SB 185: "An Act relating to the basis for determining eligibility for and the amount of power cost equalization payments; and providing for an effective date."
00 SENATE BILL NO. 185 01 "An Act relating to the basis for determining eligibility for and the amount of power 02 cost equalization payments; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 42.45.100(a) is amended to read: 05 (a) The power cost equalization and rural electric capitalization fund is 06 established as a separate fund for the purpose of 07 (1) equalizing power cost per kilowatt-hour statewide at a cost close to 08 or equal to the highest cost per kilowatt-hour charged by a utility in the state that 09 does not receive power cost equalization under AS 42.45.100 - 42.45.170 for sales 10 to residential customers of 400 kilowatt-hours per month [MEAN OF THE COST 11 PER KILOWATT-HOUR IN ANCHORAGE, FAIRBANKS, AND JUNEAU BY 12 PAYING MONEY FROM THE FUND TO ELIGIBLE ELECTRIC UTILITIES IN 13 THE STATE]; and 14 (2) making grants to eligible utilities under AS 42.45.180 to improve
01 the performance of the utility. 02 * Sec. 2. AS 42.45.110(b) is amended to read: 03 (b) An eligible electric utility is entitled to receive power cost equalization 04 (1) for sales of power to local community facilities, calculated in the 05 aggregate for each community served by the electric utility, for actual consumption of 06 not more than 70 kilowatt-hours per month for each resident of the community; the 07 number of community residents shall be determined under AS 29.60.020; and 08 (2) for actual consumption of not more than 400 [500] kilowatt-hours 09 per month sold to each residential customer. 10 * Sec. 3. AS 42.45.110(c) is amended to read: 11 (c) The amount of power cost equalization provided per kilowatt-hour under 12 [SUBSECTION] (b) of this section may not exceed 95 percent of the power costs, or 13 the average rate per eligible kilowatt-hour sold, whichever is less, as determined by 14 the commission. However, 15 (1) during the state fiscal year that began July 1, 1999, the power costs 16 for which power cost equalization were paid to an electric utility were limited to 17 minimum power costs of more than 12 cents per kilowatt-hour and less than 52.5 cents 18 per kilowatt-hour; 19 (2) during the state fiscal year beginning July 1, 2000, [EACH 20 FOLLOWING STATE FISCAL YEAR], the commission shall adjust the power costs 21 for which power cost equalization may be paid to an electric utility based on the 22 weighted average retail residential rate in Anchorage, Fairbanks, and Juneau; however, 23 the commission may not adjust the power costs under this paragraph to reduce the 24 amount below the lower limit set out in (1) of this subsection; [AND] 25 (3) during each following state fiscal year, the commission shall 26 adjust the power costs for which power cost equalization may be paid to an 27 electric utility based on the highest cost per kilowatt-hour charged by a utility in 28 the state that does not receive power cost equalization under AS 42.45.100 - 29 42.45.170 for sales to residential customers of 400 kilowatt-hours per month; the 30 commission may not adjust the power costs under this paragraph to reduce the 31 amount below the lower limit set out in (1) of this subsection; and
01 (4) [(3)] the power cost equalization per kilowatt-hour may be 02 determined for a utility without historical kilowatt-hour sales data by using kilowatt- 03 hours generated. 04 * Sec. 4. AS 42.45.110(d) is amended to read: 05 (d) An electric utility whose customers receive power cost equalization under 06 AS 42.45.100 - 42.45.150 shall set out in its tariff the rates without the power cost 07 equalization and the amount of power cost equalization per kilowatt-hour sold. The 08 rate charged to the customer shall be the difference between the two amounts. Power 09 cost equalization paid under AS 42.45.100 - 42.45.150 shall be used to reduce the cost 10 of all power sold to local community facilities, in the aggregate, to the extent of 70 11 kilowatt-hours per month per resident of the community, and to reduce the cost of the 12 first 400 [500] kilowatt-hours per residential customer per month. 13 * Sec. 5. This Act takes effect July 1, 2001.