Bill > SB250

This bill aims to regulate utility services provided to data centers in Alaska by ensuring that any costs incurred by electric or gas utilities specifically for serving a data center are not passed on to other customers and are instead recovered solely from the data center itself, a concept referred to as cost allocation. It mandates that utilities must enter into contracts with data centers for service, which then need to be approved by the commission, a regulatory body overseeing utilities, to ensure they meet specific requirements. These contracts must detail how infrastructure and variable costs associated with serving the data center will be accounted for and assigned directly to that data center, preventing any increase in costs for existing utility customers. The bill also addresses environmental considerations by requiring contracts to include plans for backup power that prioritize renewable energy and limit fossil fuel use, and it mandates that data centers must submit end-of-life decommissioning and recycling plans to the Department of Environmental Conservation. Furthermore, before a contract is approved and construction begins, municipalities must enter into community benefit agreements with data center customers, which can cover aspects like waste heat recovery, water usage, broadband, and digital equity contributions, with provisions for legal action if these agreements are not met. Importantly, these regulations do not apply to smaller data centers that consume below certain thresholds of electricity or natural gas.