00                      CS FOR SENATE BILL NO. 243(FIN)                                                                   
01 "An Act relating to the power cost equalization endowment fund; relating to power cost                                  
02 equalization; and providing for an effective date."                                                                     
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 42.45.080(a) is amended to read:                                                                   
05            (a)  The commissioner of revenue is the fiduciary of the fund. In managing the                               
06       fund, the commissioner shall                                                                                      
07                 (1)  have the same powers and duties as are provided in AS 37.10.071;                                   
08       and                                                                                                               
09                 (2)  apply the prudent-investor rule when investing [INVEST] the                                    
10 fund; the "prudent-investor rule" as applied to investment activity of the fund                                     
11 means exercising the judgment and care under the circumstances then prevailing                                      
12 that an institutional investor of ordinary prudence, discretion, and intelligence                                   
13 exercises in the designation and management of large investments entrusted to it,                                   
14 not in regard to speculation, but in regard to the permanent disposition of funds,                                  

01 considering preservation of the purchasing power of the fund over time while                                        
02 maximizing the expected total return from both income and the appreciation of                                       
03 capital [IN A MANNER LIKELY TO ACHIEVE AT LEAST A FOUR PERCENT                                                      
04 NOMINAL RETURN OVER A FIVE-YEAR PERIOD TO MEET THE                                                                      
05 OBJECTIVES OF THE POWER COST EQUALIZATION AND RURAL                                                                     
06       ELECTRIC CAPITALIZATION FUND (AS 42.45.100)].                                                                     
07    * Sec. 2. 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 served by the electric utility, for actual consumption of                                  
11 not more than 70 kilowatt-hours a month for each resident of the community; the                                         
12 number of community residents shall be determined annually by the latest figures of                                     
13 the United States Bureau of the Census or other population data that the Department of                                  
14       Commerce, Community, and Economic Development determines is reliable; and                                         
15                 (2)  for actual consumption of not more than 750 [500] kilowatt-hours a                             
16       month sold to each residential customer.                                                                          
17    * Sec. 3. This Act takes effect July 1, 2022.