CSSB 157(FIN): "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."
00CS FOR SENATE BILL NO. 157(FIN) 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  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 16 (A) except as provided in (B) of this paragraph, shall be 17 transferred to the Southeast energy fund to be used for power projects for 18 utilities participating in the power transmission intertie between the Swan Lake 19 and Tyee Lake hydroelectric projects; 20 (B) as of the date of any Alaska Industrial Development and 21 Export Authority determination that sufficient money is available to 22 complete the power transmission intertie between the Swan Lake and Tyee 23 Lake hydroelectric projects without using the amounts that would 24 otherwise be transferred to the Southeast energy fund under (A) of this 25 paragraph, those amounts are instead transferred to the power cost 26 equalization and rural electric capitalization fund to be used for power 27 cost equalization and rural electric projects [AND 28 (3) 20 PERCENT OF THE BALANCE IN THE FOUR DAM POOL 29 TRANSFER FUND SHALL BE TRANSFERRED TO THE POWER PROJECT FUND 30 TO BE USED FOR STATEWIDE UTILITY PROJECTS]. 31 * Sec. 3. AS 42.45.100(b) is amended to read:
01 (b) The fund shall be administered by the department as a fund distinct from 02 the other funds of the department. The fund is composed of 03 (1) money appropriated to provide power cost equalization to eligible 04 electric utilities and to provide grants for utility improvements; 05 (2) money appropriated from the National Petroleum Reserve - 06 Alaska special revenue fund under AS 37.05.530(g); 07 (3) gifts, bequests, and contributions from other sources; and 08 (4) [(2)] interest earned on the fund balance [THOSE 09 APPROPRIATIONS]. 10 * Sec. 4. AS 42.45.110(b) is amended to read: 11 (b) An eligible electric utility is entitled to receive power cost equalization 12 (1) for sales of power to local community facilities, calculated in the 13 aggregate for each community served by the electric utility, for actual consumption of 14 not more than 70 kilowatt-hours per month for each resident of the community; the 15 number of community residents shall be determined under AS 29.60.020; and 16 (2) for actual consumption of not more than the monthly average 17 determined by the department under (j) of this section [700 KILOWATT-HOURS 18 PER MONTH] sold to each residential customer [IN ALL CLASSES SERVED BY 19 THE 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. 5. 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 13.5 [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. 6. 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 kilowatt-hours sold to residential customers as provided in (j) of this section 21 [FIRST 700 KILOWATT-HOURS PER CUSTOMER PER MONTH FOR ALL 22 OTHER CLASSES SERVED BY THE ELECTRIC UTILITY EXCEPT STATE AND 23 FEDERAL OFFICES AND STATE AND FEDERAL FACILITIES OTHER THAN 24 PUBLIC SCHOOLS]. 25 * Sec. 7. AS 42.45.110(i) is amended to read: 26 (i) The department shall review the report required under (h) of this section. 27 After review and approval of the report, the department shall, subject to appropriation, 28 pay to each eligible electric utility an amount equal to the power cost equalization per 29 kilowatt-hour determined under (a) and (c) of this section, multiplied by the number 30 of kilowatt-hours eligible for power cost equalization that were sold during the 31 preceding month to all customers of the utility under (b) of this section. Payment shall
01 be made by the department within 30 days after receipt from the utility of the report 02 required under (h) of this section. If appropriations that have been made for the 03 purpose by July 1 of a fiscal year are insufficient for payment in full, the amount 04 paid to each electric utility is reduced on a pro rata basis. In making the pro rata 05 reductions required by this subsection, the department may not consider any 06 potential supplemental appropriation until the appropriation has been enacted. 07 * Sec. 8. AS 42.45.110 is amended by adding a new subsection to read: 08 (j) The department shall, by regulation, provide a schedule of the maximum 09 number of kilowatt-hours per month for which an electric utility is entitled to receive 10 power cost equalization for residential customers under this section. The average of 11 the monthly maximum limits may not exceed 350 kilowatt-hours. The limit for an 12 individual month may not exceed 500 kilowatt-hours. The schedule must reflect 13 historic patterns of usage of electricity. 14 * Sec. 9. AS 42.45.120 is amended to read: 15 Sec. 42.45.120. Notice to customers. If an electric utility receives power cost 16 equalization under AS 42.45.100 - 42.45.150, the utility shall either give to its electric 17 service customers eligible under this program, for each period for which the payment 18 is received, 19 (1) the following notice: 20 NOTICE TO CUSTOMER 21 For the most recent monthly reporting period under the State of 22 Alaska's power cost equalization program, this utility's actual fuel 23 efficiency for your community was kilowatt-hours a gallon. The 24 applicable fuel efficiency standard set out in regulations for the power cost 25 equalization program is kilowatt-hours a gallon. 26 For the current billing period , the utility will be paid under the State of 27 Alaska's power cost equalization program (AS 42.45.100) to assist the utility 28 and its customers in reducing the high cost of generation of electric energy. 29 Your total electrical service cost $.......... 30 Less state equalization $.......... 31 Your charge $...........; or
01 (2) a notice approved by the department that provides electric service 02 customers the same information provided by the notice in (1) of this section. 03 * Sec. 10. TRANSITIONAL PROVISION. Notwithstanding the amendments to 04 AS 42.45.110 made by secs. 4 - 6 and 8 of this Act, until the department adopts regulations 05 to provide a maximum number of hours for which an electric utility is entitled to receive 06 power cost equalization for residential customers, an electric utility shall be entitled to receive 07 350 kilowatt-hours per month for each residential customer. 08 * Sec. 11. This Act takes effect July 1, 1999.