00CS FOR HOUSE BILL NO. 336(JUD)                                                                                        
01 "An Act relating to eligibility for power cost equalization."                                                           
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
03    * Section 1.  AS 42.45 is amended by adding a new section to read:                                                 
04  Sec. 42.45.145.  Ineligibility for power cost equalization after certain                                             
05 construction.  An electric utility that is otherwise determined to be an eligible electric                             
06 utility under AS 42.45.150 becomes ineligible to receive power cost equalization on                                     
07 the day that is six months after the day on which an electric generation facility                                       
08 described in this section first provides electricity to customers served by the electric                                
09 utility.  An electric utility loses its eligibility under AS 42.45.100 - 42.45.150 if, on                               
10 or after January 1, 1998, it constructs a hydroelectric generation facility, or other                                   
11 electric generation facility that is not powered by diesel fuel, for which a grant from                                 
12 the state pays at least half the cost of construction and that is designed to supply more                               
13 than 75 percent of the total electrical load of that utility.                                                           
14    * Sec. 2.  AS 42.45.150(2) is amended to read:                                                                     

01   (2)  "eligible electric utility" or "electric utility" means a public,                                               
02 cooperative, or other corporation, company, individual, or association of individuals,                                  
03 and includes the lessees, trustees, or receivers appointed by a court, that  has not                                   
04 become ineligible under AS 42.45.145 and that                                                                          
05   (A)  owns, operates, manages, or controls a plant or system for                                                     
06 the furnishing, by generation, transmission ,  or distribution, of electric service                                   
07 to the public for compensation;                                                                                         
08   (B)  during calendar year 1983, had a residential consumption                                                       
09 level of power eligible for power cost equalization under former AS 44.83 of                                            
10 less than 7,500 megawatt hours or had a residential consumption level of power                                          
11 eligible for power cost equalization under former AS 44.83 of less than 15,000                                          
12 megawatt hours if the utility served two or more municipalities or                                                      
13 unincorporated communities; and                                                                                         
14   (C)  during calendar year 1984, used diesel fired generators to                                                     
15 produce more than 75 percent of the electrical consumption of the utility; an                                           
16 electric utility that is a subsidiary of another electric utility is an "eligible                                       
17 electric utility" if the operations of the subsidiary, considered separately, meet                                      
18 the eligibility requirements of AS 42.45.100 - 42.45.150; if an electric utility                                        
19 did not receive power cost assistance in 1983 but is otherwise eligible for                                             
20 power cost equalization under AS 42.45.100 - 42.45.150, the utility is an                                               
21 "eligible electric utility";