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Fate Of Power Cost Equalization Program Awaits Court Decision
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By Greg Kim (KYUK/Yukon-Kusk)
• 9 hours ago
This year’s state budget, which went into effect July 1, does not include funding for the Power Cost Equalization program. Power Cost Equalization, or PCE, lowers the cost of electricity in rural Alaska to make it comparable to more urban areas like Anchorage, Fairbanks, and Juneau. Here’s what residents in rural Alaska can expect in their next utility bill.
The Alaska Village Electric Cooperative delivers electricity to 58 communities in rural Alaska, 20 of which are in the Yukon-Kuskokwim Delta. All of them rely on PCE. AVEC CEO Bill Stamm said that without PCE credits, the cost of electricity for those residents will shoot up.
When the federal government released its first ruling on how American Rescue Plan Act Funds would be distributed, each federally recognized tribe was slated to receive a minimum of $1 million, plus more money based on an algorithm of how many employees they had and their tribal enrollment numbers.
Tribes had to have a minimum of 10 employees to be eligible for the $1 million base amount. This disqualified many Alaska Native tribes from receiving that money because many Alaska Native tribes, including in the Yukon-Kuskokwim Delta, don’t have 10 employees. That’s because many Tribes compact with nonprofits like the Y-K Delta’s Association of Village Council Presidents. By compacting, the tribes outsource much of their office work to an organization like AVCP. In turn, AVCP provides administrative support and social services to participating tribes.