2000-04-12                     Senate Journal                      Page 3030
SB 307                                                                       
SENATE BILL NO. 307 BY THE SENATE RULES COMMITTEE                              
BY REQUEST OF THE GOVERNOR, entitled:                                          
                                                                               
                                                                               

2000-04-12                     Senate Journal                      Page 3031
SB 307                                                                       
An Act making appropriations relating to power                                
cost equalization and the sale of the four dam pool                            
hydroelectric project and to capitalize funds; and                             
providing for an effective date.                                               
                                                                               
was read the first time and referred to the Community and Regional             
Affairs and Finance Committees.                                                
                                                                               
Governors transmittal letter dated April 11:                                   
                                                                               
Dear President Pearce:                                                         
                                                                               
This appropriation bill, along with a companion authorization bill,            
implements the Memorandum of Understanding (MOU) between the                   
Alaska Energy Authority (AEA) and several Alaska communities and               
utilities for the sale of the Four Dam Pool facilities.                        
                                                                               
The bill appropriates the proceeds from the sale to the Power Cost             
Equalization (PCE) Endowment Fund created by the companion bill.               
The appropriation includes the purchase price, an insurance fund, an           
amount originally designated for a loan for the Southeast Intertie,            
debt service payments from the Four Dam Pool until July 1, 2001,               
and any future repayments of credits extended under the MOU.                   
Some of the debt service payments would directly fund the PCE                  
program for FY 01 during a transition period until earnings are                
realized from the endowment.                                                   
                                                                               
Once fully established, the endowment will contain more than $100              
million and will contribute more than $7.5 million annually to the             
PCE program. Coupled with a portion of the annual Alaska Industrial            
Development & Export Authority dividend, this will provide a                   
sustainable, dependable source of long-term funding for a program              
critical to meeting the necessities of health, safety and welfare of           
rural residents faced with extraordinarily high costs of energy.               
                                                                               
                                                                               

2000-04-12                     Senate Journal                      Page 3032
SB 307                                                                       
The sale of the Four Dam Pool provides fair value to the State,                
benefits to local communities and ratepayers, and long-term funding            
for PCE. I urge your prompt consideration of this measure.                     
                                                                               
					Sincerely,                                                                
					/s/                                                                       
					Tony Knowles                                                              
					Governor