HCS CSSB 157(CRA): "An Act relating to power cost equalization; relating to appropriations from the National Petroleum Reserve - Alaska special revenue fund to the power cost equalization and rural electric capitalization fund; relating to the power cost equalization and rural electric capitalization fund and the four dam pool transfer fund; and providing for an effective date."
00HOUSE CS FOR CS FOR SENATE BILL NO. 157(CRA) 01 "An Act relating to power cost equalization; relating to appropriations from the 02 National Petroleum Reserve - Alaska special revenue fund to the power cost 03 equalization and rural electric capitalization fund; relating to the power cost 04 equalization and rural electric capitalization fund and the four dam pool 05 transfer fund; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 37.05.530(g) is amended to read: 08 (g) Amounts received by the state under 42 U.S.C. 6508 and not appropriated 09 for grants to municipalities under (d) of this section shall be deposited [LAPSE] at 10 the end of each fiscal year as follows: (1) 50 percent to the principal of the Alaska 11 permanent fund; and (2) .5 percent to the public school trust fund (AS 37.14.110) . 12 The amounts remaining after the deposits to the Alaska permanent fund and the 13 public school trust fund may be appropriated to the power cost equalization and 14 rural electric capitalization fund (AS 42.45.100). The amounts remaining after
01 any appropriation to the power cost equalization and rural electric capitalization 02 fund shall lapse into [; AND (3) THE REMAINDER TO] the general fund for use 03 by the state for the following facilities and services: 04 (A) planning; 05 (B) construction, maintenance, and operation of essential public 06 facilities; and 07 (C) other necessary public services. 08 * Sec. 2. AS 42.45.050(b) is amended to read: 09 (b) Subject to appropriation, the department shall transfer the balance of the 10 four dam pool transfer fund each month in accordance with this subsection. Subject 11 to appropriation , 12 (1) 60 [40] percent of the balance in the four dam pool transfer fund 13 shall be transferred to the power cost equalization and rural electric capitalization fund 14 to be used for power cost equalization and rural electric projects; and 15 (2) 40 percent of the balance in the four dam pool transfer fund shall 16 be transferred to the Southeast energy fund to be used for power projects for utilities 17 participating in the power transmission intertie between the Swan Lake and Tyee Lake 18 hydroelectric projects [; AND 19 (3) 20 PERCENT OF THE BALANCE IN THE FOUR DAM POOL 20 TRANSFER FUND SHALL BE TRANSFERRED TO THE POWER PROJECT FUND 21 TO BE USED FOR STATEWIDE UTILITY PROJECTS]. 22 * Sec. 3. AS 42.45.100(b) is amended to read: 23 (b) The fund shall be administered by the department as a fund distinct from 24 the other funds of the department. The fund is composed of 25 (1) money appropriated to provide power cost equalization to eligible 26 electric utilities and to provide grants for utility improvements; 27 (2) money appropriated from the National Petroleum Reserve - 28 Alaska special revenue fund under AS 37.05.530(g); 29 (3) gifts, bequests, and contributions from other sources; and 30 (4) [(2)] interest earned on the fund balance [THOSE 31 APPROPRIATIONS].
01 * Sec. 4. AS 42.45.100 is amended by adding new subsections to read: 02 (d) In recognition of the significant contribution that rural Alaska projects have 03 made to the income of the Alaska Industrial Development and Export Authority and 04 subject to appropriation by the legislature, 40 percent of the amount made available 05 by the Alaska Industrial Development and Export Authority under AS 44.88.088 or 06 $8,000,000 of the amount made available, whichever is greater, shall be transferred to 07 the fund when made available. 08 (e) If the initial project described in AS 44.83.398(a) is sold, the Alaska 09 Energy Authority shall, subject to appropriation, transfer 60 percent of the net proceeds 10 of the sale to the fund. 11 * Sec. 5. AS 42.45.110(b) is amended to read: 12 (b) An eligible electric utility is entitled to receive power cost equalization 13 (1) for sales of power to local community facilities, calculated in the 14 aggregate for each community served by the electric utility, for actual consumption of 15 not more than 70 kilowatt-hours per month for each resident of the community; the 16 number of community residents shall be determined under AS 29.60.020; and 17 (2) for actual consumption of not more than 700 kilowatt-hours per 18 month sold to each residential customer [IN ALL CLASSES SERVED BY THE 19 ELECTRIC UTILITY EXCEPT 20 (A) CUSTOMERS OF THE UTILITY UNDER (1) OF THIS 21 SUBSECTION; AND 22 (B) CUSTOMERS THAT ARE STATE OR FEDERAL 23 OFFICES OR STATE OR FEDERAL FACILITIES OTHER THAN PUBLIC 24 SCHOOLS]. 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 subsection (b) of this section may not exceed 95 percent of the power costs, or the 28 average rate per eligible kilowatt-hour sold, whichever is less, as determined by the 29 commission. However, 30 (1) during the state fiscal year that began July 1, 1999 [JULY 1, 1993], 31 the power costs for which power cost equalization were paid to an electric utility were
01 limited to minimum power costs of more than 12.5 [9.5] cents per kilowatt-hour and 02 less than 52.5 cents per kilowatt-hour; 03 (2) during each following state fiscal year, the commission shall adjust 04 the power costs for which power cost equalization may be paid to an electric utility 05 based on the weighted average retail residential rate in Anchorage, Fairbanks, and 06 Juneau; however, the commission may not adjust the power costs under this 07 paragraph to reduce the amount below the lower limit set out in (1) of this 08 subsection; and 09 (3) the power cost equalization per kilowatt-hour may be determined 10 for a utility without historical kilowatt-hour sales data by using kilowatt-hours 11 generated. 12 * Sec. 7. AS 42.45.110(d) is amended to read: 13 (d) An electric utility whose customers receive power cost equalization under 14 AS 42.45.100 - 42.45.150 shall set out in its tariff the rates without the power cost 15 equalization and the amount of power cost equalization per kilowatt-hour sold. The 16 rate charged to the customer shall be the difference between the two amounts. Power 17 cost equalization paid under AS 42.45.100 - 42.45.150 shall be used to reduce the cost 18 of all power sold to local community facilities, in the aggregate, to the extent of 70 19 kilowatt-hours per month per resident of the community, and to reduce the cost of the 20 first 700 kilowatt-hours per residential customer per month [FOR ALL OTHER 21 CLASSES SERVED BY THE ELECTRIC UTILITY EXCEPT STATE AND 22 FEDERAL OFFICES AND STATE AND FEDERAL FACILITIES OTHER THAN 23 PUBLIC SCHOOLS]. 24 * Sec. 8. AS 42.45.110(i) is amended to read: 25 (i) The department shall review the report required under (h) of this section. 26 After review and approval of the report, the department shall, subject to appropriation, 27 pay to each eligible electric utility an amount equal to the power cost equalization per 28 kilowatt-hour determined under (a) and (c) of this section, multiplied by the number 29 of kilowatt-hours eligible for power cost equalization that were sold during the 30 preceding month to all customers of the utility under (b) of this section. Payment shall 31 be made by the department within 30 days after receipt from the utility of the report
01 required under (h) of this section. If appropriations that have been made for the 02 purpose by July 1 of a fiscal year are insufficient for payment in full, the amount 03 paid to each electric utility is reduced on a pro rata basis. 04 * Sec. 9. AS 42.45.120 is amended to read: 05 Sec. 42.45.120. Notice to customers. If an electric utility receives power cost 06 equalization under AS 42.45.100 - 42.45.150, the utility shall either give to its electric 07 service customers eligible under this program, for each period for which the payment 08 is received, 09 (1) the following notice: 10 NOTICE TO CUSTOMER 11 For the most recent monthly reporting period under the State of 12 Alaska's power cost equalization program, this utility's actual fuel 13 efficiency for your community was kilowatt-hours a gallon. The 14 applicable fuel efficiency standard set out in regulations for the power cost 15 equalization program is kilowatt-hours a gallon. 16 For the current billing period , the utility will be paid under the State of 17 Alaska's power cost equalization program (AS 42.45.100) to assist the utility 18 and its customers in reducing the high cost of generation of electric energy. 19 Your total electrical service cost $.......... 20 Less state equalization $.......... 21 Your charge $...........; or 22 (2) a notice approved by the department that provides electric service 23 customers the same information provided by the notice in (1) of this section. 24 * Sec. 10. AS 42.45.100(d), enacted by sec. 4 of this Act, applies to the amount made 25 available for appropriation by the Alaska Industrial Development and Export Authority under 26 AS 44.88.088 for each fiscal year after fiscal year 2000. 27 * Sec. 11. This Act takes effect July 1, 1999.