“For Cordova Electric Cooperative, our most likely scenario is a revenue shortfall of $500,000, shared equally across all rate classes,” said Clay Koplin, the co-op’s CEO. AVECĬommunities receive $11 million annually from PCE, a 40% share of the total Operations and energy for public buildings are possible, said Kohler. In municipal public facility costs for street lighting, water and sewer system Savoonga, Alaska, served by Alaska Village Electric Cooperative, faces a loss of state energy subsidies that could impact operating costs for water and sewage treatment and facilities. The Anchorage-based co-op serves 58 communities. Kohler said failure to resolve the funding issue could as much as double AVEC’s residential rates. The result could mean co-op members would bear the total costs for their electricity service. “It’s ‘all hands on deck’ to get funding from somewhere- anywhere-by the end of July, because if funding doesn’t materialize, we may have to post PCE at a zero rate,” said Meera Kohler, CEO of Alaska Village Electric Cooperative. That the statewide association’s 22 co-ops have been emphasizing the devastating Legislators, met with the Alaska Energy Authority, launched a media relationsĮffort, and kept our members updated on new developments,” said Enkvist, adding House withheld support to reverse the sweeps. The Permanent Fund Dividend-the share of the state’s oil wealth that isĭistributed to individual Alaskans each year-15 Republican members of the state This year, because of disagreement over the size of Sweep and put the money back in the funds on July 1. Typically, the legislature votes to reverse the Other similar funds are “swept” into the state’s Constitutional Budget ReserveĪt the end of each fiscal year. Under Alaska’s constitution, the PCE endowment and APA has made preservation of the program, administered by the Alaska Energy Authority, a perennial priority. PCE provides economic assistance to some of the more isolated rural communities and residents in Alaska, where the cost of electricity can be three to five times higher than for consumers in more populous areas of the state. That means consumers could see some of the highest kilowatt-hour costs in the nation beginning in August. “More than 84,000 Alaskans in 194 communities are facing higher electric bills resulting from the current lack of funding for the Power Cost Equalization program,” said Crystal Enkvist, executive director of the Alaska Power Association. Co-op-served communities could also be hit with higher costs for electricity used to provide essential services like water treatment and sanitation. (Photo By:Įditor’s note: After the publication of this story, members of the Alaska House of Representatives voted 31-7 on July 29 to approve the state’s capital budget, eliminating the threat of massive budget cuts that included subsidies for rural power, higher education, and dozens of other programs.ĭeclining oil and gas revenues and a political fight over the size of Alaskans’ annual dividend check could lead to huge increases in utility bills for thousands of the state’s electric co-op members. Cordova, Alaska, is one of nearly 200 communities facing higher electricity costs as a result of a loss of state subsidies due to an ongoing budget crisis.
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