Legislature(1999 - 2000)

05/03/1999 03:23 PM House L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
HB 183 - ALASKA PUBLIC UTILITIES COMMISSION                                                                                     
[Contains discussion relevant to SB 133.]                                                                                       
                                                                                                                                
Number 0623                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG announced the committee's next order of business                                                              
is HB 183, "An Act relating to the powers and duties of the chair                                                               
of the Alaska Public Utilities Commission; relating to membership                                                               
on the Alaska Public Utilities Commission; and relating to the                                                                  
annual report of the Alaska Public Utilities Commission."                                                                       
                                                                                                                                
CHAIRMAN ROKEBERG indicated that the committee would be working off                                                             
Version I of HB 183.  He announced that Amendment 3 was adopted at                                                              
the last meeting and Amendment 1 which was amended is back before                                                               
the committee.  He asked if Amendment 1 was amended by deleting the                                                             
60 days.                                                                                                                        
                                                                                                                                
JANET SEITZ, Legislative Assistant for Representative Rokeberg,                                                                 
Alaska State Legislature, pointed out that the action was to delete                                                             
lines 12 through 14 on Amendment I.1, which if left in would have                                                               
deleted the 60 and inserted the 30, which refer to the days within                                                              
which the commission shall enter its order.                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG asked if it was left at 30.                                                                                   
                                                                                                                                
MS. SEITZ replied that it was left at 60.                                                                                       
                                                                                                                                
CHAIRMAN ROKEBERG indicated that the committee still has before  it                                                             
Amendment 1, which is amended and deletes the 30 and retains the                                                                
60.  He noted that Representative Murkowski has an additional                                                                   
amendment to Amendment 1.                                                                                                       
                                                                                                                                
The following is Amendment 1, labeled  1-LS0764\I.1, Cramer,                                                                    
4/28/99, as amended by the committee on 4/28/99, which reads:                                                                   
                                                                                                                                
    Amendment 1, labeled 1-LS0764\I.1, Cramer, 4/28/99, as amended                                                              
by the committee on 4/28/99, read:                                                                                              
                                                                                                                                
     Page 1, line 5, following ";":                                                                                             
          Insert "relating to timely action by the Alaska                                                                       
     Public Utilities Commission;"                                                                                              
                                                                                                                                
     Page 3, line 26:                                                                                                           
          Delete "a new subsection"                                                                                             
          Insert "new subsections"                                                                                              
                                                                                                                                
     Page 3, lines 28 - 30:                                                                                                     
          Delete ", the chair of the commission shall promptly                                                                  
     fix a date for hearing when a hearing is appropriate.                                                                      
     The hearing shall be without undue delay.  The"                                                                            
                                                                                                                                
          Insert "for which a hearing is clearly warranted,                                                                     
     the chair of the commission shall assign a priority                                                                        
     rating to the issue and promptly fix a date for hearing.                                                                   
     The hearing shall be expedited in accordance with the                                                                      
     priority rating.  Regardless of the priority rating, a"                                                                    
                                                                                                                                
     Page 4, following line 2:                                                                                                  
          Insert a new subsection to read:                                                                                      
               "(c) Unless to do so would violate the due                                                                       
          process rights of a party, the commission shall                                                                       
          ensure that its dockets are closed in a timely                                                                        
          fashion and not delayed due to inaction, complexity                                                                   
          of issues, or another reason.  Failure of a                                                                           
          commission member to comply with this subsection                                                                      
          constitutes grounds for removal from the commission                                                                   
          under AS 42.05.035.  The chair of the commission                                                                      
          may dismiss a commission employee for failure to                                                                      
          comply with this subsection."                                                                                         
                                                                                                                                
Number 0675                                                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI recommended that they delete the language                                                              
in new subsection (c) of the above amendment following the word                                                                 
"inaction".  Therefore, subsection (c) would read, "the commission                                                              
shall ensure that its dockets are closed in  a timely fashion and                                                               
not delayed due to inaction."  She also wanted to entertain a                                                                   
discussion on whether to delete the language, "Failure of a                                                                     
commission member to comply with this subsection constitutes                                                                    
grounds for removal from the commission under AS 42.05.035.  The                                                                
chair of the commission may dismiss a commission employee for                                                                   
failure to comply with this subsection."                                                                                        
                                                                                                                                
CHAIRMAN ROKEBERG wondered if Representative Murkowski's amendment                                                              
to the amendment had been adopted.                                                                                              
                                                                                                                                
Number 0744                                                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI indicated that her amendment had not been                                                              
adopted.  She stated that her amendment to the amendment is to                                                                  
eliminate the remainder of the language after the word, "inaction",                                                             
on line 19 of the printed amendment.                                                                                            
                                                                                                                                
CHAIRMAN ROKEBERG wondered if the remainder of the language was                                                                 
possibly an amendment to the amendment.                                                                                         
                                                                                                                                
REPRESENTATIVE MURKOWSKI said that the amendment to the amendment                                                               
is a period after the word, "inaction", in the new subsection (c).                                                              
                                                                                                                                
CHAIRMAN ROKEBERG clarified that the amendment to the amendment is                                                              
to delete the language, "complexity of issues, or another reason."                                                              
He asked if there was any objection to the second amendment to the                                                              
amendment.  There being no objection, the second amendment to the                                                               
amendment was adopted.                                                                                                          
                                                                                                                                
Number 0783                                                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI noted that there was discussion on the                                                                 
language, "Failure of a commission member to comply with this                                                                   
subsection constitutes grounds for removal from the commission                                                                  
under AS 42.05.035.  The chair of the commission may dismiss a                                                                  
commission employee for failure to comply with this subsection."                                                                
She indicated that after making the amendment to the amendment she                                                              
doesn't have as much problem with the additional language.                                                                      
                                                                                                                                
CHAIRMAN ROKEBERG referred to a memorandum from Teresa Cramer,                                                                  
Legislative Counsel, dated April 28, 1999, that speaks to certain                                                               
internalized sanctions within the commission.  Ms. Cramer developed                                                             
the one patterned after the salary warrant, where a judge's salary                                                              
could be withheld until an opinion was issued.                                                                                  
                                                                                                                                
Number 0844                                                                                                                     
                                                                                                                                
REPRESENTATIVE HARRIS inquired as to how a commissioner would be                                                                
delayed by inaction.                                                                                                            
                                                                                                                                
REPRESENTATIVE MURKOWSKI referred to HB 183, version I, under                                                                   
"Removal of commissioners", it states, "The governor may remove a                                                               
commissioner from office only for cause, including incompetence,                                                                
neglect of duty, or misconduct in office."  She indicated that she                                                              
changed her mind and would like to delete the last two sentences of                                                             
the amendment.                                                                                                                  
                                                                                                                                
CHAIRMAN ROKEBERG referred to the last sentence which states, "The                                                              
chair of the commission may dismiss a commission employee for                                                                   
failure to comply with this subsection."  He pointed out there is                                                               
a difference between commission members and commission employees.                                                               
                                                                                                                                
REPRESENTATIVE MURKOWSKI agreed, and noted that commission                                                                      
employees aren't addressed.                                                                                                     
                                                                                                                                
Number 0938                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO indicated that the commission employees would                                                             
already be responsible for following the direction of their                                                                     
supervisors.                                                                                                                    
                                                                                                                                
CHAIRMAN ROKEBERG commented that it is almost redundant.                                                                        
                                                                                                                                
REPRESENTATIVE MURKOWSKI agreed with Representative Halcro.                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG asked whether Representative Murkowski wanted to                                                              
move the third amendment to the amendment.                                                                                      
                                                                                                                                
REPRESENTATIVE MURKOWSKI made a motion to adopt the third amendment                                                             
to the amendment and delete, "Failure of a commission member to                                                                 
comply with this subsection constitutes grounds for removal from                                                                
the commission under AS 42.05.035.  The chair of the commission may                                                             
dismiss a commission employee for failure to comply with this                                                                   
subsection."                                                                                                                    
                                                                                                                                
REPRESENTATIVE HALCRO objected for a question.  He asked, "So, by                                                               
removing this, we still leave intact, of course, the underpinnings                                                              
of the removal of commissioners, correct?"                                                                                      
                                                                                                                                
CHAIRMAN ROKEBERG replied yes.                                                                                                  
                                                                                                                                
REPRESENTATIVE HALCRO removed his objection.                                                                                    
                                                                                                                                
CHAIRMAN ROKEBERG wondered whether there was any reason that the                                                                
first sentence coudn't be removed.                                                                                              
                                                                                                                                
REPRESENTATIVE HALCRO stated that the second sentence, "The chair                                                               
of the commission may dismiss a commission employee for failure to                                                              
comply with this subsection," is redundant.                                                                                     
                                                                                                                                
Number 1059                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG stated that there being no further objection, the                                                             
third amendment to the amendment was adopted.                                                                                   
                                                                                                                                
CHAIRMAN ROKEBERG referred to the language on lines 17 through 19                                                               
of the printed amendment which states, "Unless to do so would                                                                   
violate the due process rights of a party, the commission shall                                                                 
ensure that its dockets are closed in a timely fashion and not                                                                  
delayed due to inaction complexity of issues, or another reason."                                                               
All the language seems superfluous.  He recommended a fourth                                                                    
amendment to the amendment, which would delete  the whole                                                                       
paragraph, "Unless to do so would violate the due process rights of                                                             
a party, the commission shall ensure that its dockets are closed in                                                             
a timely fashion and not delayed due to inaction complexity of                                                                  
issues, or another reason.  Failure of a commission member to                                                                   
comply with this subsection constitutes grounds for removal from                                                                
the commission under AS 42.05.035.  The chair of the commission may                                                             
dismiss a commission employee for failure to comply with this                                                                   
subsection."  There being no objection, the fourth amendment to the                                                             
amendment was adopted.                                                                                                          
                                                                                                                                
Number 1139                                                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI informed the committee that she spoke with                                                             
Mr. Zobel and had asked him if he thought the priority issue was                                                                
reasonable.  Mr. Zobel said it is already done informally in the                                                                
commission and in his opinion, the language is not a problem and is                                                             
perhaps helpful.                                                                                                                
                                                                                                                                
REPRESENTATIVE HARRIS made a motion to adopt Amendment I.1 as                                                                   
amended, which read:                                                                                                            
                                                                                                                                
     Page 1, line 5, following ";":                                                                                             
          Insert "relating to timely action by the Alaska Public                                                                
          Utilities Commission;"                                                                                                
                                                                                                                                
     Page 3, line 26:                                                                                                           
          Delete "a new subsection"                                                                                             
          Insert "new subsections"                                                                                              
                                                                                                                                
     Page 3, lines 28-30:                                                                                                       
          Delete ", the chair of the commission shall promptly fix                                                              
     a date for hearing when a hearing is appropriate.  The hearing                                                             
     shall be held without undue delay.  The"                                                                                   
          Insert "for which a hearing is clearly warranted, the                                                                 
     chair of the commission shall assign a priority rating to the                                                              
     issue and promptly fix a date for hearing.  The hearing shall                                                              
     be expedited in accordance with the priority rating.                                                                       
     Regardless of the priority rating, a"                                                                                      
                                                                                                                                
CHAIRMAN ROKEBERG asked if there was any objection.  There being                                                                
none, Amendment I.1 as amended was adopted.  He referred to an                                                                  
amendment offered by Mr. Zobel in a memorandum dated May 3, 1999.                                                               
He indicated that the committee has decided to hold the amendment                                                               
in abeyance.  Chairman Rokeberg announced his intention to hold HB
183 over until the next meeting.                                                                                                
                                                                                                                                
Number 1404                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG asked Representative Halcro if Amendment H.8 is                                                               
consistent with SB 133 and the Alaska Oil and Gas Conservation                                                                  
Commission (AOGCC) methodology.                                                                                                 
                                                                                                                                
REPRESENTATIVE HALCRO said that Amendment H.8 is consistant with SB
133.  He reminded the committee that Amendment H.8 was held to get                                                              
an opinion from Legislative Legal as to whether it is                                                                           
constitutional.  He indicated that it is constitutional.  The                                                                   
commission can elect a commissioner and then the governor would                                                                 
need to approve the election.  The corrected amended does need to                                                               
be amended to reflect the direction set forth by Legislative Legal.                                                             
He made a motion to adopt amendment H.8, which read:                                                                            
                                                                                                                                
     Page 1, line 8, following "(b) The" delete "governor shall                                                                 
     designate one member of the commission as chair.  The chair                                                                
     shall serve as chair for a term of four years, but may be                                                                  
     appointed for successive terms." and insert "commission shall                                                              
     select one member of the commission to serve as chair for a                                                                
     term of two years.  A commissioner may be elected to                                                                       
     successive terms as chair of the commission."                                                                              
                                                                                                                                
REPRESENTATIVE HARRIS objected for the purpose of discussion.                                                                   
                                                                                                                                
REPRESENTATIVE HALCRO stated that he has his own language that                                                                  
could be inserted to satisfy the legal need.  He made a conceptual                                                              
amendment to the amendment, "line 4, after the period after 'years'                                                             
would insert, 'the governor shall approve the commission's                                                                      
selection as chair'."                                                                                                           
                                                                                                                                
JONATHON LACK, Legislative Assistant for Representative Halcro,                                                                 
stated that it could be worded in the reverse, which would make it,                                                             
"the governor may reject the commission's selection as chair."                                                                  
                                                                                                                                
CHAIRMAN ROKEBERG pointed out that would give the governor veto                                                                 
power over the chair; he asked if that was the intent?                                                                          
                                                                                                                                
REPRESENTATIVE HALCRO changed the conceptual amendment to read,                                                                 
"the governor may reject the commission's selection of chair."                                                                  
                                                                                                                                
CHAIRMAN ROKEBERG asked if there was any objection.  There being                                                                
none, Amendment H.8 as amended was adopted.                                                                                     
                                                                                                                                
REPRESENTATIVE HARRIS requested clarification on whether the                                                                    
governor appoints the commissioners.                                                                                            
                                                                                                                                
REPRESENTATIVE HALCRO clarified that the governor appoints the                                                                  
commissioners, the commissioners elect a chair and then the                                                                     
governor has the option of rejecting the chair.                                                                                 
                                                                                                                                
Number 1714                                                                                                                     
                                                                                                                                
LARRY MARKLEY, Alaska Rural Electric Cooperative Association                                                                    
(ARECA), wondered if the committee is going to consider any                                                                     
adjustment or amendment to the bill that would allow for Regulatory                                                             
Cost Changes (RCC) proportionate to the type of cases the                                                                       
commission undertakes.  For instance, if it's three-quarter                                                                     
electric and one-quarter telephone would it ...                                                                                 
                                                                                                                                
CHAIRMAN ROKEBERG interjected that the chair is not rejecting the                                                               
concept, it's just that there isn't satisfactory language.                                                                      
                                                                                                                                
REPRESENTATIVE HALCRO wondered if SB 133 reflected the proposed                                                                 
amendments to regulatory cost charges (RCCs).                                                                                   
                                                                                                                                
Number 1798                                                                                                                     
                                                                                                                                
MR. MARKLEY responded that it moves toward what the industry is                                                                 
looking for.                                                                                                                    
                                                                                                                                
CHAIRMAN ROKEBERG interjected that it was for minimum modification,                                                             
but not with that language.                                                                                                     
                                                                                                                                
MR. MARKLEY indicated that he would be happy to submit a simplified                                                             
amendment.                                                                                                                      
                                                                                                                                
CHAIRMAN ROKEBERG expressed the need to have a committee substitute                                                             
before there is any more confusion, and to take up any additional                                                               
amendments at the next meeting.                                                                                                 
                                                                                                                                

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