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Home My WebLink AboutRes 2006-01 Regulations amendments PCE-May' * ***~IBE~ * * Alaska Industrial Development and Export Authority MEMORANDUM TO: Board of Directors Alaska Ene](;;Authority FROM: Ron Miller Executive tor DATE: May 11, 2006 SUBJECT: Resolution No. 2006-01 Adoption of AEA Regulation Changes Resolution No. 2006-01 adopts the amended regulations attached as Exhibit A to the resolution. These amended regulations revise Alaska Administrative Code Title 3 by adding Section 107.225, outlining the method Alaska Energy Authority (AEA) will use to allocate supplemental appropriations to the Power Cost Equalization program (PCE) made after earlier pro rata reductions. AEA widely distributed notice of the proposed revisions and published notice in the Anchorage Daily News on April 7, 2006. AEA also mailed notice to all communities and utilities that receive PCE; provided notice to legislators, the Administrative Regulation Review Committee and the Legislative Council; and posted the notice on AEA's website and on the State of Alaska Online Public Notice System. There was no public hearing. The public comment period ended on May 9, 2006, at 5:00 p.m. AEA received three written comments on the proposed regulations (copies attached), two from utilities in support of the changes, and one from the City of Unalaska against the changes. No revisions are proposed in response to these comments. This action is not expected to require an increased appropriation. Staff recommends approval of Resolution No. 2006-01. 813 West Northern Lights Boulevard • Anchorage, Alaska 99503-2495 www.aidea.org • 907/269-3000 • FAX 907/269-3044 • Toll Free (Alaska Only) 888/300-8534 • www.akenergyauthority.org ALASKA ENERGY AUTHORITY RESOLUTION NO. 2006·01 RESOLUTION OF THE ALASKA ENERGY AUTHORITY RELATING TO THE ADOPTION OF NEW REGULATION RELATING TO POWER COST EQUALIZATION (PCE) WHEREAS, pursuant to AS 44.83.080 the Alaska Energy Authority (the "Authority'') may adopt regulations to carry out the purposes of AS 44.83 and AS 42.45; WHEREAS, staff of the Authority has proposed that the Authority's regulations be amended to adopt a new regulation dealing with the allocation of supplemental appropriations to the Power Cost Equalization (PCE) program, as set forth in Exhibit "A" attached to this resolution ("the new PCE regulation"); WHEREAS, the Authority has complied with all of the provisions of AS 44.62 concerning the adoption by the Authority of regulations; WHEREAS, the staff of the Authority has reported to this board the nature and content of the comments received from the public with respect to the new PCE regulation and the Authority has considered these comments; and WHEREAS, it is in the best interest of the Authority that the new PCE regulation be adopted. NOW THEREFORE, BE IT RESOLVED BY THE ALASKA ENERGY AUTHORITY AS FOLLOWS: Section 1. In accordance with AS 44.83.080 the Authority hereby adopts the new PCE regulation. Section 2. The Executive Director of the Authority is hereby authorized to take such actions and file such documents as may be necessary to finalize the new PCE regulation amendment contemplated in this resolution in order to facilitate the filing of the amendments with the office of the Lieutenant Governor. H:\Board of Dlrectors\Resolutions and Memos\Resolutlon Regs adoption PCE.doc EXHIBIT"A" Register _______ 2006 COMMERCE, COMMUNITY AND EC. DEV. 3 AAC 107 is amended by adding a new section to read: 3 AAC 107.225. Allocation of supplemental appropriations after pro rata reduction. If a supplemental appropriation is received for the power cost equalization program after the authority has made a pro rata reduction under AS 42.45.11 O(i), the authority will (I) increase the power cost equalization payments to be made to eligible utilities for the rest of the fiscal year on a pro rata basis up to the maximum allowable under AS 42.45.110; and (2) if any money remains after payments are made under (I) of this section, make additional power cost equalization payments to eligible utilities that received reduced payments under AS 42.45.11 O(i) to restore funding to the maximum allowable under AS 42.45.110 for each month, starting from the most recent month and going back to the beginning of the state fiscal year. (Eff. _/_/ __ , Register___) Authority: AS 42.45.100 AS 42.45.110 AS 42.45.160 AS 42.45.170 AS 44.83.080 AVEC· April 18, 2006 Becky Gay, Project Manager Alaska Energy Authority 813 W. Northern Lights Anchorage, Alaska 99503 -.. Re: Proposed Amendments to 3 AAC 107 Dear Ms. Gay, Alaska Village Electric Cooperative wishes to express its support of the regulation changes being proposed by the Alaska Energy Authority. The current directives embodied in the Power Cost Equalization regulations require that credits to PCE recipients be prorated downward when legislative appropriations are insufficient to fully fund those credits. The regulations are silent, however, on how to apply credits that will exceed the requirements for the remainder of the fiscal year, especially funds that are received through supplemental appropriations. I believe that the proposed regulatory changes will correct that matter and will allow the Authority to properly allocate all legislative appropriations for PCE to the recipients in rural Alaska during the fiscal year for which the funds were appropriated. Thank you for the opportunity to comment. Sincerely, Meera Kohler President & CEO 4831 EAGLE STREET • ANCHORAGE, ALASKA • PHONE (907) 561-1818 • FAX (907) 562-4086 Becky Gay From: Becky Gay Sent: Thursday, April 20, 2006 11:16 AM To: 'Bob Grimm' Cc: Mike Mitchell; Ron Miller Subject: RE: PCR Regulations Bob, thanks for your support. I will keep it in the official record, Becky From: Bob Grimm [mailto:bob.g@aptalaska.com] Sent: Wednesday, April19, 2006 8:03AM To: Becky Gay Subject: PCR Regulations Becky: We support your new regulations on PCE. Bob Grimm Alaska Power & Telephone Company P.O. Box 3222 193 Otto Street Port Townsend, WA 98368 Phone 800-982-0136 x 120 Fax 360-385-7538 Cell 360-301-3636 4/20/2006 Page 1 of 1 05/01/06 16:23 FAX 907581310,?,__ __ _ ---,----,---- CITY OF UNALASKA P.O. BOX610 UNAlASKA, AlASKA 99666-0610 (907) 681-1251 FAX (907) 581-3102 FINANCE ~~PA~TMENT D ' ' . ®001 May I, 2006 UNALASKA. ALASKA Alaska Energy Amhority Attn: Becl.-y Gay, Project Manager 813 W. Northern Lights Anchorage, AK 99503 VIA FACSIMILE: 907-269-3044 Re: Proposed soction 3 AAC I 07.225 Dear Ms. Gay. The City of Unalaska Electric Utilicy has 460 customer accow1ts that receive PCE credit Our utilicy billing software can't calculate adjustments to bills after a monthly billing cycle is completed, so any accoum changes ufter the close of a billing cycle h•vc to be made manually. The only way for us IO ""recalculate and credit c\lstomers at the higher level of payments for months previously reimbursed" as the proposed regulation requires would be for us to enter t~.ll460 PCE eligible accoWlts into an Excel spreadsheet to calculate the adjustment and then manually enter the adjustments into each of the 460 individual invoice records. We wo1.1ld have to repeat the process for each n1onth that was effected. For example1 if a rate change was to be effective for 3 previous months we would have to ma.ke 1,380 manml entries into the billing records. In addition~ there is the issue of customers who change loeations or leave the community dur:htg rhe subjecT tirne period. Would we have lo write them refund checks? If so, that would add an additional layer of administrative cost for us. We believe that the proposed regulation would put an unfair administrative burden on our small utility, and that the cost of implementing it would far outweigh any benefit it might provide. We strongly urge you not to odopt the proposed regulation. Sincerely, ·~ Catherine Hazen Sr. Accountant Cc: A B Rankin, City Treasurer J.R. Pearson, Utillry Ana1yst