CSSB 243(FIN): "An Act relating to the power cost equalization endowment fund; relating to power cost equalization; and providing for an effective date."

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.