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Home My WebLink AboutFY09 PCE report 2009STATISTICAL REPORT Of The POWER COST EQUALIZATION PROGRAM Fiscal Year 2009 July 1, 2008 - June 30, 2009 Twenty First Edition March 2010 State of Alaska Sean Parnell, Governor Alaska Energy Authority TABLE OF CONTENTS Map of Participating Utilities/Communities...........................1 List of Participating Utilities/Communities.............................2 Program Highlights...............................................................3 Fiscal Year 2008 vs. 2009....................................................4 Fiscal Year 2009 Statistics..............................................5-33 Historical Trends Fiscal Years 1994 - 2009........................34 The Alaska Energy Authority (AEA) complies with Title II of the Americans with Disabilities Act of 1990. This publication is available in alternative communications formats upon request. Please contact the Authority at (907) 771-3000 to make any necessary arrangements. Data for the Power Cost Equalization Annual Statistics is based on utility monthly PCE reports submitted by participating utilities/communities. AEA staff reviews the reports for completeness; otherwise, data submitted by the utilities/communities is not altered. Data for prior fiscal years does not include data collected after the publication of the PCE Annual Statistics Report for that fiscal year. Data for this fiscal year reflects only those monthly PCE reports that have been processed prior to publication. Power Cost Equalization (PCE) Program Particpating Communities Chenega IRA Village Council Naterkaq Light Plant Chignik, City of Chefornak City of Akutan Chignik Lake Electric Utility Nelson Lagoon Electrical Coop Alaska Power Company Chignik Lagoon Power Utility New Koliganek Village Council Allakaket/Alatna Klawock Chitina Electric Inc.Koliganek Bettles/Evansville Mentasta Circle Electric Utility Nikolai, City of Chistochina Naukati Cordova Electric Co-op Nome Joint Utility System Coffman Cove Northway/Northway Village Diomede Joint Utilities North Slope Borough Craig Skagway Egegik Light and Power Anaktuvuk Pass Point Hope Dot Lake Slana Ekwok, City Atqasuk Point Lay Eagle/Eagle Village Tetlin Elfin Cove Utility Commission Kaktovik Wainwright Haines Thorne Bay/Kassan Galena, City of Nuiqsut Healy Lake Tok/Tanacross G & K Inc. Nunam Iqua Electric Company Hollis Whale Pass Cold Bay Nushagak Electric Cooperative Hydaburg Golovin Power Utilities Aleknagik Alaska Village Electric Cooperative Gustavus Electric Company Dillingham Alakanuk Nightmute Gwitchyaa Zhee Utilities Ouzinkie, City of Ambler Noatak Fort Yukon Pedro Bay Village Council Anvik Noorvik Hughes Power & Light Pilot Point Electrical Brevig Mission Nulato Igiugig Electric Company Platinum, City of Chevak Nunapitchuk I-N-N Electric Cooperative Puvurnaq Power Company Eek Old Harbor Iliamna Nondalton Kongiganak Elim Pilot Station Newhalen Ruby, City of Emmonak Pitka's Point Inside Passage Electric Cooperative Stevens Village IRA Council Gambell Quinhagak Angoon Kake St. Paul Municipal Electric Goodnews Bay Russian Mission Chilkat Valley Klukwan Takotna Community Assoc. Inc. Grayling Savoonga Hoonah Tanalian Electric Cooperative Holy Cross Scammon Bay Ipnatchiaq Electric Company Port Alsworth Hooper Bay Selawik Deering Tanana Power Company Inc. Huslia Shageluk King Cove, City of Tatitlek Village IRA Council Kaltag Shaktoolik Kipnuk Light Plant TDX Adak Generating LLC Kasigluk Shishmaref Kobuk Valley Electric Company Adak Kiana Shungnak Kokhanok Village Council TDX Corporation Kivalina St. Mary's/Andreafsky Kotzebue Electric Association Sand Point Kotlik St. Michael Koyukuk, City of TDX Manley Generating LLC Koyuk Stebbins Kwethluk Incorporated Manley Hot Springs Lower Kalskag Teller Kwig Power Company Tenakee Springs, City of Marshall Togiak Kwigillingok Tuluksak Traditional Power Utility Mekoryuk Toksook Bay Larsen Bay Utility Company Tuntutuliak Community Service Assoc. Minto Tununak Levelock Electrical Coop Twin Hills Village Council Mt. Village Upper Kalsag Lime Village Electric Company Umnak Power Company New Stuyahok Wales Manokotak Power Company Nikolski Alutiiq Power Company McGrath Light & Power Unalaska, City of Karluk Middle Kuskokwim Electric Unalakleet Valley Electrical Cooperative Aniak Light & Power Company Chuathbaluk Sleetmute Ungusrag Power Company Atka Electric Crooked Creek Stony River Newtok Atka Red Devil White Mountain, City of Atmautluak Joint Utilities Naknek Electric Yakutat Power Beaver Joint Utilities King Salmon Bethel Utilities Corp.Naknek Bethel Oscarville South Naknek Buckland, City of Napakiak Ircinraq Central Electric, Inc. Napaskiak Electric Utility Chalkyitsik Village Council FY09 PCE Program Participating Utilities Akiak City Council Akiachak Native Community 2 3 HIGHLIGHTS OF THE POWER COST EQUALIZATION PROGRAM Eligibility Utility An electric utility participating in the Power Cost Equalization Program (PCE) must: a) provide electric service to the public for compensation; b) during calendar year 1983, had less than 7,500 megawatt hours of residential consumption or less than 15,000 megawatt hours if two or more communities were served; and c) during calendar year 1984, the utility has used diesel-fired generators to produce more than 75% of its electrical consumption. Customers Customer eligibility is based on actual power purchased. State and federal offices/facilities, commercial customers and public schools are excluded from PCE. Residential customers are eligible for PCE credit up to 500 kilowatt-hours (kWh/s) per month. Community facilities, as a group, can receive PCE credit for up to 70 kilowatt-hours per month multiplied by the number of residents in a community. Formula Used to determine PCE level/kWh for a utility: Formula:95% of the eligible costs per kWh between 12.83 cents/kWh, “the floor” and, $1.00/kWh, “the ceiling”. Costs below 12.83 cents/kWh and above $1.00/kWh are not eligible for PCE. If the eligible costs are $1.00/kWh or more, the maximum PCE level is 82.81 cents/kWh ($1.00 – 12.83 cents = 87.17 cents x 95% = 82.81 cents). A participating utility must meet generation efficiency and line loss standard, otherwise the PCE level is reduced to reflect those standards. Process The Regulatory Commission of Alaska (RCA) RCA determines the PCE level per kWh for each utility. Two categories of costs are used in determining the PCE level: a) fuel expenses: the cost of fuel, including transportation of fuel; and b) non-fuel expenses: salaries, insurance, taxes, power plant parts and supplies, interest and other reasonable costs. The Alaska Energy Authority (AEA) Eligible utilities submit monthly reports to AEA that document the eligible power sold and PCE credits applied to eligible customers’ bills. AEA calculates the amount of PCE on a monthly basis and issues payment to the utility. AEA verifies the eligibility of customers and of community facilities. In addition, AEA calculates the required pro-rated PCE levels based on available funds. Authority PCE is governed by Alaska Statutes 42.45.110-170, and by the Alaska Administrative Code 3 AAC 107.200-270 and 3 AAC 52.600-690. Fiscal year Fiscal year Percent 2009 2008 Change (6) 2008 - 2009 Participation Statistics Population Served 77,518 74,677 3.8% Communities Served 184 176 4.5% Participating Utilities 85 87 -2.3% Total Residential Customers 26,562 25,954 2.3% Total Community Facilities Customers 1,903 1,820 4.6% Total Customers (Residential & Community Facilities)(1)28,465 27,774 2.5% Production Statistics Total Diesel Generation (kWh) 394,009,168 369,460,646 6.6% Total "Other" (Hydroelectric/Wind) Generation (kWh) 26,340,755 25,893,754 1.7% Total Purchased Power (kWh) 56,018,155 52,076,751 7.6% Total kWh Sold (All Customers)(2)435,580,121 408,457,578 6.6% PCE Eligible kWh - Residential 91,941,382 89,125,459 3.2% PCE Eligible kWh - Community Facilities 32,142,061 31,027,706 3.6% Total PCE Eligible kWh - Community Facilities & Residential 124,083,443 120,153,165 3.3% Total PCE Eligible kWh shown as percent of total kWh sold. 28% 29% -3.4% Average Monthly PCE Eligible kWh - Residential Customers (3)288 286 0.7% Average Monthly PCE Eligible kWh - Community Facilities (3)1,408 1,421 -0.9% Average Monthly PCE Eligible kWh - Community Facilities / Per Resident (3)35 35 0.0% Financial Statistics Average Price of Fuel Oil ($/gallon) 3.97 3.06 29.7% Total Fuel Oil Consumed (gallons) 29,351,396 26,806,329 9.5% Total Cost of Fuel Oil Purchased by the Utilities ($) 116,446,822 81,939,755 42.1% Total Non-Fuel Expenses ($) 55,475,597 62,312,429 -11.0% Non-Fuel expenses per total kWh sold ($) 0.1274 0.1526 -16.5% Total Operating Costs per kWh ($)(4)0.3947 0.3532 11.7% PCE legislative funding appropriations 38,500,000 28,560,000 34.8% Total Monthly Reports Processed through 2/08 ($)(5)37,029,584 28,137,549 31.6% (1)Assumes all customers were eligible to receive PCE credit during FY08. (2)Value reduced by 846,582 inf FY09 and 1,007,801 in FY08 to eliminate double counting of kWh's where power is sold/purchased between utilities participating in the PCE Program. FY07 amount increased from previous report to include Galena sales to government unit. (3)Calculation assumes all customers were eligible to receive twelve (12) months of PCE credit. (4)"Operating" costs include both fuel and non-fuel expenses. (5)During FY08 PCE payments were made at a 100% level for all 12 months. During FY07 PCE payments were made at a 100% level for the first six (6) months, at a 89% level for the remaining six (6) months. (6)Net change between years is partially attributable to incomplete reporting by utilties and non-participation of 3 utilities in FY08, North Slope Borough, Chignkik Lake Electric, and City of Port Heiden 4 FY09 POWER COST EQUALIZATION PROGRAM STATISTICS