An Act relating to power cost equalization; and providing for an effective date

Prepared by: Senate Finance/Senator Torgerson
Updated: May 14, 1999

Sec. 1: Revises current statute (AS 37.05.530 (g)) regarding the National Petroleum Reserve-Alaska (NPRA) fund so that amounts which remain AFTER; (1) the community impact grants; (2) the deposits to the Permanent Fund and (3) the deposits to the public school trust fund; can be appropriated to the power cost equalization and rural electric capitalization fund (PCE) PRIOR to the balance lapsing to the General Fund.

Sec. 2: Revises current statute (AS 42.45.050(b)) to increase the transfers into the power cost equalization and rural electric capitalization fund from 40% to 60%. The added 20% is 20% of the existing balance in the four dam pool fund for the power project fund, which is now deleted.

Sec. 3: Revises current statute (AS 42.45.100(b)) to include new potential fund sources for the PCE program; NPRA and "gifts".

Sec. 4: Revises current statute (AS 42.45.110(b)) by deleting reference to "700 kWh per month" and inserting new language for a monthly average to be determined by the department under new subsection (j) authority.

Sec. 5: Revises current statute (AS 42.45.110(c)) by (1) changing the initiation date from July 1, 1993 to July 1, 1999; increasing the minimum power costs amount from 9.5 to 13.5 cents. (Current is 9.5 plus 0.4 adjust to total 9.9 cents.)

Subsection (2) is revised so that adjustments may not reduce the rate below the limit set out in (1) above --which is 13.5 cents.

Sec. 6: Revises current statute (AS 42.45.110(b)) by deleting reference to "700 kWh per month" and inserting new language for a monthly average to be determined by the department under new subsection (j) authority.

Sec. 7: Revises current statute (AS 42.45.110(I) by inserting language to clarify that pro rata reductions must be based on the amount provided in a fiscal year and may not anticipate an additional supplemental amount.

Sec. 8: Revises current statute (AS 42.45.110) by adding a new subsection (j) regarding the "average" monthly use of 350 kWh. The average of the monthly use can't exceed 350 kWh (4,200 kWh annually) and the maximum for an individual month is 500 kWh. The department is directed to provided a schedule for this entitlement, which must reflect historic patterns of use.

Sec. 9: Revises current statute (AS 42.45.120) by inserting new language for the existing "notice to customer" requirement. The new language requires the utility to indicate the fuel efficiency of the utility.

Sec. 10: This section provides language for a transition between the time this act takes effect and the time the department's regulations for the averaged 350 kWh are adopted. The language states that the rate is 350 kWh per month per residential customer.

Sec. 11: The effective date of the bill, which is July 1, 1999.

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