05/08/1993 05:00 PM House FIN

  SENATE BILL NO. 106                                                          
                                                                               
       "An  Act  authorizing   power  transmission   interties                 
       between  Anchorage  and  the Kenai  Peninsula,  between                 
       Healy and Fairbanks, and between the Swan Lake and Tyee                 
       Lake hydroelectric  projects, and approving  the design                 
       and construction costs of the interties;  and providing                 
       for an effective date."                                                 
                                                                               
  Co-Chair Larson  asked if the Alaska  Industrial Development                 
  and Export Authority  (AIDEA) had been contacted  in regards                 
  to CSSB 106(FIN) am(efd fld) and CSSB 126(RLS) am(efd fld).                  
                                                                               
  MEL  KRONSENG,  LEGISLATIVE  STAFF,   REPRESENTATIVE  BARNES                 
  replied  that AIDEA was contacted by  both the Department of                 
  Law and Representative Barnes' staff.  She stressed that the                 
  Alaska Energy Authority's corporation structure will be kept                 
  intact.                                                                      
                                                                               
  Representative Brown  understood that  seventy employees  of                 
  AEA would be laid  off.  She asked Ms. Kronseng  to identify                 
  the employees that  will be  eliminated as a  result of  the                 
  legislation.  Ms. Kronseng replied that approximately 35 CIP                 
  employees will be eliminated if operations are contracted to                 
  the private sector.  Transfer of the Bradley Lake project to                 
  the utilities will  result in the elimination or transfer of                 
  five employees.  Other employees  will be transferred to the                 
  Department of Community and Regional Affairs.  She indicated                 
  that the  exact number of employees who  will be transferred                 
  or eliminated is unknown.  She emphasized that there will be                 
  a six month transition period.                                               
                                                                               
  Ms. Kronseng  clarified that AIDEA  will issue  bonds.   The                 
  Alaska Energy Authority  will not  continue to issue  bonds.                 
  She stated that  Mr. Snell indicated  that AIDEA could  take                 
  over  the bond functions of AEA with  the addition of two or                 
  three employees.                                                             
                                                                               
  Representative  Brown referred to statutes being repealed by                 
  the  legislation.     Ms.  Kronseng  stated  that   statutes                 
  concerning rural  functions of  AEA are  being repealed  and                 
  transferred to  teh  Department of  Community  and  Regional                 
  Affairs.                                                                     
                                                                               
  Representative   Parnell   expressed    support   for    the                 
  legislation.    He  expressed concern  with  the  affect the                 
  legislation could have on bonds issued by AEA.  He suggested                 
  that a  written opinion stating  that the bond  capacity and                 
  authority of the AEA and AIDEA will not be impaired.                         
                                                                               
                                                                               
                                2                                              
                                                                               
                                                                               
  Co-Chair  Larson reiterated the motion  to move HCS CSSB 106                 
  (FIN) from  Committee  (made  by  Representative  Therriault                 
  during the  5/08/93 a.m., House Finance  Committee meeting).                 
  There being NO OBJECTION, it was so ordered.                                 
                                                                               
  HCS CSSB 106 (FIN) was reported  out of Committee with a "do                 
  pass"  recommendation  and with  a zero  fiscal note  by the                 
  Department of Community  and Regional  Affairs and with  two                 
  zero fiscal notes by the Department of Commerce and Economic                 
  Development.