Legislature(2007 - 2008)SENATE FINANCE 532

05/11/2007 01:30 PM Senate FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to 6:00 pm --
+ HB 110 EXTEND REGULATORY COMMISSION OF ALASKA TELECONFERENCED
Moved CSHB 110(L&C) Out of Committee
+ HB 209 REGULATORY COMMISSION OF ALASKA TELECONFERENCED
Moved SCS CSHB 209(FIN) Out of Committee
+ HCR 8 RCA TASK FORCE TELECONFERENCED
Moved CSHCR 8(L&C) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                                                                                                                                
     CS FOR HOUSE BILL NO. 110(L&C)                                                                                             
     "An Act  amending the powers  and duties of  the legislative                                                               
     audit  division  regarding   the  Regulatory  Commission  of                                                               
     Alaska;   amending  annual   report  requirements   for  the                                                               
     Regulatory Commission of Alaska; extending the termination                                                                 
     date for the Regulatory Commission of Alaska; and providing                                                                
     for an effective date."                                                                                                    
                                                                                                                                
                                                                                                                                
This was  the first hearing for  this bill in the  Senate Finance                                                               
Committee.                                                                                                                      
                                                                                                                                
Co-Chair  Stedman   stated  that  this  bill   would  extend  the                                                               
termination date of the Regulatory Commission of Alaska (RCA).                                                                  
                                                                                                                                
REPRESENTATIVE KURT  OLSON, the bill's sponsor,  stated that this                                                               
bill would  extend the  termination date of  the RCA  four years.                                                               
The  bill also  contained  a provision  that  required a  "report                                                               
card"  to be  compiled every  two  years. The  report card  would                                                               
review the  information provided  in the  RCA's annual  report to                                                               
determine  whether or  not the  RCA was  in compliance  with such                                                               
things  as specified  timelines and  other performance  measures.                                                               
The  four  year  extension timeframe  was  considered  reasonable                                                               
following   discussions    with   the   Governor    Sarah   Palin                                                               
Administration,   the  presiding   officers  of   the  House   of                                                               
Representatives  and  the Senate,  and  in  consideration of  new                                                               
timelines specified in HB 209.                                                                                                  
                                                                                                                                
Co-Chair  Stedman  announced  that  public  testimony  would  now                                                               
commence.                                                                                                                       
                                                                                                                                
2:52:42 PM                                                                                                                    
                                                                                                                                
DON   REED,  Vice   President,   Regulatory  Affairs,   Matanuska                                                               
Telephone Association,  testified via teleconference  from Mat-Su                                                               
in  support of  the bill.  While the  Association has  not always                                                               
received favorable  rulings from the  RCA nor would  expect that,                                                               
they have received  and do expect "a fair  and impartial unbiased                                                               
review of our cases."                                                                                                           
                                                                                                                                
Mr.  Reed  voiced  that  the Association  has  also  witnessed  a                                                               
tremendous increase  in the efficiency  of the  services provided                                                               
by the  RCA. This  would include more  timely docket  reviews and                                                               
improved  and  clearly  written  orders.  Access  to  information                                                               
online has  also been  beneficial. The  improvements made  by the                                                               
Commission have  made dealing with  them easier and  less costly.                                                               
In conclusion, the Association fully supports the bill.                                                                         
                                                                                                                                
2:54:20 PM                                                                                                                    
                                                                                                                                
DENNIS   NEIDERMEYER,  Representative,   Bristol  Bay   Telephone                                                               
Association,  testified  via  teleconference from  Anchorage  and                                                               
echoed  Mr. Reed's  comments in  support  of the  bill. The  work                                                               
conducted by  the Commission  is appreciated.  Four years  is the                                                               
shortest extension period that should be considered.                                                                            
                                                                                                                                
2:55:04 PM                                                                                                                    
                                                                                                                                
JACK  RHYNER, President  and Chief  Executive Officer,  TelAlaska                                                               
Inc.,  testified via  teleconference from  Anchorage and  advised                                                               
the Committee  that TelAlaska Inc., which  operates two telephone                                                               
companies in  the State,  is in favor  of reauthorizing  the RCA.                                                               
"It  would be  practically  impossible to  regulate utilities  to                                                               
operate without the  RCA." The efforts of Chairman  Giard and the                                                               
other RCA commissioners to shorten  the time in which matters are                                                               
addressed and orders are completed are noticeable.                                                                              
                                                                                                                                
2:55:54 PM                                                                                                                    
                                                                                                                                
STEVE   HAMLEN,  President,   United  Utilities,   testified  via                                                               
teleconference from Anchorage, in support  of this bill on behalf                                                               
of  his  company.  United  Utilities  provides  telecommunication                                                               
service  to 70  different  communities, primarily  in the  Yukon-                                                               
Kuskokwim Delta.                                                                                                                
                                                                                                                                
Mr.  Hamlen avowed  that  there  is a  linkage  between what  the                                                               
Commission  does  and  the  need  to  conduct  that  business  in                                                               
cooperation  with the  Federal  Communications Commission  (FCC).                                                               
The  State is  the recipient  of millions  of federal  dollars in                                                               
support of telemedical services,  distance learning services, and                                                               
services to  low-income households. In order  to facilitate these                                                               
services, the  RCA must work closely  with the FCC. The  RCA must                                                               
be fully  staffed, be  "up and  running" and  be fully  funded in                                                               
order for the State to receive the federal benefits.                                                                            
                                                                                                                                
Mr.  Hamlen stated  that  Chair Giard  has  been instrumental  in                                                               
getting  public access  points  established  in many  communities                                                               
throughout  the   State  for  broadband   services,  telemedicine                                                               
services, and services to low-income households.                                                                                
                                                                                                                                
2:57:32 PM                                                                                                                    
                                                                                                                                
DEAN  THOMPSON, Legal  Representative, Municipal  Light &  Power,                                                               
testified  via  teleconference  from   Anchorage  in  support  of                                                               
reauthorizing  the   RCA.  He  noted  that,   for  the  regulated                                                               
utilities, "predictability  and continuity is important.  We need                                                               
to know  what the  rules are,  and having  a level  of continuity                                                               
without interruptions of threats of sunset assists that."                                                                       
                                                                                                                                
2:58:06 PM                                                                                                                    
                                                                                                                                
VIRGINIA    RUSCH,    Representative,   AARP,    testified    via                                                               
teleconference from  Anchorage. AARP  is in support  of extending                                                               
the  commission.  "RCA  is  essential  to  protect  consumers  by                                                               
setting just and reasonable rates."                                                                                             
                                                                                                                                
2:58:33 PM                                                                                                                    
                                                                                                                                
JIM  ROWE,  Executive  Director,  Alaska  Telephone  Association,                                                               
testified  via   teleconference  from   Anchorage  in   favor  of                                                               
extending  the Commission  four  years. This  regulatory body  is                                                               
needed.  He urged  the Committee  to  advance the  bill in  short                                                               
order.                                                                                                                          
                                                                                                                                
2:59:11 PM                                                                                                                    
                                                                                                                                
KRISTI    CATLIN,    Representative,    AT&T,    testified    via                                                               
teleconference from  Anchorage, in support of  extending the RCA.                                                               
AT&T  believes  "the Commission  has  done  a tremendous  job  in                                                               
reducing timelines and dealing with issues."                                                                                    
                                                                                                                                
2:59:43 PM                                                                                                                    
                                                                                                                                
KATE  GIARD, Chair,  Regulatory Commission  of Alaska,  testified                                                               
via  teleconference  from  an  offnet   location.  The  issue  of                                                               
extending the  RCA is  a public  policy decision.  The Commission                                                               
would be pleased with a four year extension.                                                                                    
                                                                                                                                
3:00:07 PM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman  moved to  report the  bill from  Committee with                                                               
individual recommendations and accompanying fiscal note.                                                                        
                                                                                                                                
There  being  no objection,  CS  HB  110(L&C) was  REPORTED  from                                                               
Committee with  previous fiscal  note #2  from the  Department of                                                               
Commerce, Community and Economic Development.                                                                                   
                                                                                                                                
AT EASE 3:00:42 PM / 3:01:38 PM                                                                                             
                                                                                                                                

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