00CS FOR SPONSOR SUBSTITUTE FOR SENATE BILL NO. 10(FIN)                                                                 
01 "An Act requiring an electric or telephone utility that provides services in a                                          
02 municipality with a population of more than 200,000 to have an ongoing program                                          
03 of placing existing overhead utility distribution lines underground; and relating to                                    
04 rates for recovering the cost of placing existing overhead utility distribution lines                                   
05 underground."                                                                                                           
06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
07    * Section 1.  AS 42.05.381 is amended by adding new subsections to read:                                           
08  (h)  An electric or telephone utility that has overhead utility distribution lines                                    
09 and that provides services in a municipality with a population of more than 200,000                                     
10 must spend at least one percent of the utility's annual gross revenue from retail                                       
11 customers in that municipality to place existing overhead utility distribution lines in                                 
12 that municipality underground.  In determining the annual gross revenue under this                                      
13 subsection, only revenue derived from the utility's distribution lines in the municipality                              
14 shall be considered.                                                                                                    

01  (i)  An electric or telephone utility that is implementing a program to place                                         
02 existing overhead utility distribution lines located in a municipality underground may                                  
03 amend its rates for services provided to customers in the municipality to enable the                                    
04 utility to recover the full actual cost of placing the lines underground.  Notwithstanding                              
05 AS 42.05.411 - 42.05.431, an amendment to a utility's rates under this subsection is                                    
06 not subject to commission review or approval.  A utility amending its rates under this                                  
07 subsection shall notify the commission of the amendment.  This subsection applies to                                    
08 an undergrounding program to the extent that the costs do not exceed two percent of                                     
09 the utility's annual gross revenue.  If an undergrounding program's costs exceed two                                    
10 percent, the commission may regulate rate increases proposed for the recovery of the                                    
11 amount above two percent.