The bill introduces a new section to Alaska's public utility regulations, allowing public utilities to request approval for a strategic investment surcharge. This surcharge is intended to help utilities recover costs associated with strategic investments that cannot be recouped through existing rates. The bill outlines the process for applying for this surcharge, including the types of costs that can be recovered, such as construction work in progress, operating expenses during construction, and expenses that will not be capitalized. Additionally, it mandates that utilities notify the commission of their intent to implement the surcharge and file annual updates regarding their costs.

The bill also establishes specific guidelines for calculating the surcharge, including the use of year-end financial information and the approved cost of capital from the utility's most recent rate case. Once a strategic investment is complete, the utility can earn a reasonable return on the associated costs through the surcharge until the next general rate case, at which point these costs will be moved to the utility's base rates. Furthermore, if the commission finds that any costs recovered through the surcharge were not prudently incurred, it has the authority to mandate refunds to customers.

Statutes affected:
HB0328A, AM HB 328, introduced 02/23/2026: