00CS FOR HOUSE BILL NO. 216(FIN)                                                                                          
01 "An Act relating to power cost equalization; and providing for an effective date."                                      
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1.  AS 44.83.162(c) is amended to read:                                                                    
04  (c)  An eligible electric utility is entitled to receive power cost equalization for                                  
05   (1)  sales of power to local community facilities, calculated in the                                                 
06 aggregate for each community served by the electric utility, for actual consumption of                                  
07 not more than 70 kilowatt-hours per month for each resident of the community; and                                       
08   (2)  actual consumption of not more than 700 [750] kilowatt-hours per                                              
09 month sold to each customer in all classes served by the electric utility except to                                     
10 customers of the utility under (1) of this subsection and customers that are federal                                   
11 offices or federal facilities other than public schools.                                                               
12    * Sec. 2.  AS 44.83.162(d) is amended to read:                                                                       
13  (d)  The amount of power cost equalization provided per kilowatt-hour under                                           
14 (c) of this section may not exceed 95 percent of the power costs, or the average rate                                   

01 per eligible kilowatt-hour sold, whichever is less, as determined by the commission.                                    
02 However,                                                                                                                
03   (1)  during the state fiscal year that begins July 1, 1993, [1984] the                                             
04 power costs for which power cost equalization may be paid to an electric utility are                                    
05 limited to minimum power costs of more than 9.82 [8.5] cents per kilowatt-hour and                                    
06 less than 52.5 cents per kilowatt-hour;                                                                                 
07   (2)  during each following state fiscal year, the power costs for which                                              
08 power cost equalization may be paid to an electric utility shall be adjusted by the                                     
09 commission, based on the weighted average retail residential rate in Anchorage,                                        
10 Fairbanks, and Juneau [CONSIDERING THE RATE OF CHANGE IN FUEL COST                                                     
11 AND POWER DEMAND]; and                                                                                                  
12   (3)  the power cost equalization per kilowatt-hour may be determined                                                 
13 for a utility without historical kilowatt-hour sales data by using kilowatt hours                                       
14 generated.                                                                                                              
15    * Sec. 3.  AS 44.83.162(e) is amended to read:                                                                       
16  (e)  An electric utility whose customers receive power cost equalization under                                        
17 this section shall set out in its tariff the rates without the power cost equalization and                              
18 the amount of power cost equalization per kilowatt-hour sold.  The rate charged to the                                  
19 customer shall be the difference between the two amounts. Power cost equalization                                       
20 paid under this section shall be used to reduce the cost of all power sold to local                                     
21 community facilities, in the aggregate, to the extent of 70 kilowatt-hours per month per                                
22 resident of the community, and to reduce the cost of the first 700 [750] kilowatt-hours                               
23 per customer per month for all other classes served by the electric utility except                                     
24 federal offices and federal facilities other than public schools.                                                      
25    * Sec. 4.  This Act takes effect July 1, 1993.