Legislature(1999 - 2000)
05/06/1999 09:15 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 157
"An Act relating to power cost equalization; and
providing for an effective date."
MARY JACKSON, staff to Senator John Torgerson was invited
to join the committee. She explained CSSB 157(FIN),
version "I" work draft for the committee. She further
briefly outlined the sectional analysis, sections 1, 2, 3
and 4. She explained the difference between the two bills.
The committee substitute does not make any differential to
kilowatt hours of the original bill and statute; did not
add Kenai and Palmer to Statewide average; deleted
commercial users; did not lower PCE utility rates; raised
the floor from 9.5 to 17.0 cents and added fuel efficiency
notice requirements.
Senator Adams said that one of the greatest impacts was on
page two, section two, line nine. He said it would
increase the electrical power equity. An individual would
only receive $93/month. He thought they were going for a
floor between 9.5 to 10.
Ms. Jackson explained that the question of where to apply
this floor was to ascertain which user would be hurt the
least.
Senator Green asked about the fuel efficiency notice
requirements. Ms. Jackson said there were two APUC and the
Division of Energy who were the "watchdogs" for the
efficiency notice requirements. She said they work with
each utility. Members of the division were present to
answer any questions.
Senator Wilken asked about the spreadsheet and who provided
it. Ms. Jackson said that the department had provided it
and they were present to answer any questions.
Senator Green asked if there was any calculation on the
impact to schools? Ms. Jackson said that a specific run
was not made on this matter, however, Senator Torgerson had
written a letter to the department regarding this matter.
They advised that if there was a problem with a particular
school they would consider a waiver.
Senator Adams said that different schools depending on
their location would have different costs and they would be
asking for a waiver perhaps. He asked if there were any
runs available on the difference between 9.5 and 17.0. Ms.
Jackson indicated that it was in the spreadsheet provided
by the division.
Senator Adams commented regarding the PCE issue. "The
public needs to know what direction we are going in if
these changes are going to be made."
Co-chair Torgerson referred to line fifteen of the
spreadsheet. Ms. Jackson explained that figure was
correct.
Senator Parnell MOVED CSSB 157 (FIN) "I" to be ADOPTED.
Senator Donley explained that he did not want to see this
bill moved out today. Co-chair Torgerson said he wanted to
move the bill out today. Senator Donley explained that he
had drafted amendments but they were to the old version of
the bill. He therefore, OBJECTED.
By a roll call vote of 6 yeas (Torgerson, Parnell, Leman,
Wilken, Green, Phillips) and 2 nays (Donley, Adams)(P.
Kelly absent) CSSB 157(FIN) "I" was ADOPTED as the working
draft before the committee.
Co-chair Torgerson asked that copies of the work draft be
provided the public.
The committee took a brief at ease at approximately 9:30
a.m.
Co-chair Torgerson reconvened the committee at
approximately 9:40 a.m.
LAMAR COTTEN, Deputy Commissioner, Department of Community
and Regional Affairs was invited to join the committee. He
voiced concern for the small communities regarding these
cuts. He noted they have appreciated working with the Co-
chair's staff regarding this issue. There are
approximately 175 communities receiving assistance under
this program, but they were not aware of how many
individuals directly were receiving this assistance. They
have made some suggestions regarding increasing the revenue
from the Four Dam Pool program.
Co-chair Torgerson further referred to the floor being kept
at 700 kWh. Mr. Cotten explained. They have looked at
different models to reduce the kilowatt-hours to 350.
JOSEPH KOLLAR, Executive Secretary, Office of the
Commissioner, Department of Community and Regional Affairs
was invited to join the committee. He concurred with the
comments made by Mr. Cotten.
Senator Wilken asked Mr. Cotten explain the spreadsheet.
Mr. Kollar walked the committee through the spreadsheet.
Less than half of the kilowatt-hours sold in a community go
to commercial users. Column thirteen was total kilowatt
hours consumed. Column fourteen was kilowatt-hours
acceptable to PCE.
Senator Wilken asked about column nine and how it was
derived. Mr. Kollar said it was set by PCE. He continued
explaining the columns for the committee. He explained
Pelican dropping off the program. He explained the
communities with low usage rates are on page one of the
spreadsheet and those with high usage rates are on page
five of the spreadsheet. Communities with a high usage
rate stood to lose more than those communities with a low
usage rate. In conclusion he explained the "totals" on
page five.
Senator Leman asked about page five of the spreadsheet. He
suggested perhaps the "ceiling" should be adjusted as well
as the "floor".
Co-chair Torgerson asked if a run had been made and Mr.
Kollar indicated they had compared what the average payment
would be. He would be willing to provide those comparisons
to the committee.
(pause on record)
Mr. Kollar explained another comparison for an example for
the committee in response to the request from Senator
Leman. He said, however, he did not have a "neat" summary
to present on paper at this time to the committee.
Co-chair Torgerson asked that runs be provided to the
committee by this afternoon. Mr. Kollar said that was
possible.
Senator Phillips asked about page one of the spreadsheet.
He would appreciate an average also be provided.
Senator Adams comments regarding commercial payments. Mr.
Kollar responded. Commercial as indicated was private
commercial and also included some non-profits. He will
look into which non-profits and what commercial and
communities. Senator Adams said he felt this was a very
important matter and Co-chair Torgerson concurred.
There followed a brief discussion between Senator Adams and
Mr. Cotten regarding AIDEA involvement. Mr. Cotten said
that Randy Simmons from AIDEA was on line to answer any
questions.
Co-chair Torgerson asked the department to have the
requested information from Senators Adams and Leman by this
afternoon in his office.
(Tape # 126, Side A switched to Side B at log #589.)
Senator Leman explained again his request to the
department. Senator Adams also had brief comments and
suggested perhaps another source could be looked for to
fund revenue. Co-chair Torgerson concurred. He said they
would work with Senator Adams to try and sort out this
issue.
Co-chair Torgerson HELD the bill in committee and said he
would bring it up again as soon as possible. He then moved
to teleconference and asked if anyone wanted to testify.
Senator Adams said that in looking for revenue sources was
there anything available for appropriation from AIDEA?
RANDY SIMMONS, Executive Director, AIDEA, Department of
Commerce and Economic Development responded via
teleconference from Anchorage. He said there was
approximately $8 million that could be made available. In
response to a question from Co-chair Torgerson he said they
were looking at the possibility of higher dividend payments
to the State. They do anticipate higher dividends but do
not know the amount. He would not, however, assume the
amount could be lowered by the amount the Governor was
putting in the fund regarding PCE for next year. They were
looking at offering up more money for the year 2000. Co-
chair Torgerson said there was only thirteen days left.
Mr. Simmons indicated he was aware of this.
ERIC YOULD, Executive Director for ARECA was invited to
join the committee. He voiced his concern with this bill.
Co-chair Torgerson assured they would continue working with
him also.
Co-chair Torgerson SET ASIDE CSSB 157(FIN) "I". He then
called SB 97.
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