RCA issues community energy regs

Alan Bailey

for Petroleum News

The Regulatory Commission of Alaska has issued for public comment proposed regulations for the operation of community energy programs in Alaska. Comments on the regulations are required by Oct. 30.

In a community energy project individual electricity consumers can subscribe to the use of an energy facility that is connected to an electric utility's power system. A subscriber would be entitled to some of the power generated from the facility, while also being credited by the utility for any surplus energy not used under the terms of the subscription. Senate Bill 152, passed by the Alaska Legislature in 2024, required the RCA to develop regulations for this type of energy facility.

Electric utilities and entities that sell power to electric utilities are allowed to build and operate community energy facilities. Electricity utility Chugach Electric Association has already implemented a community solar energy project in Anchorage and is planning a second similar facility.

In a community solar farm a subscriber to the farm is entitled to the power generated by a specified number of solar panels.

The proposed regulations require RCA approval of the maximum nameplate capacity of community energy facilities in a utility's service area and approval of a community energy tariff that involves subscriptions that are limited to retail customers or member-owners of the utility involved.

The commission says that it is also required to adopt bill credit rates that consider the full economic value provided by community energy facilities -- a subscriber to a community energy facility must be credited for any excess electricity generated by that subscriber's portion of the facility and delivered to the utility

The commission also says that it has a duty to ensure that community energy facilities do not adversely affect the utility's retail electricity rates.

The RCA is also required to develop and implement several other measures relating to the implementation and operation of a community energy program, including requirements to modify standards, fees and processes to facilitate the cost-effective and non-discriminatory interconnection of community energy facilities; to permit utilities to recover the reasonable costs of administering the facilities; to facilitate the creation, financing and accessibility of the facilities; and to require facility construction to be carried out by contractors and subcontractors that comply with state wage requirements for the construction of public facilities.

- ALAN BAILEY