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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 [500] 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 [500] 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).