Jeff Williams, PCE Program Manager Alaska Energy Authority April 27, 2010

Transcription

1 Power Cost Equalization Jeff Williams, PCE Program Manager Alaska Energy Authority April 27,

2 PCE Program Inception Established in 1985 Provides economic assistance to rural communities where, in many instances, the kwh charge for electricity it can be three to five times higher than the average kwh rate in Anchorage, Fairbanks and Juneau. Programs Preceding PCE Power Production Assistance Program (1980) Power Cost Assistance Program (1981) 2

3 Legislature Establishes PCE Program AS replaced the Power Cost Assistance Program with what is known today as the Power Cost Equalization Program The purpose is to equalized the power cost per kwh statewide at a cost close to or equal to the mean of the cost per KWh in Anchorage, Fairbanks and Juneau * Went into effect on October 20, 1984 *AS (a)(1) 3

4 Since The Program s Inception Fiscal Year 1988* 102 Participating Utilities 170 Communities Served Total Disbursements of $17,642,895 Fiscal Year Participating Utilities 184 Communities Served Total Disbursements of $37M *First Publication of AEA s Annual Statistical Report 4

5 Program Funding Power Cost Equalization and Rural Electric Capitalization Fund Administered by the authority as a separate fund and is composed of: Appropriations by the State Legislature Appropriations from the National Petroleum Reserve * Appropriations from the PCE Endowment Fund Gifts, bequest and contributions from other sources Interest earned on the fund balance *AS (g)(3)(B) 5

6 Eligible Utilities The Railbelt electric utilities, the electric utility in Juneau and those utilities that receive electric power from the Four Dam Pool facilities are not eligible for PCE assistance. 6

7 Eligible Customers An eligible residential customer may receive PCE credit on up to the first 500 kwhs consumed each month. Community facilities are also eligible to receive PCE credit on up to a maximum of 70 kwh per month x the community population. State and Federal customers, as well as commercial customers, including schools, are not eligible for PCE credit. 7

8 Administration of the PCE Program The PCE Program is administered by two state agencies: Regulatory Commission of Alaska (RCA) Alaska Energy Authority (AEA) 8

9 The Regulatory Commission of Alaska determines the PCE level for each utility based on: Fuel expenses such as the cost of fuel, transportation; and, Non-fuel expenses such as salaries, insurance, taxes, parts and supplies, interest and other reasonable cost. 9

10 The Alaska Energy Authority administers the PCE Fund based on: Fiscal appropriation by the Legislature, Monthly reports submitted by the participating utilities, and, Determination of eligibility for residential and community facility customers. 10

11 Participation in the PCE Program AEA Requirements The utility must file monthly reports with AEA in order to receive payment. It must maintain good administrative practices and keep records of its costs and revenues, and upon request, the records of the utility are to be made available to the AEA and RCA. * *AS (f); 3 AAC

12 FAQ s and Answer 1. Which customers are eligible to receive PCE? The statute excludes from PCE, State and Federal offices and facilities, as well as commercial customers, including schools. All other utility customer are generally eligible to receive PCE credits within the statutory t t limits. 12

13 FAQ s and Answer 2. What part of a residential customer s bill is eligible for PCE credit? A residential customer will only receive PCE credit for up to 500 kwh per month. Example: If a customer used 800 kwh in one month, and the utility charges 50 /kwh, and the approved PCE rate is 35 /kwh; Then the customer s bill would be as follows: 800 kwh x 50 cents/kwh = $ 400; minus PCE credit of 500 kwh x 35 cents/kwh $<175> Customer pays $

14 FAQ s and Answer 3. What is a community facility customer? Statute defines a community facility customer as a water, sewer or charitable educational facility, public outdoor lighting, or a community building whose operation is not paid for by the State or Federal government or by a private commercial organization. A community building is defined as a community facility that is: Not operated for profit, and; Open to the general public 14

15 FAQ s and Answer 4. Does a community facility customer have maximum monthly kwh limits as well? The monthly limit set by statute for all community facilities in a community is the community s population times 70. Example: Total kwh usage of all community facilities in on community is 5,000 kwh in one month and there are 50 residents in the community, the utility would receive PCE for the first 3/500 kwh. (70 kwh x 50 residents = 3,500 kwh) The remaining 1,500 kwh are not eligible for PCE, and would be charge the full rate. 15

16 FAQ s and Answer 5. Is all the information requested on the PCE Utility Monthly Reports necessary? YES! The information gathered in the PCE monthly reports is compiled and published in the AEA s annual statistical report; which is used by a wide variety of recipients for such things as project planning and future funding decisions. 16

17 Agency Contact Information If you have additional questions or would like additional information, please feel free to contact this agency directly at: Alaska Energy Authority Jeff Williams, PCE Program Manager 813 W. Northern Lights Blvd. Anchorage, AK (907) or (888) The FY09 PCE Annual Statistical i Report may be found at 17

18 Northern Lights in Noorvik Quyana Presented by Jeff Williams Alaska Energy Authority Photo Courtesy of Meera Kohler, AVEC 18