Legislature(1999 - 2000)
04/14/2000 08:55 AM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 446
An Act establishing and relating to the power cost
equalization endowment fund; relating to the power cost
equalization and rural electric capitalization fund;
authorizing and relating to the sale of the four dam
pool hydroelectric project; establishing and relating
to joint action agencies created to purchase power
projects; and providing for an effective date.
Vice Chair Bunde MOVED to adopt work draft 1-GH2082\D,
Cramer, 4/14/00, as the version of the bill before the
Committee. There being NO OBJECTION, it was adopted.
KEITH LAUFER, CHIEF FINANCIAL OFFICIER, ALASKA INDUSTRIAL
DEVELOPMENT AND EXPORT AUTHORITY (AIDEA), DEPARTMENT OF
COMMUNITY & ECONOMIC DEVELOPMENT, ANCHORAGE, explained the
technical changes which needed for the work draft.
? Section 4, Page 4, list the full names of the entities:
Copper Valley Electric Association, the City of
Ketchikan, Kodiak Electric Association, the City of
Petersburg, and the City of Wrangell.
Co-Chair Therriault MOVED to ADOPT that language change.
There being NO OBJECTION, it was adopted.
Mr. Laufer continued with the proposed changes:
? Page 8, Section 11, a technical change to the statutes,
which would only occur in the event that the sale is
consummated. In such an event, the inserted bottom
lines would not be needed: "For purposes of this
section, Tyee Lake, Swan Lake, Solomon Gulch, and
Terror Lake hydroelectric facilities are considered to
be one power project, and this power project is
referred to as the initial project".
Representative J. Davies asked why that language should be
deleted. Mr. Laufer explained that it no longer applies to
the Four Dam Pool projects.
Mr. Laufer continued, listing changes to:
? Section 13, adding a new repealler to AS 42.45.07c.
Co-Chair Therriault stated that section would only be
appropriate when the sale has been finalized.
Co-Chair Therriault MOVED to ADOPT the two changes
recommended by Mr. Laufer. There being NO OBJECTION, they
were adopted.
Mr. Laufer noted that the following sections need change:
? Sections 16, 17, and 18 of the bill, refers to the
"memorandum of understanding" (MOU) but do not provide
a definition. He recommended that there be a reference
to another MOU in the bill to be the definition for
MOU's in those sections.
Co-Chair Therriault suggested that they could refer back to
Section 15(d) which provides the definition for the
uncodified law in Subsection #11, on Page 10, Line 30. Co-
Chair Therriault noted that there could not be a definition
that applies to multiple sections. Every time the
definition must be repeated.
Representative G. Davis suggested that the names should also
be changed in the definition section. Mr. Laufer agreed for
purposes of the definition, the legal names are appropriate.
Co-Chair Therriault MOVED to ADOPT Amendment #3 which would
indicate that in the various definition sections, the legal
names of the entities be used. There being NO OBJECTION, it
was adopted.
Co-Chair Therriault referenced Sections 16, 17 and 18. Co-
Chair Therriault MOVED to ADOPT Amendment #4 which would
instruct the drafters to insert a reference back to the MOU
definition sections.
BRIAN BJORKQUIST, (TESTIFIED VIA TELECONFERNCE), ASSISTANT
ATTORNEY GENERAL, DEPARTMENT OF LAW, ANCHORAGE, interjected
that amendment should also apply to Section 19 of the bill.
Co-Chair Therriault agreed and AMENDED the MOTION to include
Section 19. There being NO OBJECTION, all four sections
were changed.
Mr. Laufer continued:
? Delete Section 21 of the bill, which was a "hold-over"
from a very early draft. At that time, AIDEA
understood that they needed a delayed repealler. With
the current drafting of the bill, that would not be
necessary. He noted that Sections #3 and #12 would
have the same effective date, July 1st, 2000.
Co-Chair Therriault pointed out that there had been
discussion on the "findings" section. Representative J.
Davies noted for the record that $15.7 would be a subsidy
for the residential. He added that having the residential
subsidy does help to move the power on the commercial side
and it does not subsidize that area.
MIKE TIBBLES, STAFF, REPRESENTATIVE GENE THERRIAULT, spoke
to the proposed amendment. He noted that since there was a
reference to the initial project on Line 20, the option
would be to delete all of #525 or put the description that
is being deleted under AS 44.83.398.
Mr. Laufer asked to consult Mr. Bjorkquist regarding that
change. Mr. Laufer suggested the reference to the initial
project was no longer necessary.
Mr. Bjorkquist advised that provision would not be
applicable after the sale of the Four Dam Pool. It should
only be applicable to other contracts. If it does not apply
to other power projects, then the entire section should be
deleted. He reiterated that there should be no reference to
initial project.
Mr. Laufer asked if Mr. Bjorkquist thought that language
would work. Mr. Bjorkquist replied that it would work. Mr.
Laufer clarified the language:
? "A power sales agreement for the sale of power from a
project financed with a loan under AS 44.83.510";
including the rest of the provision as written and then
deleting the new language at the bottom.
Co-Chair Therriault MOVED to ADOPT Amendment #5 the above
language. There being NO OBJECTION, it was adopted.
Representative Foster MOVED to report CS HB 446 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CS HB 446 (FIN) was reported out of Committee with a "do
pass" recommendation and with a new fiscal note by
Department of Revenue and a note by the Alaska Industrial
Development and Export Authority dated 4/12/00.
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