1993-07-21                     House Journal                      Page 1944
HB 216                                                                       
The following letter, dated May 26, 1993, was received regarding:              
                                                                               
SENATE CS FOR CS FOR HOUSE BILL NO. 216(RLS)                                  
"An Act relating to power cost equalization; and providing for an             
effective date."                                                               
                                                                               
"Dear Speaker Barnes:                                                          
                                                                               
Under the authority of art. II, sec. 15, of the Alaska Constitution, I         
have vetoed SCS CSHB 216(RLS), an act relating to power cost                   
equalization, and providing for an effective date.  I am vetoing the bill      
not because I am against the changes made in the bill, but because I           
signed most of the changes into law on May 13, 1993, in HCS CSSB
(FIN).                                                                      
                                                                               

1993-07-21                     House Journal                      Page 1945
HB 216                                                                       
Also, SCS CSHB 216(RLS) poses difficulties in that one section of it           
differs in a significant way from HCS CSSB 106(FIN).  In SCS CSHB
 (RLS), the minimum floor for power cost equalization (PCE) is              
9.82 cents per kilowatt-hour, while HCS CSSB 106(FIN) sets the same            
floor at 9.5 cents.  The practical effect of the difference is that if this    
bill were signed into law, effective July1, 1993 the minimum floor for         
PCE would be raised to 9.82 cents for approximately six weeks, and             
then would be lowered to 9.5 cents when HCS CSSB 106(FIN) takes                
effect in mid-August.  The difference would likely cause difficulties          
for the state agency in administering the program and for public               
utilities in making billings using PCE.                                        
                                                                               
Because most of the changes in SCS CSHB 216(RLS) will take effect              
through HCS CSSB 106(FIN), and because of the potential for                    
administrative errors and subsequent litigation if the minimum PCE             
floor changes in SCS CSHB 216(RLS) were to take effect, I believe              
that the veto of this bill is necessary.                                       
                                                                               
										Sincerely,                                                           
										/s/                                                                  
										Walter J. Hickel                                                     
										Governor"