Legislature(1999 - 2000)
04/26/1999 03:10 PM Senate RES
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SB 133-REGULATORY COMMISSION OF ALASKA
CHAIRMAN HALFORD announced SB 133 to be up for consideration. He
said since the merger of BP and ARCO, the AOGCC would have to be
better staffed and stronger and be much more willing to get
involved to protect the state's interest. He explained that the CS
primarily "beefs up" the AOGCC and makes significant improvements
to the APUC.
SENATOR PEARCE said she appreciated Senator Halford's concerns and
also wanted to strengthen the AOGCC, which CSSB 133 does. SB 134
gives it the financial backing that it needs.
SENATOR PEARCE explained that SB 133 makes basic structural changes
to the APUC and asks LB&A to work with the two Commissions to bring
back recommendations as to the best structure for a combined
regulatory entity. Many other oil and gas producing states have
done this and it worked well. In the meantime, we would continue
to make the changes they were making to the APUC. The name would
be changed to the Alaska Energy Conservation Commission (AECC) on
July 1, 1999 with the expectation that AOGCC would become part of
the entity at year end 2000. The Administration would look for a
place to house the AOGCC and APUC together so they could begin to
benefit from the efficiencies of combined record keeping and
staffing.
The pay range of the AECC chairperson would be higher than the
other commissioners. Everyone else was left at the same rate.
TAPE 99-27, SIDE B
SENATOR PEARCE said staff for pipeline regulation and all pending
pipeline matters, along with two tariff staff, would move to the
AOGCC on the effective date of July 1, 1999. Space is available in
the building in Muldoon, even though the building is inadequate.
Since the AOGCC would be taking on the pipeline regulation, they
would have access to the hearing officer being added to the larger
group during the transition period. She thought the hearing
officer, the additional tariff staff, and the three technical staff
(in SB 134) would give them the staffing backup they need to take
on the new regulatory pipeline regulation function.
Number 560
SENATOR PARNELL noted that the petroleum engineer and geologist
were getting paid more.
SENATOR PEARCE responded that is their present level and, under
this bill, the pay remains exactly as it is today.
SENATOR PARNELL suggested that a year later they should all be at
the same level.
SENATOR PEARCE said she agrees and that she would recommend finding
the correct level of pay for the commissioners. She understood the
reason AOGCC personnel are paid more is because in the past pay
levels have caused problems when trying to find professionally
qualified personnel for the AOGCC positions. The chairman of the
AECC is being given more responsibility and more power than in the
past.
CHAIRMAN HALFORD said there was still the question of regulation of
refuse and questions regarding the APUC and the new commission but,
as chairman of the Resources Committee, he was focusing on
resources issues.
SENATOR PARNELL moved to adopt the CS to SB 133. There were no
objections and it was so ordered.
MS. JUDY BRADY, Executive Director, Alaska Oil and Gas Association,
said they would comment after seeing the changes being proposed in
this bill.
MS. MARY HUGHES, Attorney, Municipality of Anchorage, said they own
four utilities: telephone, water and waste water, electric and
refuse. They have approximately $1.5 billion of taxpayer money in
those utilities which provide the municipality with much fiscal
stability. The APUC has been a very good organization in their
opinion and they feel it would be appropriate to have it remain as
it is.
One of the resources of the Municipality of Anchorage is refuse
collections services and, in the past, small refuse providers spent
a lot of money on economic regulation. From that standpoint it
would seem appropriate to deregulate. She understands that this
bill deregulates, but doesn't do anything for planning for
management and regulation of the refuse collection services. Now,
approximately 95 percent of Alaska's refuse collection is in the
hands of one carrier, Waste Management. It is their belief that
when services of 95% of Alaskans are with one carrier, there must
be some type of regulation of that carrier.
They propose the particular provisions, Sections 2, 3, 9, 16, and
27 be deleted with the idea that participants within the industry
could work with legislators to come up with some way in which
deregulation is a thoughtful process, so that in the end the
consumer and the owners of the utility are well served.
Number 453
MS. SHARON DANIEL, Copper Basin Sanitation, said they provide the
refuse collection in the unorganized borough in the Copper River
basin. Garbage collection is a matter of public health if not
properly disposed of. Deregulation of garbage collection will
result in areas of the state no longer getting garbage service.
CHAIRMAN HALFORD thanked everyone for their testimony.
SENATOR GREEN moved to pass CSSB 133(RES) from committee with
individual recommendations. There were no objections and it was so
ordered.
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