The goal of Alaska Energy Authority's (AEA) Power Cost Equalization program is to provide economic assistance to customers in rural areas of Alaska where the kilowatt-hour charge for electricity can be three to five times higher than the charge in more urban areas of the state. PCE only pays a portion of approximately 30% of all kWh’s sold by the participating utilities.
PCE fundamentally improves Alaska’s standard of living by helping small rural areas maintain the availability of communications and the operation of basic infrastructure and systems, including water and sewer, incinerators, heat and light. PCE is a core element underlying the financial viability of centralized power generation in rural communities.
The Legislature established different functions for AEA and the Regulatory Commission of Alaska (RCA) under Alaska Statutes 42.45.100-170, which govern PCE program responsibilities.
AEA determines eligibility of community facilities and residential customers and authorizes payment to the electric utility. Commercial customers are not eligible to receive PCE credit. Participating utilities are required to reduce each eligible customer’s bill by the amount that the State pays for PCE.
RCA determines if a utility is eligible to participate in the program and calculates the amount of PCE per kWh payable to the utility. More information about the RCA may be found at www.state.ak.us/rca.
PCE Training Video available on request.
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Power Cost Equalization Program Guide
Electric Power Statistical Report (ISER)
PCE Program Statutes AS 42.45.110
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