AK HB56

Removes the requirement that 5 percent of the power cost equalization endowment fund's average market value be automatically appropriated each fiscal year, replacing it with discretionary legislative appropriations.

Separates accounting for endowment fund earnings accumulated before July 1, 2021 from earnings accumulated after that date, with post-2021 earnings subject to separate legislative appropriation authority.

Eliminates the formula-based calculation of endowment fund value based on three-year average market value and instead bases appropriations solely on actual fund earnings from the previous fiscal year.

Allows the authority to expend appropriated endowment fund money directly to the power cost equalization fund without requiring separate legislative appropriations for each transfer.

Removes restrictions preventing the authority from considering potential supplemental appropriations when making pro rata reductions to eligible electric utility payments, making payments contingent only on available appropriations.

Takes effect June 30, 2021.