Performance Details

Department of Commerce, Community, & Economic Development

Mission

Promote a healthy economy, strong communities, and protect consumers in Alaska. AS 44.33.020

Core Services

  • Economic Growth
  • Sustainable Energy
  • Strong Communities
  • Consumer Protection

Arrow GraphicResults

Core Services
A: Department Results  Details >
A1: Economic Growth  Details >
  • TARGET #1: Increase the ex-vessel value of key species in Alaska’s commercial harvest by 0.5%.
  • TARGET #2: Create, or retain, 500 permanent jobs annually through the Project Development and Commercial Finance programs.
  • TARGET #3: Create, or retain, 400 construction jobs annually through the Project Development and Commercial Finance programs.
A2: Sustainable Energy  Details >
  • TARGET #1: By 2025, 50 percent of electricity generation is from renewable sources.
A3: Strong Communities  Details >
  • TARGET #1: Reduce the number of communities (public entities) that are noncompliant with management sustainability indicators by five percent each year.
  • TARGET #2: 100 percent of municipal governments provide essential public services (i.e. elections, legal, health, financial/contracting, fuel).
A4: Consumer Protection  Details >
  • TARGET #1: 100 percent of tariff matters are reviewed and processed within regulatory timelines.
  • TARGET #2: Manage licensure of Alaska businesses and professionals.

Performance Detail


A: Result - Department Results

A1: Core Service - Economic Growth
    
Target #1: Increase the ex-vessel value of key species in Alaska’s commercial harvest by 0.5%.

Methodology: ADF&G, NOAA-NMFS, SMIS estimates, ASMI estimates


Analysis of results and challenges:
Value (ex-vessel) of key commercial species totaled just over $2 billion in 2012, down approximately .2% compared to 2011 (2011 was $ 2.1 billion).
In 2012, salmon harvest was 17% smaller netting in a 13% drop in value ( 2011 at 794 million lbs vs.655 million lbs in 2012) correspondingly the value fell over 13% (2011 at $ 671 million VS $ 583 million in 2012). The price per lb of salmon went up from $.84 in 2011 to $ .89 in 2012 . Halibut volume fell by over 21 % (31 million lbs in 2011 vs. 24 million in 2012 and value by over 30% ( $203 million in 2011 vs. $ 141 million in 2012). Large inventory left over from the previous year's harvest and historic high prices in 2011 and less demand from customers are responsible for the decline in per pound price.
In spite of the total ex-vessel value being slightly down the average ex-vessel price of all Alaska seafood went from $0.33 per pound in 2009 to $0.39 per pound in 2012 – an increase of 15 percent. Successful education and aggressive marketing programs, showcasing the intrinsic positive attributes of Alaska seafood and the favorable market conditions, all contributed to the increase in prices.
For 2012, Alaska ground fish increased in value by over 13% over 2011 as manufacturers become more accustomed to using the high-volume whitefish. Alaska crab also saw value increase of over 5%.

    
Target #2: Create, or retain, 500 permanent jobs annually through the Project Development and Commercial Finance programs.


Analysis of results and challenges: Loan Participations and development project investments grow Alaska's economy and provide jobs. The Loan Participation program has been highly successful since its inception in the early 1980s, and has created, or retained, more than 5,500 permanent jobs in the last decade. AIDEA added three projects and asset expansions to its portfolio, and five new projects into the development pipeline during fiscal year 2013. AIDEA's project developments create, or retain, 700 to 800 permanent jobs to the Alaskan economy every year. Job growth is an effective measure of economic growth.
    
Target #3: Create, or retain, 400 construction jobs annually through the Project Development and Commercial Finance programs.


Analysis of results and challenges: AIDEA uses job creation as one the measures of its success, and considers it important to distinguish permanent jobs from construction jobs. Construction jobs are temporary in nature, but are important to factor into the measurement of economic growth. Despite the fact that Alaska's economy was sluggish throughout FY 2013, AIDEA's development projects and financing of commercial ventures created, or retained, 297 construction jobs.

A2: Core Service - Sustainable Energy
    
Target #1: By 2025, 50 percent of electricity generation is from renewable sources.

Methodology: Sources: U.S. Energy Information Administration, Form EIA-923, "Power Plant Operations Report," and predecessor forms.


Analysis of results and challenges: Analysis of results and challenges: The Alaska’s renewable energy portfolio is growing steadily due primarily to the impacts of the Renewable Energy Fund projects that have completed feasibility, design and construction phases of work and are now in operation, In addition to the gains in electricity generation from renewable energy depicted in the graph above, the Renewable Energy Fund is also providing gains in renewable heat energy, such as biomass. At the end of 2012 and beginning of 2013, several larger renewable energy projects began operation. We expect to see continued increases in percentage for 2013 and into future years as more projects are funded and completed. Individual years will vary depending on snowmelt and rain providing water to hydroelectric facilities. Sources: U.S. Energy Information Administration, Form EIA-923, "Power Plant Operations Report," and predecessor forms, and EIA “Alaska Net Electricity Generation by Source, May 2013”: http://www.eia.gov/state/?sid=AK#tabs-4. Note, 2011 and 2012 are estimated values based upon published 2010 and 2013 data.

Increasing the percentage of electricity generated from renewable sources is achieved by the following action items under way: 1) The statewide energy plan and regional energy planning efforts focus on locally available resources; 2) Renewable Energy Fund projects; 3) Planning and development for the Susitna-Watana Hydroelectric Project; 4) Additional state appropriations for renewable energy projects; 5) Power Project Loan Fund support of renewable energy projects; 6) Private capital in conjunction with Renewable Energy Fund grant money 7) Federal funding of renewable energy projects, including Denali Commission, Department of Energy and and USDA; 8) Energy efficiency and conservation programs such as AEA’s Village Energy Efficiency Program (VEEP), Alaska Commercial Energy Audit Program, and public education and outreach activities that lower overall energy consumption, thereby increasing the percentage of power that is generated by renewables.


A3: Core Service - Strong Communities
    
Target #1: Reduce the number of communities (public entities) that are noncompliant with management sustainability indicators by five percent each year.


Analysis of results and challenges: In FY2009, the division began measuring compliance of a set number of entities using a standardized set of indicators. These indicators and compliance standards are:
1. Workers’ Compensation policy – If an entity has an active policy or not.
2. Municipal elections – If the required election was properly held and certified.
3. Financial Audits – If the required state or federal financial audits have been completed and filed.
4. Liens - If liens or judgments are filed against the entity.
5. PERS Debt - If an entity is current on their PERS payments.
6. Fuel Loans - If an entity borrowed loans for purchase of fuel and is current on its payment; and
7. Financial Documents (budgets, audits/certified financial statements) – if an entity has completed and filed these documents.

The number of non-compliant entities increased in FY 2013 and DCRA was unable to meet the desired target. Ongoing challenges include dwindling resources to work with communities, accuracy of data and timeliness of information reported by agencies and the community commitment to issue resolution.

Most indicators will require the entity to make a change in procedures, policies, and or staffing to rectify issues.


    
Target #2: 100 percent of municipal governments provide essential public services (i.e. elections, legal, health, financial/contracting, fuel).


Analysis of results and challenges: Local governments are not required to report inadequate provision of public services, such as an interruption of public utilities, reduction or elimination of police or public safety, failing to hold required public meetings and elections, or inadequate financial disclosure of public finances. Local governments are required to certify that they have satisfied statutory requirements as a prerequisite to receive Community Revenue Sharing (CRS) funds. Information for this data system is collected as part of CRS application process, and spot checked by DCRA staff during interactions with municipalities. The challenge is maintaining consistency when verifying information of all municipalities across the state. DCRA is researching amending CRS regulations to require specific documentation to verify that all criteria have been met.

A4: Core Service - Consumer Protection
    
Target #1: 100 percent of tariff matters are reviewed and processed within regulatory timelines.


Analysis of results and challenges: In FY2013, one tariff filing went into effect without RCA action. RCA staff reviewed the tariff filing and recommended approval of the utility request. However, the filing and accompanying approval recommendation was inadvertently omitted from a packet of requests placed before commissioners for action. By the time it was discovered that no action had been taken and the file was located, the filing had taken effect by force of law. A tariff controls the conduct of business by utilities and pipelines. If review of a tariff filing is not completed within the established timeline, the requested change in rules, rates, or procedure automatically goes into effect by force of law.
    
Target #2: Manage licensure of Alaska businesses and professionals.


Analysis of results and challenges: Alaska benefits by increasing the number of companies and availability of competent, qualified practitioners doing business in the state. A variety of contributing factors can often cause the number of licensees to fluctuate, such as changes in competency requirements, fees, demand for the profession, economic climate, etc. In an ongoing effort to refine its processes and more accurately represent its functions, the division improved its method of calculating the number of professional licensees. The new method implemented in FY12 includes all license activity over the course of a fiscal year and may be one of the reasons the number of professional licensees increased. In previous years, professional license numbers were calculated as a “snapshot” of one day—usually the last day of the fiscal year.

 

Current as of November 6, 2013