Legislature(2003 - 2004)
05/08/2003 02:16 PM House FIN
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* first hearing in first committee of referral
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HOUSE CONCURRENT RESOLUTION NO. 21
Relating to establishing the Alaska Energy Policy Task
Force.
Co-Chair Harris MOVED to ADOPT work draft #23-LS1079\D,
Lauterbach, 5/8/03, as the version of the legislation before
the Committee. There being NO OBJECTION, it was adopted.
Co-Chair Harris explained that the resolution would
establish the Alaska Energy Policy Task Force, the first
stage for developing a statewide energy plan. Initially,
the plan will address Rail belt concerns and the issues in
these areas. The plan will also provide the Legislature
with a report addressing power cost equalization (PCE)
concerns, mining and other general interests. General
obligation (GO) bonds will be discussed next year and a
framework will be developed.
TOM WRIGHT, STAFF, REPRESENTATIVE JOHN HARRIS, explained the
changes made to the committee substitute. The Board's
composition resulted from changes adopted in the work draft.
Originally, the Chair of the Regulatory Commission of Alaska
(RCA) was scheduled to be the Chair of the task force.
Following conversations with RCA and the Alaska Industrial
Development and Export Authority (AIDEA), concern had been
voiced that the RCA Chair could have a conflict of interest,
that chair was removed. It has been requested that a member
of the Alaska Energy Authority (AEA) be added to that
position.
A member was also added, jointly chosen by the Minority
leaders of the House & Senate and named by the President,
making a nine-member panel with full representation of
members chosen by the Governor, the President of the Senate
and the Speaker of the House.
Co-Chair Harris referenced the fiscal note, providing for
board member travel and per diem.
Representative Stoltze inquired if there would be outside
hire. Co-Chair Harris responded that it is intended to hire
someone currently working for the Legislature.
Mr. Wright added that the Alaska Energy Authority and AIDEA
are willing to work with the task force providing as much
expertise as possible. He believed the utilities would also
"come on board". Representative Stoltze suggested that at
the proposed salary, the position would be someone willing
to work "pro bono".
RON MILLER, (TESTIFIED VIA TELECONFERENCE), EXECUTIVE
DIRETOR, ALASKA INDUSTRIAL DEVELOPMENT EXPORT AUTHORITY
(AIDEA), ANCHORAGE, interjected that AIDEA intended to help.
LARRY MARKLEY, LOBBYIST, ALASKA REGIONAL ELECTRIC
COOPERATIVE ASSOCIATION (ARECA), ANCHORAGE, stated that
ARECA had discussed this proposal informally as it had only
recently been introduced. ARECA has not yet taken a formal
resolution regarding the concern, however, from
conversations, there appears to be support. There have been
recommendations made and he preferred that Mr. Yould address
those suggestions in more detail.
· ARECA members recommend that the task force
members elect the chair.
· ARECA recommends increasing the number of
utilities from two to three, two from the Rail
belt and one from the rural areas. Presently, one
comes from the Rail belt and the other from non-
Rail belt areas. He added that because the
utilities will be very involved, it would be good
to have the extra person representing a Rail belt
utility.
· To place someone from the mining industries on the
task force.
Co-Chair Harris believed that the President of the Senate or
the Speaker of the House would place someone from the mining
industry on the board if they thought that person was good.
He agreed that the board should choose the Chair and
recommended that an amendment be made.
Representative Stoltze questioned the intent of RCA's
involvement the RCA. Co-Chair Harris explained that RCA is
the critical component because they have previously been
involved in these types of cases. They should be "on
board". He realized the conflict of interest, and that RCA
would only be involved in the decisions and the effort.
ERIC YOULD, (TESTIFIED VIA TELECONFERENCE), EXECUTIVE
DIRECTOR, ALASKA REGIONAL ELECTIRC COOPERATIVE ASSOCIATION
(ARECA), ANCHORAGE, noted that the members of ARECA believe
that the resolution has merit and that they do support HCR
21. ARECA suggests modification to the number of members on
the task force. He questioned if RCA should be the chair or
even have membership on the commission. He indicated that
ARECA supports the task force electing their own chair.
Co-Chair Harris pointed out that the new committee
substitute has the membership from the Regulatory Commission
removed. At this time, membership consists of:
· One member from AEA
· Commissioner of Revenue
· Two members appointed by the Governor who are not
members of the Legislature
· Three members chosen by the President of the
Senate who are not members of the Legislature
· One member chosen by the Minority Leaders of the
House & Senate
· Two members chosen by the Speaker of the House who
are not members of the Legislature
Mr. Yould agreed with those placements. He suggested that
because the issue is about the utility industry, there
should be three members from the electric utility industry,
two of which should come from the Rail belt, primarily
because that is where the majority of the power comes from.
ARECA recommends consideration that the mining industry be
included in membership. He offered to answer questions of
the Committee.
Co-Chair Harris noted that the resolution is written to
indicate that a utility would not have more than one member
on the task force. It states that at least one member would
be from a Rail belt utility and one from a non-Rail belt
utility. He indicated that he would support that someone
from the mining industry is represented, suggesting that to
the Senate President and/or the Speaker of the House. Mr.
Yould voiced his appreciation and agreed that Commissioner
Corbus would be a great addition.
Representative Stoltze asked if there would be support to
include a consumer on the board that buys more than $50
million dollars worth of power. Mr. Yould stated that ARECA
would not oppose that. Co-Chair Harris indicated that he
did not support the idea, pointing out that person could be
chosen. He hoped to keep the board "relatively small" and
not too political.
Co-Chair Harris MOVED to AMEND Page 2, Line 18, deleting
language, "who shall act as chair of the task force" and
inserting on Page 2, Line 27, adding a new subsection #6,
"The Chair will be appointed by the Board".
Co-Chair Harris asked if Representative Berkowitz was
comfortable with that language.
REPRESENTATIVE ETHAN BERKOWITZ commented that it would be
important to have members from the Denali Commission.
Representative Foster MOVED to report CS HCR 21 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CS HCR 21 (FIN) was reported out of Committee with a "do
pass" recommendation and with a new fiscal note by the
Legislative Affairs Agency.
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