CSSB 185(FIN): "An Act relating to the basis for determining eligibility for and the amount of power cost equalization payments; and providing for an effective date."
00 CS FOR SENATE BILL NO. 185(FIN) 01 "An Act relating to the basis for determining eligibility for and the amount of power 02 cost equalization payments; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 42.45.100(a) is amended to read: 05 (a) The power cost equalization and rural electric capitalization fund is 06 established as a separate fund for the purpose of 07 (1) equalizing power cost per kilowatt-hour statewide at a cost close to 08 [OR EQUAL TO] the mean of the cost per kilowatt-hour in Anchorage, Fairbanks, 09 and Juneau by paying money from the fund to eligible electric utilities in the state; and 10 (2) making grants to eligible utilities under AS 42.45.180 to improve 11 the performance of the utility. 12 * Sec. 2. AS 42.45.100(a) is amended to read: 13 (a) The power cost equalization and rural electric capitalization fund is 14 established as a separate fund for the purpose of
01 (1) equalizing power cost per kilowatt-hour statewide at a cost close to 02 or equal to the mean of the cost per kilowatt-hour in Anchorage, Fairbanks, and 03 Juneau by paying money from the fund to eligible electric utilities in the state; and 04 (2) making grants to eligible utilities under AS 42.45.180 to improve 05 the performance of the utility. 06 * Sec. 3. AS 42.45.110(b) is amended to read: 07 (b) An eligible electric utility is entitled to receive power cost equalization 08 (1) for sales of power to local community facilities, calculated in the 09 aggregate for each community served by the electric utility, for actual consumption of 10 not more than 70 kilowatt-hours per month for each resident of the community; the 11 number of community residents shall be determined under AS 29.60.020; and 12 (2) for actual consumption [OF NOT MORE THAN 500 13 KILOWATT-HOURS PER MONTH] sold to each residential customer of not more 14 than 15 (A) 450 kilowatt-hours per month for the months of 16 October through March; and 17 (B) 350 kilowatt-hours per month for the months of April 18 through September. 19 * Sec. 4. AS 42.45.110(b) is amended to read: 20 (b) An eligible electric utility is entitled to receive power cost equalization 21 (1) for sales of power to local community facilities, calculated in the 22 aggregate for each community served by the electric utility, for actual consumption of 23 not more than 70 kilowatt-hours per month for each resident of the community; the 24 number of community residents shall be determined under AS 29.60.020; and 25 (2) for actual consumption of not more than 500 kilowatt-hours per 26 month sold to each residential customer [OF NOT MORE THAN 27 (A) 450 KILOWATT-HOURS PER MONTH FOR THE 28 MONTHS OF OCTOBER THROUGH MARCH; AND 29 (B) 350 KILOWATT-HOURS PER MONTH FOR THE 30 MONTHS OF APRIL THROUGH SEPTEMBER]. 31 * Sec. 5. AS 42.45.110(c) is amended to read:
01 (c) The amount of power cost equalization provided per kilowatt-hour under 02 [SUBSECTION] (b) of this section may not exceed 95 percent of the power costs, or 03 the average rate per eligible kilowatt-hour sold, whichever is less, as determined by 04 the commission. However, 05 (1) during the state fiscal year that began July 1, 1999, the power costs 06 for which power cost equalization were paid to an electric utility were limited to 07 minimum power costs of more than 12 cents per kilowatt-hour and less than 52.5 cents 08 per kilowatt-hour; 09 (2) during the state fiscal years beginning July 1, 2000, and July 1, 10 2001 [EACH FOLLOWING STATE FISCAL YEAR], the commission shall adjust 11 the power costs for which power cost equalization may be paid to an electric utility 12 based on the weighted average retail residential rate in Anchorage, Fairbanks, and 13 Juneau; however, the commission may not adjust the power costs under this paragraph 14 to reduce the amount below the lower limit set out in (1) of this subsection; [AND] 15 (3) during each following state fiscal year, the commission shall 16 adjust the power costs for which power cost equalization may be paid to an 17 electric utility based on the weighted average retail residential rate in Anchorage, 18 Fairbanks, and Juneau, per kilowatt-hour for sales to residential customers of 19 400 kilowatt-hours per month; the commission may not adjust the power costs 20 under this paragraph to reduce the amount below 16.75 cents per kilowatt-hour; 21 and 22 (4) the power cost equalization per kilowatt-hour may be determined 23 for a utility without historical kilowatt-hour sales data by using kilowatt-hours 24 generated. 25 * Sec. 6. AS 42.45.110(c) is amended to read: 26 (c) The amount of power cost equalization provided per kilowatt-hour under 27 (b) of this section may not exceed 95 percent of the power costs, or the average rate 28 per eligible kilowatt-hour sold, whichever is less, as determined by the commission. 29 However, 30 (1) during the state fiscal year that began July 1, 1999, the power costs 31 for which power cost equalization were paid to an electric utility were limited to
01 minimum power costs of more than 12 cents per kilowatt-hour and less than 52.5 cents 02 per kilowatt-hour; 03 (2) during the state fiscal year [YEARS] beginning July 1, 2007, and 04 each following state fiscal year [JULY 1, 2000, AND JULY 1, 2001], the 05 commission shall adjust the power costs for which power cost equalization may be 06 paid to an electric utility based on the weighted average retail residential rate in 07 Anchorage, Fairbanks, and Juneau; however, the commission may not adjust the 08 power costs under this paragraph to reduce the amount below the lower limit set out in 09 (1) of this subsection; and 10 (3) [DURING EACH FOLLOWING STATE FISCAL YEAR, THE 11 COMMISSION SHALL ADJUST THE POWER COSTS FOR WHICH POWER 12 COST EQUALIZATION MAY BE PAID TO AN ELECTRIC UTILITY BASED ON 13 THE WEIGHTED AVERAGE RETAIL RESIDENTIAL RATE IN ANCHORAGE, 14 FAIRBANKS, AND JUNEAU, PER KILOWATT-HOUR FOR SALES TO 15 RESIDENTIAL CUSTOMERS OF 400 KILOWATT-HOURS PER MONTH; THE 16 COMMISSION MAY NOT ADJUST THE POWER COSTS UNDER THIS 17 PARAGRAPH TO REDUCE THE AMOUNT BELOW 16.75 CENTS PER 18 KILOWATT-HOUR; AND 19 (4)] the power cost equalization per kilowatt-hour may be determined 20 for a utility without historical kilowatt-hour sales data by using kilowatt-hours 21 generated. 22 * Sec. 7. AS 42.45.110(d) is amended to read: 23 (d) An electric utility whose customers receive power cost equalization under 24 AS 42.45.100 - 42.45.150 shall set out in its tariff the rates without the power cost 25 equalization and the amount of power cost equalization per kilowatt-hour sold. The 26 rate charged to the customer shall be the difference between the two amounts. Power 27 cost equalization paid under AS 42.45.100 - 42.45.150 shall be used to reduce the cost 28 of all power sold to local community facilities, in the aggregate, to the extent of 70 29 kilowatt-hours per month per resident of the community, and to reduce the cost to 30 each residential customer of not more than 450 [THE FIRST 500] kilowatt-hours 31 per residential customer per month for the months of October through March, and
01 not more than 350 kilowatt-hours per month for the months of April through 02 September. 03 * Sec. 8. AS 42.45.110(d) is amended to read: 04 (d) An electric utility whose customers receive power cost equalization under 05 AS 42.45.100 - 42.45.150 shall set out in its tariff the rates without the power cost 06 equalization and the amount of power cost equalization per kilowatt-hour sold. The 07 rate charged to the customer shall be the difference between the two amounts. Power 08 cost equalization paid under AS 42.45.100 - 42.45.150 shall be used to reduce the cost 09 of all power sold to local community facilities, in the aggregate, to the extent of 70 10 kilowatt-hours per month per resident of the community, and to reduce the cost [TO 11 EACH RESIDENTIAL CUSTOMER] of the first 500 [NOT MORE THAN 450] 12 kilowatt-hours per residential customer per month [FOR THE MONTHS OF 13 OCTOBER THROUGH MARCH, AND NOT MORE THAN 350 KILOWATT- 14 HOURS PER MONTH FOR THE MONTHS OF APRIL THROUGH SEPTEMBER]. 15 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 16 read: 17 POWER COST EQUALIZATION PROGRAM ADJUSTMENTS. It is the intent of 18 the legislature that if the amount available for power cost equalization under 19 AS 42.45.085(a)(1) exceeds the costs of the program, the legislature will 20 (1) review the statutory provisions and consider increasing the maximum 21 number of kilowatt hours eligible for power cost equalization and adjusting the minimum and 22 maximum power costs for which power cost equalization may be paid; and 23 (2) consider other changes to provisions of the program in order to further 24 lower the cost of electricity to rural consumers. 25 * Sec. 10. Sections 1, 3, 5, 7, and 9 of this Act take effect July 1, 2002. 26 * Sec. 11. Sections 2, 4, 6, and 8 of this Act take effect July 1, 2007.