SB 47(EFD FLD): "An Act relating to the extent to which the Alaska Public Utilities Commission may exercise its powers when regulating utilities; establishing a regulatory cost charge on public utilities and pipeline carriers; relating to the allocation of costs in hearings before the Alaska Public Utilities Commission; relating to the method by which utilities are exempted from and made subject to regulation by the Alaska Public Utilities Commission; relating to the monetary threshold for regulation of certain kinds of utilities by the Alaska Public Utilities Commission; extending the Alaska Public Utilities Commission; relating to staggered terms for members of the Alaska Public Utilities Commission."
00SENATE BILL NO. 47(efd fld) 01 "An Act relating to the extent to which the Alaska Public Utilities Commission 02 may exercise its powers when regulating utilities; establishing a regulatory cost 03 charge on public utilities and pipeline carriers; relating to the allocation of costs 04 in hearings before the Alaska Public Utilities Commission; relating to the method 05 by which utilities are exempted from and made subject to regulation by the 06 Alaska Public Utilities Commission; relating to the monetary threshold for 07 regulation of certain kinds of utilities by the Alaska Public Utilities Commission; 08 extending the Alaska Public Utilities Commission; relating to staggered terms for 09 members of the Alaska Public Utilities Commission." 10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 11 * Section 1. AS 42.05.141(a) is amended to read: 12 (a) The Alaska Public Utilities Commission may do all things necessary or 13 proper to carry out the purposes and exercise the powers expressly granted or 14 reasonably implied in this chapter, including
01 (1) regulate every public utility engaged or proposing to engage in a 02 utility [SUCH A] business inside the state, except to the extent exempted by 03 AS 42.05.711 [, AND THE POWERS OF THE COMMISSION SHALL BE 04 LIBERALLY CONSTRUED TO ACCOMPLISH ITS STATED PURPOSES]; 05 (2) investigate, upon complaint or upon its own motion, the rates, 06 classifications, rules, regulations, practices, services, and facilities of a public utility 07 and hold hearings on them; 08 (3) make or require just, fair, and reasonable rates, classifications, 09 regulations, practices, services, and facilities for a public utility; 10 (4) prescribe the system of accounts and regulate the service and safety 11 of operations of a public utility; 12 (5) require a public utility to file reports and other information and 13 data; 14 (6) appear personally or by counsel and represent the interests and 15 welfare of the state in all matters and proceedings involving a public utility pending 16 before an officer, department, board, commission, or court of the state or of another 17 state or the United States and to intervene in, protest, resist, or advocate the granting, 18 denial, or modification of any petition, application, complaint, or other proceeding; 19 (7) examine witnesses and offer evidence in any proceeding affecting 20 the state and initiate or participate in judicial proceedings to the extent necessary to 21 protect and promote the interests of the state. 22 * Sec. 2. AS 42.05 is amended by adding a new section to read: 23 Sec. 42.05.254. PUBLIC UTILITY REGULATORY COST CHARGE. (a) 24 A regulated public utility operating in the state shall pay to the commission an annual 25 regulatory cost charge in an amount not to exceed .8 percent of gross revenue derived 26 from operations in the state, as modified under (c) of this section if appropriate. An 27 exempt utility shall pay the actual cost of services provided to it by the commission. 28 (b) The commission shall by regulation establish a method to determine 29 annually the amount of the regulatory cost charge for a public utility. If the amount 30 the commission expects to collect under (a) of this section and under AS 42.06.286(a) 31 exceeds the authorized budget of the commission, the commission shall, by order,
01 reduce the percentages set out in (a) of this section so that the total amount of the fees 02 collected approximately equals the authorized budget of the commission for the fiscal 03 year. 04 (c) In determining the amount of the regulatory cost charge imposed under (a) 05 of this section, 06 (1) a utility selling utility services at wholesale shall modify its gross 07 revenue by deducting payments it receives for wholesale sales; 08 (2) a local exchange telephone utility shall modify its gross revenue by 09 deducting payments received from other carriers for settlements or access charges; 10 (3) an electric utility shall reduce its gross revenue by subtracting the 11 cost of power; in this paragraph, "cost of power" means the costs of generation and 12 purchased power reported to the commission. 13 (d) The commission shall calculate the total regulatory cost charges to be 14 levied against all regulated electric utilities under this section. The commission shall 15 allocate the total amount among the regulated electric utilities by using an equal charge 16 per kilowatt hour sold at retail. 17 (e) The commission shall administer the charge imposed under this section. 18 The Department of Revenue shall collect and enforce the charge imposed under this 19 section. The Department of Administration shall identify the amount of the operating 20 budget of the commission that lapses into the general fund each year. The legislature 21 may appropriate an amount equal to the lapsed amount to the commission for its 22 operating costs for the next fiscal year. If the legislature does so, the commission shall 23 reduce the total regulatory cost charged collected for that fiscal year by a comparable 24 amount. 25 (f) The commission shall allow a public utility to recover all payments made 26 to the commission under this section. The commission may not require a public utility 27 to file a rate case in order to be eligible to recover the regulatory cost charge. 28 (g) The commission may adopt regulations under AS 44.62 (Administrative 29 Procedure Act) necessary to administer this section, including requirements and 30 procedures for reporting information and making quarterly payments. The Department 31 of Revenue may adopt regulations under AS 44.62 (Administrative Procedure Act) for
01 investigating the accuracy of filed information, and for collecting required payments. 02 (h) In this section, 03 (1) "exempt utility" means a public utility that is certificated by the 04 commission under AS 42.05.221 - 42.05.281 but, in accordance with AS 42.05.711, 05 is exempt from other regulatory requirements of this chapter; 06 (2) "gross revenue" means the total operating revenue from intrastate 07 services, as shown in a utility's annual report required by the commission by 08 regulation; 09 (3) "regulated utility" means a public utility that is certificated by the 10 commission under AS 42.05.221 - 42.05.281 and that is subject to the other regulatory 11 requirements of this chapter; 12 (4) "wholesale sales" means sales to another utility for resale under 13 circumstances that make revenue from the resale subject to the regulatory cost charge 14 imposed under this section. 15 * Sec. 3. AS 42.05.651(a) is amended to read: 16 (a) During [AFTER COMPLETION OF] a hearing or investigation held under 17 this chapter, the commission may [SHALL] allocate the costs of the hearing or 18 investigation among the parties, including the commission, as is just under the 19 circumstances. In allocating costs, the commission shall consider the regulatory cost 20 charge paid by a utility under AS 42.05.254 and may consider the results, ability 21 to pay, evidence of good faith, other relevant factors, and mitigating circumstances. 22 Notwithstanding an intervening party's ability to pay, if the commission determines 23 that an intervening party has conducted its intervention in a frivolous manner, the 24 commission shall allocate all costs associated with the intervention to that party. The 25 costs allocated may include the costs of any time devoted to the investigation or 26 hearing by hired consultants, whether or not the consultants appear as witnesses or 27 participants. The costs allocated may also include any out-of-pocket expenses incurred 28 by the commission in the particular proceeding. The commission shall provide an 29 opportunity for any person objecting to an allocation to be heard before the allocation 30 becomes final. 31 * Sec. 4. AS 42.05.711(e) is amended to read:
01 (e) Notwithstanding any other provisions of this chapter, any electric or 02 telephone utility that does not gross $50,000 annually is exempt from regulation under 03 this chapter unless [25 PERCENT OF] the subscribers petition the commission for 04 regulation under AS 42.05.712(h). 05 * Sec. 5. AS 42.05.711(f) is amended to read: 06 (f) Notwithstanding any other provisions of this chapter, an electric or 07 telephone utility that does not gross $500,000 [$325,000] annually may elect to be 08 exempt from the provisions of this chapter other than AS 42.05.221 - 42.05.281 under 09 the procedure described in AS 42.05.712. 10 * Sec. 6. AS 42.05.711(g) is amended to read: 11 (g) A utility, other than a telephone or electric utility, that does not gross 12 $150,000 [$100,000] annually may elect to be exempt from the provisions of this 13 chapter other than AS 42.05.221 - 42.05.281 under the procedure described in 14 AS 42.05.712. 15 * Sec. 7. AS 42.05.711(i) is amended to read: 16 (i) A utility that [WHICH] furnishes collection and disposal service of 17 garbage, refuse, trash, or other waste material and has annual gross revenues of 18 $300,000 [$200,000] or less is exempt from the provisions of this chapter, other than 19 the certification provisions of AS 42.05.221 - 42.05.281, unless [25 PERCENT OF] 20 the subscribers [OR SUBSCRIBERS REPRESENTING 25 PERCENT OF THE 21 GROSS REVENUE OF THE UTILITY] petition the commission for regulation under 22 AS 42.05.712(h). Notwithstanding AS 42.05.712(b) and (g), if subscribers 23 representing 25 percent of the gross revenue of the utility petition the commission 24 for regulation, the utility is subject to the provisions of this chapter. 25 * Sec. 8. AS 42.05.711(k) is amended to read: 26 (k) A utility that [WHICH] furnishes cable television service is exempt from 27 the provisions of this chapter other than AS 42.05.221 - 42.05.281 [,] unless [25 28 PERCENT OF] the subscribers petition the commission for regulation under the 29 procedure described in AS 42.05.712. 30 * Sec. 9. AS 42.05.712(h) is amended to read: 31 (h) A utility or cooperative that is already exempt from regulation under this
01 section or that is exempt from regulation under AS 42.05.711(e), (i), or (k) may 02 elect to terminate its exemption in the same manner. 03 * Sec. 10. As 42.06 is amended by adding a new section to read: 04 Sec. 42.06.286. PIPELINE CARRIER REGULATORY COST CHARGE. (a) 05 A pipeline carrier operating in the state shall pay to the commission an annual 06 regulatory cost charge in an amount not to exceed .8 percent of gross revenue derived 07 from operations in the state. A regulatory cost charge may not be assessed on pipeline 08 carrier operations unless the operations are within the jurisdiction of the commission. 09 (b) The commission shall by regulation establish a method to determine 10 annually the amount of the regulatory cost charge. If the amount the commission 11 expects to collect under (a) of this section and under AS 42.05.254(a) exceeds the 12 authorized budget of the commission, the commission shall, by order, reduce the 13 percentage set out in (a) of this section so that the total amount of the fees collected 14 approximately equals the authorized budget of the commission for the fiscal year. 15 (c) The commission shall administer the charge imposed under this section. 16 The Department of Revenue shall collect and enforce the charge imposed under this 17 section. The Department of Administration shall identify the amount of the operating 18 budget of the commission that lapses into the general fund each year. The legislature 19 may appropriate an amount equal to the lapsed amount to the commission for its 20 operating costs for the next fiscal year. If the legislature does so, the commission shall 21 reduce the total regulatory cost charged collected for that fiscal year by a comparable 22 amount. 23 (d) The commission may adopt regulations under AS 44.62 (Administrative 24 Procedure Act) necessary to administer this section, including requirements and 25 procedures for reporting information and making quarterly payments. The Department 26 of Revenue may adopt regulations under AS 44.62 (Administrative Procedure Act) for 27 investigating the accuracy of filed information, and for collecting required payments. 28 (e) In this section, "gross revenue" means the total intrastate operating revenue 29 as shown in a pipeline carrier's annual report required by the commission by 30 regulation. 31 * Sec. 11. AS 42.06.610(a) is amended to read:
01 (a) During a proceeding held under this chapter, the commission may 02 [SHALL] allocate the cost of the proceeding among the parties, including the 03 commission, as is just under the circumstances. In allocating costs, the commission 04 shall consider the regulatory cost charge paid directly or indirectly under 05 AS 42.06.286. The costs allocated may include the costs of any time devoted to 06 investigations or hearings by hired consultants, whether or not the consultants appear 07 as witnesses or participants. The commission shall provide an opportunity for any 08 person objecting to an allocation to be heard before the allocation becomes final. 09 * Sec. 12. AS 44.66.010(a)(4) is amended to read: 10 (4) Alaska Public Utilities Commission (AS 42.05.010) -- June 30, 11 1999 [1994]; 12 * Sec. 13. APUC STAGGERED TERMS. Notwithstanding AS 42.05.030(a), after the 13 expiration in 1999 of the term of the member of the Alaska Public Utilities Commission with 14 a major or experience in engineering, the vacancy shall next be filled for a term of four years 15 in order to adjust the staggering of the terms of the members of the commission so that no 16 more than one commission member's term expires each year. 17 * Sec. 14. APPLICATION TO ONGOING PROCEEDINGS. The amendment to 18 AS 42.05.141(a), made by sec. 1 of this Act, applies to proceedings begun on or after the 19 effective date of sec. 1 of this Act.