Legislature(2007 - 2008)HOUSE FINANCE 519
04/12/2007 01:30 PM House FINANCE
Audio | Topic |
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Start | |
HB152 | |
HB28 | |
SB49 | |
HB229 | |
Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
+ | HB 28 | TELECONFERENCED | |
+ | HB 152 | TELECONFERENCED | |
*+ | HB 229 | TELECONFERENCED | |
+ | SB 49 | TELECONFERENCED | |
+ | 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
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