AK SB205

Amends AS 42.05.431(a) to expand grounds for Regulatory Commission of Alaska (RCA) to fix utility rates to include cases where rates compensate for a utility's negligent conduct, recklessness, or intentional violation of the law.

Allows municipalities to covenant with bond purchasers regarding rates of municipally owned utilities, with such covenants valid, enforceable, and binding on bond holders.

Requires financial covenants in mortgages and debt instruments of cooperative utilities organized under AS 10.25 to be valid and enforceable, with RCA-set rates adequate to meet those covenants.

Requires cooperative utilities negotiating mortgages or debt instruments with times-interest-earned ratios (TIER) greater than previously approved to submit the instrument to RCA before it takes effect.

Grants RCA 60 days to disapprove submitted debt instruments; instruments are automatically approved if RCA takes no action within the 60-day period.