The Importance of Power Cost Equalization

PCE was established in 1984 as a permanent solution for rural Alaska, while large investments were being made in urban energy projects. PCE “equalizes” electric rates to the average of the cost of power in Anchorage, Fairbanks and Juneau. Despite deep program cuts to reduce the cost of PCE, annual funding battles continued until the “PCE Endowment” was established in 2000. Having now grown to ~$1 billion, all PCE costs come from the Fund’s earnings. 

A few years ago, the administration took the unprecedented step of “sweeping” this fund into the Constitutional Budget Reserve, effectively eliminating the hard-won PCE endowment. The 2019 Alaskan legislature reversed this action but it was a bitter battle. PCE pays for only 16% of the cost of rural electricity but its impact is enormous. Loss of funding would result in doubling of most residential electric bills and tripling most community facility bills (water treatment, clinics, streetlights etc.).

The Legislature and the Governor must understand that PCE is critical to the well being of rural Alaska!

Contact the Governor’s Office

gov.pressoffice@alaska.gov
Phone (907) 465-3500
Fax (907) 465-3532

Contact Your District Representative