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Title 3 . Commerce, Community, and Economic Development
Chapter 52 . Telecommunications
Section 640. Adjustments to power cost equalization

3 AAC 52.640. Adjustments to power cost equalization

(a) A regulated participating electric utility shall request a change in its power cost equalization per kilowatt-hour in conjunction with a request for

(1) approval of tariff filing under 3 AAC 52.501 - 3 AAC 52.519; or

(2) a permanent or interim rate change that establishes higher or lower nonfuel costs for the utility.

(b) A nonregulated participating electric utility shall request a change in its power cost equalization per kilowatt-hour if the utility has

(1) experienced a change in its fuel or purchased power costs; or

(2) changed its rates.

(c) The commission will, in its discretion, adjust the power cost equalization per kilowatt-hour of a participating electric utility based on

(1) a review by the commission or by the Alaska Energy Authority of monthly data submitted by the utility to the Alaska Energy Authority;

(2) a review of the annual filing submitted by the utility;

(3) any other evidence that the power cost equalization per kilowatt-hour of the utility is not just and reasonable; or

(4) a determination by the Alaska Energy Authority that appropriations are insufficient to finance full payments to eligible electric utilities, in which case the power cost equalization per kilowatt-hour of each participating utility will be reduced by an equal percentage.

(d) A regulated participating electric utility shall submit in support of each request for adjustment of its power cost equalization per kilowatt-hour

(1) a tariff advice letter under 3 AAC 48.270;

(2) tariff sheets that show the amount of power cost equalization per eligible kilowatt-hour requested;

(3) a schedule showing the computation of the requested power cost equalization per kilowatt-hour for each rate schedule;

(4) a summary of the data necessary for determination of the power cost equalization per kilowatt-hour; and

(5) documentation of all data submitted under (4) of this subsection, except that in the case of a request for an adjustment of power cost equalization per kilowatt-hour that is in conjunction with a request for a fuel surcharge rate change, the utility shall rely on the nonfuel costs per kilowatt-hour established in its most recent general rate case.

(e) A nonregulated participating electric utility shall submit in support of each request for an adjustment of its power cost equalization level

(1) a written statement of the power cost equalization per kilowatt-hour requested and the name of the person responsible for providing information in support of the request;

(2) a copy or summary of all effective rate schedules for each customer class, stating the current charges without power cost equalization;

(3) a schedule showing the computation of the power cost equalization per kilowatt-hour for each rate schedule;

(4) a summary of all data necessary for determination of power cost equalization per kilowatt-hour; and

(5) documentation, including a copy of the most recent fuel bill, of all data submitted under (4) of this subsection, except that in the case of a request for an adjustment of power cost equalization per kilowatt-hour that is in conjunction with a change in fuel or purchased power costs only, the utility shall rely on the nonfuel power costs per kilowatt-hour established in the approval of its most recent power cost equalization change.

(f) A participating electric utility shall file with the commission a periodic fuel or purchased power cost report as follows:

(1) for a regulated participating electric utility, the report required by this subsection is the tariff filing required under 3 AAC 52.501 - 3 AAC 52.519;

(2) for a nonregulated participating electric utility, except as provided in (g) of this section, the report required by this subsection shall be filed on the dates and forms prescribed by the commission based on the historical frequency of a utility's fuel and power purchases and shall include all of the following information or supporting documents:

(A) the name of the utility;

(B) the reporting period;

(C) the weighted average cost per gallon of beginning fuel inventory;

(D) total beginning fuel inventory in gallons and dollars;

(E) for each fuel purchase during the reporting period, the

(i) invoice number;

(ii) delivery date;

(iii) gallons of fuel purchased;

(iv) cost per gallon;

(v) delivery or markup cost per gallon; and

(vi) total cost of the fuel purchase;

(F) total gallons and cost of fuel purchased during the reporting period;

(G) total kilowatt-hours and cost of power purchased during the reporting period;

(H) copies of invoices for each fuel purchase and delivery charges reported for the period;

(I) a schedule showing the calculation of any delivery charge or markup from affiliated fuel suppliers;

(J) copies of invoices for each power purchase in the reporting period.

(g) Notwithstanding (f)(2) of this section, a nonregulated utility with an approved methodology of prescheduled fuel cost reporting on April 28, 2005 may continue to use its approved methodology unless the commission orders otherwise.

History: Eff. 10/28/89, Register 112; am 5/18/96, Register 138; am 9/11/2004, Register 171; am 4/28/2005, Register 174

Authority: AS 42.05.141

AS 42.05.151

AS 42.45.110

AS 42.45.130

AS 42.45.160

AS 42.45.170

Editor's note: As of Register 151 (October 1999), the functions of the former Department of Community and Regional Affairs were transferred to other state agencies. In accordance with ch. 58, SLA 1999 and AS 44.62.125 (b)(6), the regulations attorney revised 3 AAC 52.640(c) (1), as of Register 161 (April 2002), to reflect changes in the names of state agencies.


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Last modified 7/05/2006