Legislature(2001 - 2002)

01/24/2002 08:10 AM House CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
      HOUSE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE                                                                 
                        January 24, 2002                                                                                        
                           8:10 a.m.                                                                                            
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY (AIDEA)                                                                      
INCLUDING THE ALASKA ENERGY AUTHORITY (AEA).                                                                                    
                                                                                                                                
TAPES                                                                                                                         
                                                                                                                                
02-1, SIDES A & B                                                                                                               
02-2, SIDES A                                                                                                                   
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Representative Kevin Meyer, Co-chair,  called the House Community                                                               
and Regional Affairs Standing Committee to order at 8:10 a.m.                                                                   
                                                                                                                                
PRESENT                                                                                                                       
                                                                                                                                
Committee  members present  were  Representatives Meyer,  Halcro,                                                               
Murkowski, Guess, and Kerttula.                                                                                                 
                                                                                                                                
SUMMARY OF INFORMATION                                                                                                        
                                                                                                                                
ROBERT POE, Executive  Director, AIDEA and AEA,  stated the Board                                                               
of  Directors  had  recently announced  a  $19  million  dividend                                                               
bringing the  total dividends  paid since  1996 to  $128 million.                                                               
The assets  of AIDEA total  about $1.2 billion.   Mr. Poe  gave a                                                               
brief   description   of   ongoing  AIDEA   programs,   projects,                                                               
successes, and failures.   He explained the progress  on the Four                                                               
Dam Pool  sale and stated  the sale  should be closed  on January                                                               
31, 2002.  He provided  detailed information on AIDEA involvement                                                               
in the Alaska Seafood Center,  the Delong Mountain Transportation                                                               
System associated  with the  Red Dog Mine,  the Healy  Clean Coal                                                               
Plant, the  Ketchikan Shipyard, and the  Snettisham Hydroelectric                                                               
Plant.                                                                                                                          
                                                                                                                                
REPRESENTATIVE  MURKOWSKI  asked  if  AIDEA  planned  to  support                                                               
Ketchikan Shipyard developing a second berthing system.                                                                         
                                                                                                                                
MR. POE  replied AIDEA  thinks this  expansion is  important, but                                                               
doesn't know where the money is coming from.                                                                                    
                                                                                                                                
REPRESENTATIVE HALCRO asked how many  people were employed at the                                                               
Alaska Seafood Center.                                                                                                          
                                                                                                                                
MR. POE  said that currently  about 120 people are  employed with                                                               
the Alaska  Seafood Center, although  there have  been production                                                               
spurts.                                                                                                                         
                                                                                                                                
REPRESENTATIVE HALCRO asked if the fish supply was from Alaska.                                                                 
                                                                                                                                
MR. POE, in further response  to Representative Halcro, said that                                                               
the fish supply is all Alaska  fish right now.  He commented that                                                               
supply is not a problem.                                                                                                        
                                                                                                                                
REPRESENTATIVE KERTULLA  asked if  the daycare at  Alaska Seafood                                                               
is operational.                                                                                                                 
                                                                                                                                
MR.  POE  replied the  daycare  is  not operating  because  there                                                               
aren't enough employees.                                                                                                        
                                                                                                                                
REPRESENTATIVE  MEYER asked  Mr. Poe  for his  assessment of  the                                                               
overall Alaska economy.                                                                                                         
                                                                                                                                
MR. POE  characterized the  current average  Alaska economy  as a                                                               
slow, stable growth economy as opposed  to the spikes and dips of                                                               
1986.  He cited some examples.                                                                                                  
                                                                                                                                
There  was further  discussion  on the  condition  of the  Alaska                                                               
economy among committee members and Mr. Poe.                                                                                    
                                                                                                                                
REPRESENTATIVE  GUESS   asked  about   the  Alaska   Science  and                                                               
Technology Foundation.                                                                                                          
                                                                                                                                
MR. POE said  he couldn't comment on ASTF, but  he did comment on                                                               
one project  [AIDEA] is doing with  ASTF.  He then  explained the                                                               
Unisea  project in  Dutch Harbor  where fish  oil is  being mixed                                                               
with  diesel oil  and used  for electrical  generation.   If this                                                               
project is  successful, it will  be worth millions of  dollars to                                                               
Alaska  in  terms of  reducing  the  cost  of  energy.   He  also                                                               
commented on  a business  plan competition  done in  concert with                                                               
Alaska Pacific University.                                                                                                      
                                                                                                                                
MIKE  HARPER, Deputy  Director,  Alaska  Energy Authority  (AEA),                                                               
gave  an  overview of  AEA's  five  programs, and  explained  the                                                               
Authority's mission.                                                                                                            
                                                                                                                                
MR. POE cited some specific examples of rural energy projects.                                                                  
                                                                                                                                
REPRESENTATIVE MEYER asked  about the progress from  last year in                                                               
terms of  bulk fuel  and rural  electrical deficiencies,  and the                                                               
ranking of needs.                                                                                                               
                                                                                                                                
MR. POE  replied that  rankings are out  and available,  and that                                                               
they are working down the list.                                                                                                 
                                                                                                                                
REPRESENTATIVE MEYER asked what areas are the most critical.                                                                    
                                                                                                                                
MR. POE said  the Wade Hampton district has the  highest level of                                                               
deficiency.   He further stated  there are 46 bulk  fuel projects                                                               
in  the  pipeline and  12  rural  power  system projects  in  the                                                               
pipeline.                                                                                                                       
                                                                                                                                
MR. POE commented on a screening  survey to try to find promising                                                               
ways to reduce the cost of power in rural Alaska.                                                                               
                                                                                                                                
REPRESENTATIVE MURKOWSKI asked about operation and maintenance.                                                                 
                                                                                                                                
MR. POE explained that they  are responding on several fronts and                                                               
cited examples.  He also  explained the business plan required by                                                               
the Denali Commission.                                                                                                          
                                                                                                                                
There was  other similar dialogue between  committee members, Mr.                                                               
Poe, and Mr. Harper.                                                                                                            
                                                                                                                                
MR. POE  went over  the status of  Power Cost  Equalization (PCE)                                                               
and provided a handout to the committee.                                                                                        
                                                                                                                                
MR.  POE and  the committee  exchanged questions  and answers  on                                                               
PCE.                                                                                                                            
                                                                                                                                
ANNOUNCEMENTS                                                                                                                 
                                                                                                                                
There were no announcements.                                                                                                    
                                                                                                                                
COMMITTEE ACTION                                                                                                              
                                                                                                                                
The committee took no action.                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Community and Regional Affairs Standing Committee was adjourned                                                                 
at 9:55 a.m.                                                                                                                    
                                                                                                                                
NOTE:   The meeting was  recorded and handwritten log  notes were                                                               
taken.  A  copy of the tape(s)  and log notes may  be obtained by                                                               
contacting the  House Records  Office at  State Capitol,  Room 3,                                                               
Juneau,  Alaska   99801 (mailing  address),  (907) 465-2214,  and                                                               
after  adjournment of  the second  session  of the  Twenty-Second                                                               
Alaska  State Legislature  this  information may  be obtained  by                                                               
contacting the Legislative Reference Library at (907) 465-3808.                                                                 
                                                                                                                                
                                                                                                                                

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