HB 99: "An Act extending the Alaska Public Utilities Commission; and relating to regulatory cost charges."
00HOUSE BILL NO. 99 01 "An Act extending the Alaska Public Utilities Commission; and relating to 02 regulatory cost charges." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 42.05 is amended by adding a new section to read: 05 Sec. 42.05.254. PUBLIC UTILITY REGULATORY COST CHARGE. (a) 06 A regulated public utility operating in the state shall pay to the commission an annual 07 regulatory cost charge in an amount not to exceed .8 percent of gross revenue derived 08 from operations in the state, as modified under (c) of this section if appropriate. An 09 exempt utility shall pay the actual cost of services provided to it by the commission. 10 (b) The commission shall by regulation establish a method to determine 11 annually the amount of the regulatory cost charge for a public utility. If the amount 12 the commission expects to collect under (a) of this section and under AS 42.06.286(a) 13 exceeds the authorized budget of the commission, the commission shall, by order, 14 reduce the percentages set out in (a) of this section so that the total amount of the fees
01 collected approximately equals the authorized budget of the commission for the fiscal 02 year. 03 (c) In determining the amount of the regulatory cost charge imposed under (a) 04 of this section, 05 (1) a utility selling utility services at wholesale shall modify its gross 06 revenue by deducting payments it receives for wholesale sales; 07 (2) a local exchange telephone utility shall modify its gross revenue by 08 deducting payments received from other carriers for settlements or access charges; 09 (3) an electric utility shall reduce its gross revenue by subtracting the 10 cost of power; in this paragraph, "cost of power" means the costs of generation and 11 purchased power reported to the commission. 12 (d) The commission shall calculate the total regulatory cost charges to be 13 levied against all regulated electric utilities under this section. The commission shall 14 allocate the total amount among the regulated electric utilities by using an equal charge 15 per kilowatt hour sold at retail. 16 (e) The commission shall administer the charge imposed under this section. 17 The Department of Revenue shall collect and enforce the charge imposed under this 18 section. The Department of Administration shall identify the amount of the operating 19 budget of the commission that lapses into the general fund each year. The legislature 20 may appropriate an amount equal to the lapsed amount to the commission for its 21 operating costs for the next fiscal year. If the legislature does so, the commission shall 22 reduce the total regulatory cost charged collected for that fiscal year by a comparable 23 amount. 24 (f) The commission shall allow a public utility to recover all payments made 25 to the commission under this section. The commission may not require a public utility 26 to file a rate case in order to be eligible to recover the regulatory cost charge. 27 (g) The commission may adopt regulations under AS 44.62 (Administrative 28 Procedure Act) necessary to administer this section, including requirements and 29 procedures for reporting information and making quarterly payments. The Department 30 of Revenue may adopt regulations under AS 44.62 (Administrative Procedure Act) for 31 investigating the accuracy of filed information, and for collecting required payments.
01 (h) In this section, 02 (1) "exempt utility" means a public utility that is certificated by the 03 commission under AS 42.05.221 - 42.05.281 but, in accordance with AS 42.05.711, 04 is exempt from other regulatory requirements of this chapter; 05 (2) "gross revenue" means the total operating revenue from intrastate 06 services, as shown in a utility's annual report required by the commission by 07 regulation; 08 (3) "regulated utility" means a public utility that is certificated by the 09 commission under AS 42.05.221 - 42.05.281 and that is subject to the other regulatory 10 requirements of this chapter; 11 (4) "wholesale sales" means sales to another utility for resale under 12 circumstances that make revenue from the resale subject to the regulatory cost charge 13 imposed under this section. 14 * Sec. 2. AS 42.05.651(a) is amended to read: 15 (a) During [AFTER COMPLETION OF] a hearing or investigation held under 16 this chapter, the commission may [SHALL] allocate the costs of the hearing or 17 investigation among the parties, including the commission, as is just under the 18 circumstances. In allocating costs, the commission shall consider the regulatory cost 19 charge paid by a utility under AS 42.05.254 and may consider the results, ability 20 to pay, evidence of good faith, other relevant factors, and mitigating circumstances. 21 Notwithstanding an intervening party's ability to pay, if the commission determines 22 that an intervening party has conducted its intervention in a frivolous manner, the 23 commission shall allocate all costs associated with the intervention to that party. The 24 costs allocated may include the costs of any time devoted to the investigation or 25 hearing by hired consultants, whether or not the consultants appear as witnesses or 26 participants. The costs allocated may also include any out-of-pocket expenses incurred 27 by the commission in the particular proceeding. The commission shall provide an 28 opportunity for any person objecting to an allocation to be heard before the allocation 29 becomes final. 30 * Sec. 3. AS 42.06 is amended by adding a new section to read: 31 Sec. 42.06.286. PIPELINE CARRIER REGULATORY COST CHARGE. (a)
01 A pipeline carrier operating in the state shall pay to the commission an annual 02 regulatory cost charge in an amount not to exceed .8 percent of gross revenue derived 03 from operations in the state. A regulatory cost charge may not be assessed on pipeline 04 carrier operations unless the operations are within the jurisdiction of the commission. 05 (b) The commission shall by regulation establish a method to determine 06 annually the amount of the regulatory cost charge. If the amount the commission 07 expects to collect under (a) of this section and under AS 42.05.254(a) exceeds the 08 authorized budget of the commission, the commission shall, by order, reduce the 09 percentage set out in (a) of this section so that the total amount of the fees collected 10 approximately equals the authorized budget of the commission for the fiscal year. 11 (c) The commission shall administer the charge imposed under this section. 12 The Department of Revenue shall collect and enforce the charge imposed under this 13 section. The Department of Administration shall identify the amount of the operating 14 budget of the commission that lapses into the general fund each year. The legislature 15 may appropriate an amount equal to the lapsed amount to the commission for its 16 operating costs for the next fiscal year. If the legislature does so, the commission shall 17 reduce the total regulatory cost charged collected for that fiscal year by a comparable 18 amount. 19 (d) The commission may adopt regulations under AS 44.62 (Administrative 20 Procedure Act) necessary to administer this section, including requirements and 21 procedures for reporting information and making quarterly payments. The Department 22 of Revenue may adopt regulations under AS 44.62 (Administrative Procedure Act) for 23 investigating the accuracy of filed information, and for collecting required payments. 24 (e) In this section, "gross revenue" means the total intrastate operating revenue 25 as shown in a pipeline carrier's annual report required by the commission by 26 regulation. 27 * Sec. 4. AS 42.06.610(a) is amended to read: 28 (a) During a proceeding held under this chapter, the commission may 29 [SHALL] allocate the cost of the proceeding among the parties, including the 30 commission, as is just under the circumstances. In allocating costs, the commission 31 shall consider the regulatory cost charge paid directly or indirectly under
01 AS 42.06.286. The costs allocated may include the costs of any time devoted to 02 investigations or hearings by hired consultants, whether or not the consultants appear 03 as witnesses or participants. The commission shall provide an opportunity for any 04 person objecting to an allocation to be heard before the allocation becomes final. 05 * Sec. 5. AS 44.66.010(a)(4) is amended to read: 06 (4) Alaska Public Utilities Commission (AS 42.05.010) -- June 30, 07 1999 [1994];