Operative Text
A utility may recover the costs under an on-bill financing agreement for a rental property by assessing a meter conservation charge on a utility bill only if the landlord is responsible for the entire utility bill, including the meter conservation charge.
Under AS 42.05 § 42.05.754, a utility company is permitted to collect repayment of an on-bill financing agreement through a 'meter conservation charge' added to a utility bill for a rental property, but only when the landlord bears full responsibility for that entire bill. If the tenant pays any portion of the utility bill directly, this cost-recovery mechanism is not available to the utility. The rule draws a clear line: the financing charge can only appear on a bill that the landlord alone is obligated to pay.
Plain English — not legal advice.
Under AS 42.05 § 42.05.754, landlords who enter into on-bill financing agreements for energy improvements at rental properties should be aware that the meter conservation charge used to repay those agreements can only be assessed when the landlord is responsible for the complete utility bill. Operators who pass utility costs through to tenants, or who have tenants pay utilities directly, would not meet the condition that allows this charge to appear on the bill. Compliant landlords in this context are those who retain full financial responsibility for the utility account associated with the financed property.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
AS 42.05 § 42.05.754 provides a protection relevant to tenants who pay their own utility bills: a utility is not permitted to add a meter conservation charge tied to an on-bill financing agreement to a bill for which the tenant bears any responsibility. If a tenant believes such a charge has been improperly assessed on their utility bill, they may consider contacting the Alaska Regulatory Commission, reviewing their lease to clarify who is responsible for utility payments, or reaching out to a tenant-rights organization for general guidance on next steps.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 28, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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