Legislature(1999 - 2000)

1999-05-13 House Journal

Full Journal pdf

1999-05-13                     House Journal                      Page 1378
SB 133                                                                       
The Finance Committee has considered:                                          
                                                                               
CS FOR SENATE BILL NO. 133(RLS) am                                            
"An Act creating and relating to the Regulatory Commission of                 
Alaska and transferring to it certain powers and duties of the                 
Alaska Public Utilities Commission; repealing the Alaska Public                
Utilities Commission; relating to the powers of the chair of the               
Regulatory Commission of Alaska; relating to regulatory cost                   
charges for public utilities and pipelines; relating to the appellate          
procedures of the Regulatory Commission of Alaska; relating to                 
the Alaska Oil and Gas Conservation Commission; and providing                  
for an effective date."                                                        
                                                                               
and recommends it be replaced with:                                            
                                                                               
HOUSE CS FOR CS FOR SENATE BILL NO. 133(FIN)                                  
	(same title)                                                                  
                                                                               
                                                                               
The report was signed by Representatives Therriault and Mulder, Co-            
chairs, with the following individual recommendations:                         
                                                                               

1999-05-13                     House Journal                      Page 1379
SB 133                                                                       
Do pass (7):  Therriault, Mulder, Kohring, Austerman, Davies,                  
Williams, Foster                                                               
                                                                               
No recommendation (2):  Bunde, Grussendorf                                     
                                                                               
A House Finance Committee letter of intent for HCS CSSB 133(FIN),              
signed by Representatives Therriault and Mulder, Co-chairs, appears            
below:                                                                         
                                                                               
"SB 133 repeals the Alaska Public Utilities Commission and creates             
the Regulatory Commission of Alaska. In making this change to public           
utility regulation, it is the intent of the Legislature to respond to          
recommendations in legislative audits conducted in 1979, 1985 and              
1989, and an audit performed by the National Regulatory Research               
Institute (NRRI) in 1998. The task of regulating public utilities has          
changed dramatically as the utility industry has moved from total              
regulation to regulated competition. The 21st Alaska Legislature is            
creating the Regulatory Commission of Alaska to address these                  
changes in the utility industry on behalf of the people of the state of        
Alaska.                                                                        
                                                                               
The Regulatory Commission of Alaska is better equipped than the                
APUC to respond to industry proposals for changes in utility services,         
and to protect the interests of ratepayers in the wake of these changes.       
SB 133 gives the chair authority over administrative matters, leaving          
the other commissioners free to resolve substantive issues. To address         
the problem of the APUC's case backlog and time-consuming                      
decision-making process, SB 133 allows panels of three                         
commissioners, hearing officers or arbitrators to resolve cases where          
appropriate. It also requires the RCA to adopt regulations setting             
procedural timelines. To address the problems created by changing              
APUC staffs role between advocate and advisor, it establishes a                
separate public advocacy section within the RCA.                               
                                                                               
SB 133 will improve this agency's accountability to the public. The            
RCA is required to establish a Management Information System,                  
similar to the Legislature's BASIS system so that the public and               
industry can be better informed about the RCA's proceedings. It                
requires the RCA to implement a time management system to record               
the amount of time spent on filings from different industries, so that         
the Regulatory Cost Charge can be more fairly assessed.                        

1999-05-13                     House Journal                      Page 1380
SB 133                                                                       
This year is an opportune time to make these changes. The Alaska               
Public Utilities Commission would begin winding down on June 30,               
1999 under the sunset law. SB 133 requires the governor to appoint,            
and the Legislature to confirm, five commissioners who will represent          
the interests of the public.                                                   
                                                                               
SB 133 provides for a study of the possibility of combining the                
functions of the Regulatory Commission of Alaska and the Alaska Oil            
and Gas Conservation Commission.  The results of a study by the                
Legislative Budget and Audit Committee will be presented to the next           
session of this Legislature.  If the Legislature decides to combine the        
two agencies functions, the challenge of making that transition will be        
significantly eased by the creation and operating experience of the            
RCA under SB 133."                                                             
                                                                               
The following fiscal notes apply to HCS CSSB 133(FIN):                         
                                                                               
Fiscal note, Dept. of Commerce & Economic Development, 5/13/99                 
Fiscal note, Dept. of Administration, 5/13/99                                  
                                                                               
CSSB 133(RLS) am was referred to the Rules Committee for                       
placement on the calendar.