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SB 392: "An Act relating to the expenses of investigation, hearing, or public advocacy before the Regulatory Commission of Alaska, to calculation of the regulatory cost charge for public utilities and pipeline carriers to include the Department of Law's costs of its public advocacy function, to inspection of certain books and records by the attorney general when participating as a party in a matter before the Regulatory Commission of Alaska; and providing for an effective date."

00 SENATE BILL NO. 392 01 "An Act relating to the expenses of investigation, hearing, or public advocacy before the 02 Regulatory Commission of Alaska, to calculation of the regulatory cost charge for public 03 utilities and pipeline carriers to include the Department of Law's costs of its public 04 advocacy function, to inspection of certain books and records by the attorney general 05 when participating as a party in a matter before the Regulatory Commission of Alaska; 06 and providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. AS 42.05.254(a) is amended to read: 09 (a) A regulated public utility operating in the state shall pay to the commission 10 an annual regulatory cost charge in an amount not to exceed the maximum percentage 11 of adjusted gross revenue that applies to the utility sector of which the utility is a part. 12 The regulatory cost charges that the commission expects to collect from all regulated 13 utilities may not exceed the sum of the following percentages [.8 PERCENT] of the

01 total adjusted gross revenue of all regulated public utilities derived from operations in 02 the state: (1) not more than .7 percent to fund the operations of the commission, 03 and (2) not more than .17 percent to fund operations of the public advocacy 04 function under AS 42.04.070(c) and AS 44.23.020(e) within the Department of 05 Law. An exempt utility shall pay the actual cost of services provided to it by the 06 commission. 07 * Sec. 2. AS 42.05.254(b) is amended to read: 08 (b) The commission shall by regulation establish a method to determine 09 annually the amount of the regulatory cost charge for a public utility. If the amount 10 the commission expects to collect under (a) of this section and under AS 42.06.286(a) 11 exceeds the authorized budgets [BUDGET] of the commission and the Department 12 of Law public advocacy function under AS 42.04.070(c) and AS 44.23.020(e), the 13 commission shall, by order, reduce the percentages determined under (h) of this 14 section so that the total amount of the fees collected approximately equals the 15 authorized budgets [BUDGET] of the commission and the Department of Law 16 public advocacy function under AS 42.04.070(c) and AS 44.23.020(e) for the fiscal 17 year. 18 * Sec. 3. AS 42.05.254(e) is amended to read: 19 (e) The commission shall administer the charge imposed under this section. 20 The Department of Revenue shall collect and enforce the charge imposed under this 21 section. The Department of Administration shall identify the amount of the operating 22 budgets [BUDGET] of the commission and the Department of Law public 23 advocacy function under AS 42.04.070(c) and AS 44.23.020(e) that lapse 24 [LAPSES] into the general fund each year. The legislature may appropriate an 25 amount equal to the lapsed amount to the commission and to the Department of Law 26 public advocacy function under AS 42.04.070(c) and AS 44.23.020(e) for [ITS] 27 operating costs for the next fiscal year. If the legislature does so, the commission shall 28 reduce the total regulatory cost charge collected for that fiscal year by a comparable 29 amount. 30 * Sec. 4. AS 42.05.254(h) is amended to read: 31 (h) The commission shall by regulation establish a method to determine

01 annually the maximum percentage of adjusted gross revenue that will apply to each 02 regulated public utility sector and the maximum percentage of gross revenue that will 03 apply to the regulated pipeline carrier sector. Other [THE METHOD 04 ESTABLISHED SHALL ALLOCATE THE COMMISSION'S COSTS, OTHER] than 05 the cost of services provided to exempt utilities, the method established shall 06 allocate the commission's costs, and the Department of Law's certified costs of its 07 public advocacy function under AS 42.04.070(c) and AS 44.23.020(e), among the 08 regulated public utility sectors and the regulated pipeline carrier sector based on the 09 relative amount of the commission's annual costs and the Department of Law's 10 certified costs that is attributable to regulating each sector. For purposes of this 11 subsection, the Department of Law shall annually certify to the commission the 12 costs of its public advocacy function under AS 42.04.070(c) and AS 44.23.020(e). 13 * Sec. 5. AS 42.05.501 is amended by adding a new subsection to read: 14 (b) When participating as a party under AS 42.04.070(c) or AS 44.23.020(e), 15 the attorney general shall at all reasonable times have the right to reasonable access to, 16 and may designate any of the attorney general's employees, agents, or consultants to 17 inspect and examine, the accounts, records, books, maps, inventories, appraisals, 18 valuations, or other reports and documents kept by public utilities that are relevant to 19 the issues presented in any adjudicatory matter before the commission in which the 20 attorney general has appeared as a party under AS 42.04.070(c) or AS 44.23.020(e). 21 This access is subject to reasonable notice to all parties with an opportunity to object 22 before the commission. Included under this subsection is access to records or other 23 documents under the custody or control of an affiliated interest of a public utility that 24 relate to any contract or transaction between the public utility and the affiliated 25 interest. 26 * Sec. 6. AS 42.05.651 is amended by adding a new subsection to read: 27 (c) Notwithstanding the commission's discretion under (a) of this section to 28 allocate costs to parties, the commission may not require a state agency to pay any 29 costs allocated to the state agency. 30 * Sec. 7. AS 42.05.671(c) is amended to read: 31 (c) A person may make written objection to the public disclosure of

01 information contained in a record under the provisions of this chapter or of 02 information obtained by the commission or by the attorney general under the 03 provisions of this chapter, stating the grounds for the objection. When an objection is 04 made, the commission may not order the information withheld from public disclosure 05 unless the information adversely affects the interest of the person making written 06 objection and disclosure is not required in the interest of the public. 07 * Sec. 8. AS 42.06.286(a) is amended to read: 08 (a) A pipeline carrier operating in the state shall pay to the commission an 09 annual regulatory cost charge in an amount not to exceed the sum of the following 10 percentages [.8 PERCENT] of gross revenue derived from operations in the state: (1) 11 not more than .7 percent to fund the operations of the commission, and (2) not 12 more than .17 percent to fund operations of the public advocacy function under 13 AS 42.04.070(c) and AS 44.23.020(e) within the Department of Law. A regulatory 14 cost charge may not be assessed on pipeline carrier operations unless the operations 15 are within the jurisdiction of the commission. 16 * Sec. 9. AS 42.06.286(b) is amended to read: 17 (b) The commission shall by regulation establish a method to determine 18 annually the amount of the regulatory cost charge. If the amount the commission 19 expects to collect under (a) of this section and under AS 42.05.254(a) exceeds the 20 authorized budgets [BUDGET] of the commission and the Department of Law 21 public advocacy function under AS 42.04.070(c) and AS 44.23.020(e), the 22 commission shall, by order, reduce the percentage determined under (e) of this section 23 so that the total amount of the fees collected approximately equals the authorized 24 budgets [BUDGET] of the commission and the Department of Law public 25 advocacy function under AS 42.04.070(c) and AS 44.23.020(e) for the fiscal year. 26 * Sec. 10. AS 42.06.286(c) is amended to read: 27 (c) The commission shall administer the charge imposed under this section. 28 The Department of Revenue shall collect and enforce the charge imposed under this 29 section. The Department of Administration shall identify the amount of the operating 30 budgets [BUDGET] of the commission and the Department of Law public 31 advocacy function under AS 42.04.070(c) and AS 44.23.020(e) that lapse

01 [LAPSES] into the general fund each year. The legislature may appropriate an 02 amount equal to the lapsed amount to the commission and to the Department of Law 03 public advocacy function under AS 42.04.070(c) and AS 44.23.020(e) for [ITS] 04 operating costs for the next fiscal year. If the legislature does so, the commission shall 05 reduce the total regulatory cost charge [CHARGED] collected for that fiscal year by a 06 comparable amount. 07 * Sec. 11. AS 42.06.440 is amended by adding a new subsection to read: 08 (b) Subject to AS 31.05.035(c), when participating as a party under 09 AS 42.04.070(c) or AS 44.23.020(e), the attorney general shall at all reasonable times 10 have the right to reasonable access to, and may designate any of the attorney general's 11 employees, agents, or consultants to inspect and examine, the accounts, records, 12 books, maps, inventories, appraisals, valuations, or other reports and documents kept 13 by an oil or gas pipeline carrier that are relevant to the issues presented in any 14 adjudicatory matter before the commission in which the attorney general has appeared 15 as a party under AS 42.04.070(c) or AS 44.23.020(e). This access is subject to 16 reasonable notice to all parties with an opportunity to object before the commission. 17 Included under this subsection is access to records or other documents under the 18 custody or control of an affiliated interest of the pipeline carrier that relate to any 19 contract or transaction between the public utility and the affiliated interest. Costs 20 incurred in complying with a request to review the records referred to in this 21 subsection or to maintain those records in such a manner as to make them 22 conveniently available for review shall be borne by the party controlling the records. 23 * Sec. 12. AS 42.06.445(d) is amended to read: 24 (d) A person may make written objection to the public disclosure of 25 information contained in a record filed under the provisions of this chapter or of 26 information obtained by the commission or by the attorney general under the 27 provisions of this chapter, stating the grounds for the objection. When an objection is 28 made, the commission shall order the information withheld from public disclosure if 29 the information adversely affects the interest of the person making written objection 30 and disclosure is not required in the interest of the public. 31 * Sec. 13. AS 42.06.610 is amended by adding a new subsection to read:

01 (d) Notwithstanding the commission's discretion under (a) and (b) of this 02 section to allocate costs to parties, the commission may not require a state agency to 03 pay any costs allocated to the state agency. 04 * Sec. 14. The uncodified law of the State of Alaska is amended by adding a new section to 05 read: 06 APPLICABILITY. AS 42.05.651(c), enacted by sec. 6 of this Act, and 07 AS 42.06.610(d), enacted by sec. 13 of this Act, apply to orders issued by the Regulatory 08 Commission of Alaska regardless of whether the related proceeding under AS 42.05 or 09 AS 42.06 was begun before the effective date of this Act. 10 * Sec. 15. The uncodified law of the State of Alaska is amended by adding a new section to 11 read: 12 RETROACTIVITY. The enactment of AS 42.05.651(c), made by sec. 6 of this Act, 13 and of AS 42.06.610(d), made by sec. 13 of this Act, is retroactive to May 30, 2003. 14 * Sec. 16. The uncodified law of the State of Alaska is amended by adding a new section to 15 read: 16 REVISOR'S INSTRUCTION. The revisor of statutes is instructed to change the 17 heading of AS 42.05.501 from "Inspection of books and records by commission" to 18 "Inspection of books and records." 19 * Sec. 17. This Act takes effect July 1, 2004.