An Act relating to a renewable portfolio standard; relating to electrical energy transmission; relating to distributed energy systems; relating to power cost equalization; relating to the Alaska Energy Authority; and providing for an effective date.

HB 121 establishes a renewable portfolio standard requiring electric utilities in Alaska to source increasing percentages of their electricity from renewable energy resources, specifically targeting 25 percent by 2027, 55 percent by 2035, and 80 percent by 2040. The bill also clarifies that offering net metering to customers with distributed energy systems does not constitute rate discrimination and mandates that new large energy facilities must be cost-effective and not hinder utilities from meeting these renewable targets. Additionally, it requires electric reliability organizations to submit integrated resource plans that evaluate various options like new generation, transmission, and battery storage to meet customer needs while supporting the renewable standard. Although the legislation includes provisions related to the Alaska Energy Authority and power cost equalization, the bill was ultimately withdrawn by its sponsor in May 2024.