Aligning electricity energy policies in Alaska: analysis of the power cost equalization and renewable energy fund programs

• Main Author: Villalobos Meléndez, Alejandra
• Other Authors: Little, Joseph, Huskey, Lee, Baek, Jungho
• Format: Thesis
• Language: English
• Published: 2012
• Subjects: Power Cost Equalization Program (Alaska); Renewable Energy Fund Program (Alaska); Electric utilities; Rates; Government policy; Alaska; Economic aspects; Law and legislation; Rural electrification; Renewable energy sources; Arctic; Fairbanks; Yukon; Kodiak; Kuskokwim; north slope
• Online Access: http://hdl.handle.net/11122/8468

Thesis (M.S.) University of Alaska Fairbanks, 2012 Most rural Alaska communities are not road connected and must cope with challenging arctic environmental conditions. Due to their remoteness and sparse populations, these villages depend on isolated non-grid connected electric generation systems that operate on fuel oil. In Alaska, the Power Cost Equalization program is a 25 year long energy subsidy that targets rural residents to provide energy costs relief. A more recent state incentive program, the Renewable Energy Fund, was developed to expand the use of renewable resources and lower the cost of energy. Some rural communities have benefited from this program and have integrated renewable energy to their systems, particularly installing Wind-Diesel systems. Both programs have congruent goals of alleviating dependence on high cost fossil fuels to generate electricity as means to foster development and higher quality of life in rural Alaska communities. However, their incentive structure may conflict. This paper provides a review of these two energy subsidy policies with a particular focus on the Power Cost Equalization program and offers potential changes to its structure such that social cost impacts to rural residents are minimized while removing incentive barriers against energy efficiency and integration of renewable energy in rural Alaska communities. 1. Power Cost Equalization -- Introduction -- Evolution to Power Cost Equalization -- Power Cost Equalization established -- Power Cost Equalization program implementation -- PCE level funding formula -- 2. Renewable Energy Fund -- Early Alaska renewable energy efforts -- Renewable Energy Fund history -- Renewable Energy Fund grant process -- 3. Review of electricity consumption and rates in Alaska regions and PCE communities -- Aleutians -- Bering Straits -- Bristol Bay -- Copper River/Chugach -- Kodiak -- Lower Yukon/Kuskokwim -- North Slope -- Northwest Arctic -- Railbelt -- Southeast -- Yukon-Koyukuk/Upper Tanana -- PCE Communities rates and ...