Legislature(2007 - 2008)HOUSE FINANCE 519

04/12/2007 01:30 PM House FINANCE


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 28 POWER SOURCE DISCLOSURE TELECONFERENCED
Heard & Held
+ HB 152 ESTABLISHING A RENEWABLE ENERGY FUND TELECONFERENCED
Scheduled But Not Heard
*+ HB 229 KENAI GASIFICATION PROJECT; RAILROAD BOND TELECONFERENCED
Heard & Held
+ SB 49 COMMEMORATIVE PLATES: STATEHOOD ANIV. TELECONFERENCED
Moved HCS CSSB 49(TRA) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
HOUSE BILL NO. 28                                                                                                             
                                                                                                                                
     An Act requiring retail suppliers of electricity to                                                                        
     disclose sources of electricity to consumers.                                                                              
                                                                                                                                
REPRESENTATIVE  JAY RAMRAS, SPONSOR,  stated that there  is a                                                                   
need for more  public awareness of fuels used  by electricity                                                                   
sold  to Alaskan  consumers.   Many  of Alaska's  electricity                                                                   
providers  are  using  innovative   alternative  methods  for                                                                   
generating electricity  or buying  power from companies  that                                                                   
do.   If residents  statewide become more  aware of  it, they                                                                   
could  in turn  become more  aware  of the  need to  conserve                                                                   
decreasing supply  of traditional fuels.  HB  28 requires all                                                                   
retail  suppliers  of  electricity   in  Alaska  to  annually                                                                   
disclose fuel sources to all consumers,  raising awareness of                                                                   
how power is  generated and the existence of  alternatives to                                                                   
fossil fuels.  The simple once-a-year  report would also help                                                                   
explain  increases  in  costs   per  kw/hr  and  help  answer                                                                   
consumers questions.                                                                                                            
                                                                                                                                
1:49:59 PM                                                                                                                    
                                                                                                                                
Vice Chair Stoltze  asked if it was possible to  find out the                                                                   
cost per kilowatt hour (kw/hr).   He wanted to guarantee that                                                                   
the State would  not be buying into something  more expensive                                                                   
than currently  used.   Representative Ramras explained  that                                                                   
the  idea  is  that regular  citizens  would  be  offered  an                                                                   
opportunity  to  understand  the  kilowatt  costs  that  they                                                                   
personally  use.    He added  that  Alaskan  citizens  should                                                                   
address alternative energy and  that HB 28 provides a "modest                                                                   
step" toward that direction.                                                                                                    
                                                                                                                                
Vice Chair Stoltze worried that  it was an expensive decision                                                                   
made for  utilities; he  hoped to see  the bill made  better.                                                                   
Representative Ramras replied  he would support any action to                                                                   
make  it better;  he  only  wanted  to see  discussion  begin                                                                   
regarding portfolio of kilowatt costs.                                                                                          
                                                                                                                                
1:54:14 PM                                                                                                                    
                                                                                                                                
Vice Chair  Stoltze noted  that the  utility that  represents                                                                   
his area is a customer within  a larger utility.  As the bill                                                                   
is written,  who assumes the  responsibility for  mailing the                                                                   
insert.  Representative Ramras  requested that the Regulatory                                                                   
Commission of Alaska would be  better qualified to respond to                                                                   
that query.   He added that  the expense burden would  not be                                                                   
exorbitant.                                                                                                                     
                                                                                                                                
Vice Chair  Stoltze inquired  if wind generation  maintenance                                                                   
costs could  be quantified.  Representative  Ramras responded                                                                   
that the  bill addresses only  existing used kilowatt  hours.                                                                   
He listed the four sources of kilowatts:                                                                                        
                                                                                                                                
   ·    Coal                                                                                                                    
   ·    Natural gas                                                                                                             
   ·    Fuel oil                                                                                                                
   ·    Hydro                                                                                                                   
                                                                                                                                
The  only intention  of  the bill  is  to create  a  dialogue                                                                   
regarding  current  kw/hr  costs   &  the  sources  of  those                                                                   
kilowatts.                                                                                                                      
                                                                                                                                
1:58:02 PM                                                                                                                    
                                                                                                                                
Vice  Chair Stoltze  inquired how  to sequester  & achieve  a                                                                   
consumer preference.  Representative  Ramras stated he wanted                                                                   
to see more & cheap energy.                                                                                                     
                                                                                                                                
1:59:22 PM                                                                                                                    
                                                                                                                                
Representative  Gara commented  on  amending language,  which                                                                   
could provide  information to the consumers.   Representative                                                                   
Ramras recommended  that consideration be discussed  with the                                                                   
RCA.                                                                                                                            
                                                                                                                                
Representative  Gara noted the  main concerns with  renewable                                                                   
energy:                                                                                                                         
                                                                                                                                
   ·    Power source                                                                                                            
   ·    Level of green house emissions going into the                                                                           
        atmosphere                                                                                                              
                                                                                                                                
Representative Gara asked if the  sources of the power were a                                                                   
fair estimate  of how  much carbon  dioxide comes from  those                                                                   
sources.    He  inquired  if  the  sponsor  was  amenable  to                                                                   
including  that information.   Representative Ramras  offered                                                                   
to consider it in 2008.                                                                                                         
                                                                                                                                
Representative Gara  hoped to add reasonable  language to the                                                                   
proposed bill.  Representative  Ramras noted it was the first                                                                   
time  the  idea had  come  forward;  he preferred  to  handle                                                                   
projects incrementally.  He was  not interested in adding the                                                                   
language as it brings an element of "science" to the bill.                                                                      
                                                                                                                                
2:02:45 PM                                                                                                                    
                                                                                                                                
Representative  Gara  stated   that  he  wanted  to  work  on                                                                   
responsible language  to let people  know the kinds  of green                                                                   
house emissions occurring from their power sources.                                                                             
                                                                                                                                
2:03:19 PM                                                                                                                    
                                                                                                                                
RICHARD  GAZAWAY,  (TESTIFIED  VIA  TELECONFERENCE),  HEARING                                                                   
EXAMINER,   REGULATORY  COMMISSION   OF  ALASKA,   ANCHORAGE,                                                                   
offered to answer questions of the Committee.                                                                                   
                                                                                                                                
Vice  Chair Stoltze  asked about  the  relationship with  his                                                                   
consumer utilities.                                                                                                             
                                                                                                                                
2:05:02 PM                                                                                                                    
                                                                                                                                
Representative   Ramras  explained   that   there  had   been                                                                   
testimony  in   the  House   Labor  and  Commerce   Committee                                                                   
regarding Vice  Chair Stoltze's concern.  The  utilities were                                                                   
amenable to providing  the "stuffers"; they do not  see it as                                                                   
an additional cost.                                                                                                             
                                                                                                                                
2:06:38 PM                                                                                                                    
                                                                                                                                
Representative  Nelson questioned  which  utilities had  been                                                                   
contacted.   Representative  Ramras stated  that the  smaller                                                                   
utilities  were  contacted.     He  asked  that  RCA  testify                                                                   
regarding the size be excused.                                                                                                  
                                                                                                                                
Representative Nelson pointed  out that the source of utility                                                                   
in rural  Alaska was diesel energy  and did not  imagine they                                                                   
would need  "stuffers".   The companies  do not offer  annual                                                                   
reports.     Representative   Ramras   guaranteed  that   the                                                                   
legislation would not be a burden to the small communities.                                                                     
                                                                                                                                
2:08:09 PM                                                                                                                    
                                                                                                                                
Co-Chair Chenault  asked for a list of which  utilities would                                                                   
be  affected.     Representative  Ramras  explained   it  was                                                                   
addressed  through exclusion  of the  small power  generating                                                                   
utilities  - there  is no  list.   There  has been  a lot  of                                                                   
discussion on  the dollar amount separating the  smaller from                                                                   
the larger utilities.                                                                                                           
                                                                                                                                
Co-Chair Chenault  inquired if single-source  utilities would                                                                   
be  exempt.     Representative  Ramras  responded   that  the                                                                   
legislation  goes   with  the  dollar  amount   of  how  many                                                                   
kilowatts  are generated,  which abides  by RCA dialogue,  in                                                                   
the House Labor & Commerce Committee.                                                                                           
                                                                                                                                
Co-Chair Chenault noted that Juneau  was fully hydro and that                                                                   
for them  to implement  the program, there  would be  a small                                                                   
cost  passed to  the consumers,  which  he thought  was be  a                                                                   
waste.   Representative Ramras  agreed, however,  pointed out                                                                   
that it  could be  a way to  bring information to  consumer's                                                                   
attention.                                                                                                                      
                                                                                                                                
2:11:48 PM                                                                                                                    
                                                                                                                                
Representative Hawker  voiced confusion regarding  disclosure                                                                   
of source and cost, pointing out  that the bill only requires                                                                   
source disclosure.                                                                                                              
                                                                                                                                
Representative  Nelson pointed out  language on Page  2, Line                                                                   
23, indicating an  electric utility that does  not gross $500                                                                   
thousand annually,  may elect  to be exempt.   Representative                                                                   
Hawker advised that the following  language: "Provision other                                                                   
than", would  change that.   Representative Ramras  requested                                                                   
an amendment to address that correction,  the intention is to                                                                   
exclude small utilities.                                                                                                        
                                                                                                                                
2:13:49 PM                                                                                                                    
                                                                                                                                
Representative  Gara pointed out  that $500 thousand  dollars                                                                   
annually  amounted  to  approximately   250  customers.    He                                                                   
worried  how   that  would  affect   small  &   rural  areas.                                                                   
Representative  Ramras indicated  the  number was  determined                                                                   
during discussion in the House  Labor and Commerce Committee.                                                                   
                                                                                                                                
2:14:55 PM                                                                                                                    
                                                                                                                                
MARK JOHNSON,  CHAIR, REGULATORY COMMISSION OF  ALASKA (RCA),                                                                   
ANCHORAGE, clarified that the  $500 thousand dollar amount is                                                                   
the  amount in  current  law and  it is  not  amended by  the                                                                   
proposed legislation.   He recommended  a threshold  could be                                                                   
further discussed.                                                                                                              
                                                                                                                                
Representative  Gara   encouraged  that  it  be   applied  to                                                                   
utilities  that serve  at least  a 1,000  consumers or  more.                                                                   
Representative  Ramras liked  that idea  for big utilities  &                                                                   
encouraged  whatever  language  change  needs  to  happen  to                                                                   
tighten it up.                                                                                                                  
                                                                                                                                
Co-Chair  Meyer asked  Representative  Hawker  to consider  a                                                                   
conceptual  amendment addressing  the issue.   Representative                                                                   
Hawker recommended tabling the bill.                                                                                            
                                                                                                                                
2:17:09 PM                                                                                                                    
                                                                                                                                
PUBLIC TESTIMONY CLOSED                                                                                                       
                                                                                                                                
2:17:20 PM                                                                                                                    
                                                                                                                                
Vice Chair Stoltze  inquired about the  obligations providing                                                                   
for consumers.  Mr. Johnson pointed  out that current wording                                                                   
places  an obligation  to  conduct  rule-making  in order  to                                                                   
conduct  things   such  as   exemptions  on  the   Regulatory                                                                   
Commission of Alaska.                                                                                                           
                                                                                                                                
Vice   Chair  Stoltze   referenced   his  community   utility                                                                   
newsletter and asked if that would  be a good place to insert                                                                   
the information.   He thought the goal was to  have little or                                                                   
no costs passed on to the consumers.                                                                                            
                                                                                                                                
2:20:26 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer  noted  that  the bill  needs  work,  and  he                                                                   
recommended that  a couple  conceptual amendments  be written                                                                   
and then considered.                                                                                                            
                                                                                                                                
HB 28 was HELD in Committee for further consideration.                                                                          
                                                                                                                                
2:21:05 PM                                                                                                                    

Document Name Date/Time Subjects