HB 4005: "An Act amending the power cost equalization program, repealing the exclusion from eligibility for power cost equalization for certain power projects that take their power from hydroelectric facilities, and amending the definition of 'eligible electric utility' as it applies to the power cost equalization program and the grant program for small power projects for utility improvements; and providing for an effective date."
00 HOUSE BILL NO. 4005 01 "An Act amending the power cost equalization program, repealing the exclusion from 02 eligibility for power cost equalization for certain power projects that take their power 03 from hydroelectric facilities, and amending the definition of 'eligible electric utility' as it 04 applies to the power cost equalization program and the grant program for small power 05 projects for utility improvements; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 42.45.110(b) is amended to read: 08 (b) An eligible electric utility is entitled to receive power cost equalization 09 (1) for sales of power to local community facilities, calculated in the 10 aggregate for each community with a population of not more than 10,000 served by 11 the electric utility, for actual consumption of not more than 70 kilowatt-hours a month 12 for each resident of the community; the number of community residents shall be 13 determined annually by the latest figures of the United States Bureau of the Census or
01 other population data that the Department of Commerce, Community, and Economic 02 Development determines is reliable; and 03 (2) for actual consumption of not more than 04 (A) 300  kilowatt-hours a month sold to each residential 05 customer from April 1 through September 30, inclusive; and 06 (B) 700 kilowatt-hours a month sold to each residential 07 customer from October 1 through March 31, inclusive. 08 * Sec. 2. AS 42.45.110(c) is repealed and reenacted to read: 09 (c) The amount of power costs for which equalization is paid to an electric 10 utility is the difference between 11 (1) a minimum power cost calculated as 120 percent of the weighted 12 average retail residential power rate in Anchorage, Fairbanks, and Juneau for the 13 previous calendar year; and 14 (2) an amount that may not exceed, as determined by the commission, 15 one of the following, whichever is lowest: 16 (A) $2 a kilowatt hour; 17 (B) actual power costs; or 18 (C) the average rate for each eligible kilowatt hour sold. 19 * Sec. 3. AS 42.45.110(d) is amended to read: 20 (d) An electric utility whose customers receive power cost equalization under 21 AS 42.45.100 - 42.45.150 shall set out in its tariff the rates without the power cost 22 equalization and the amount of power cost equalization for each [PER] kilowatt-hour 23 sold. The rate charged to the customer shall be the difference between the two 24 amounts. Power cost equalization paid under AS 42.45.100 - 42.45.150 shall be used 25 to reduce the cost of all power sold to local community facilities, in the aggregate, to 26 the extent of 70 kilowatt-hours a [PER] month for each [PER] resident of the 27 community, and to reduce the cost of 28 (1) the first 300  kilowatt-hours for each [PER] residential 29 customer a [PER] month from April 1 through September 30, inclusive; and 30 (2) the first 700 kilowatt-hours for each residential customer a 31 month from October 1 through March 31, inclusive.
01 * Sec. 4. AS 42.45.110 is amended by adding a new subsection to read: 02 (j) The power cost equalization for each kilowatt-hour calculated under (c) of 03 this section may be determined for a utility without historical kilowatt-hour sales data 04 by using kilowatt-hours generated. 05 * Sec. 5. AS 42.45.150(2) is amended to read: 06 (2) "eligible electric utility" or "electric utility" means a public, 07 cooperative, or other corporation, company, individual, or association of individuals, 08 and includes the lessees, trustees, or receivers appointed by a court, that 09 [(A)] owns, operates, manages, or controls a plant or system for 10 the furnishing, by generation, transmission, or distribution, of electric service 11 to the public for compensation [; 12 (B) DURING CALENDAR YEAR 1983, HAD A 13 RESIDENTIAL CONSUMPTION LEVEL OF POWER ELIGIBLE FOR 14 POWER COST EQUALIZATION UNDER FORMER AS 44.83 OF LESS 15 THAN 7,500 MEGAWATT HOURS OR HAD A RESIDENTIAL 16 CONSUMPTION LEVEL OF POWER ELIGIBLE FOR POWER COST 17 EQUALIZATION UNDER FORMER AS 44.83 OF LESS THAN 15,000 18 MEGAWATT HOURS IF THE UTILITY SERVED TWO OR MORE 19 MUNICIPALITIES OR UNINCORPORATED COMMUNITIES; AND 20 (C) DURING CALENDAR YEAR 1984, USED DIESEL 21 FIRED GENERATORS TO PRODUCE MORE THAN 75 PERCENT OF 22 THE ELECTRICAL CONSUMPTION OF THE UTILITY; AN ELECTRIC 23 UTILITY THAT IS A SUBSIDIARY OF ANOTHER ELECTRIC UTILITY 24 IS AN "ELIGIBLE ELECTRIC UTILITY" IF THE OPERATIONS OF THE 25 SUBSIDIARY, CONSIDERED SEPARATELY, MEET THE ELIGIBILITY 26 REQUIREMENTS OF AS 42.45.100 - 42.45.150; IF AN ELECTRIC 27 UTILITY DID NOT RECEIVE POWER COST ASSISTANCE IN 1983 BUT 28 IS OTHERWISE ELIGIBLE FOR POWER COST EQUALIZATION 29 UNDER AS 42.45.100 - 42.45.150, THE UTILITY IS AN "ELIGIBLE 30 ELECTRIC UTILITY"]; 31 * Sec. 6. AS 42.45.115 is repealed.
01 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 TRANSITION: RATIFICATION OF PAYMENTS DUE AND RECEIVED UNDER 04 FORMER LAW MADE SUBJECT TO RETROACTIVE AMENDMENT. If, because of the 05 retroactive application of this Act, an eligible electric utility that had sales of power after 06 June 30, 2008, and not later than the day before the effective date of this Act to local 07 community facilities that qualified for power cost equalization under AS 42.45.110 - 08 42.45.150 09 (1) in a community with a population of more than 10,000 and that would not 10 qualify for power cost equalization under the amendment of AS 42.45.110(b)(1) made by sec. 11 1 of this Act, as made retroactive, notwithstanding the amendment of that paragraph of this 12 Act, may receive and retain power cost equalization payments for that period under the 13 provisions of that paragraph as it read before its amendment of this Act; 14 (2) based on actual consumption of more than 300 kilowatt hours a month but 15 not more than 500 kilowatt hours a month sold to each residential customer and that would 16 not qualify for power cost equalization for those sales under the amendment of 17 AS 42.45.110(b)(2) made by sec. 1 of this Act and the amendment of AS 42.45.110(d) made 18 by sec. 3 of this Act, both amendments as made retroactive, notwithstanding the amendment 19 of AS 42.45.110(b)(2) and 42.45.110(d) by this Act, may receive and retain power cost 20 equalization payments for those customers for that period under the provisions of 21 AS 42.45.110(b)(2) and 42.45.110(d) as they read before amendment by this Act. 22 * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to 23 read: 24 RETROACTIVITY. This Act is retroactive to July 1, 2008. 25 * Sec. 9. This Act takes effect immediately under AS 01.10.070(c).