2005-03-31                     Senate Journal                      Page 0738
SB 157                                                                                            
SENATE BILL NO. 157 BY THE SENATE RULES COMMITTEE                                                   
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
          "An Act relating to the maximum annual regulatory                                         
          cost charge collected from certain regulated public                                       
          utilities and pipeline carriers; and providing for an                                     
          effective date."                                                                          
                                                                                                    
was read the first time and referred to the Labor and Commerce and                                  
Finance Committees.                                                                                 
                                                                                                    
The following fiscal information was published today:                                               
 Fiscal Note No. 1, Department of Commerce, Community, and                                          
       Economic Development                                                                         
                                                                                                    
Governor's transmittal letter dated March 30:                                                       
                                                                                                    
Dear President Stevens:                                                                             
                                                                                                    
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                          
transmitting a bill relating to the calculation of the annual regulatory                            
cost charge for public utilities and pipeline carriers within the                                   
jurisdiction of the Regulatory Commission of Alaska (RCA).                                          
                                                                                                    
Currently, the operations of the RCA are financed through a regulatory                              
cost charge collected from regulated public utilities and pipeline                                  
carriers in accordance with AS 42.05.254 and AS 42.06.286, which,                                   
under existing statute, may not exceed .7 percent of the total adjusted                             
gross revenue applicable to the regulated public utility and pipeline                               
carrier sectors.  The bill would increase that percentage to .9 percent                             
for the fiscal years beginning July 1, 2005, July 1, 2006, and July 1,                              
2007, to finance certain information system improvements within the                                 
RCA.  The improvements include the implementation of a case                                         
management system, a time management system, and an interactive                                     
RCA website that would allow regulated entities to electronically file                              
forms and pleadings on-line.                                                                        

2005-03-31                     Senate Journal                      Page 0739
Because it is anticipated that the information system improvements                                  
will result in lower operating costs for the RCA, the bill would then                               
reduce that .9 percent maximum  regulatory cost charge to the                                       
previous .7 percent level for the fiscal year beginning July 1, 2008,                               
and for subsequent fiscal years.  This bill would not change the                                    
existing maximum for the portion of the regulatory cost charge that                                 
finances operations of the public advocacy function under                                           
AS 42.04.070(c) and AS 44.23.020(e) within the Department of Law.                                   
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
Sincerely yours,                                                                                    
/s/                                                                                                 
Frank H. Murkowski                                                                                  
Governor