reflect the (1) reduction in cost attributable to any exemption from a payment due under AS 38.05.096 or 38.05.180(u), as applicable, and the value of a tax credit that the owner of the gas storage facility received under AS 43.20.046 or 43.20.047, as applicable; the commission may request the (A) commissioner of natural resources to report the value of the exemption from a payment due under AS 38.05.096 or 38.05.180(u), as applicable, that the gas storage facility received; and (B) commissioner of revenue to report information on the amount of tax credits claimed under AS 43.20.046 and 43.20.047, as applicable, for the gas storage facility or liquefied natural gas storage facility; (2) fair market value of oil and gas fields, drilling rigs, production platforms, wells, and similar assets used for gas storage or liquefied natural gas storage and a fair return on the fair market value of those assets; (3) costs related to the dismantlement, removal, and restoration of a gas storage facility or liquefied natural gas storage facility. (l) The rates and terms and conditions of service of an incumbent local exchange carrier for basic residential local telephone service must be uniform within the carrier's study area, as determined by the Federal Communications Commission. (m) The rates and terms and conditions of service of a competitive local exchange carrier for basic residential local telephone service must be uniform throughout the carrier's service area.

(n) The retail rates of a long distance telephone company for message telephone service for residential customers must be geographically averaged. If rates vary by distance over which calls are placed, the rate for each mileage band must be equal to or greater than the rate for the next shorter mileage band. (o) A determination of whether an electric utility's rate is just and reasonable may consider whether the purpose of the rate is to increase diversity of supply, promote load growth, or enhance energy reliability or energy security. (p) In (k) of this section, “gas storage facility” has the meaning given in AS 31.05.032 (e). (q) In this section, “local exchange carrier” and “long distance telephone company” have the meanings given in AS 42.05.890 . Sec. 42.05.385. Charges for water and sewer line extensions. (a) A water or sewer line extension may not be constructed unless the legislative body of each municipality through which the extension passes has approved the extension. This subsection does not apply to an extension that will not create any charges or assessments against the adjacent property. (b) Except as provided in (e) of this section, when utility service is available to a property owner as a result of a water or sewer line extension, the utility offering the service through the extension shall notify the property owner, according to the procedure set forth for service of process in the Alaska Rules of Civil Procedure, of the charges and interest due the utility if the property owner elects to obtain the utility service through the extension. The property owner does not owe the charge for the extension until the property owner connects to the extension. (c) Except as provided in (e) of this section, and unless the property owner connects to the extension, (1) charges do not accrue against the property for construction of the extension; (2) interest does not accrue against the property for the construction of the extension; and (3) a lien or encumbrance may not be levied against the property for the construction of the extension. (d) If the costs of constructing a water or sewer line extension have been paid by charges collected under this chapter, a utility may not charge for connection to the extension an amount greater than the actual cost of the connection. (e) The provisions of this section do not apply to a water or sewer line extension constructed by a municipality under AS 29.46 . Sec. 42.05.390. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.391. Discrimination in rates. (a) Except as provided in AS 42.05.306 , a public utility may not, as to rates, grant an unreasonable preference or advantage to any of its customers or subject a customer to an unreasonable prejudice or disadvantage. A public utility may not establish or maintain an unreasonable difference as to rates, either as between localities or between classes of service. A municipally owned utility may offer uniform or identical rates for a public utility service to customers located in different areas within its certificated service area who receive the same class of service. Any uniform or identical rate shall, upon complaint, be subject to review by the commission and may be set aside if shown to be unreasonable. (b) A rate charged by a municipality for a public utility service furnished beyond its corporate limits is not considered unjustly discriminatory solely because a different rate is charged for a similar service within its corporate limits. (c) A public utility may not directly or indirectly refund, rebate or remit in any manner, or by any device, any portion of the rates and charges or charge, demand, or receive a greater or lesser compensation for its services than is specified in its effective tariff. A public utility may not extend to any customer any form of contract, agreement, inducement, privilege, or facility, or apply any rule, regulation, or condition of service except such as are extended or applied to all customers under like circumstances. A public utility may not offer or pay any compensation or consideration or furnish any equipment to secure the installation or adoption of the use of utility service unless it conforms to a tariff approved by the commission, and the compensation, consideration, or equipment is offered to all persons in the same classification using or applying for the public utility service; in determining the reasonableness of such a tariff filed by a public utility the commission shall consider, among other things, evidence of consideration or compensation paid by a competitor, regulated or nonregulated, of the public utility to secure the installation or adoption of the use of the competitor's service. (d) Nothing in this section prevents a public utility from charging reduced rates to customers transferred to it from a competing utility provided the reduction is an integral part of a contract, arrangement, or plan to eliminate the overlapping of service areas or to minimize duplication of facilities and competition between public utilities. Sec. 42.05.400. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.401. Apportionment of joint rates. (a) If public utilities share in a joint rate the apportionment of receipts shall be just and reasonable. The method of apportionment shall be approved by the commission and the commission may, if it considers it to be in the public interest, establish the portion to which each public utility shall be entitled. (b) If the commission does not have professional staff to investigate, evaluate, and testify regarding any proceeding under (a) of this section it may employ qualified professional consultants for this purpose at the direct expense of the parties to the dispute and divide the cost among the parties in the proportion of their respective operating revenues before commencement of the proceeding. The cost allocation to each party shall be determined before employment of the consultants and after giving the parties reasonable notice and opportunity to be heard. Sec. 42.05.410. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.411. New or revised tariffs. (a) A public utility may not establish or place in effect any new or revised rates, charges, rules, regulations, conditions of service or practices except after 45 days' notice to the commission and 30 days' notice to the public. Notice shall be given to the commission by filing with the commission and keeping open for public inspection the revised tariff provisions which shall plainly indicate the changes to be made in the schedules then in force and the time when the changes will go into effect. The commission shall prescribe means by regulation whereby notice is given to the public before or no later than 15 days after the filing that is reasonably adequate to notify customers affected by the filing. The commission, for good cause shown, may allow changes to take effect on less than 45 days' notice to the commission or 30 days' notice to the public under conditions the commission prescribes. (b) New and revised tariffs shall be filed in the manner provided in AS 42.05.361 (a). (c) Upon the filing of a new or revised tariff, the commission upon complaint or upon its own motion, without notice, may initiate an investigation of the reasonableness and lawfulness of the change. Sec. 42.05.420. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.421. Suspension of tariff filing. (a) When a tariff filing is made containing a new or revised rate, classification, rule, regulation, practice, or condition of service the commission may, either upon written complaint or upon its own motion, after reasonable notice, conduct a hearing to determine the reasonableness and propriety of the filing. Pending the hearing the commission may, by order stating the reasons for its action, suspend the operation of the tariff filing. For a tariff filing that does not change the utility's revenue requirement or rate design, the suspension may last for a period not longer than six months beyond the effective date established in the tariff filing unless the commission extends the period for good cause. For a tariff filing that changes the utility's revenue requirement or rate design, the suspension may last, unless the commission extends the period for good cause, for a period not longer than (1) six months before an interim rate equal to the requested rate goes into effect and not longer than 12 months before a permanent rate goes into effect if the annual gross revenues of the utility making the filing are more than $3,000,000; and (2) 150 days before an interim rate equal to the requested new rate goes into effect and not longer than one year before a permanent rate goes into effect if the annual gross revenues of the utility making the filing are $3,000,000 or less. (b) An order suspending a tariff filing may be vacated if, after investigation, the commission finds that it is in all respects proper. Otherwise the commission shall hold a hearing on the suspended filing and issue its order, before the end of the suspension period, granting, denying or modifying the suspended tariff in whole or in part. (c) In the case of a proposed increased rate, the commission may by order require the interested public utility or utilities to place in escrow in a financial institution approved by the commission and keep accurate account of all amounts received by reason of the increase, specifying by whom and in whose behalf the amounts are paid. Upon completion of the hearing and decision the commission may by order require the public utility to refund to the persons in whose behalf the amounts were paid, that portion of the increased rates which was found to be unreasonable or unlawful. Funds may not be released from escrow without the commission's prior written consent and the escrow agent shall be so instructed by the utility, in writing, with a copy to the commission. The utility may, at its expense, substitute a bond in lieu of the escrow requirement. (d) One who initiates a change in existing tariffs shall bear the burden to prove the reasonableness of the change. Sec. 42.05.430. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.431. Power of commission to fix rates. (a) When the commission, after an investigation and hearing, finds that a rate demanded, observed, charged, or collected by a public utility for a service subject to the jurisdiction of the commission, or that a classification, rule, regulation, practice, or contract affecting the rate, is unjust, unreasonable, unduly discriminatory or preferential, the commission shall determine a just and reasonable rate, classification, rule, regulation, practice, or contract to be observed or allowed and shall establish it by order. A municipality may covenant with bond purchasers regarding rates of a municipally owned utility, and the covenant is valid and enforceable and is considered to be a contract with the holders from time to time of the bonds. The financial covenants contained in mortgages and other debt instruments of cooperative utilities organized under AS 10.25 are also valid and enforceable, and rates set by the commission must be adequate to meet those covenants. However, a cooperative utility that is negotiating to enter a mortgage or other debt instrument that provides for a times-interest-earned ratio (TIER) greater than the ratio the commission most recently approved for that cooperative shall submit the mortgage or debt instrument to the commission before the instrument takes effect. The commission may disapprove the instrument within 60 days after its submission. If the commission has not acted within 60 days, the instrument is considered to be approved. (b) A wholesale power agreement between public utilities, or between a public utility and an independent power producer, is subject to advance approval of the commission. A rate set in accordance with a wholesale power agreement must disclose a state or local tax exemption provided to a utility or independent power producer. After a wholesale power agreement is in effect, the commission may not invalidate any purchase or sale obligation under the agreement. However, if the commission finds that rates set in accordance with the agreement violate this subsection or are not just and reasonable, the commission may order the parties to negotiate an amendment to the agreement and if the parties fail to agree, to use the dispute resolution procedures contained in the contract. In this subsection, “independent power producer” means a legal entity, other than a public utility or a joint action agency established under AS 42.45.310 , that owns or operates a facility for the generation of electricity. (c) Notwithstanding (b) of this section, (1) a wholesale agreement for the sale of power from a project licensed by the Federal Energy Regulatory Commission on or before January 1, 1987, and related contracts for the wheeling, storage, regeneration, or wholesale repurchase of power purchased under the agreement, entered into between the Alaska Energy Authority and one or more other public utilities or among the utilities after October 31, 1987, and before January 1, 1988, and amendments to the wholesale agreement or related contract, and the wholesale agreement or related contract assigned by the Alaska Energy Authority to a joint action agency formed under AS 42.45.310 that purchases the project from the Alaska Energy Authority, are not subject to review or approval by the commission until all long-term debt incurred for the project is retired, or, for a wholesale agreement or related contract assigned to a joint action agency formed under AS 42.45.310 , until all long-term debt incurred to pay the purchase price to the Alaska Energy Authority is retired; and (2) a wholesale agreement or related contract described in (1) of this subsection may contain a covenant for the public utility to establish, charge, and collect rates sufficient to meet its obligations under the contract; the rate covenant is valid and enforceable. (d) Meetings between the Alaska Energy Authority and public utilities concerning a wholesale agreement for the sale of power or other matter exempted from review of the commission under (c) of this section must comply with AS 44.62.310 . (e) Validated costs incurred by a utility in connection with the related contracts described in (c)(1) of this section must be allowed in the rates charged by the utility. In this subsection, “validated costs” are the actual costs that a utility uses, under the formula set out in related contracts described in (c) of this section, to establish rates, charges for services and rights, and the payment of charges for services and rights. This subsection does not grant the commission jurisdiction to alter or amend the formula set out in those related contracts. (f) In the establishment of rates of a utility furnishing solid waste material collection and disposal service, the commission shall permit recovery of reasonable, net capital and operating costs relating to solid waste recovery and recycling services after considering the utility's recovery of revenue associated with the service. (g) In the establishment of rates under this chapter, the commission shall promote cost-effective solid waste recovery and recycling services. (h) When setting or reviewing rates for a public utility that sends or receives power over the power transmission interties between Fairbanks and Healy or between Anchorage and the Kenai Peninsula, the commission shall consider those costs that have not been directly assigned to other individual generating utilities by the utility responsible for the construction of the intertie to have been incurred for the system existing on August 11, 1993. Sec. 42.05.433. Review of certain contracts by the commission. (a) A precedent agreement or contract entered into by a public utility with the Alaska Gasline Development Corporation or its successors or assigns may contain a covenant for the public utility to establish, charge, and collect rates sufficient to meet its obligations under the contract. If the precedent agreement associated with the contract is approved by the commission under AS 42.08 , the rate covenant in the associated contract is valid and enforceable. (b) A public utility negotiating to purchase natural gas to be shipped through an in-state natural gas pipeline regulated under AS 42.08 shall submit the contract to the commission before the contract takes effect. (c) A public utility negotiating to contract for the storage of natural gas shipped in an in-state natural gas pipeline regulated under AS 42.08 shall submit the contract to the commission before the contract takes effect. (d) The commission shall review and may conduct an investigation and hearing to determine whether a contract submitted under (b) or (c) of this section is just and reasonable. The review and determination shall be conducted as provided in AS 42.08.320 (b) — (d). The commission shall either approve the contract as presented or, if the commission finds that a contract is not just and reasonable, disapprove the contract. Notwithstanding AS 42.05.175 , if the commission has not acted within 180 days after the contract is submitted, the contract shall be considered approved and shall take effect immediately. The commission may, by order, extend the 180-day review period by the duration of a delay caused by a failure of the public utility to submit supplemental information that is available to the public utility. A contract that is approved or considered approved under this section is not subject to further review by the commission. Sec. 42.05.440. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.441. Valuation of property of a public utility. (a) The commission may, after providing reasonable notice and opportunity to be heard, ascertain and set the fair value of the whole or any part of the property of a public utility, insofar as it is material to the exercise of the jurisdiction of the commission. The commission may make revaluations from time to time and ascertain the fair value of all new construction, extensions, and additions to the property of a public utility. If a public utility furnishes more than one classification of utility service the utility shall allocate the investment and expenses associated with the property used and useful in furnishing service among the utility services and it may not solely consider the utility's total investment and expenses in fixing rates for a particular service. (b) In determining the value for rate-making purposes of public utility property used and useful in rendering service to the public, the commission shall be guided by acquisition cost or, if lower, the original cost of the property to the person first devoting it to public service, less accrued depreciation, plus materials and supplies and a reasonable allowance for cash working capital when required. (c) For rate-making purposes, indebtedness, debt service, and payments by a regulated public utility to a person having an ownership interest of more than 70 percent in the utility shall be considered to be ownership equity, profits, or dividends except to the extent that there is a clear and convincing showing that (1) the indebtedness was incurred, or the payments made, for goods or services that were reasonably necessary for the operation of the utility; and (2) the goods or services were provided at a cost that was competitive with the price at which they could have been obtained from a person having no ownership interest. Sec. 42.05.450. [Repealed, § 5 ch 113 SLA 1970.] Article 5. Accounts, Records, and Reports. Sec. 42.05.451. System of accounts and reports. (a) The commission may classify the public utilities under its jurisdiction and prescribe a uniform system of accounts for each class and the manner in which the accounts and supporting records shall be kept. (b) A public utility shall maintain its accounts on a calendar year basis unless specifically authorized by the commission to maintain its accounts on a fiscal year basis. Within 90 days after the close of its authorized annual accounting period, or additional time granted upon a showing of good cause, a public utility shall file with the commission a verified annual report of its operations during the period reported, on forms prescribed by the commission. Sec. 42.05.460. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.461. Continuing property records. The commission may require a public utility to establish, provide, and maintain as a part of its system of accounts, continuing property records segregated by the year of placement in service, including a list or inventory of all the units of tangible property used or useful in the public service, identifying the property by location and project. The commission may require a public utility to keep accounts and records in a manner that shows the original cost of the property when first devoted to the public service, and the current related reserve for depreciation. A public utility with annual revenues exceeding $100,000 shall keep continuing property records. Sec. 42.05.470. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.471. Depreciation rates and accounts. (a) To provide for the loss in service value of its property, not restored by current maintenance, a utility shall charge adequate, but not excessive, depreciation expense for each major class of utility property used and useful in serving the public. From time to time the commission shall determine the proper and adequate rates of depreciation for each major class of property of a public utility. The commission shall accept rates of depreciation and depreciation accounts prescribed and maintained under regulations of a federal agency or the terms of a bond ordinance. The commission shall determine and allow depreciation expense in fixing the rates, tolls, and charges to be paid for the services of a public utility. (b) The commission is not bound in rate proceedings to accept, as just and reasonable for rate-making purposes, estimates of annual or accrued depreciation established under the provisions of this section, or to allow annual or accrued depreciation on utility property directly or indirectly contributed by customers or others. Sec. 42.05.480. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.481. Separate Business Accounts. A public utility engaged, directly or indirectly, in another business, including another utility business or a subsidiary business, shall keep separate accounts relating to that business. Except as the commission provides, property, expense, or revenue used in or derived from that business may not be considered in establishing the rates and charges of the utility for its public services. Sec. 42.05.490. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.491. Records and accounts to be kept in state. A public utility shall keep the books, accounts, papers, and records required by the commission in an office within this state, and may not remove them from the state, except upon the terms and conditions that may be prescribed by the commission. The provisions of this section do not apply to a public utility whose accounts are kept at its principal place of business outside the state, in the manner prescribed by a federal regulatory body; however, such a public utility shall at its option, either furnish to the commission, within a reasonable time fixed by the commission, certified copies of its books, accounts, papers, and records relating to the business done by the public utility within this state, or agree to pay the actual expenses incurred by the commission in sending personnel to examine the utility's books and records at the place where they are kept. Sec. 42.05.500. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.501. Inspection of books and records. (a) The commission shall at all reasonable times have access to, and may designate any of its employees, agents, or consultants to inspect and examine, the accounts, records, books, maps, inventories, appraisals, valuations, or other reports and documents, kept by public utilities or their affiliated interests, or prepared or kept for them by others, that relate to any contract or transaction between them. The commission may require a public utility or its affiliated interest to file with the commission copies of any or all of these accounts, records, books, maps, inventories, appraisals, valuations, or other reports and documents. (b) When participating as a party under AS 42.04.070 (c) or AS 44.23.020 (e), the attorney general shall, at all reasonable times, have the right to reasonable access to, and may designate any of the attorney general's employees, agents, or consultants to inspect and examine, the accounts, records, books, maps, inventories, appraisals, valuations, or other reports and documents kept by public utilities that are relevant to the issues presented in any adjudicatory matter before the commission in which the attorney general has appeared as a party under AS 42.04.070 (c) or AS 44.23.020 (e). This access is subject to reasonable notice to all parties with an opportunity to object before the commission. Included under this subsection is access to records or other documents under the custody or control of an affiliated interest of a public utility that relate to any contract or transaction between the public utility and the affiliated interest. Sec. 42.05.505. Records of gas storage facilities. Records held by the commission related to the finances of a gas storage facility, a liquefied natural gas storage facility, or a public utility providing the service of natural gas storage, including financial statements and financial assurance agreements, are confidential and are not public records under AS 40.25.100 — 40.25.295 (Alaska Public Records Act). The commission may disclose information from a record subject to this section only to a state or federal agency if the commission determines that disclosure of the information is necessary for the commission to complete its duties. Sec. 42.05.510. [Repealed, § 5 ch 113 SLA 1970.] Article 6. Financial and Management Regulation. Sec. 42.05.511. Unreasonable management practices. (a) The commission may investigate the management of a public utility, including staffing patterns, wage and salary scales and agreements, investment policies and practices, and purchasing and payment arrangements with affiliated interests, for the purpose of determining inefficient or unreasonable practices that adversely affect the cost or quality of service of the public utility. (b) Where unreasonable practices are found to exist, the commission may, after providing reasonable notice and opportunity for hearing, take appropriate action to protect the public from the inefficient or unreasonable practices and may order the public utility to take the corrective action the commission may require to achieve effective development and regulation of public utility services. (c) In a rate proceeding, the utility involved has the burden of proving that any written or unwritten contract or arrangement it may have with any of its affiliated interests for the furnishing of any services or for the purchase, sale, lease, or exchange of any property is necessary and consistent with the public interest and that the payment made therefor, or consideration given, is reasonably based, in part, on the submission of satisfactory proof as to the cost to the affiliated interest of furnishing the service or property and, in part, on the estimated cost the utility would have incurred if it furnished the service or property with its own personnel and capital. Sec. 42.05.520. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.521. Impaired capital. When the commission finds that the capital of a public utility corporation is impaired, or might become impaired, it may, after investigation and hearing, issue an order directing the public utility to cease paying dividends on its common stock until the impairment has been removed. Sec. 42.05.530. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.531. Distribution of surplus and profits. The surplus and profits of a public utility shall be distributed in accordance with the bylaws or ordinances controlling the utility. Sec. 42.05.540. [Repealed, § 5 ch 113 SLA 1970.] Article 7. Judicial Review, Penalties, and Enforcement. Sec. 42.05.541. Effect of regulations. Regulations adopted and issued by the commission in accordance with this chapter have the effect of law. Sec. 42.05.550. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.551. Review and enforcement. (a) All final orders of the commission are subject to judicial review in accordance with AS 44.62.560 — 44.62.570. (b) If an appeal is not taken from a final order of the commission, the commission may apply to the superior court for enforcement of this chapter, the regulations adopted under it, and the orders of the commission. The court shall enforce the order by injunction or other process. Sec. 42.05.560. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.561. Injunctions and monetary sanctions. (a) A person who violates a provision of AS 42.05.291 insofar as it governs the safety of pipeline facilities and the transportation of gas, or of any regulation issued under AS 42.05.291 is subject to a civil penalty of not more than $1,000 for each violation for each day that the violation persists. However, the maximum civil penalty may not exceed $200,000 for any related series of violations. (b) A civil penalty may be compromised by the commission. In determining the amount of the penalty, or the amount agreed upon in compromise, the appropriateness of the penalty to the size of the business of the person charged, the gravity of the violation, and the good faith of the person charged in attempting to achieve compliance, after notification of a violation, shall be considered. The amount of the penalty, when finally determined, or the amount agreed upon in compromise, may be deducted from any sums owing by the state to the person charged or may be recovered in a civil action in the state courts. (c) A person may be enjoined by the superior court from committing any violation mentioned in this section. Sec. 42.05.570. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.571. Civil penalties. (a) In addition to all other penalties and remedies provided by law, a public utility and every person, and their lessees or receivers appointed by a court in any way subject to the provisions of this chapter, together with their officers, managers, agents, or employees that either violate or procure, aid, or abet the violation of any provision of this chapter, or of any order, regulation, or written requirement of the commission are subject to a maximum penalty of $100 for each violation. Each act of omission as well as each act of commission shall be considered a violation subject to the penalty. (b) A penalty may not be assessed unless the commission first issues an order to show cause why the penalty should not be levied. The order shall describe each violation with reasonable particularity and designate the maximum penalty that may be assessed for each violation. The order shall be served on the alleged violator named in the order. The order must state a time and place for the hearing. (c) After a hearing, the commission shall enter its findings of fact and final order. The order must state when the penalties, if any, are payable. Sec. 42.05.580. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.581. Each violation a separate offense. Each violation of a provision of this chapter or of an order, decision, regulation, or written requirement of the commission is a separate and distinct offense, and in case of a continuing violation each day's continuance is a separate and distinct offense. Secs. 42.05.590 — 42.05.600. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.601. Actions to recover penalties; disposition. (a) Actions to recover penalties under this chapter shall be brought by the attorney general in a court of competent jurisdiction. (b) All penalties recovered under the provisions of this chapter shall be paid to the commission and deposited by it in the general fund of the state. Sec. 42.05.610. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.611. Penalties cumulative. (a) All penalties imposed under this chapter are cumulative and an action for the recovery of a civil penalty is not a bar to any criminal prosecution. A criminal prosecution is not a bar to an action for the recovery of a civil penalty. (b) Neither a criminal prosecution nor an action to recover a civil penalty is a bar to an enforcement proceeding to require compliance, or to any other remedy provided by this chapter. Sec. 42.05.620. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.621. Joinder of actions. Under the applicable court rules, appeals from orders of the commission, applications for enforcement of commission orders, and actions for recovery of a penalty may be joined. The court may, in the interests of justice, separate the action. Sec. 42.05.630. [Repealed, § 5 ch 113 SLA 1970.] Article 8. Miscellaneous Provisions. Sec. 42.05.631. Eminent domain. A public utility may exercise the power of eminent domain for public utility uses. This section does not authorize the use of a declaration of taking. Sec. 42.05.640. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.641. Regulation by municipality. The commission's jurisdiction and authority extend to public utilities operating within a municipality, whether home rule or otherwise. In the event of a conflict between a certificate, order, decision, or regulation of the commission and a charter, permit, franchise, ordinance, rule, or regulation of such a local governmental entity, the certificate, order, decision, or regulation of the commission shall prevail. Sec. 42.05.645. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.650. [Repealed, § 5 ch 113 SLA 1970.] Sec. 42.05.651. Expenses of investigation or hearing. (a) During a hearing or investigation held under this chapter, the commission may allocate the costs of the hearing or investigation among the parties, including the commission, as is just under the circumstances. In allocating costs, the commission shall consider the regulatory cost charge paid by a utility under AS 42.05.254 and may consider the results, ability to pay, evidence of good faith, other relevant factors, and mitigating circumstances. Notwithstanding an intervening party's ability to pay, if the commission determines that an intervening party has conducted its intervention in a frivolous manner, the commission shall allocate all costs associated with the intervention to that party. The costs allocated may include the costs of any time devoted to the investigation or hearing by hired consultants, whether or not the consultants appear as witnesses or participants. The costs allocated may also include any out-of-pocket expenses incurred by the commission in the particular proceeding. The commission shall provide an opportunity for any person objecting to an allocation to be heard before the allocation becomes final. (b) [Repealed, § 28 ch 90 SLA 1991.] (c) Notwithstanding the commission's discretion under (a) of this section to allocate costs to parties, the commission may not require a state agency to pay any costs allocated to the state agency. Sec. 42.05.661. Application fees. With each application relating to a certificate the applicant shall pay the commission a fee set by the commission by regulation that shall be deposited in the general fund of the state. Sec. 42.05.671. Public records. (a) Except as provided in (b) of this section, records in the possession of the commission are open to public inspection at reasonable times. (b) The commission may, by regulation, classify the records submitted to it by regulated utilities as privileged records that are not open to the public for inspection. However, if a record involves an application or tariff filing pending before the commission, the commission shall release the record for the purpose of preparing for or making a presentation to the commission in the proceeding if the record or information derived from the record will be used by the commission in the proceeding. (c) A person may make written objection to the public disclosure of information contained in a record under the provisions of this chapter or of information obtained by the commission or by the attorney general under the provisions of this chapter, stating the grounds for the objection. When an objection is made, the commission may not order the information withheld from public disclosure unless the information adversely affects the interest of the person making written objection and disclosure is not required in the interest of the public. (d) In this section, “record” means a report, file, book, account, paper, or application, and the facts and information contained in it. Sec. 42.05.681. Validity of certain certificates. A certificate issued before July 29, 1968, to a public utility for the generation, transmission, or distribution of electric energy and power, or for the furnishing of telecommunications may not be considered as terminated or voided for the sole reason that the utility did not or would not produce an annual gross income in excess of $25,000. Sec. 42.05.691. Utility classes. The commission may by regulation provide for the classification of public utilities based upon differences in annual revenue, assets, nature of ownership, and other appropriate distinctions and as between these classifications, by regulation, provide for different reporting, accounting, and other regulatory requirements. Sec. 42.05.701. [Renumbered as AS 42.05.720 .] Sec. 42.05.711. Exemptions. (a) The provisions of this chapter do not apply to a person who furnishes water, gas or petroleum or petroleum products by tank, wagon, or similar conveyance, unless the person is thereby supplying water, gas, petroleum or petroleum products to a public utility in which the person has an “affiliated interest”. (b) Except as otherwise provided in this subsection, (o) of this section, and AS 44.83.700 (d), public utilities owned and operated by a political subdivision of the state, or electric operating entities established as the instrumentality of two or more public utilities owned and operated by political subdivisions of the state, are exempt from this chapter, other than AS 42.05.221 — 42.05.281 and 42.05.385. However, (1) the governing body of a political subdivision may elect to be subject to this chapter; and (2) a utility or electric operating entity that is owned and operated by a political subdivision and that directly competes with another utility or electric operating entity is subject to this chapter and any other utility or electric operating entity owned and operated by the political subdivision is also subject to this chapter; this paragraph does not apply to a utility or electric operating entity owned and operated by a political subdivision that competes with a telecommunications utility. (c) The ownership in whole or part of the corporate stock of a public utility does not make the owner a public utility. (d) The commission may exempt a utility, a class of utilities, or a utility service from all or a portion of this chapter if the commission finds that the exemption is in the public interest. (e) Notwithstanding any other provisions of this chapter, any electric or telephone utility that does not gross $50,000 annually is exempt from regulation under this chapter unless the subscribers petition the commission for regulation under AS 42.05.712 (h). (f) Notwithstanding any other provisions of this chapter, an electric or telephone utility that does not gross $500,000 annually may elect to be exempt from the provisions of this chapter other than AS 42.05.221 — 42.05.281 under the procedure described in AS 42.05.712 . (g) A utility, other than a telephone or electric utility, that does not gross $150,000 annually may elect to be exempt from the provisions of this chapter other than AS 42.05.221 — 42.05.281 under the procedure described in AS 42.05.712 . (h) A cooperative organized under AS 10.25 may elect to be exempt from the provisions of this chapter, other than AS 42.05.221 — 42.05.281, under the procedure described in AS 42.05.712 . (i) A utility that furnishes collection and disposal service of garbage, refuse, trash, or other waste material and has annual gross revenues of $300,000 or less is exempt from the provisions of this chapter, other than the certification provisions of AS 42.05.221 — 42.05.281, unless the subscribers petition the commission for regulation under AS 42.05.712 (h). Notwithstanding AS 42.05.712 (b) and (g), if subscribers representing 25 percent of the gross revenue of the utility petition the commission for regulation, the utility is subject to the provisions of this chapter. (j) The provisions of this chapter do not apply to sales, exchanges, or gifts of energy to an electric utility certificated under this chapter when the energy which is the subject of the sale, exchange, or gift is waste heat, electricity, or other energy which is surplus or the by-product of an industrial process. In an area in which no electric utility is certificated for service, energy provided by sale, exchange, or gift may be provided to any utility which is certificated for service to that area. A contract for the sale, exchange, or gift of energy exempt under this subsection does not make the supplier a public utility and does not transfer the responsibility to provide utility services from a certificated utility to any other person. (k) A utility that furnishes cable television service is exempt from the provisions of this chapter other than AS 42.05.221 — 42.05.281 unless the subscribers petition the commission for regulation under the procedure described in AS 42.05.712 . (l) A person, utility, joint action agency established under AS 42.45.310 , or cooperative that is exempt from regulation under (a), (d) — (k), (o), or (r) of this section is not subject to regulation by a municipality under AS 29.35.060 and 29.35.070. (m) The collection and disposal, under AS 29.35.050 (c), by a municipality of waste material deposited at an intermediate transfer site is exempt from this chapter. (n) Except as provided by AS 42.06.370 (c), the provisions of this chapter do not apply to a person who owns or operates a natural gas pipeline as a North Slope natural gas pipeline carrier, as that term is defined in AS 42.06.630 . (o) A joint action agency established under AS 42.45.310 is exempt from regulation under this chapter, including the requirement to obtain a certificate of public convenience and necessity under AS 42.05.221 , for the operation of, sale of power from, and other activities related to the power project the joint action agency purchases from the Alaska Energy Authority until the wholesale agreement and any related contract assigned by the authority becomes subject to review or approval by the commission under AS 42.05.431 . The exemption provided by this subsection extends to repairs and improvements to the power project the joint action agency purchases from the authority but does not extend to any other power project or other activity of the joint action agency. (p) A regional solid waste management authority established under AS 29.35.800 — 29.35.925 is exempt from regulation under this chapter, except that a solid waste management authority is subject to this chapter if it directly competes with a utility subject to this chapter. (q) The service of natural gas storage furnished by operating a natural gas storage facility that is part of a North Slope natural gas pipeline facility operated by a North Slope natural gas pipeline carrier is exempt from this chapter. In this subsection, “North Slope natural gas pipeline carrier” and “North Slope natural gas pipeline facility ” have the meanings given in AS 42.06.630 . (r) A plant or facility that generates electricity entirely from renewable energy resources is exempt from regulation under this chapter, other than applicable regulation under AS 42.05.760 — 42.05.790, if (1) the plant or facility (A) is first placed into commercial operation on or after August 31, 2010, and before July 1, 2028; and (B) does not generate more than 65 megawatts of electricity; (2) the electricity generated by the plant or facility is sold only to one or more electric utilities that are regulated by the commission; and (3) the person that constructs, owns, acquires, or operates the plant or facility has not received from the state (A) a grant that was used to generate the electricity from the renewable energy resources; or (B) a tax credit related to the generation of electricity from the renewable energy resources. (s) An in-state natural gas pipeline subject to AS 42.08 and an in-state natural gas pipeline carrier subject to AS 42.08 are exempt from this chapter. (t) A utility that provides telecommunications services is exempt from the provisions of this chapter, other than AS 42.05.141 (e) and (f), 42.05.221 — 42.05.281, 42.05.296, 42.05.306, 42.05.381(l) — (n), 42.05.631, 42.05.641, 42.05.661, and 42.05.820 — 42.05.860. (u) Notwithstanding (t) of this section, the commission has the authority to regulate the rates and terms and conditions of telecommunications services provided to inmates in the custody of the Department of Corrections. (v) A liquefied natural gas import facility under the jurisdiction of the Federal Energy Regulatory Commission is exempt from this chapter. (w) In this section, “renewable energy resources” means (1) wind, solar, geothermal, wasteheat recovery, hydrothermal, wave, tidal, river in-stream, or hydropower; (2) low-emission nontoxic biomass based on solid or liquid organic fuels from wood, forest and field residues, or animal or fish products; (3) dedicated energy crops available on a renewable basis; or (4) landfill gas and digester gas. Sec. 42.05.712. Deregulation ballot. (a) A utility or cooperative that may elect to be exempt from the provisions of this chapter shall poll its subscribers or members in the manner described in this section. (b) The votes of a majority of those voting in an election in which at least 15 percent of the eligible subscribers or members return ballots are required for a utility or cooperative to elect exemption under (a) of this section. (c) Each subscriber or member of the utility or cooperative shall receive notice of an election under this section with the subscriber's or member's regular bill for service at least 60 days before the date set for the election. The notice shall contain impartial language informing the subscribers or members that an election on the option of deregulation or regulation by the Regulatory Commission of Alaska will be held within 60 days and that a ballot to participate in that election will be mailed or delivered to each subscriber or member of the utility or cooperative with the regular bill for service. The notice shall also state that a subscriber or member of the cooperative is entitled to vote in the election without regard to whether the subscriber's or member's account with the utility or cooperative is current and that the ballot must be postmarked or returned to the commission within 30 days after it was mailed or otherwise delivered to the subscriber or member. The notice shall also announce the schedule for one or more public meetings which shall provide an opportunity for the subscribers or members to discuss this election. The public meeting or meetings shall be held not more than 30 days before the ballots are mailed or distributed to those eligible to vote.

A cooperative may satisfy this requirement by including a discussion of this election on the agenda of an annual meeting if the annual meeting is scheduled to be held not more than 30 days before the election. (d) A ballot with return postage paid shall be mailed or delivered to each subscriber or member of the utility or cooperative with the subscriber's or member's bill for service and shall contain only the following language: “Shall.(name of utility or cooperative) be exempt from regulation by the Regulatory Commission of Alaska? [ ] YES [ ] NO” (e) The results of an election under this section shall be certified by the commission within 60 days after the ballots are mailed or delivered to the subscribers or members. (f) During the 60 days immediately preceding an election under this section a list of subscribers or members of the utility or cooperative shall be made available at cost to any subscriber or member of the utility or cooperative who requests one. The list shall be in the same form that is available to the utility or cooperative. (g) The board of directors of a utility or cooperative may call an election under this section on its own initiative and shall call an election upon receipt of a valid petition from its subscribers or members. A petition shall be considered valid if it is signed by not less than the number of subscribers or members equal to ten percent of the first 5,000 subscribers or members and three percent of the subscribers or members in excess of 5,000. An election under this section may only be held once every two years. (h) A utility or cooperative that is already exempt from regulation under this section or that is exempt from regulation under AS 42.05.711 (e), (i), or (k) may elect to terminate its exemption in the same manner. Sec. 42.05.720. [Renumbered as AS 42.05.990 .] Sec. 42.05.721. [Renumbered as AS 42.05.995 .] Article 9. Community Energy Facilities. Sec. 42.05.725. Applicability. (a) AS 42.05.725 — 42.05.735 apply to an electric utility that is subject to exercise of the jurisdiction of the commission that extends to matters concerning rates and charges for public utility services. (b) AS 42.05.725 — 42.05.735 do not apply to an electric system that is exempt from net metering requirements adopted by the commission. Sec. 42.05.727. Community energy programs. (a) An electric utility subject to AS 42.05.725 — 42.05.735 shall make a community energy program available to a subscriber organization that requests interconnection. The electric utility shall allow eligible community energy facilities to interconnect to the facilities of the electric utility in accordance with interconnection standards approved by the commission. The electric utility shall submit to the commission for approval (1) a community energy tariff with subscriptions available only to the retail consumers or member owners of the utility; and (2) the maximum nameplate capacity for eligible community energy facilities within the utility's service area, considering the utility's load profile and effects on the rates and reliability from interconnecting with the facilities; the utility shall evaluate and update the nameplate capacity every two years. (b) An electric utility, or an entity contracting to sell electric energy to an electric utility, may own a community energy facility. Sec. 42.05.729. Charges and rates. The commission shall adopt bill credit rates for electric utilities subject to AS 42.05.725 — 42.05.735 that consider the full economic value provided by community energy facilities. The commission may adopt a separate rate for capacity provided by a community energy facility through energy storage. The commission shall ensure that a community energy program does not have an adverse effect on the retail rates of an electric utility subject to AS 42.05.725 — 42.05.735. An electric utility subject to AS 42.05.725 — 42.05.735 shall credit a subscriber for the proportional output of a community energy facility attributable to the subscriber. The credit must appear on the subscriber's bill within one billing cycle of the generation of the energy by the community energy facility. Sec. 42.05.731. Authority and duties of the commission. (a) The commission may modify or waive a requirement in AS 42.05.725 — 42.05.735, in whole or in part, by order. An application for modification or waiver under this section must be in writing and must set out the pertinent facts in sufficient detail to support a finding by the commission that no legitimate public interest will be served by enforcing the requirement designated in the application. (b) The commission may adopt by regulation additional requirements pertaining to safety, power quality, and interconnection standards for community energy facilities if the commission considers the requirements to be necessary to protect public safety and system reliability. (c) The commission shall (1) establish protocols to facilitate communication between utilities and subscriber organizations to ensure utilities have the information necessary to timely calculate and provide bill credits to subscribers; (2) require a utility subject to AS 42.05.725 — 42.05.735 to modify existing interconnection standards, fees, and processes when necessary to facilitate cost-effective and nondiscriminatory interconnection of community energy facilities; (3) permit a utility to recover reasonable costs for the administration of a community energy program; (4) facilitate the creation, financing, and accessibility of community energy facilities, including those owned by nonutility third parties; and (5) require that the construction of a community energy facility be performed by employees of contractors and subcontractors who receive the current prevailing rate of wages specified in the latest determination of prevailing rate of wages for public construction projects issued by the Department of Labor and Workforce Development under AS 36.05.010 . (d) Notwithstanding another provision of this chapter, the commission may not consider a subscriber organization or an individual subscriber to be an electric utility solely because of the subscriber's participation in a community energy facility. Sec. 42.05.735. Definitions. In AS 42.05.725 — 42.05.735, (1) “community energy facility” is a renewable energy generating facility under a certificated electric utility's community energy tariff that is not connected to a retail consumer's electricity meter and provides all or a portion of the electrical energy requirements of the retail consumer; (2) “consumer” means a customer of an electric utility described in AS 42.05.725 that consumes the electricity purchased from the utility; (3) “electric system” means an integrated electrical system that includes, at a minimum, generation and distribution of electric energy; (4) “nameplate capacity” means the maximum rated output of a generator, prime mover, or other electric power production equipment under specific conditions designated by the manufacturer; (5) “subscriber” means an electric consumer of an electric utility who owns one or more community energy facility subscriptions interconnected with the utility and who (A) is a residential customer of the utility; or (B) is a commercial customer of the utility with an electricity demand of less than 50 kilowatts per month; (6) “subscriber organization” means a for-profit or nonprofit entity that owns or operates one or more community energy facilities; (7) “subscription” means a contract between a subscriber and a subscriber organization that owns a community energy facility. Article 10. On-Bill Financing of Energy Efficiency and Conservation Improvements. Sec. 42.05.750. On-bill financing of energy efficiency and conservation improvements; authorization and eligibility. (a) A utility may enter into a written on-bill financing agreement with a customer to finance the purchase and installation of a renewable energy system, energy efficiency device, energy storage device, or energy conservation system in a residence or building that is eligible under (b) of this section by assessing a meter conservation charge on the customer's utility bill. (b) A residence or building is eligible for on-bill financing under (a) of this section if, at the time the financing agreement is entered into, the residence or building (1) is occupied or in use; and (2) is not under initial construction. (c) An on-bill financing agreement must clearly state the interest rate to be charged for financing the purchase and installation of the renewable energy system, energy efficiency device, energy storage device, or energy conservation system. The interest shall be set at a rate that is fixed over the term of the agreement. (d) An on-bill financing agreement is not valid under this section unless the utility has offered the customer in writing the option of purchasing a repair and maintenance agreement for the renewable energy system, energy efficiency device, energy storage device, or energy conservation system before the purchase and installation of the system or device. A repair and maintenance agreement under this section must (1) be for a term of not less than the duration of the on-bill financing agreement; (2) benefit the customer and any subsequent owner of the residence or building from whom the utility may recover the costs under the on-bill financing agreement under AS 42.05.753 ; (3) for a fixed periodic fee, maintain the original function and performance of the renewable energy system, energy efficiency device, energy storage device, or energy conservation system. (e) A customer may decline to purchase a repair and maintenance agreement described under (d) of this section only if the customer enters into an agreement in writing with the utility to pay the balance of the on-bill financing agreement before transferring ownership of the residence or building. At the time of transfer of ownership, the subsequent owner may waive the requirement that the customer pay the balance of the on-bill financing agreement by notifying the utility in writing that the subsequent owner assumes the balance owed on the on-bill financing agreement. (f) The balance owed on an on-bill financing agreement may be paid in full at any time without penalty. (g) Nothing in this section requires a utility to enter into an on-bill financing agreement with a specific customer or for a specific device or system. Sec. 42.05.751. Meter conservation charge. (a) A meter conservation charge assessed under AS 42.05.750 (a) may only be used to recover the (1) actual costs incurred by the utility for the purchase, installation, and financing of the renewable energy system, energy efficiency device, energy storage device, or energy conservation system, including the administrative costs of the on-bill financing agreement and the cost of filing notice under AS 42.05.752 ; (2) repayment of costs incurred by a third party that has performed a function under AS 42.05.755 ; and (3) periodic fee for a repair and maintenance agreement under AS 42.05.750 (d). (b) A utility may assess a meter conservation charge on (1) the customer who entered into the on-bill financing agreement; or (2) a subsequent owner of the residence or building under AS 42.05.753 . (c) A meter conservation charge must be shown as a separate line item on a customer's bill. (d) A utility may treat a customer's failure to pay a meter conservation charge as a failure to pay the utility account, and the utility may disconnect the utility service for nonpayment of the meter conservation charge, if the utility complies with AS 42.05.381 (c), AS 42.20.040 , and any other applicable law. A utility may not remove a renewable energy system, energy efficiency device, energy storage device, or energy conservation system for failure to pay a meter conservation charge or when disconnecting service for failure to pay a meter conservation charge. (e) Money collected by a utility as a meter conservation charge is not revenue subject to state taxes under AS 43.20 . (f) The billing and collection of a meter conservation charge does not subject a utility to the laws that regulate financial institutions, escrow depositories, or collection agencies. A utility is not responsible for a lending, underwriting, or credit determination for an on-bill financing agreement. Sec. 42.05.752. Notice of on-bill financing agreement and meter conservation charge. (a) A utility that enters into an on-bill financing agreement shall file notice of the on-bill financing agreement and related meter conservation charge in the recording district in which the residence or building subject to the agreement is located. Notice under this subsection does not constitute a lien on the property, but is intended to give an owner of the residence or building notice that the residence or building is subject to a meter conservation charge. Notice is considered given if it is sufficient to disclose to prospective owners the existence of the meter conservation charge, including the balance owed under the on-bill financing agreement, whether the system or device is covered by a repair and maintenance agreement described in AS 42.05.750 (d), and the length of time the meter conservation charge is expected to remain in effect. (b) A utility shall file notice of satisfaction when an on-bill financing agreement is paid in full. Notice of satisfaction shall be filed in the recording district in which the residence or building subject to the agreement is located. Sec. 42.05.753. Transferability of on-bill financing balances to subsequent owners. A utility that enters into an on-bill financing agreement may recover the balance of the costs allowed under the agreement from a subsequent owner of the residence or building in which the renewable energy system, energy efficiency device, energy storage device, or energy conservation system was installed if the utility gives notice under AS 42.05.752 that the residence or building is subject to the agreement. Sec. 42.05.754. Rental property. A utility may recover the costs under an on-bill financing agreement for a rental property by assessing a meter conservation charge on a utility bill only if the landlord is responsible for the entire utility bill, including the meter conservation charge. Sec. 42.05.755. Third parties; contracting and liability. (a) A utility may contract with a third party to perform functions permitted under AS 42.05.750 — 42.05.754, including financing the purchase and installation costs for a renewable energy system, energy efficiency device, energy storage device, or energy conservation system. The third party shall comply with AS 42.05.750 — 42.05.754. (b) If the installation, operation, or maintenance of a renewable energy system, energy efficiency device, energy storage device, or energy conservation system is performed by a third party, (1) the utility is not liable for the installation, operation, or maintenance of the renewable energy system, energy efficiency device, energy storage device, or energy conservation system; (2) the utility may not provide, nor is there implied, a warranty of merchantability or fitness of the renewable energy system, energy efficiency device, energy storage device, or energy conservation system; and (3) no action may be brought against the utility related to the failure of the renewable energy system, energy efficiency device, energy storage device, or energy conservation system. (c) When a utility contracts with a third party to perform administrative or financing functions, (1) the third party is not liable for the installation, operation, or maintenance of the renewable energy system, energy efficiency device, energy storage device, or energy conservation system; (2) the third party may not provide, nor is there implied, a warranty of merchantability or fitness of the renewable energy system, energy efficiency device, energy storage device, or energy conservation system; and (3) no action may be brought against the third party related to the failure of the renewable energy system, energy efficiency device, energy storage device, or energy conservation system. (d) The provisions of (b) and (c) of this section may not be construed to impair the rights and remedies of a utility customer against any other parties to a transaction involving the purchase or installation of a renewable energy system, energy efficiency device, energy storage device, or energy conservation system. Sec. 42.05.756. Definitions. In AS 42.05.750 — 42.05.756, (1) “energy conservation system” includes a fuel-switching system; in this paragraph, “fuel-switching” means the replacement of existing fuel-consuming equipment using a particular fuel with equipment that uses another fuel that does not increase greenhouse gas emissions and that (A) is more fuel efficient; or (B) results in lower fuel expenses; (2) “meter conservation charge” means a charge placed on a customer's utility bill by a utility to recover costs under an on-bill financing agreement; (3) “on-bill financing agreement” means an agreement entered into under AS 42.05.750 . Article 11. Electric Reliability Organizations, Plans, and Standards. Sec. 42.05.760. Electric reliability organizations. (a) An electric utility must participate in an electric reliability organization if the utility operates in an interconnected electric energy transmission network served by an electric reliability organization certificated by the commission. The commission may not require an electric reliability organization for an interconnected bulk-electric system if (1) all of the load-serving entities operating in the interconnected bulk-electric system are exempt under AS 42.05.711 (b); or (2) the sum of annual electric energy sales made by load-serving entities operating in the interconnected bulk-electric system is less than 3,000,000 megawatt-hours. (b) A person may submit to the commission an application for certification as an electric reliability organization for an interconnected bulk-electric system. The commission may certificate one electric reliability organization for each interconnected electric energy transmission network. The commission may certificate an electric reliability organization if the commission determines that the electric reliability organization has the ability to comply with AS 42.05.762 . (c) The commission shall immediately notify the interconnected load-serving entities within a new or existing interconnected bulk-electric system of the requirements of this section. (d) Notwithstanding the requirements in (e) of this section, if all load-serving entities within an interconnected bulk-electric system petition the commission for an exemption from the requirement to establish an electric reliability organization for the interconnected electric energy transmission network, the commission may waive the requirement to form an electric reliability organization for that interconnected electric energy transmission network. (e) The commission shall form and certificate an electric reliability organization for an interconnected bulk-electric system under this section if, within (1) 90 days after the commission notifies the interconnected load-serving entities under (c) of this section, no person has applied for certification as an electric reliability organization for that interconnected bulk-electric system; or (2) 270 days after the commission notifies the interconnected load-serving entities under (c) of this section, the commission has not certificated an electric reliability organization for that interconnected bulk-electric system. (f) The commission may certificate an electric reliability organization for an interconnected electric energy transmission network that is not an interconnected bulk-electric system if (1) one or more load-serving entities within that network successfully petition the commission to find that an electric reliability organization should be established for the network; and (2) a person applies for certification as an electric reliability organization for the network. Sec. 42.05.762. Duties of an electric reliability organization. An electric reliability organization shall (1) develop reliability standards that provide for an adequate level of reliability of an interconnected electric energy transmission network; (2) develop integrated resource plans under AS 42.05.780 (a); (3) establish rules to (A) ensure that the directors of the electric reliability organization and the electric reliability organization act independently from users, owners, and operators of the interconnected electric energy transmission network; (B) equitably allocate reasonable dues, fees, and other charges among all load-serving entities connected to the interconnected electric energy transmission network for all activities under AS 42.05.760 — 42.05.790; (C) provide fair and impartial procedures for the enforcement of reliability standards; (D) provide for reasonable notice and opportunity for public comment, due process, openness, and balancing of interests in exercising its duties; (4) be governed by a board that (A) includes as nonvoting members the chair of the commission or the chair's designee and the attorney general or the attorney general's designee; and (B) is formed as (i) an independent board; (ii) a balanced stakeholder board; or (iii) a combination independent and balanced stakeholder board; and (5) prioritize the reliability, stability, and cost to consumers of the interconnected bulk-electric system served by the electric reliability organization. Sec. 42.05.765. Reliability standards. (a) An electric reliability organization shall file each reliability standard or modification to a reliability standard with the commission as a new or revised tariff provision. All users, owners, and operators of an interconnected electric energy transmission network served by an electric reliability organization, including a user, owner, or operator that is exempt from other regulation under AS 42.05.711 or another provision of this chapter, shall comply with reliability standards contained in a tariff that is approved by the commission. The commission may enforce a reliability standard approved under this section. A reliability standard approved under this section (1) shall provide for the reliable operation of the interconnected electric energy transmission network or of an interconnected electric energy transmission network facility; (2) may provide for (A) protection from a cybersecurity incident; (B) facility security; (C) additions or modifications to an interconnected bulk-electric system facility to the extent necessary to provide for reliable operation of the interconnected electric energy transmission network; (3) may result in, but may not be designed for the purpose of, requiring enlargement of interconnected bulk-electric system facilities or construction of new transmission capacity or generation capacity. (b) The commission may, after public notice, approve a proposed reliability standard or modification to a reliability standard submitted by an electric reliability organization. The commission shall determine whether the proposed standard or modification is just, reasonable, not unduly discriminatory or preferential, and in the public interest before approving the standard or modification. If, after public notice and a hearing, the commission determines that a proposed reliability standard or modification to a reliability standard submitted by an electric reliability organization should be changed, the commission shall return the standard to the electric reliability organization for timely modification and resubmission, consistent with the commission's order. The commission may modify a resubmitted standard if the commission determines that the standard is inconsistent with the commission's order or the public interest. A standard approved under this subsection satisfies the requirements of AS 42.05.291 (c). (c) The commission may, on its own motion or upon complaint, order an electric reliability organization to submit to the commission a proposed reliability standard or modification to a reliability standard that addresses a specific matter. (d) If a reliability standard adopted under this section conflicts with a function, rule, tariff, rate schedule, or agreement that has also been accepted, approved, adopted, or ordered by the commission, a user, owner, or operator shall comply with the function, rule, tariff, rate schedule, or agreement until the conflict is resolved by the commission. (e) If, as a condition of a contract with the United States Department of Defense, a user, owner, or operator is subject to a federal standard, rule, or function that conflicts with a reliability standard adopted under this section, the user, owner, or operator shall comply with the federal standard, rule, or function until the conflict is resolved by the commission. The commission may not resolve the conflict in a manner that prevents the user, owner, or operator from fulfilling the contract with the United States Department of Defense. (f) The commission may direct an electric reliability organization to conduct assessments of the reliability and adequacy of the interconnected electric energy transmission network. Sec. 42.05.767. Electric reliability organization rules; approval. An electric reliability organization shall file with the commission each proposed rule or proposed rule change, along with an explanation of the basis and purpose of the proposed rule or proposed rule change. The commission may, on its own motion or upon complaint, propose a change to the rules of an electric reliability organization. A rule change proposed by the commission takes effect upon a finding by the commission, after notice and opportunity for public comment, that the rule change is just, reasonable, not unduly discriminatory or preferential, and in the public interest. Sec. 42.05.770. Regulations. The commission shall adopt regulations governing electric reliability organizations, reliability standards, and modifications to reliability standards consistent with this section. Regulations under AS 42.05.760 — 42.05.790 must (1) require that an electric reliability organization's tariff include nondiscriminatory standards for interconnection; (2) provide a process to identify and resolve conflicts between a reliability standard and a function, rule, tariff, rate schedule, or agreement that has been accepted, approved, adopted, or ordered by the commission; (3) allow an electric reliability organization to recover its costs through surcharges added to the rate for each participating load-serving entity. Sec. 42.05.772. Duties of load-serving entities. All load-serving entities, including load-serving entities otherwise exempt from regulation under this chapter, in an interconnected bulk-electric system served by an electric reliability organization are subject to the electric reliability organization's tariff on file with the commission. Sec. 42.05.775. Penalties. (a) An electric reliability organization may impose a penalty on a user, owner, or operator of an interconnected electric energy transmission network for a violation of a reliability standard if, after notice and a hearing, the electric reliability organization (1) finds that the user, owner, or operator has violated a reliability standard; and (2) files notice of the proposed penalty and the record of the proceeding with the commission at least 30 days before imposition of the penalty. (b) The commission may, on its own motion or upon complaint, order a user, owner, or operator of an interconnected electric energy transmission network to comply with a reliability standard and impose a penalty against the user, owner, or operator if the commission finds, after notice and a hearing, that the user, owner, or operator has engaged or is about to engage in an act or practice that violates a reliability standard. (c) A user, owner, or operator may appeal to the commission a penalty imposed under (a) of this section. The commission may, on its own motion, review a penalty imposed under (a) of this section. The commission shall, after notice and a hearing, issue an order affirming, modifying, reinstating, or revoking the penalty or remand the penalty to the electric reliability organization for further proceedings. Unless otherwise ordered by the commission, a penalty shall remain in effect during proceedings under this subsection. The commission shall expedite proceedings under this subsection. (d) A penalty imposed under this section must bear a reasonable relation to the seriousness of the violation and take into consideration the effort of a user, owner, or operator to remedy the violation in a timely manner. Sec. 42.05.780. Integrated resource planning. (a) An electric reliability organization shall file with the commission in a petition for approval an integrated resource plan for meeting the reliability requirements of all customers within its interconnected electric energy transmission network in a manner that provides the greatest value, consistent with the load-serving entities' obligations. An integrated resource plan must contain an evaluation of the full range of cost-effective means for load-serving entities to meet the service requirements of all customers, including additional generation, transmission, battery storage, and conservation or similar improvements in efficiency. An integrated resource plan must include options to meet customers' collective needs in a manner that provides the greatest value, consistent with the public interest, regardless of the location or ownership of new facilities or conservation activities. (b) The commission shall, after public notice and review of the process used to develop an integrated resource plan, approve or modify an integrated resource plan filed under (a) of this section, consistent with the public interest. The commission shall determine whether the petition is complete, has been publicly noticed, and is consistent with the commission's regulations and orders. The commission may reject all or part of a petition that does not comply with the commission's form or filing regulations. Within 45 days after receipt, the commission shall approve the petition or suspend the petition to an investigation docket. If a petition is not suspended to an investigation docket within 45 days, the petition is considered approved. If, after public notice and a hearing, the commission concludes that the plan requires modification, the commission shall return the plan to the electric reliability organization for timely modification and refiling, consistent with the commission's order. The commission may modify a refiled integrated resource plan if the commission determines that the plan is inconsistent with the commission's order or the public interest. (c) The commission may include in a public utility's rates (1) the cost of resources acquired in accordance with an integrated resource plan adopted under this section; (2) cost-effective expenditures for improving the efficiency with which a public utility provides and its customers use utility services; and (3) the cost of a utility to comply with the planning requirements of this section, including planning costs and portfolio development costs. (d) The commission shall adopt regulations governing the filing of a plan under this section, including the content of a plan, time for filing a plan, criteria for determining cost-effectiveness and greatest value, and other criteria as determined by the commission. (e) In this section, (1) “planning costs” means the costs of evaluating the future demand for services and alternative methods of satisfying future demand; (2) “portfolio development costs” means the costs of preparing a resource in a portfolio for timely acquisition of the resource. Sec. 42.05.785. Project preapproval for large energy facilities. (a) A public utility, including a public utility that is exempt from other regulation under AS 42.05.711 or another provision of this chapter, that is interconnected with an interconnected electric energy transmission network served by an electric reliability organization certificated by the commission may not construct a large energy facility unless the commission determines that the facility (1) is necessary to the interconnected electric energy transmission network with which it would be interconnected; (2) complies with reliability standards; and (3) would, in a cost-effective manner, meet the needs of a load-serving entity that is substantially served by the facility. (b) Unless the commission finds otherwise by clear and convincing evidence, a large energy facility that was included in the most recent integrated resource plan approved under AS 42.05.780 is considered to satisfy the requirements of (a) of this section. (c) The commission may not require preapproval for a (1) project for refurbishment or capitalized maintenance; (2) hydropower project licensed by the Federal Energy Regulatory Commission before September 30, 2016. (d) The commission shall adopt regulations (1) governing project preapproval; (2) defining refurbishment and capitalized maintenance; (3) maintaining municipal jurisdiction over local planning decisions; and (4) addressing projects undertaken before integrated resource plan approval for an interconnected electric energy transmission network. (e) In this section, “large energy facility” means (1) an electric power generating plant or combination of plants at a single site with a combined capacity of 15,000 kilowatts or more with transmission lines that directly interconnect the plant with the transmission system; (2) a high-voltage, above-ground transmission line that (A) has a capacity of 69 kilovolts or more; and (B) is longer than 10 miles; (3) a high-voltage submarine or underground cable that (A) has a capacity of 69 kilovolts or more; and (B) is longer than three miles; (4) an energy storage device or combination of devices at a single site with a combined capacity of 15,000 kilowatts and one hour or more of energy storage that directly connects with the interconnected bulk-electric system; and (5) a reactive compensation device or combination of devices at a single site with a combined reactive capability of 15,000 kilovars or more with a step-up device to regulate interconnected bulk-electric system voltage. Sec. 42.05.790. Definitions. In AS 42.05.760 — 42.05.790, (1) “cybersecurity incident” means a malicious act or suspicious event that disrupts or attempts to disrupt the security of data or the operation of programmable electronic devices and communication networks, including hardware and software that are essential to the reliable operation of the interconnected electric energy transmission network; (2) “electric reliability organization” means an organization that is certificated by the commission under AS 42.05.760 ; (3) “electric utility” means a public utility that provides electricity service; (4) “interconnected bulk-electric system” means an interconnected electric energy transmission network that includes two or more load-serving entities, at least one of which is subject to the provisions of AS 42.05.291 ; (5) “interconnected electric energy transmission network” means a network of interconnected electrical generation resources, transmission lines, interconnections, and associated equipment operated at voltages of 69 kilovolts or more, operating in a geographic area that are synchronized so that the failure of one or more of the components may adversely affect the ability of the operators of other components within the system to maintain reliable operation of the facilities within the control of the operators; (6) “load-serving entity” means an electric utility that has a service obligation to distribute power to more than 10 customers that receive invoices directly from the entity; (7) “reliable operation” means operating the elements of the interconnected electric energy transmission network within equipment and electric system thermal, voltage, and stability limits so that instability, uncontrolled separation, or cascading failures of the system will not occur as a result of a sudden disturbance, including a cybersecurity incident, or unanticipated failure of system elements. Article 12. Competitive Intrastate Long Distance Telephone Service. Sec. 42.05.800. Findings. The legislature finds that (1) modern, affordable, efficient, and universally available local and long distance telephone service is essential to the people of the state; (2) facilities based, long distance telephone service should be provided competitively wherever possible; (3) technological advances, reduced costs, and increased consumer choices for long distance telephone service, resulting from the adoption of an appropriate competitive market structure, will enhance the state's economic development; (4) the benefits of competition in long distance telephone service should be shared by consumers throughout the state; (5) the commission should oversee competition in long distance telephone service to ensure that the competition is fair to consumers and competitors; (6) the commission should provide for competition in a timely manner and should adopt regulations that eliminate inappropriate impediments to entry for long distance carriers fit, willing, and able to provide service. Sec. 42.05.810. Competition. Sec. 42.05.820. No municipal regulation. A long distance telephone company or a local exchange carrier that is exempted in whole or in part from complying with all or a portion of this chapter may not be regulated by a municipality under AS 29.35.060 and 29.35.070. Sec. 42.05.830. Exchange access charges. In providing for competition under AS 42.05.800 — 42.05.890, the commission shall establish a system of access charges to be paid by long distance carriers to compensate local exchange carriers for the cost of originating and terminating long distance services. Sec. 42.05.840. Universal service fund. The commission may establish a universal service fund or other mechanism to be used to ensure the provision of long distance telephone service at reasonable rates throughout the state and to otherwise preserve universal service. Sec. 42.05.850. Exchange carrier association. The commission may require the local exchange carriers to form an association to assist in administering the system of access charges and may require the association to file tariffs and to engage in pooling of exchange access costs and revenue if necessary to achieve the purposes of AS 42.05.800 — 42.05.890. Sec. 42.05.860. Restrictions on resale of telecommunications services prohibited. A telephone company may not prohibit or restrict the resale of telecommunications service. If an interexchange telecommunications service is resold, the reseller shall receive credit in an appropriate amount for an applicable exchange access charge if the credit is necessary to prevent double payment of the access charges. Sec. 42.05.890. Definitions. In AS 42.05.800 — 42.05.890, (1) “local exchange carrier” means any carrier certificated to provide local telephone services; (2) “long distance carrier” or “long distance telephone company” means any carrier certificated to provide long distance telephone services; (3) “long distance telephone service” or “long distance service” means intrastate, interexchange telephone service. Article 13. General Provisions. Sec. 42.05.990. Definitions. In this chapter, (1) “affiliated interest” includes (A) a person owning or holding directly or indirectly five percent or more of the voting securities of a public utility engaged in intrastate business in this state; (B) a person, other than those specified in (A) of this paragraph, in a chain of successive ownership of five percent or more of voting securities, the chain beginning with the holder of the voting securities of such public utility; (C) a corporation five percent or more of whose voting securities are owned by a person owning five percent or more of the voting securities of the public utility or by a person in such a chain of successive ownership of five percent or more of the voting securities; (D) a corporation five percent or more of whose voting securities are owned or held by a public utility; (E) a person with whom the public utility has a management or service contract; (F) a person who is an officer or director of such a public utility or of a corporation in a chain of successive ownership of five percent or more of voting securities; (G) a corporation which has one or more officers or directors in common with a public utility; (H) a person or corporation who or which the commission determines as a matter of fact, after investigation and hearing, actually is exercising such substantial influence over the policies and actions of a utility in conjunction with one or more other corporations or persons with whom they are related by ownership or blood, or by action in concert, that together they are affiliated with the utility within the meaning of this section even though none of them alone is so affiliated; or (I) a person or corporation who or which the commission determines as a matter of fact after investigation and hearing actually is exercising substantial influence over the policies and actions of a utility even though such influence is not based upon stockholdings, stockholders, officers or directors to the extent specified in this section; (2) “commission” means the Regulatory Commission of Alaska; (3) “liquefied natural gas storage facility” means a facility that receives natural gas volumes in a liquid or gaseous state from customers, holds the gas volumes in a liquid state in a reservoir, and delivers the gas volumes in a liquid or gaseous state to the customer; in this paragraph, “facility” includes (A) all parts of the facility from the point at which the natural gas volumes are received by the facility from the customer to the point at which the natural gas volumes are delivered by the facility to the customer; (B) a facility consisting of a reservoir, either underground or aboveground, and one or more of the following components of the facility: (i) pipe; (ii) compressor stations; (iii) station equipment; (iv) liquefaction plant or facility; (v) gasification plant or facility; (vi) on-site or remote monitoring, supervision, and control facilities; (vii) gas processing plants and gas treatment plants, but not including a manufacturing plant or facility; (viii) other equipment necessary to receive, place into the reservoir, monitor, remove from the reservoir, process, and deliver natural gas; (4) “natural gas storage facility” means a facility that receives natural gas volumes from customers, holds the gas volumes in a reservoir, and delivers the gas volumes to the customer; in this paragraph, “facility” includes (A) all parts of the facility from the point at which the natural gas volumes are received by the facility from the customer to the point at which the natural gas volumes are delivered by the facility to the customer; (B) a facility consisting of a reservoir, either underground or aboveground, and one or more of the following components of the facility: (i) pipe; (ii) compressor stations; (iii) station equipment; (iv) injection and extraction wells; (v) on-site or remote monitoring, supervision, and control facilities; (vi) gas processing plants and gas treatment plants, but not including a liquefied natural gas or manufacturing plant or facility; (vii) other equipment necessary to receive, place into the reservoir, monitor, remove from the reservoir, process, and deliver natural gas; (5) “public” or “general public” means (A) a group of 10 or more customers that purchase the service or commodity furnished by a public utility; (B) one or more customers that purchase electrical service for use within an area that is certificated to and presently or formerly served by an electric utility if the total annual compensation that the electrical utility receives for sales of electricity exceeds $50,000; and (C) a utility purchasing the product or service or paying for the transmission of electric energy, natural or manufactured gas, or petroleum products that are re-sold to a person or group included in (A) or (B) of this paragraph or that are used to produce the service or commodity sold to the public by the utility; (6) “public utility” or “utility” includes every corporation whether public, cooperative, or otherwise, company, individual, or association of individuals, their lessees, trustees, or receivers appointed by a court, that owns, operates, manages, or controls any plant, pipeline, or system for (A) furnishing, by generation, transmission, or distribution, electrical service to the public for compensation; (B) furnishing telecommunications service to the public for compensation; (C) furnishing water, steam, or sewer service to the public for compensation; (D) furnishing by transmission or distribution of natural or manufactured gas to the public for compensation; (E) furnishing for distribution or by distribution petroleum or petroleum products to the public for compensation when the consumer has no alternative in the choice of supplier of a comparable product and service at an equal or lesser price; (F) furnishing collection and disposal service of garbage, refuse, trash, or other waste material to the public for compensation; (G) furnishing the service of natural gas storage to the public for compensation; (H) furnishing the service of liquefied natural gas storage to the public for compensation; (7) “rate” includes each rate, toll, fare, rental, charge, or other form of compensation demanded, observed, charged, or collected by a public utility for its services; (8) “reservoir” means a receptacle or chamber, either natural or man-made, holding a gas or liquid, and includes a tank or a depleted or nearly depleted pool; (9) “service” means, unless the context indicates otherwise, every commodity, product, use, facility, convenience, or other form of service that is offered for and provided by a public utility for the convenience and necessity of the public; (10) “service of liquefied natural gas storage” means the operation of a liquefied natural gas storage facility; “service of liquefied natural gas storage” does not include the storage of liquefied natural gas (A) owned by or contractually obligated to the owner, operator, or manager of the liquefied natural gas storage facility; (B) for which the price of storage is not separately itemized; (11) “service of natural gas storage” means the operation of a natural gas storage facility primarily or exclusively for the benefit of third-party customers, and not for the benefit of the owner, operator, or manager of the natural gas storage facility; “service of natural gas storage” does not include the storage of natural gas (A) owned by or contractually obligated to the owner, operator, or manager of the natural gas storage facility; (B) for which the price of storage is not separately itemized; (12) “tariff” means a rate, charge, toll, rule, or regulation of a utility relating to services furnished by the utility to the general public for compensation and every map, page, adoption notice, instrument, or other document filed with the commission setting out the terms and conditions under which utility services are offered to the public and instruments of concurrence and all other documents and data setting out the terms of a utility's business relations with another utility insofar as they affect the general public either directly or indirectly;

(13) “telecommunications” means the transmission and reception of messages, impressions, pictures, and signals by means of electricity, electromagnetic waves, and any other kind of energy, force variations, or impulses whether conveyed by cable, wire, radiated through space, or transmitted through other media within a specified area or between designated points. Sec. 42.05.995. Short title. This chapter may be cited as the Alaska Public Utilities Regulatory Act.