Juneau -- "All Alaskans could win with the final passage of Senate Bill 181," said bill sponsor, Senator Robin Taylor (R-Wrangell), after the Senate Community and Regional Affairs Committee passed out the legislation Wednesday.

SB 181 directs the Alaska Energy Authority to sell its rights and interests in the hydroelectric facilities of the four dam pool - the facilities at Tyee Lake, Swan Lake, Solomon Gulch and Terror Lake. The proceeds from this sale will be used to help create a $120 million endowment that will provide at least half of the $16 million annual cost of the power cost equalization program (PCE). Transfer of these facilities to local control is a critical step in creating the Swan-Tyee Intertie, which will help to bring additional affordable electricity to Southeast Alaska.

"PCE serves rural Alaskan communities where the cost of electric power is extremely expensive," said Senator Robin Taylor (R-Wrangell). "The State can not continue to pay for PCE out of the general fund due to reclining revenues, and it is necessary to find an alternate source of funding to keep this valuable and necessary program alive."

While the communities served by the four dam pool facilities do not receive PCE, they will also benefit from the sale. The hydroelectric facilities would be sold to corporations created by the municipalities for which they provide power, under agreements that the new corporations would protect electrical power rates from undue increase and adequately maintain and repair the facilities.

SB 181 moves to the Senate Finance Committee.

Attachments:

• Sponsor Statement

| Top | Senator Taylor's Page |