PCE Endowment Fund Bill Passes Legislature

Press Release

Governor Walker commended the Alaska Legislature today for passing his Power Cost Equalization Endowment Fund bill, which will allow the fund to be invested in less risky investments that still meet the financial needs of the PCE program.

"Power cost equalization minimizes the burden of high energy costs for many of Alaska's rural communities," Governor Walker said. "By adjusting investment standards for the PCE Endowment Fund, we are establishing greater financial stability for this critical program."

Established from a $100 million constitutional budget reserve appropriation in 2000, the power cost equalization endowment fund provides residential energy subsidies to rural communities that rely on expensive diesel fuel.

SB 34, which will become immediately effective upon signing, removes the 7 percent return on investment target for the PCE Endowment Fund, and replaces it with a 4 percent return on investment over a five-year period. Additionally, it directs the Commissioner of Revenue to use this target return to invest in order to meet the objectives of the PCE and rural electric capitalization program.

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