AK HB121

Establishes a renewable portfolio standard requiring load-serving entities subject to electric reliability organizations to derive 25% of net electricity sales from renewable energy by December 31, 2027; 55% by December 31, 2035; and 80% by December 31, 2040.

Imposes a noncompliance fine of $20 per megawatt hour for utilities failing to meet renewable portfolio standards, with provisions to waive fines for circumstances beyond reasonable control or upon demonstration of good cause.

Allows utilities to satisfy renewable portfolio standards through distributed energy systems, renewable energy credits, energy efficiency investments, and purchase power agreements with renewable energy producers located within their service area or on interconnected transmission networks.

Requires net metering for customers with distributed energy systems at the full retail rate per kilowatt-hour, with credits rolling over monthly for up to seven years before expiring on March 31 of each year.

Amends power cost equalization calculations to exclude revenue from sale of renewable energy credits and requires the Alaska Energy Authority to report annually on progress developing renewable energy resources in rural regions.