Title 3 . Commerce, Community, and Economic Development

Chapter 52 . Telecommunications

Section 620. Generation efficiency and line loss standards

3 AAC 52.620. Generation efficiency and line loss standards

(a) Generation efficiency and line loss standards are established to encourage efficient and economical generation, transmission, and distribution of electricity. The standards represent the minimum acceptable level of performance by a participating electric utility.

(b) A line loss standard of 12 percent applies to all electricity sold, and is measured as all kilowatt-hours generated or purchased, from whatever source, minus kilowatt-hours sold, divided by all kilowatt-hours generated or purchased.

(c) The following generation efficiency standards apply only to the utility's diesel generation, are measured in kilowatt-hours generated per gallon of fuel consumed, and are based on the annual number of kilowatt-hours of diesel generation:

(1) for a utility that uses diesel fuel to generate 80 percent or more of total kilowatt-hours generated, and that generates

(A) less than 100,000 kilowatt-hours annually using diesel fuel, the minimum efficiency standard is 9.5 kilowatt-hours generated per gallon of diesel fuel consumed;

(B) 100,000 - 499,999 kilowatt-hours annually using diesel fuel, the minimum efficiency standard is 10.5 kilowatt-hours generated per gallon of diesel fuel consumed;

(C) 500,000 - 999,999 kilowatt-hours annually using diesel fuel, the minimum efficiency standard is 11.5 kilowatt-hours generated per gallon of diesel fuel consumed;

(D) 1,000,000 - 9,999,999 kilowatt-hours annually using diesel fuel, the minimum efficiency standard is 12.5 kilowatt-hours generated per gallon of diesel fuel consumed; or

(E) 10,000,000 kilowatt-hours or more annually using diesel fuel, the minimum efficiency standard is 13.5 kilowatt-hours generated per gallon of diesel fuel consumed;

(2) for a utility that uses diesel fuel to generate less than 80 percent of total kilowatt-hours generated, and that generates

(A) less than 100,000 kilowatt-hours annually using diesel fuel, the minimum efficiency standard is 8.5 kilowatt-hours generated per gallon of diesel fuel consumed;

(B) 100,000 - 499,999 kilowatt-hours annually using diesel fuel, the minimum efficiency standard is 10 kilowatt-hours generated per gallon of diesel fuel consumed;

(C) 500,000 - 999,999 kilowatt-hours annually using diesel fuel, the minimum efficiency standard is 11 kilowatt-hours generated per gallon of diesel fuel consumed;

(D) 1,000,000 - 9,999,999 kilowatt-hours annually using diesel fuel, the minimum efficiency standard is 12 kilowatt-hours generated per gallon of diesel fuel consumed; or

(E) 10,000,000 kilowatt-hours or more annually using diesel fuel, the minimum efficiency standard is 13 kilowatt-hours generated per gallon of diesel fuel consumed.

(d) In determining the generation efficiency standard for a participating electric utility that provides service to two or more locations by separate generation, transmission, and distribution systems and that charges the same rates and relies on diesel fuel to generate 80 percent or more of total generation at all locations, an average of kilowatt-hours generated will be used. That average is determined by dividing the total kilowatt-hours generated for all locations by the total number of locations. The generation efficiency standard that applies to a utility the size of that average is then applicable to the total system. The same methodology applies to uniform rate, multi-location utilities with locations that rely on diesel fuel to generate less than 80 percent of total generation, except that two separate averages are required, one average for those locations that rely on diesel fuel to generate 80 percent or more of total generation and one for those locations that do not. Separate computations for generation efficiency and line loss standards are also required for the latter group.

(e) A utility that does not meter street lights shall estimate the kilowatt-hours used by unmetered street lights and add those kilowatt-hours to kilowatt-hours sold for the purpose of determining compliance with the generation efficiency and, if appropriate, line loss standards in this section. Nonetheless, actual kilowatt-hours sold shall continue to be used for the purpose of computing power cost equalization per kilowatt-hour.

History: Eff. 10/28/89, Register 112; am 9/11/2004, Register 171; am 4/28/2005, Register 174

Authority: AS 42.05.141

AS 42.05.151

AS 42.45.110

AS 42.45.130

AS 42.45.160

AS 42.45.170