The Anchorage Stormwater Utility shall be regarded as a municipal utility for purposes of this Code. The assembly shall not adopt or approve a resolution or ordinance regarding plans or proposals for establishment, formation, or commencement of stormwater utility services or functions until it has been first reviewed by the stormwater utility commission established by section 4.70.070. Said plans or proposals include, but are not limited to, an application for a certificate of public convenience and necessity, master plans, capital improvement plans, long term fiscal plans, service level and rate structure proposals, tariffs, service area proposals, organizational and governance structure, transitional plans, and inventory and assessment practices.
(AO No. 2019-88, § 2, 8-6-2019; AO No. 2019-113(S), § 3, 9-24-2019)
A. 
It is the public policy of the municipality to require the municipal water and wastewater utility, solid waste disposal utility, and refuse collection utility to pay a municipal utility service assessment (MUSA) for governmental services provided by the municipality, other than those services received on a contract or interfund basis between the enterprise activity and the municipality.
B. 
The MUSA shall be calculated by applying the millage rate established annually for each service area by the assembly to the net classified plant in service as of January 1 of the current year as published by the National Association of Regulatory Utility Commissioners for the municipal water and wastewater utility, located in that service area. Net book value of plant will be the MUSA basis for the refuse collection utility and solid waste disposal utility. The millage rate so established will be that rate assessed other owners of real, personal and business property in each service area.
C. 
The payment of MUSA shall be made on or before the 15th calendar day of July of each calendar year.
(AO No. 94-76A; AO No. 85-174; AO No. 88-162; AO No. 88-173; AO No. 2003-160, § 1, 1-4-2004; AO No. 2008-90(S), § 8, 1-1-2009; AO No. 2014-57(S), § 4, 5-20-2014; AO No. 2017-97, § 2, 1-1-2018; AO No. 2020-109, § 5, 10-13-2020)
A. 
Diversification of energy supply: Upon direction of the assembly by resolution, the municipal utility shall use its best efforts in the negotiation of a purchase power agreement that supports diversification of energy supply as provided in the assembly's direction. If the assembly, in its sole discretion, finds that the public interest would be served, the chair shall appoint a committee of the assembly, to further explore terms and conditions of a proposed agreement between the utility and an energy provider. The assembly shall identify and weigh factors in the public interest when taking action on a purchase power agreement that will diversify energy supply.
(AO No. 2011-48(S), § 1, 4-19-2011)
All requested rate changes to utility tariffs shall be brought to the assembly by ordinance for review and approval for submission to the state public utilities commission.
(AO No. 89-51(S-3); AO No. 91-142(S-1))
Copies of all utility rates, tariffs, rules and regulations which have been approved by the duly constituted authority relating to a utility operated by the municipality shall be filed with and maintained by the municipal clerk and shall be open for inspection by the public at the office of the municipal clerk and at the principal business office of the municipal utility. Those rate schedules, tariffs, rules and regulations which have been adopted and approved and are on file with the municipal clerk are hereby adopted by reference and shall constitute the laws of the municipality.
(CAC 11.04.040; AO No. 89-51(S-3); AO No. 91-142(S-1))
Utilities owned by the municipality (Anchorage Hydropower, and the municipal water and wastewater utility) shall be operated in such a manner as to provide a reasonable profit in accordance with applicable regulations of the state public utilities commission pursuant to AS 42.05 et seq., or other commission or board under applicable regulatory provisions and law. Surplus revenues from the operation of municipally owned utilities may be reinvested in the utility and, where prudent fiscal management permits, may be distributed as set forth in sections 26.10.065 and 26.10.068.
(AO No. 85-200; AO No. 89-51(S-3); AO No. 91-142(S-1); AO No. 2015-23(S), § 23, 3-24-2015; AO No. 2020-109, § 6, 10-13-2020)
A. 
If a municipal utility has or is anticipated to have net income accruing from its operations in any year, a portion of the net income may be pledged by inclusion in the respective municipal utility and general government budgets for the subsequent year. The pledged amount shall be described as "Utility Revenue Distribution from (name of utility)." The assembly shall hold a public hearing as part of the annual budget process on the proposed utility revenue distribution and use of funds. Payment of any approved and budgeted utility revenue distribution shall be made in two equal payments on or before the 15th calendar day of August and October of such subsequent year only after the income has been collected by the municipality pursuant to lawful authority and the annual audit has been completed, or is substantially complete. The amount of utility revenue distribution for the subsequent year:
1. 
Shall initially be proposed by the utility, which shall provide a signed report to the assembly by not later than the time for first-quarter budget revisions that documents:
a. 
The utility's current best estimate of achieved return on equity, and any shortfalls of achieved returns, as compared with approved or target returns;
b. 
The effect of the proposed distribution on the utility's current and future capital structure, in light of planned expenditures; and
c. 
How the proposed distribution is consistent with prudent, business-like operation of the utility;
2. 
May not exceed 75 percent of the utility's change in net position for the prior year before payment of a dividend, unless:
a. 
A greater percentage is necessary to:
i. 
Prevent the utility from increasing its equity-capitalization percentage, defined in terms of the ratio of the utility's equity to its total book value, above 65 percent; or
ii. 
Enable the utility to reduce its equity-capitalization percentage into a range that the RCA has ordered is reasonable for that utility; and
b. 
The utility provides to the Assembly in writing a justification for why the utility's equity-capitalization percentage is excessive, or absent payment of the recommended distribution would become excessive, and should be reduced.
3. 
Shall be zero if:
a. 
The utility's change in net operating position for the prior year is negative;
b. 
The utility's equity-capitalization percentage is less than 30 percent;
c. 
The utility's bond rating is below investment grade; or
d. 
The utility is subject to an order of the Regulatory Commission of Alaska to cease the payment of dividends; and
4. 
Shall be approved by the Assembly.
B. 
Any unfunded pension liability applicable to any utility shall be excluded from the calculation of the Utility Revenue Distribution to be paid by any utility.
C. 
Any federal subsidy received with respect to the Build America Bonds issued in 2009 for any utility shall be excluded from the calculation of the utility's gross revenues.
D. 
This section does not apply to the Anchorage Hydropower utility.
(AO No. 94-76A; AO No. 78-9; AO No. 85-200; AO No. 2014-57(S), § 5, 5-20-2014; AO No. 2017-97, § 1, 1-1-2018; AO No. 2019-62, § 1, 5-7-2019; AO No. 2020-109, § 7, 10-13-2020)
A. 
The Anchorage Hydropower utility shall pledge and distribute to the MOA Trust Fund revenue received pursuant to that certain Eklutna Power Purchase Agreement Between Chugach Electric Association, Inc. ("Purchaser") and Municipality of Anchorage ("Seller"), dated December 28, 2018, by and between the Municipality and Chugach Electric Association, Inc., as amended.
B. 
If the Anchorage Hydropower utility has or is anticipated to have net income accruing from its operations in any year in addition to revenue received from Chugach Electric Association, Inc. and pledged to the MOA Trust Fund under subsection A of this section, a portion of the net income may be pledged by inclusion in the respective municipal utility and general government budgets for the subsequent year. The pledged amount shall be described as "Utility Revenue Distribution from Anchorage Hydropower." The assembly shall hold a public hearing as part of the annual budget process on the proposed utility revenue distribution and use of funds. Payment of any approved and budgeted utility revenue distribution shall be made in two equal payments on or before the 15th calendar day of August and October of such subsequent year only after the income has been collected by the municipality pursuant to lawful authority and the annual audit has been completed, or is substantially complete. The amount of utility revenue distribution for the subsequent year may equal or exceed the change in net operating position for the prior year; provided, however, that the utility retain sufficient reserves:
1. 
To meet anticipated capital and operating expenses; and
2. 
As required by the Regulatory Commission of Alaska.
(AO No. 2020-109, § 8, 10-13-2020)
A. 
Unless another penalty is expressly provided by this title, any person who violates any provision of this title or any tariff, rule or regulation issued pursuant to this title shall be subject to a civil penalty as set forth in section 14.60.030, or, if no penalty is included in section 14.60.030, a civil penalty of not less than $50.00 and not more than $1,000.00 for each offense, or injunctive relief to restrain the person from continuing the violation or threat of violation, or both injunctive relief and a civil penalty. Upon application for injunctive relief and a finding that a person is violating or threatening to violate any provision of this title, the superior court shall grant injunctive relief to restrain the violation.
B. 
Any person who violates any provision of this title or any tariff, rule or regulation issued pursuant to this title shall be subject to a fine of not less than $50.00 and not more than $300.00 for each offense.
C. 
Each day of violation of any provision of this title shall constitute a separate offense.
(AO No. 80-131; AO No. 85-186; AO No. 93-167(S-1), § 22, 4-13-1994)