Legislature(2021 - 2022)SENATE FINANCE 532
03/23/2022 01:00 PM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB186 | |
| SB222 | |
| SB190 | |
| SB203 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 186 | TELECONFERENCED | |
| += | SB 222 | TELECONFERENCED | |
| += | SB 190 | TELECONFERENCED | |
| += | SB 203 | TELECONFERENCED | |
SENATE BILL NO. 190
"An Act extending the termination date of the
Regulatory Commission of Alaska; and providing for an
effective date."
1:11:43 PM
Co-Chair Bishop relayed that it was the second hearing for
SB 190. The committee had opened and closed public
testimony on March 21st. The intention of the committee was
to hear a bill reintroduction, cover the fiscal note, and
have a committee conversation.
1:12:27 PM
AT EASE
1:12:32 PM
RECONVENED
Senator Hoffman MOVED to ADOPT proposed committee
substitute for SB 190, Work Draft 32-LS1525\G (Ambrose,
3/22/22).
Co-Chair Bishop OBJECTED for discussion.
1:13:01 PM
ERIN SHINE, STAFF, SENATOR CLICK BISHOP, discussed an
Explanation of Changes document (copy on file):
Updated Title
Section 1 AS 42.05.381(e)
Page 1, line 6 Page 2, line 2 Amends to include
refuse utilities to AS 42.05.381(e), the section of
law requiring rates to be just and reasonable and
provides for a simplified rate filing procedure.
Ms. Shine understood that the current rate-setting process
was cumbersome and costly to refuse utilities, which was
ultimately passed on to customers. The change would provide
an opportunity for the Regulatory Commission of Alaska
(RCA) to adopt regulations to allow for a simplified filing
procedure. She continued to address the Explanation of
Changes document:
Section 2 AS 44.66.010(a)(3)
Page 2, line 4 Amends Regulatory Commission of Alaska
repeal date from 2027 to 2030.
Section 3 Repealed Section
Page 2, line 6 Repeals AS 24.20.271(11), a requirement
for the legislative audit division to conduct an audit
every two years of information found in the annual
reports regarding compliance by the Regulatory
Commission of Alaska.
Deleted section from version G Legislative Intent
(previous section 1)
Ms. Shine noted that the requirement for the Legislative
Audit Division to audit RCAs annual report every two years
was put into law in 2007. Since that time, the division had
conducted six audits of RCAs annual report. In addition,
the division conducted the commissions sunset audits. She
reasoned that given the positive results of the sunset
audit and resource limitations of the division, removing
the biannual requirement to audit RCAs annual report was a
logical step to free up audit resources. The legislative
auditor had noted that the last two audits of the RCA
annual report had each taken approximately 450 hours to
complete.
Co-Chair Bishop asked if the Legislative Auditor could
speak to the 450 hours taken to review the RCA annual
report.
1:15:36 PM
KRIS CURTIS, LEGISLATIVE AUDITOR, ALASKA DIVISION OF
LEGISLATIVE AUDIT, relayed that Ms. Shine had referenced
the biannual audit of RCAs annual report. She cited that
the audit was required in statute. She relayed that there
had been very little interest in the results of the audits
over the previous 13 to 14 years. She noted that RCA had a
clean review of its annual report over the previous few
years and given the constraint on the divisions resources
there was interest in removing the audit from its duties.
Senator Hoffman asked if Ms. Curtis had any comments
regarding Section 2 and changing the date from 2027 to
2030.
Ms. Curtis relayed that she had recommended an eight-year
extension. The division had found a very clean audit with
no recommendations beyond clarifying the regulations
regarding cancelling RCAs twice monthly meetings.
1:16:57 PM
Senator Wielechowski asked what sorts of things were being
examined in the audit.
Ms. Curtis described that in auditing RCA's annual report,
there were certain statutory and regulatory timelines. She
understood there may have been a lack of trust at the time
the reporting requirements were established. The division
also looked at RCAs performance measures that were included
in the annual report. She cited that most of the divisions
focus in reviewing the annual report had been targeted on
data integrity and ensuring the data in RCAs system was
reliable. The division took samples and verified
information. The previous two reviews had shown the data to
be reliable.
Senator Wielechowski asked if the division had found any
discrepancies via the audit since 2007.
Ms. Curtis cited an issue regarding reliability of the data
in RCAs database. The division had found some instances of
incorrect data entry of dates. The division had recommended
data review procedures and had found improvements in recent
years.
Senator Wielechowski asked about the oversight for the RCA
if the annual report audit was removed.
Ms. Curtis relayed that the division had conducted a sunset
audit, and in the year previous had conducted the annual
report audit, and so on. She commented on the frequency of
the divisions work on the RCA and affirmed that the
division would continue to do so if it was the priority of
the legislature. She knew there were other competing
priorities of audits that the Legislative Budget and Audit
Committee had approved, and other sunset audits required in
statute. She mentioned the statewide single audit, on which
the division spent 75 percent of its time.
Senator Wielechowski mentioned the section being repealed,
which referenced two statutes. He asked about AS 42.06.220,
which pertained to the regulation of oil and gas pipeline
facilities.
Ms. Curtis relayed that there were statutory timelines in
two different places, which indicated how long RCA had to
respond to the dockets. The RCA reported the information to
the legislature every year, and the division reviewed
whether the data was reliable.
1:20:51 PM
Senator von Imhof asked if the division audited the annual
reports for the Alaska Industrial Development and Export
Authority (AIDEA), the Alaska Energy Authority (AEA), and
the Alaska Housing Finance Corporation (AHFC).
Ms. Curtis relayed that the division was not responsible
for auditing the reports for the three agencies.
Senator von Imhof noted that AIDEA and AHFC paid dividends
to the state.
Ms. Curtis affirmed that the agencies had an outside
financial audit, which was provided to the Legislative
Audit Division. The division reviewed and included the
information in the Comprehensive Annual Financial Report
(CAFR) every year.
Senator von Imhof asked if the division wrote a report that
was provided to the legislature.
Ms. Curtis answered "no," and furthered that the division's
audit work was to comply with the auditing standards in
auditing the states inclusion of the information in its
annual financial statements. She clarified that when she
answered in the negative about the agencies reports, she
had been referencing performance reports, which is what the
division audited for RCA.
Senator von Imhof pondered the division doing an audit of
RCAs annual report every five years rather than every
other year.
Ms. Curtis affirmed that the division looked at all the
information every time it did a sunset audit, which
resulted in doing the same things multiple times.
Senator Wielechowski had questions regarding changes to
refuse utilities. He asked about the opportunities for
public notice and public input regarding adding refuse
utilities to the simplified rate filing procedure. He asked
how the procedures would change.
Ms. Curtis referred the question to the RCA. She explained
that if the bill were to pass, the RCA would adopt
regulations in which the process for the rate setting,
which she thought would be similar to electric cooperatives
and local telephone exchange utilities.
1:23:52 PM
BOB PICKETT, CHAIRMAN, REGULATORY COMMISSION OF ALASKA,
ANCHORAGE (via teleconference), affirmed that Ms. Shine was
correct. He expanded that the exact details of how the
simplified rate filing process would work for the refuse
companies would be determined in a very open and public
process. He thought there might be a cap on an annual basis
and a combined cap over three years in the types of
elements that could be used in the simplified rate filing
process.
Senator Wielechowski was curious how often the simplified
procedure had been used by electric cooperatives and local
telephone utilities.
Mr. Pickett explained that since the RCA did not
economically regulate telephone and telecommunication, he
would reference electric cooperatives, which varied. He
noted that for a number of years Chugach Electric had opted
to not participate in the simplified rate filing process,
but other electric cooperatives used the process quite
frequently.
Senator Wielechowski referenced concerns about the
simplified procedure and public process. He asked about the
difference between a full procedure and the simplified
procedure with regard to public input and notice.
Mr. Pickett relayed that a full process involved parties,
legal counsel, discover, and a range of things. He
continued that the process was started with a tariff advice
filing that was noticed. He explained that the filing could
be noticed in the refuse simplified rate filing process as
well, but the details would be determined in the rulemaking
process.
Senator Wielechowski asked if Mr. Picket knew why refuse
utilities were not originally included in the simplified
process.
Mr. Pickett did not know the legislative history pertaining
to Senator Wielechowski's question. He knew that there had
been areas that were deregulated where there was
competition, and there had been some kind of flow-through
mechanisms for various fuel charges with certain refuse
companies.
Senator Wielechowski asked if the RCA could invite the
attorney general to participate on behalf of the public in
the simplified rate filing procedure.
Mr. Pickett mentioned the simplified rate filing being
suspended into a docket. He explained that typically with a
simplified filing process it was an effort to get well
defined elements that were easy to verify, rather than
things like cost studies or changes to the rate design.
1:27:14 PM
Senator Wielechowski asked how often the RCA invited the
attorney general to participate in simplified rate dockets
compared to normal rate cases.
Mr. Pickett relayed that typically the attorney general did
not participate if there was a straightforward simplified
rate filing that did not get suspended. He added that the
attorney general could insert themselves into any RCA
filings.
Senator Wielechowski asked about the repeal section. He
assumed the RCA supported the repeal. He wanted assurances
about data accuracy and referenced a problem that had
happened in 2007. He asked about what sort of oversight,
policies, and procedures were in place to ensure that
regulation of oil and gas pipeline facilities and public
utilities had accurate data.
Mr. Pickett stated that data accuracy was extremely
important to RCA, which was evaluating its basic data
system and considering options that would be more user
friendly on the public website dashboard. He agreed that
data integrity was incredibly important because if the
commission did something inconsistent with its legislative
mandate, it would be indicated in the data.
1:29:20 PM
AT EASE
1:29:54 PM
RECONVENED
Co-Chair Bishop WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered. The CS for SB 190 was
ADOPTED.
Co-Chair Bishop set the bill aside.
SB 190 was HEARD and HELD in committee for further
consideration.
1:30:21 PM
AT EASE
1:30:42 PM
RECONVENED
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 186 SFIN SB 186 Follow-Up Information from CBPL (3.22.22).pdf |
SFIN 3/23/2022 1:00:00 PM |
SB 186 |
| SB 190 Explanation of Changes ver. I to G 03.22.2022.pdf |
SFIN 3/23/2022 1:00:00 PM |
SB 190 |
| SB 190 Work Draft ver. G 03.22.2022.pdf |
SFIN 3/23/2022 1:00:00 PM SFIN 3/30/2022 9:00:00 AM |
SB 190 |
| SB 203 Explanation of Changes ver. B to I 03.23.2022.pdf |
SFIN 3/23/2022 1:00:00 PM |
SB 203 |
| SB 203 Work Draft ver. I 03.23.2022.pdf |
SFIN 3/23/2022 1:00:00 PM |
SB 203 |