03/21/2007 03:00 PM House LABOR & COMMERCE

HB  28-POWER SOURCE DISCLOSURE                                                                                                
                                                                                                                                
3:12:57 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  announced that the  next order of business  would be                                                               
HOUSE  BILL  NO.  28,  "An  Act  requiring  retail  suppliers  of                                                               
electricity to disclose sources of electricity to consumers."                                                                   
                                                                                                                                
3:13:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN  made a  motion to  adopt CSHB  28, Version                                                               
25-LS0189\E,  Kane,  2/26/07, as  the  working  document.   There                                                               
being no objection, Version E was before the committee.                                                                         
                                                                                                                                
3:13:30 PM                                                                                                                    
                                                                                                                                
BARBARA  COTTING, Staff  to Representative  Ramras, Alaska  State                                                               
Legislature, sponsor, explained that  Version E addresses several                                                               
concerns  brought  up  during  the  previous  committee  hearing.                                                               
Version  E  removes  Section  2,   which  Legislative  Legal  and                                                               
Research Services  found to be  unnecessary, as this  was covered                                                               
in  other sections  of the  bill.   Additionally,  Section 5  was                                                               
removed, which  allows utilities  grossing less-than  $50,000 per                                                               
year to remain exempt from the reporting requirements.                                                                          
                                                                                                                                
REPRESENTATIVE  GARDNER asked  if  the  Regulatory Commission  of                                                               
Alaska (RCA) holds a position on HB 168.                                                                                        
                                                                                                                                
3:15:04 PM                                                                                                                    
                                                                                                                                
JAMES  KEEN, Chief/Engineering,  Regulatory Commission  of Alaska                                                               
(RCA), Department of Commerce,  Community, & Economic Development                                                               
(DCCED), replied  that the RCA does  not have a position,  but is                                                               
happy  with the  changes  made  by Version  E.    He stated  that                                                               
Section  5 of  the original  bill  would have  been difficult  to                                                               
enforce; however,  the remainder of  the bill can  be implemented                                                               
through regulations.                                                                                                            
                                                                                                                                
REPRESENTATIVE NEUMAN asked  whether utility companies approached                                                               
the sponsor to request this legislation.                                                                                        
                                                                                                                                
3:15:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RAMRAS explained  that  he  received his  monthly                                                               
statement  from  a  rental  unit he  owns  in  California,  which                                                               
included  a power  disclosure form.   He  felt this  would be  of                                                               
interest  to Alaskans.   He  went on  to say  that in  Fairbanks,                                                               
consumers have  the option  of purchasing  renewable energy  at a                                                               
higher rate per kilowatt.  He  opined that this is an inexpensive                                                               
way for  consumers to  increase awareness  of the  energy source.                                                               
He  stated that  he  was not  approached by  any  utilities.   He                                                               
pointed  out that  the  only resistance  was  from Golden  Valley                                                               
Electric Association (GVEA).   The GVEA was  under the impression                                                               
that  the disclosure  would be  monthly; however,  since it  is a                                                               
yearly disclosure,  this resistance has dissipated.   In response                                                               
to a question  from Representative Gatto, he  clarified that GVEA                                                               
offers  a  program for  consumers  to  choose alternative  energy                                                               
sources.     The  power  disclosure   statement  is   offered  in                                                               
California.  Both of these  programs resulted in the introduction                                                               
of HB 168.                                                                                                                      
                                                                                                                                
3:19:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX   inquired  as  to  what   the  disclosure                                                               
statement would cost the utilities.                                                                                             
                                                                                                                                
REPRESENTATIVE RAMRAS  replied that  he receives  many enclosures                                                               
each  year from  GVEA.   When questioned,  GVEA stated  that this                                                               
would not  be a high  cost to the company.   He opined  that this                                                               
would not  be any  different from  the enclosures  currently sent                                                               
out.                                                                                                                            
                                                                                                                                
REPRESENTATIVE NEUMAN  noted that the  bill does not  specify how                                                               
this  information  should be  disclosed.    He opined  that  most                                                               
utilities are proud of the alternative energy programs offered.                                                                 
                                                                                                                                
REPRESENTATIVE  RAMRAS   agreed.    He  pointed   out  that  this                                                               
information  could be  included in  the utility's  annual report,                                                               
although  many individuals  do not  read  this.   He opined  that                                                               
including  this   information  in   a  monthly   statement  would                                                               
encourage consumers to take a closer look.                                                                                      
                                                                                                                                
REPRESENTATIVE   NEUMAN  opined   that  this   would  not   be  a                                                               
significant cost to  the utility, and therefore should  not be an                                                               
issue.                                                                                                                          
                                                                                                                                
REPRESENTATIVE GARDNER  stated that  this is an  intriguing idea,                                                               
and  "potentially very  powerful."   She  said that  the lack  of                                                               
testimony from the utilities suggests  that this is not an issue.                                                               
She  stated that  this information  may  simply be  printed on  a                                                               
bill,  and thus  may not  require an  additional piece  of paper.                                                               
She then stated that this is  "pretty simple," adding that she is                                                               
ready to support HB 28.                                                                                                         
                                                                                                                                
3:23:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN  moved  to  report CSHB  28,  Version  25-                                                               
LS0189\E,  Kane,  2/26/07,  out   of  committee  with  individual                                                               
recommendations and  the accompanying fiscal notes.   There being                                                               
no objection, CSHB 28(L&C) was  reported from the House Labor and                                                               
Commerce Standing Committee.                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:23 PM to 3:25 PM.