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NOTICE OF REQUEST FOR COMMENT REGARDING CONSIDERATION OF NEW FEDERAL STANDARDS PROPOSED TO AMEND THE PUBLIC UTILITIES REGULATORY ACT The Regulatory Commission of Alaska (Commission) seeks comment in Docket R-06-5 on three of the new standards proposed by the Energy Policy Act of 2005 (EPAct) (net metering, fuel source diversification, and fossil fuel efficiency), which amended the Public Utilities Regulatory Act of 1978. On April 29, May 15, and May 22, 2008, we held public workshops to discuss whether we should adopt the net metering, fossil fuel generation efficiency, and fuel source diversification standards, respectively. The standards, which would apply to electric utilities with total annual retail sales greater than 500 million kilowatt hours, are summarized below, along with a description of the Commission's tentative decisions regarding each standard as discussed at the Commission's June 11, 2008, public meeting EPAct net metering standards require an electric utility to make net metering service available to any of its customers upon request, and define 'net metering service' as service whereby electric energy generated by an electric consumer from an eligible on-site generating facility and delivered to the local distribution facilities may be used to offset electric energy provided by the electric utility to the electric consumer during the applicable billing period. The Commission tentatively decided to implement the federal net metering standard, and to open a docket to craft specific net metering and interconnection regulations. In that docket, the Commission will also consider whether to require electric utilities to adopt a Sustainable Natural Alternative Power (SNAP) program. EPAct fossil fuel generation efficiency standards require each electric utility to develop and implement a 1O-year plan to increase the efficiency of its fossil fuel generation. The Commission tentatively decided to decline to adopt the federal fossil fuel generation efficiency standard.

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NOTICE OF REQUEST FOR COMMENT REGARDING CONSIDERATION OF NEW FEDERAL STANDARDS PROPOSED TO AMEND THE PUBLIC UTILITIES REGULATORY ACT Commission's tentative decisions regarding each standard as discussed at the Docket R-06-5 on three of the new standards proposed by the Energy Policy Act of metering service available to any of its customers upon request, and define 'net 2008, we held public workshops to discuss whether we should adopt the net metering,

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Page 1: NOTICE OF REQUEST FOR COMMENT REGARDING

NOTICE OF REQUEST FOR COMMENT REGARDING CONSIDERATION OF NEWFEDERAL STANDARDS PROPOSED TO AMEND THE PUBLIC UTILITIES

REGULATORY ACT

The Regulatory Commission of Alaska (Commission) seeks comment in

Docket R-06-5 on three of the new standards proposed by the Energy Policy Act of

2005 (EPAct) (net metering, fuel source diversification, and fossil fuel efficiency), which

amended the Public Utilities Regulatory Act of 1978. On April 29, May 15, and May 22,

2008, we held public workshops to discuss whether we should adopt the net metering,

fossil fuel generation efficiency, and fuel source diversification standards, respectively.

The standards, which would apply to electric utilities with total annual retail sales greater

than 500 million kilowatt hours, are summarized below, along with a description of the

Commission's tentative decisions regarding each standard as discussed at the

Commission's June 11, 2008, public meeting

EPAct net metering standards require an electric utility to make net

metering service available to any of its customers upon request, and define 'net

metering service' as service whereby electric energy generated by an electric consumer

from an eligible on-site generating facility and delivered to the local distribution facilities

may be used to offset electric energy provided by the electric utility to the electric

consumer during the applicable billing period. The Commission tentatively decided to

implement the federal net metering standard, and to open a docket to craft specific net

metering and interconnection regulations. In that docket, the Commission will also

consider whether to require electric utilities to adopt a Sustainable Natural Alternative

Power (SNAP) program.

EPAct fossil fuel generation efficiency standards require each electric

utility to develop and implement a 1O-year plan to increase the efficiency of its fossil fuel

generation. The Commission tentatively decided to decline to adopt the federal fossil

fuel generation efficiency standard.

Page 2: NOTICE OF REQUEST FOR COMMENT REGARDING

EPAct fuel diversity standards require each electric utility to develop a

plan to minimize dependence on one fuel source and to ensure that the electric energy

it sells to consumers is generated using a diverse range of fuels and technologies,

including renewable technologies. The Commission tentatively decided to adopt the

federal fuel diversity standard, but intends to refine the federal standard so that cost

efficiency may be considered when establishing fuel diversity requirements.

The Commission seeks public comment on the net metering, fossil fuel

generation efficiency, and fuel source diversification standards proposed by the EPAct,

and on the direction the Commission should take to implement these standards in

Alaska. The Commission seeks comment on the record thus far in this proceeding,

especially the data provided by electric utilities on fossil fuel efficiency and fuel diversity.

This data, as well as other filings and order issued in this proceeding, are available to

review on our web site at: http://rca.alaska.gov/RCAWeb/home.aspx . Those seeking to

obtain the materials at the above website must pick All Open Rule-making

Dockets under Top Searches, and choose matter number R-06-005.

Interested persons may comment on these issues and the issues

addressed in Order R-06-5(6) by submitting written comments to the Regulatory

Commission of Alaska at 701 West Eighth Avenue, Suite 300, Anchorage, Alaska

99501. Comments must be received no later than 4 p.m. on July 28, 2008. In their

comments, commenters should reference Docket R-06-5. Since this is a rulemaking

proceeding, commenters are not required to serve their comments on the other entities

set out on the service list of this Notice.

If you are a person with a disability who needs special accommodation,

auxiliary aid or service, or alternative communication format in order to participate in this

process, please contact Joyce McGowan at 1-907-276-6222, toll free at

1-800-390-2782, or TTY 1-907-276-4533, or send a request via electronic mail to

Page 3: NOTICE OF REQUEST FOR COMMENT REGARDING

[email protected] at least one week in advance, to make the necessary

arrangements for submitting comments.

For a copy of Order R-06-5(6) or the comments filed in this docket, contact

the Commission's Records & Filings Section at the agency's address or telephone

numbers set out above or go to the Commission's website at

http://rca.alaska.gov/RCAWeb/home.aspx and review them under "Current Regulation

Dockets." After the public comment period ends the Regulatory Commission of Alaska

will issue final determinations. YOU SHOULD COMMENT DURING THE TIME

ALLOWED IF YOUR INTERESTS COULD BE AFFECTED.

DATED: June 26, 2008

Page 4: NOTICE OF REQUEST FOR COMMENT REGARDING

REGULATORY COMMISSION OF ALASKA

Certification of Mailing

File No.: R-06-5

Name of Case: In the Matter of the Consideration of Adoption ofRegulations to Implement Amendments to the Public UtilitiesRegulatory Policies Act of 1978 by the Energy Policy Act of 2005

I, Natasha L. Odom-Brown an _....:.A..:,:d=m,:.:.i:.:..,:n=is=tr..::::a=tiv.:..:e::....=C=le::.:.;rk:.:...:.:.II.:.-1 for the

Regulatory Commission of Alaska, 701 West Eighth Avenue, Suite 300, Anchorage,

Alaska, hereby certify that on the 26th day of June, 2008, I mailed true and accurate copies

with postage thereon of the

NOTICE OF REQUEST FOR COMMENT REGARDING CONSIDERATION OF NEWFEDERAL STANDARDS PROPOSED TO AMEND THE PUBLIC UTILITIES

REGULATORY ACT

to the persons set out on the attached amended list.

DATED at Anchorage, Alaska, this 26th day of June, 2008

R-06-5(6)Certification of Mailing/Notice)Page 1 of 2

Page 5: NOTICE OF REQUEST FOR COMMENT REGARDING

Service of this Notice includes mailings to all known interested persons, and thelist is lengthy. In view of the length of the service list and in order to minimizecopying and mailing costs, the Commission has waived the requirements of3 AAC 48.100(1) to the extent that the service list herein is not included as part ofthis mailing. That list is a public record on file with the Commission. Personsinterested in obtaining the list should contact the Commission's Records andFiling Section at 701 West Eighth Avenue, Suite 300, Anchorage, Alaska 99501.

R-06-5(6)Certification of Mailing/Notice)Page 2 of 2