SB 157: "An Act relating to power cost equalization; and providing for an effective date."

00SENATE BILL NO. 157 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 42.45.100(a) is amended to read: 04  (a) The power cost equalization and rural electric capitalization fund is 05 established as a separate fund for the purpose of 06  (1) equalizing power cost per kilowatt-hour statewide at a cost close 07 to or equal to the mean of the cost per kilowatt-hour in Anchorage, Fairbanks, Kenai, 08 Palmer, and Juneau by paying money from the fund to eligible electric utilities in the 09 state; and 10  (2) to make grants to eligible utilities under AS 42.45.180 to improve 11 the performance of the utility. 12 * Sec. 2. AS 42.45.110(b) is amended to read: 13  (b) An eligible electric utility is entitled to receive power cost equalization 14  (1) for sales of power to local community facilities, calculated in the

01 aggregate for each community served by the electric utility, for actual consumption of 02 not more than 70 kilowatt-hours per month for each resident of the community; the 03 number of community residents shall be determined under AS 29.60.020; and 04  (2) for actual consumption of not more than 350 [700] kilowatt-hours 05 per month sold to each residential customer [IN ALL CLASSES SERVED BY THE 06 ELECTRIC UTILITY EXCEPT 07  (A) CUSTOMERS OF THE UTILITY UNDER (1) OF THIS 08 SUBSECTION; AND 09  (B) CUSTOMERS THAT ARE STATE OR FEDERAL 10 OFFICES OR STATE OR FEDERAL FACILITIES OTHER THAN PUBLIC 11 SCHOOLS]. 12 * Sec. 3. AS 42.45.110(c) is amended to read: 13  (c) The amount of power cost equalization provided per kilowatt-hour under 14 subsection (b) of this section may not exceed 95 percent of the power costs, or the 15 average rate per eligible kilowatt-hour sold, whichever is less, as determined by the 16 commission. However, 17  (1) during the state fiscal year that began July 1, 1993, the power costs 18 for which power cost equalization were paid to an electric utility were limited to 19 minimum power costs of more than 9.5 cents per kilowatt-hour and less than 52.5 20 cents per kilowatt-hour; 21  (2) during each following state fiscal year, the commission shall adjust 22 the power costs for which power cost equalization may be paid to an electric utility 23 based on the weighted average retail residential rate in Anchorage, Fairbanks, Kenai, 24 Palmer, and Juneau; and 25  (3) the power cost equalization per kilowatt-hour may be determined 26 for a utility without historical kilowatt-hour sales data by using kilowatt-hours 27 generated. 28 * Sec. 4. AS 42.45.110(d) is amended to read: 29  (d) An electric utility whose customers receive power cost equalization under 30 AS 42.45.100 - 42.45.150 shall set out in its tariff the rates without the power cost 31 equalization and the amount of power cost equalization per kilowatt-hour sold. The

01 rate charged to the customer shall be the difference between the two amounts. Power 02 cost equalization paid under AS 42.45.100 - 42.45.150 shall be used to reduce the cost 03 of all power sold to local community facilities, in the aggregate, to the extent of 70 04 kilowatt-hours per month per resident of the community, and to reduce the cost of the 05 first 350 [700] kilowatt-hours per residential customer per month [FOR ALL OTHER 06 CLASSES SERVED BY THE ELECTRIC UTILITY EXCEPT STATE AND 07 FEDERAL OFFICES AND STATE AND FEDERAL FACILITIES OTHER THAN 08 PUBLIC SCHOOLS]. 09 * Sec. 5. AS 42.45.110(e) is amended to read: 10  (e) The power cost equalization program shall be administered by the 11 department based on a determination by the commission under (a) , [AND] (c) , and (j) 12 of this section of power cost equalization per kilowatt-hour for each eligible electric 13 utility. 14 * Sec. 6. AS 42.45.110(i) is amended to read: 15  (i) The department shall review the report required under (h) of this section. 16 After review and approval of the report, the department shall, subject to appropriation, 17 pay to each eligible electric utility an amount equal to the power cost equalization per 18 kilowatt-hour determined under (a) , [AND] (c) , and (j) of this section, multiplied by 19 the number of kilowatt-hours eligible for power cost equalization that were sold during 20 the preceding month to all customers of the utility under (b) of this section. Payment 21 shall be made by the department within 30 days after receipt from the utility of the 22 report required under (h) of this section. If appropriations are insufficient for payment 23 in full, the amount paid to each electric utility is reduced on a pro rata basis. 24 * Sec. 7. AS 42.45.110 is amended by adding a new subsection to read: 25  (j) Notwithstanding (c) of this section, the amount of power cost equalization 26 provided per kilowatt-hour under subsection (b) of this section may only be enough 27 so that the rate charged by the electric utility is no lower than the rate charged by the 28 electric utility in the state that 29  (1) is subject to rate regulation by the Alaska Public Utilities 30 Commission under AS 42.05; 31  (2) does not receive power cost equalization; and

01  (3) charges the highest rate per kilowatt hour in the state to that class 02 of customer. 03 * Sec. 8. This Act takes effect July 1, 1999.