Legislature(1999 - 2000)
05/10/1999 09:10 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 the new spreadsheets
dated 10 May 1999. At the request of Co-chair Torgerson
she explained the Governor's Commission recommendations of
a deduction for commercial users.
(The committee took a brief at ease on record while the
spreadsheet was passed out to the members.)
Ms. Jackson continued her explanation of the spreadsheet.
(Pause on record.)
She explained the letter as attached by Mr. Bruce Kovarik,
Executive Director, Association of Alaska Housing
Authorities to Senator Torgerson. It indicated the full
board would be meeting tomorrow. Senator Adams said the
letter was like a "bad headache". He said it had to be
approved by the native boards and United States Housing and
Urban Development. He felt there would be a "no" on this
letter. Co-chair Torgerson said there was a present
amendment that would authorize receipt of these monies if
it should materialize.
Ms. Jackson continued with the third attachment from
Charlie Walls, President and Chief Executive Officer,
Alaska Village Electric Cooperative, Inc. also dated 10 May
1999. It contained several suggestions about how to reach
the PCE budget of $15 million.
Mr. Leman comments to the committee. Ms. Jackson advised
that Mr. Walls was on teleconference to respond to any
questions.
Senator Adams commented re PCE. He said his option was
always looking at the bottom line. Ways need to be found
to fund this program. The dividend program would have
impact, especially to rural Alaskans. Most rural Alaskans
use their permanent fund dividend to pay, for instance,
their electric bills.
(The arrival of Senator Donley was noted.)
Senator Adams continued. He referred to the payment by Red
Dog Mine to the State. He felt that proposals submitted on
the spreadsheet should be considered. However, he would
object to any of the amendments being offered today on this
bill.
LAMAR COTTEN, Deputy Commissioner, Department of Community
and Regional Affairs was invited to join the committee. He
made brief comments on the Four Dam Pool situation.
(Tape #131, Side A, switched to Side B at log #585.)
Mr. Cotten continued his explanation to the committee. He
deferred to Dick Emmerman from the Division of Energy,
Department of Community and Regional Affairs.
DICK EMMERMAN, Planner IV, Division of Energy, Department
of Community and Regional Affairs continued the explanation
regarding the Four Dam Pool situation. The Four Dam Pool
is now the responsibility of Alaska Industrial Development
and Export Authority. He did not know its current status.
Senator Adams asked if there was objection to the amendment
supported this amendment. He also explained NPRA funds and
what their impact might be.
Co-chair Torgerson thanked the testifiers and said they
would commence debate on the amendments.
Senator Donley MOVED amendment #1. He offered a brief
explanation. Senator Adams OBJECTED.
By a roll call vote of 8 yeas (Torgerson, Parnell, Donley,
Leman, Wilken, P. Kelly, Green, Phillips) - 1 nay (Adams)
amendment #1 was ADOPTED.
Senator Donley MOVED amendment #2. Senator Adams OBJECTED.
Senator Donley offered a brief explanation. Senator Adams
spoke to his objection. Senator Donley responded that this
was not an elimination and for the first year would be over
the original use. It would be reduced each year thereafter
by about 25 kilowatt hours. Senator Adams said the average
per homeowner usage varies according to temperature and
area. Senator Kelly briefly commented to the amendment.
Co-chair Torgerson said he concurred. He appreciated the
efforts by Senator Donley but did not feel this was the
best way to resolve the issue.
Senator Leman said he would support a reduction at 500 kWh.
He said he would oppose the amendment as is. The impacts
are greater than what is being anticipated.
By a roll call vote of 1 yea (Donley) and 8 nays
(Torgerson, Parnell, Leman, Wilken, Adams, P. Kelly, Green,
Phillips) amendment #2 FAILED.
Senator Donley MOVED amendment #3. He offered a brief
explanation.
The committee took a brief at ease.
Co-chair Torgerson reconvened the committee.
WITHOUT OBJECTION amendment #3 was WITHDRAWN. Senator
Donley advised he would not offer amendment #4.
Senator Parnell MOVED amendment #5. Co-chair Torgerson
offered a brief explanation. WITHOUT OBJECTION it was
ADOPTED.
Senator Adams MOVED amendment #6. Senator Parnell
OBJECTED. Senator Adams offered a brief explanation.
The committee took a brief at ease.
Co-chair Torgerson reconvened the committee at
approximately 10:45 a.m.
RANDY SIMMONS, Executive Director, Alaska Industrial
Development and Export Authority joined the committee
offnet from Anchorage. Co-chair Torgerson asked an
explanation from AIDEA regarding amendment #6. Mr. Simmons
responded. Any amount taken out of the dividend would not
be problematic for the authority. However, if it were to
be appropriated that would cause difficulties. If the
amendment was written to take a specific amount of the
dividend it would not be a problem. Anything outside of
the dividend language would be a problem. Mr. Simmons
advised however, they did not have a copy of the amendment
of the amendment up immediately.
In response to a question by Senator Green Mr. Simmons
replied that they pay all expenses from their income. A
certain percentage of their dividend goes to the State.
Senator Green asked if the amount could be predicted. Mr.
Simmons said they did not predict the amount but they do
forecast out a couple of years. They try to analyze how
much was needed for loans and how much would be expended on
projects.
Co-chair Torgerson said this would take approximately $8
million out of their dividend calculation. Mr. Simmons
said it would have a larger impact than this. In order to
sell bonds the public wants to know there is stable
security. Going outside this program would make the public
nervous. AIDEA is also worried about what will happen to
their overall program.
Mr. Simmons referred to HJR 10, which asked AIDEA to
negotiate regarding the sale of Four Dam Pool. They have
not spoken with the community directly. He foresaw this
probable sale as complicated and does not imagine it would
be happening soon. He said the Legislature should not
regard this is money in the bank for at least the next two
years.
Co-chair Torgerson requested Mr. Simmons to review the
amendment and respond to his office in writing. The
committee would look at the bill again this evening at 5:00
p.m. Senator Adams asked specifically Mr. Simmons look at
lines 10 and 22, page 1 of amendment #6.
Mr. Wilken also asked for a current status of a proposal
for the purchase of the Four Dam Pool. Mr. Simmons said
they have not yet received a formal proposal.
ADJOURNMENT
Co-chair Torgerson recessed the committee at approximately
10:55 a.m. until 5:00 p.m. today.
SFC-99 -8- 05/10/99
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