Legislature(1999 - 2000)
05/12/1999 06:15 PM House FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CS FOR SENATE BILL NO. 133(RLS) am
"An Act creating and relating to the Regulatory
Commission of Alaska and transferring to it certain
powers and duties of the Alaska Public Utilities
Commission; repealing the Alaska Public Utilities
Commission; relating to the powers of the chair of the
Regulatory Commission of Alaska; relating to regulatory
cost charges for public utilities and pipelines;
relating to the appellate procedures of the Regulatory
Commission of Alaska; relating to the Alaska Oil and
Gas Conservation Commission; and providing for an
effective date."
Co-Chair Therriault MOVED to ADOPT Amendment 2 (copy on
file). Representative Grussendorf OBJECTED.
PAT CARTER, STAFF, SENATOR PEARCE explained Amendment 2. He
observed that the amendment removes section 28, which
authorizes the new Regulatory Commission of Alaska to employ
one additional hearing office. He noted that this position
is in the operating budget as passed by both bodies. The
language is redundant.
There being NO OBJECTION, Amendment 2 was adopted.
Amendment 3 was WITHDRAWN.
Representative J. Davies MOVED to ADOPT Amendment 4 (copy on
file). The amendment would add the following language in
section 7:
"A party may file a petition for reconsideration of, or
an administrative appeal of, a decision by a hearing
officer, an arbitrator, or an administrative law judge
that has been approved by the commission, or a decision
of a hearing panel. The full commission shall act on
the petition for reconsideration or the appeal."
There being NO OBJECTION, Amendment 4 was adopted.
Co-Chair Therriault MOVED to ADOPT Amendment 5 (copy on
file). Amendment 5 would change the sunset date from the
year 2004 to 2002. It was the intent of Co-Chair Therriault
that the legislature review the transition of APUC.
There being NO OBJECTION, it was so ordered.
Co-Chair Therriault MOVED to ADOPT the following House
Finance Committee Letter of Intent:
SB 133 repeals the Alaska Public Utilities Commission
and creates the Regulatory Commission of Alaska. In
making this change to public utility regulation, it is
the intent of the Legislature to respond to
recommendations in legislative audits conducted in
1979, 1985 and 1989, and an audit performed by the
National Regulatory Research Institute (NRRI) in 1998.
The task of regulating public utilities has changed
dramatically as the utility industry has moved from
total regulation to regulated competition. The 21st
Alaska Legislature is creating the Regulatory
Commission of Alaska to address these changes in the
utility industry on behalf of the people of the state
of Alaska.
The Regulatory Commission of Alaska is better equipped
than the APUC to respond to industry proposals for
changes in utility services, and to protect the
interests of ratepayers in the wake of these changes.
SB 133 gives the chair authority over administrative
matters, leaving the other commissioners free to
resolve substantive issues. To address the problem of
the APUC's case backlog and time-consuming
decision-making process, SB 133 allows panels of three
commissioners, hearing officers or arbitrators to
resolve cases where appropriate. It also requires the
RCA to adopt regulations setting procedural timelines.
To address the problems created by changing APUC
staff's role between advocate and advisor, it
establishes a separate public advocacy section within
the RCA.
SB 133 will improve this agency's accountability to the
public. The RCA is required to establish a Management
Information System, similar to the Legislature's BASIS
system so that the public and industry can be better
informed about the RCA's proceedings. It requires the
RCA to implement a time management system to record the
amount of time spent on filings from different
industries, so that the Regulatory Cost Charge can be
more fairly assessed.
This year is an opportune time to make these changes.
The Alaska Public Utilities Commission would begin
winding down on June 30, 1999 under the sunset law. SB
133 requires the governor to appoint, and the
Legislature to confirm, five commissioners who will
represent the interests of the public.
SB 133 provides for a study of the possibility of
combining the functions of the Regulatory Commission of
Alaska and the Alaska Oil and Gas Conservation
Commission. The results of a study by the Legislative
Budget and Audit Committee will be presented to the
next session of this Legislature. If the Legislature
decides to combine the two agencies' functions, the
challenge of making that transition will be
significantly eased by the creation and operating
experience of the RCA under SB 133.
Mr. Carter observed that the letter of intent sets into the
record all the reasons for establishing a new commission and
the structure changes.
There being NO OBJECTION, the letter of intent was adopted.
Mr. Carter noted that Alaska Regulatory Commission should be
the Regulatory Commission of Alaska.
Representative Foster expressed concern with the performance
of the past executive director of the APUC. Mr. Carter
reiterated that the intent is to clarify that staff takes
direction from the chairman of the commission.
MIKE TIBBLES, STAFF, REPRESENTATIVE THERRIAULT reviewed the
fiscal note for the Alaska Oil and Gas Conservation
Commission (AOGCC) fiscal note. There is a $147 thousand
dollar general fund request in the contractual line for
lease costs. There is a $321.9 thousand dollar capital
request for moving costs.
Co-Chair Therriault explained that the SB 133 fiscal note
would be zeroed out in the conference committee if SB 134
and SB 133 pass.
Representative J. Davies observed that the intent is to fund
the request.
Mr. Carter explained that the fiscal note reflects the
changes to the legislation.
Representative J. Davies MOVED to ADOPT Amendment 6 (copy on
file). Co-Chair Therriault OBJECTED. Representative J.
Davies explained that the amendment would add a person to
represent the interest of the public.
Co-Chair Therriault spoke against the amendment. He
emphasized that all of the members are present to represent
the consumer. There is also a separate public advocacy
section. Mr. Carter added that every audit reaffirms that
APUC was created to protect the interests of the public. Co-
Chair Therriault noted that the current language is
acceptable to the Administration. Representatives
Grussendorf and J. Davies argued in support of the
amendment. Vice-Chair Bunde spoke against the amendment.
A roll call vote was taken on the motion.
IN FAVOR: Davies, Grussendorf
OPPOSED: Bunde, Davis, Foster, Kohring, Austerman,
Therriault, Mulder
Representatives Williams and Moses were absent from the
vote.
The MOTION FAILED (2-7).
Representative Foster MOVED to report HCS CSSB 133 (FIN) out
of Committee with the accompanying fiscal notes. There being
NO OBJECTION, it was so ordered.
CSSB 133(RLS) am was REPORTED out of Committee with a "do
pass" recommendation and with two new fiscal impact notes,
one by the Department of Commerce and one by the Economic
Development and Department of Administration.
| Document Name | Date/Time | Subjects |
|---|