HCS CSSB 157(FIN) AM H: "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(FIN) am H 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. FINDINGS AND PURPOSE. (a) The legislature finds that 08 (1) affordable energy is essential for the economic and social well- 09 being of all Alaskans; 10 (2) the cost of electricity in many areas of rural Alaska is four 11 times that of major urban areas and reductions are not expected to be 12 substantially reduced in the near future; 13 (3) the cost of power in rural Alaska is a significant detriment to 14 economic growth and to maintaining a basic standard of living for rural residents;
01 (4) a power cost equalization program to provide parity for all 02 Alaskans and to reduce energy costs to residents in high-cost areas is vitally 03 needed. 04 (b) The purpose of this Act is to establish a program to provide affordable 05 energy to meet basic economic and lifestyle needs of rural Alaskans, while 06 providing incentives for conservation. It is further the intent of the legislature to 07 provide adequate long-term funding for this program. 08 * Sec. 2. AS 37.05.530(g) is amended to read: 09 (g) Amounts received by the state under 42 U.S.C. 6508 and not 10 appropriated for grants to municipalities under (d) of this section shall be 11 deposited [LAPSE] at the end of each fiscal year as follows: (1) 25  percent 12 to the principal of the Alaska permanent fund; and (2) .5 percent to the public 13 school trust fund (AS 37.14.110) . The amounts remaining after the deposits to the 14 Alaska permanent fund and the public school trust fund may be appropriated to 15 the power cost equalization and rural electric capitalization fund (AS 42.45.100). 16 The amounts remaining after any appropriation to the power cost equalization 17 and rural electric capitalization fund shall lapse into [; AND (3) THE 18 REMAINDER TO] the general fund for use by the state for the following facilities 19 and services: 20 (A) planning; 21 (B) construction, maintenance, and operation of essential 22 public facilities; and 23 (C) other necessary public services. 24 * Sec. 3. AS 42.45.050(b) is amended to read: 25 (b) Subject to appropriation, the department shall transfer the balance of 26 the four dam pool transfer fund each month in accordance with this subsection. 27 Subject to appropriation , 28 (1) 60  percent of the balance in the four dam pool transfer 29 fund shall be transferred to the power cost equalization and rural electric 30 capitalization fund to be used for power cost equalization and rural electric 31 projects; and
01 (2) 40 percent of the balance in the four dam pool transfer fund 02 shall be transferred to the Southeast energy fund to be used for power projects 03 for utilities participating in the power transmission intertie between the Swan 04 Lake and Tyee Lake hydroelectric projects [; AND 05 (3) 20 PERCENT OF THE BALANCE IN THE FOUR DAM 06 POOL TRANSFER FUND SHALL BE TRANSFERRED TO THE POWER 07 PROJECT FUND TO BE USED FOR STATEWIDE UTILITY PROJECTS]. 08 * Sec. 4. AS 42.45.100(b) is amended to read: 09 (b) The fund shall be administered by the department as a fund distinct 10 from the other funds of the department. The fund is composed of 11 (1) money appropriated to provide power cost equalization to 12 eligible electric utilities and to provide grants for utility improvements; 13 (2) money appropriated from the National Petroleum Reserve - 14 Alaska special revenue fund under AS 37.05.530(g); 15 (3) gifts, bequests, and contributions from other sources; and 16 (4) [(2)] interest earned on the fund balance [THOSE 17 APPROPRIATIONS]. 18 * Sec. 5. AS 42.45.110(b) is amended to read: 19 (b) An eligible electric utility is entitled to receive power cost equalization 20 (1) for sales of power to local community facilities, calculated in the 21 aggregate for each community served by the electric utility, for actual 22 consumption of not more than 70 kilowatt-hours per month for each resident of 23 the community; the number of community residents shall be determined under 24 AS 29.60.020; and 25 (2) for actual consumption of not more than 500  kilowatt- 26 hours per month sold to each residential customer [IN ALL CLASSES SERVED BY 27 THE ELECTRIC UTILITY EXCEPT 28 (A) CUSTOMERS OF THE UTILITY UNDER (1) OF THIS 29 SUBSECTION; AND 30 (B) CUSTOMERS THAT ARE STATE OR FEDERAL 31 OFFICES OR STATE OR FEDERAL FACILITIES OTHER THAN
01 PUBLIC SCHOOLS]. 02 * Sec. 6. AS 42.45.110(c) is amended to read: 03 (c) The amount of power cost equalization provided per kilowatt-hour 04 under subsection (b) of this section may not exceed 95 percent of the power costs, 05 or the average rate per eligible kilowatt-hour sold, whichever is less, as 06 determined by the commission. However, 07 (1) during the state fiscal year that began July 1, 1999 [JULY 1, 08 1993], the power costs for which power cost equalization were paid to an electric 09 utility were limited to minimum power costs of more than 12 [9.5] cents per 10 kilowatt-hour and less than 52.5 cents per kilowatt-hour; 11 (2) during each following state fiscal year, the commission shall 12 adjust the power costs for which power cost equalization may be paid to an 13 electric utility based on the weighted average retail residential rate in Anchorage, 14 Fairbanks, and Juneau; however, the commission may not adjust the power costs 15 under this paragraph to reduce the amount below the lower limit set out in (1) 16 of this subsection; and 17 (3) the power cost equalization per kilowatt-hour may be 18 determined for a utility without historical kilowatt-hour sales data by using 19 kilowatt-hours generated. 20 * Sec. 7. AS 42.45.110(d) is amended to read: 21 (d) An electric utility whose customers receive power cost equalization 22 under AS 42.45.100 - 42.45.150 shall set out in its tariff the rates without the 23 power cost equalization and the amount of power cost equalization per kilowatt- 24 hour sold. The rate charged to the customer shall be the difference between the two 25 amounts. Power cost equalization paid under AS 42.45.100 - 42.45.150 shall be used to 26 reduce the cost of all power sold to local community facilities, in the aggregate, to the 27 extent of 70 kilowatt-hours per month per resident of the community, and to reduce the 28 cost of the first 500  kilowatt-hours per residential customer per month [FOR ALL 29 OTHER CLASSES SERVED BY THE ELECTRIC UTILITY EXCEPT STATE AND 30 FEDERAL OFFICES AND STATE AND FEDERAL FACILITIES OTHER THAN 31 PUBLIC SCHOOLS].
01 * Sec. 8. AS 42.45.110(i) is amended to read: 02 (i) The department shall review the report required under (h) of this 03 section. After review and approval of the report, the department shall, subject to 04 appropriation, pay to each eligible electric utility an amount equal to the power 05 cost equalization per kilowatt-hour determined under (a) and (c) of this section, 06 multiplied by the number of kilowatt-hours eligible for power cost equalization 07 that were sold during the preceding month to all customers of the utility under 08 (b) of this section. Payment shall be made by the department within 30 days after 09 receipt from the utility of the report required under (h) of this section. If 10 appropriations that have been made for the purpose by July 1 of a fiscal year are 11 insufficient for payment in full, the amount paid to each electric utility shall be 12 [IS] reduced on a pro rata basis. In making the pro rata reductions required by 13 this subsection, the department may not consider any potential supplemental 14 appropriation until the appropriation has been enacted. 15 * Sec. 9. AS 42.45.120 is amended to read: 16 Sec. 42.45.120. Notice to customers. If an electric utility receives power 17 cost equalization under AS 42.45.100 - 42.45.150, the utility shall either give to its 18 electric service customers eligible under this program, for each period for which 19 the payment is received, 20 (1) the following notice: 21 NOTICE TO CUSTOMER 22 For the most recent monthly reporting period under the State of 23 Alaska's power cost equalization program, this utility's actual fuel 24 efficiency for your community was kilowatt-hours a gallon. The 25 applicable fuel efficiency standard set out in regulations for the power cost 26 equalization program is kilowatt-hours a gallon. 27 For the current billing period , the utility will be paid under the 28 State of Alaska's power cost equalization program (AS 42.45.100) to assist 29 the utility and its customers in reducing the high cost of generation of 30 electric energy. Your total electrical service cost 31 $..........
01 Less state equalization $.......... 02 Your charge $...........; or 03 (2) a notice approved by the department that provides electric 04 service customers the same information provided by the notice in (1) of this 05 section. 06 * Sec. 10. This Act takes effect July 1, 1999.