The Power Cost Equalization (PCE) program gives economic assistance to rural Alaska communities that depend largely on diesel for electricity. It lowers customer rates to levels comparable to those in Anchorage, Fairbanks and Juneau, and it serves about 82,000 Alaskans in 193 communities.[1]
| Administered by | Alaska Energy Authority with the RCA |
|---|---|
| Communities served | 193 |
| People served | About 82,000 |
| Funding source | PCE Endowment Fund earnings |
| Statute | AS 42.45.085 |
| Annual draw limit | 5% of the fund 3-year average |
Purpose
The cost of electricity in remote communities can be three to five times higher than for customers in more urban areas. The programme reduces rates to levels comparable to those in Anchorage, Fairbanks and Juneau, which supports remote economies that depend on reliable power.[1]
How it works
The Alaska Energy Authority administers the programme with the Regulatory Commission of Alaska. The commission decides whether a utility may take part, and the authority decides the eligibility of community facilities and residential customers. The utility extends credits to its customers, reports its sales and submits a customer ledger, the authority reviews the monthly report, and it then reimburses the utility at rates the commission calculates.[1]
Funding
The programme is funded by earnings from the PCE Endowment Fund. State law allows 5 percent of the fund’s three-year monthly average market value to be appropriated to the programme, and the state notes that only in recent years has this draw been enough to pay in full.[1]
FAQs
What is PCE? A state programme that lowers electricity rates in rural, diesel-dependent communities.
Who runs it? The Alaska Energy Authority with the Regulatory Commission of Alaska.
How is it funded? By earnings from the PCE Endowment Fund.
Sources
Key facts
- About 82,000 Alaskans
- Funded by endowment earnings
Quick checkHow many Alaska communities does PCE serve?Show answer
193 communities
Sources
- Alaska Energy Authority. Power Cost Equalization Program. 2026 (accessed 2026-11-14)
Editorially reviewed by Specialty Digest Editorial TeamLast reviewed November 14, 2026Researched and drafted with AI assistanceReport an issue