AK HB279

Amends AS 42.05.431(a) to prohibit the Regulatory Commission of Alaska from compensating for-profit public utilities for their negligent conduct, recklessness, or intentional violations of law when setting rates.

Applies restriction only to commercial enterprises operating for profit; does not affect rates for municipally owned utilities or cooperative utilities.

Preserves existing provisions allowing municipalities to covenant with bond purchasers regarding utility rates and requiring commission-set rates to meet financial covenants in cooperative utility debt instruments.

Requires cooperative utilities seeking debt instruments with times-interest-earned ratios (TIER) higher than previously approved ratios to submit instruments to the commission for review before taking effect.

Commission has 60 days to disapprove submitted debt instruments; instruments are automatically approved if the commission does not act within the 60-day period.