Legislature(1999 - 2000)
2000-04-12 Senate Journal
Full Journal pdf2000-04-12 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