An Act establishing and relating to the power cost equalization endowment fund; relating to the power cost equalization and rural electric capitalization fund; authorizing and relating to the sale of the four dam pool hydroelectric project; establishing and relating to joint action agencies created to purchase power projects; and providing for an effective date.

Senate Bill 181 will change the way the State of Alaska funds electrical power for generations to come. Across the state, people will feel the effects of this bill in the form of lower electrical costs.

Rural communities with their high cost of electricity will know the funds for power cost equalization (PCE) will be there each year, because of an endowment fund that eventually will cover all of the added costs of diesel generated electricity. Funding for this endowment will come in part from income earned by selling the Four Dam Pool hydroelectric facility. This aspect not only brings in funding from the communities that actually use the power from the facility, but frees the state from any future upkeep obligation.

For communities involved in the purchase of the Four Dam Pool, the economic future of Southeast Alaska depends on a stable, economically feasible source of electricity. The Four Dam Pool facility currently meets the needs of the communities served but could be used even more under local control. SB 181 accomplishes this by selling the Four Dam Pool facilities to a community corporation designed specifically to manage the hydroelectric needs of subscriber communities.

Transfer of the hydro project is a critical step in building a Swan-Tyee Intertie. Its completion will be a major first step in bringing additional affordable electricity to Southeast. Affordable electricity will offer an economic boost to the region. Many corporations have expressed an interest in developing livable wage jobs but look elsewhere once they evaluate the cost of power.

Passage of SB 181 will move Alaska forward with a dependable, cost effective energy source.