FAIRBANKS, Alaska (AP) - The Alaska Municipal League is calling
for the state to expand subsidies that lower the high cost of
electricity in rural areas.
The AML last week approved a resolution urging that Power Cost
Equalization be expanded to cover health clinics, schools and
certain businesses.
Electric rates in rural communities are three to five times the
price of urban regions. Power in most villages is generated by
burning diesel fuel.
Power Cost Equalization subsidizes residential electric rates
and the power bills of community buildings.
AML director Kathie Wasserman says high fuel prices are not
going away and rural residents are looking for a resolution.
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The AML plans calls for entities to get help with electric bills
only on their first 500 kilowatt-hours per month.
Wasserman says that provision is aimed at critics in the
Legislature who say the cost-equalization program encourages rural
residents to use energy inefficiently.
(Fairbanks Daily News-Miner)

(Copyright 2008 by The Associated Press. All Rights Reserved.)