Legislature(1999 - 2000)
05/16/1999 09:25 AM House CRA
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE COMMUNITY AND REGIONAL AFFAIRS
STANDING COMMITTEE
May 16, 1999
9:25 a.m.
MEMBERS PRESENT
Representative Andrew Halcro, Co-Chairman
Representative John Harris, Co-Chairman
Representative Carl Morgan
Representative Lisa Murkowski
Representative Fred Dyson
Representative Albert Kookesh
MEMBERS ABSENT
Representative Reggie Joule
COMMITTEE CALENDAR
CS FOR SPONSOR SUBSTITUTE FOR SENATE BILL NO. 10(FIN)
"An Act requiring an electric or telephone utility that provides
services in a municipality with a population of more than 200,000
to have an ongoing program of placing existing overhead utility
distribution lines underground; and relating to rates for
recovering the cost of placing existing overhead utility
distribution lines underground."
- MOVED HCS CSSSSB 10(CRA) OUT OF COMMITTEE
CS FOR SENATE BILL NO. 157(FIN) am
"An Act relating to power cost equalization; relating to
appropriations from the National Petroleum Reserve - Alaska
special revenue fund to the power cost equalization and rural
electric capitalization fund; relating to the power cost
equalization and rural electric capitalization fund and the four
dam pool transfer fund; and providing for an effective date."
- MOVED HCS CSSB 157(CRA) OUT OF COMMITTEE
(* First public hearing)
PREVIOUS ACTION
BILL: SB 10
SHORT TITLE: UNDERGROUND UTILITIES
SPONSOR(S): SENATOR(S) DONLEY
Jrn-Date Jrn-Page Action
1/19/99 15 (S) PREFILE RELEASED - 1/8/99
1/19/99 15 (S) READ THE FIRST TIME - REFERRAL(S)
1/19/99 15 (S) STA, FIN
2/16/99 (S) STA AT 3:30 PM BELTZ ROOM 211
2/16/99 (S) SCHEDULED BUT NOT HEARD
2/26/99 375 (S) SPONSOR SUBSTITUTE
INTRODUCED-REFERRALS
2/26/99 375 (S) L&C, FIN
3/16/99 (S) L&C AT 1:30 PM
3/16/99 (S) HEARD AND HELD
3/16/99 (S) MINUTE(L&C)
3/23/99 (S) L&C AT 1:30 PM FAHRENKAMP 203
3/23/99 (S) MOVED CS OUT OF COMMITTEE
3/23/99 (S) MINUTE(L&C)
3/24/99 660 (S) L&C RPT CS 3DP 2NR NEW TITLE
3/24/99 661 (S) DP: MACKIE, TIM KELLY, DONLEY;
3/24/99 661 (S) NR: HOFFMAN, LEMAN
3/24/99 661 (S) FISCAL NOTE (DCED)
4/21/99 (S) FIN AT 8:00 AM SENATE FINANCE 532
4/21/99 (S) SCHEDULED BUT NOT HEARD
5/04/99 (S) FIN AT 9:00 AM SENATE FINANCE 532
5/04/99 (S) HEARD AND HELD
5/04/99 (S) MINUTE(FIN)
5/10/99 (S) FIN AT 9:00 AM SENATE FINANCE 532
5/10/99 (S) SCHEDULED BUT NOT HEARD
5/10/99 (S) FIN AT 6:30 PM SENATE FINANCE 532
5/10/99 (S) MOVED CS (FIN) OUT OF COMMITTEE
5/10/99 (S) MINUTE(FIN)
5/11/99 (S) RLS AT 12:00 PM FAHRENKAMP 203
5/11/99 (S) MINUTE(RLS)
5/11/99 1363 (S) FIN RPT CS 2DP 1DNP 4NR NEW TITLE
5/11/99 1363 (S) DP: TORGERSON, DONLEY; NR: PHILLIPS,
5/11/99 1363 (S) PETE KELLY, LEMAN, WILKEN; DNP: GREEN
5/11/99 1363 (S) ZERO FISCAL NOTE (DCED)
5/11/99 1364 (S) RULES TO CALENDAR AND 1 OR 5/11/99
5/11/99 1366 (S) READ THE SECOND TIME
5/11/99 1366 (S) FIN CS ADOPTED UNAN CONSENT
5/11/99 1366 (S) THIRD READING 5/12 CALENDAR
5/12/99 1397 (S) READ THE THIRD TIME CSSSSB 10(FIN)
5/12/99 1397 (S) RETURN TO SECOND FOR AM 1 UNAN
CONSENT
5/12/99 1398 (S) AM NO 1 OFFERED BY ELLIS
5/12/99 1398 (S) AM NO 1 FAILED Y10 N10
5/12/99 1398 (S) AUTOMATICALLY IN THIRD READING
5/12/99 1399 (S) PASSED Y13 N7
5/12/99 1399 (S) ELLIS NOTICE OF RECONSIDERATION
5/13/99 1422 (S) RECON TAKEN UP - IN THIRD READING
5/13/99 1423 (S) PASSED ON RECONSIDERATION Y13 N7
5/13/99 1437 (S) TRANSMITTED TO (H)
5/14/99 1402 (H) READ THE FIRST TIME - REFERRAL(S)
5/14/99 1402 (H) CRA
5/15/99 (H) CRA AT 1:00 PM CAPITOL 124
5/15/99 (H) MEETING CANCELED
5/16/99 (H) CRA AT 9:00 AM CAPITOL 124
BILL: SB 157
SHORT TITLE: POWER COST EQUALIZATION
SPONSOR(S): FINANCE
Jrn-Date Jrn-Page Action
4/16/99 950 (S) READ THE FIRST TIME - REFERRAL(S)
4/16/99 950 (S) FIN
4/23/99 (S) FIN AT 8:00 AM SENATE FINANCE 532
4/23/99 (S) HEARD AND HELD
4/30/99 (S) FIN AT 9:00 AM SENATE FINANCE 532
4/30/99 (S) SCHEDULED BUT NOT HEARD
5/03/99 (S) FIN AT 9:00 AM SENATE FINANCE 532
5/06/99 (S) FIN AT 9:00 AM SENATE FINANCE 532
5/06/99 (S) HEARD AND HELD
5/06/99 (S) MINUTE(FIN)
5/10/99 (S) FIN AT 9:00 AM SENATE FINANCE 532
5/10/99 (S) BILL POSTPONED TO 5:00 PM 5/10/99
5/10/99 (S) FIN AT 6:30 PM SENATE FINANCE 532
5/10/99 (S) MOVED CS (FIN) OUT OF COMMITTEE
5/10/99 (S) MINUTE(FIN)
5/10/99 (S) MINUTE(FIN)
5/12/99 (S) RLS AT 2:05 PM FAHRENKAMP 203
5/12/99 1386 (S) FIN RPT CS 3DP 3NR 1DNP 2AM NEW TITLE
5/12/99 1387 (S) DP: PARNELL, TORGERSON, LEMAN;
5/12/99 1387 (S) NR: PHILLIPS, GREEN, PETE KELLY;
5/12/99 1387 (S) AM: WILKEN; AM/DNP: DONLEY; DNP:
ADAMS
5/12/99 1387 (S) FISCAL NOTE (S.FIN/CRA)
5/12/99 1387 (S) ZERO FISCAL NOTE (DCED)
5/13/99 1416 (S) RULES TO CALENDAR AND 1 OR 5/13
5/13/99 1426 (S) READ THE SECOND TIME
5/13/99 1426 (S) FIN CS ADOPTED UNAN CONSENT
5/13/99 1426 (S) AM NO 1 NOT OFFERED
5/13/99 1427 (S) AM NO 2 OFFERED BY TAYLOR
5/13/99 1427 (S) AM NO 2 ADOPTED UNAN CONSENT
5/13/99 1427 (S) ADVANCED TO THIRD READING UNAN
CONSENT
5/13/99 1427 (S) READ THE THIRD TIME CSSB 157(FIN) AM
5/13/99 1427 (S) PASSED Y11 N9
5/13/99 1427 (S) EFFECTIVE DATE(S) ADOPTED Y20 N-
5/13/99 1427 (S) DONLEY NOTICE OF RECONSIDERATION
5/14/99 1453 (S) RECON TAKEN UP - IN THIRD READING
5/14/99 1453 (S) PASSED ON RECONSIDERATION Y11 N9
5/14/99 1454 (S) EFFECTIVE DATE(S) ADOPTED Y20 N-
5/14/99 1474 (S) TRANSMITTED TO (H)
5/15/99 (H) CRA AT 1:00 PM CAPITOL 124
5/15/99 (H) MEETING CANCELED
5/15/99 1433 (H) READ THE FIRST TIME - REFERRAL(S)
5/15/99 1433 (H) CRA, FIN
5/16/99 (H) CRA AT 9:00 AM CAPITOL 124
WITNESS REGISTER
SENATOR DAVE DONLEY
Alaska State Legislature
Capitol Building, Room 508
Juneau, Alaska 99801
Telephone: (907) 465-3892
POSITION STATEMENT: Sponsor of SB 10.
MARY JACKSON, Legislative Assistant
to Senator John Torgerson
Alaska State Legislature
Capitol Building, Room 516
Juneau, Alaska 99801
Telephone: (907) 465-2828
POSITION STATEMENT: Presented sponsor statement for SB 157.
LAMAR COTTEN, Deputy Commissioner
Department of Community and Regional Affairs
P.O. Box 112100
Juneau, Alaska 99811-2100
Telephone: (907) 465-4700
POSITION STATEMENT: Testified on SB 157.
ERIC YOULD, Executive Director
Alaska Rural Electric Co-Op Association
703 West Tudor Road
Anchorage, Alaska 99503
Telephone: (907) 561-6103
POSITION STATEMENT: Testified in support of SB 157.
PERCY FRISBY, Director
Division of Energy
Department of Community and Regional Affairs
333 West 4th Avenue, Suite 220
Anchorage, Alaska 99519-2341
Telephone: (907) 269-4640
POSITION STATEMENT: Testified on SB 157.
ACTION NARRATIVE
TAPE 99-34, SIDE A
Number 0001
CO-CHAIRMAN HALCRO called the House Community and Regional Affairs
Standing Committee meeting to order at 9:25 a.m. Members present
at the call to order were Representatives Halcro, Harris, Morgan,
Murkowski, Dyson and Kookesh. Representative Joule was absent.
CSSSSB 10(FIN) - UNDERGROUND UTILITIES
CO-CHAIRMAN HALCRO announced the first order of business is CS FOR
SPONSOR SUBSTITUTE FOR SENATE BILL NO. 10(FIN), "An Act requiring
an electric or telephone utility that provides services in a
municipality with a population of more than 200,000 to have an
ongoing program of placing existing overhead utility distribution
lines underground; and relating to rates for recovering the cost of
placing existing overhead utility distribution lines underground."
SENATOR DAVE DONLEY, Alaska State Legislature, came before the
committee as sponsor of the bill. He noted that the bill only
applies to communities [with a population] over 200,000. In those
communities, the utilities would have to have an ongoing program of
undergrounding utility lines in which they would be required to
invest at least 1 percent of their retail revenues a year towards
that program. The reason that this is a state issue is because,
before deregulation of utilities, the utilities had monopolies and
they were doing this because there were a lot of good reasons to do
so. He stated that such a program reduced maintenance costs,
improved reliability of service, and the communities looked much
nicer. But when deregulation came along they quit doing it because
if somebody else did it there were disadvantages and vice versa.
Therefore, the bill creates a level playing field in a deregulated
market. He noted that in the rest of the United States all new
lines in communities are required to be underground because of
public policy reasons. He cited that Anchorage requires all new
lines to be underground and even has an ordinance that suggests and
recommends up to 4 percent a year of the revenues ought to be
placed towards under-grounding. He further noted that the
Municipality of Anchorage supports the bill, and in working with
ML&P [Municipal Light and Power] and other utilities, he has a
proposed amendment that clarifies how the costs would be shared
with the various utilities.
Number 0251
REPRESENTATIVE DYSON asked Senator Donley why Anchorage can't do
this themselves.
SENATOR DONLEY replied it's a state responsibility because it has
fostered the deregulation climate. There is a solid argument in
the major urban areas for a baseline. In addition, Anchorage is
not just a government; it is a market participant. Therefore, it's
difficult to ask it to bear the full responsibility for regulation
when it is one of the competitors - one of the reasons why the
assembly passed a resolution supporting the bill.
Number 0329
REPRESENTATIVE DYSON asked Senator Donley whether Anchorage has the
legal authority to do this.
SENATOR DONLEY replied, yes, they do have the legal authority to do
this. In fact, he would encourage them to look at an increased
amount. They have an ordinance that suggests 4 percent.
Number 0366
CO-CHAIRMAN HALCRO asked Senator Donley why the 200,000 figure for
population has been inserted in the title. What about communities
like Fairbanks, Juneau and Kenai that have the same problems
associated with a growing population?
SENATOR DONLEY replied he's not familiar with the problems in the
other communities. It's a good question, and he hopes that once
this is in place other communities might recognize the need for
something like this. Right now, however, he doesn't know of any
community in the state that has asked for this.
Number 0416
CO-CHAIRMAN HALCRO noted that the bill says, "...at least one
percent of the utility's annual gross revenue from retail
customers..." He clarified as to whether it's safe to assume that
the cost would be passed on to the consumers.
SENATOR DONLEY replied currently ML&P does in excess of 1 percent,
which is part of their rate base. It has always been part of their
rate base. For many, many years all utilities were doing this.
When there was a monopoly ML&P was complying with the municipal
ordinance of 4 percent. But as things got more competitive, less
and less was done to avoid allowing competitors to gain an
advantage. The advantage of a level playing field is that it would
save the consumer money in the long run because the cost of
maintenance goes down with lines underground and the reliability of
service goes up because of a decrease in vandalism and other
weather outages.
Number 0506
REPRESENTATIVE DYSON stated that it is also safer. He asked
Senator Donley whether he explored financial incentives for
companies to do this as opposed to requiring them.
SENATOR DONLEY replied it's a neat idea, but he hasn't figured out
how to do it.
REPRESENTATIVE MURKOWSKI asked Senator Donley what sort of comments
have there been from private companies, especially in regards to
the addition of the term "cable" in the proposed amendment.
SENATOR DONLEY replied he has a letter from ML&P and Mr. James Rowe
from the Alaska Telephone Association, endorsing the proposed
amendment.
Number 0618
CO-CHAIRMAN HALCRO asked for clarification as to whether the
proposed amendment incorporates cable providers.
SENATOR DONLEY replied the proposed amendment says that while an
electric or telephone utility is placing an overhead line
underground they would coordinate their activities and bear the
cost for putting their own line or cable underground. Basically,
the electric and telephone utilities own the easements and when
they come along and place existing overheard lines underground,
that activity will be coordinated with others. But each utility
would bear its own costs.
Number 0691
CO-CHAIRMAN HARRIS moved Amendment 1. There being no objection, it
was so adopted. Amendment 1 reads as follows:
Page 2, following line 12:
Insert a new subsection to read:
"(j) When an electric utility or a telephone
utility is implementing a program to place existing
overhead utility distribution lines located in a
municipality underground, any other overhead line
or cable in the same location shall be placed
underground at the same time. Each entity whose
lines or cables are placed underground shall pay
the cost of placing its own lines or cables
underground."
Number 0704
CO-CHAIRMAN HARRIS noted that the assembly resolution mentions
100,000 and the bill mentions 200,000. He asked Senator Donley
whether the bill was written so that it is site-specific.
SENATOR DONLEY replied the "folks from Fairbanks" asked that it be
amended to make it clear that it only applies to Anchorage because
they want to deal with it separately.
Number 0750
CO-CHAIRMAN HALCRO closed the meeting to public testimony.
Number 0757
CO-CHAIRMAN HARRIS made a motion to move CSSSSB 10(FIN), as
amended, from the committee with individual recommendations and the
attached fiscal note(s). There being no objection, HCS CSSSSB
10(CRA) was moved from the House Community and Regional Affairs
Standing Committee.
The committee briefly stood at-ease.
CSSB 157(FIN) AM - POWER COST EQUALIZATION
CO-CHAIRMAN HALCRO announced the next item of business is CS FOR
SENATE BILL NO. 157(FIN) am, "An Act relating to power cost
equalization; relating to appropriations from the National
Petroleum Reserve - Alaska special revenue fund to the power cost
equalization and rural electric capitalization fund; relating to
the power cost equalization and rural electric capitalization fund
and the four dam pool transfer fund; and providing for an effective
date."
The committee stood at-ease from 9:38 a.m. to 9:46 a.m. in order to
distribute the appropriate version of the bill to committee members
and staff.
CO-CHAIRMAN HALCRO noted that Version 1-LS0835/K.a is before the
committee.
Number 0862
CO-CHAIRMAN HARRIS made a motion to adopt CSSB 157(FIN) am. There
being no objection, it was so adopted.
MARY JACKSON, Legislative Assistant to Senator John Torgerson,
Alaska State Legislature, came before the committee to present the
sponsor statement. She explained that an amendment on the Senate
floor deleted language that would have provided a future funding
source from the four dam pool. It was deleted because it is an
uncertain funding source. However, the amendment does not have a
substantive effect on the funding mechanism. The proposed House
committee substitute appropriately reflects that amendment as well.
She said:
Mr. Chairman to continue: The current funding for the
PCE [Power Cost Equalization] program for FY [fiscal
year] 99 is approximately $18 million. The Senate
version was $12 [million]. The CS [committee substitute]
that you have in front of you is $16.4 [million]. The
known dollars, right now, including what the Senate has
done with its version of the bill, which adds another
$2.2 [million] approximately, is somewhere between $7 and
$8 million. So, we're $4 million short from the Senate
target numbers of $12 million, and obviously we can all
add and subtract and see how much short you would be from
your CS that's in front of you.
The program is obviously critical to the state and the
Senate recognized it. In fact, the Senate Finance
Committee put the bill before them. There's only one
member of the committee that's affected by the PCE
program and that's the minority member. Despite that,
they felt it was important and went forward with it. The
CS for--from the Senate Finance [Committee] is a $2.7
million reduction for commercial users. It's a $3.7
million reduction to lower - what we're calling the
ceiling - 700 kilowatts is the ceiling to lower it to 350
[kilowatts]. It is essentially the recommendation of the
Governor's Blue Ribbon Commission as is the $2.7 million
deduction for the commercial [users]. And, then the
Senate version increases the floor to 13.5 cents ... The
current statutes are 9.5 cents plus an adjustment based
on an Anchorage, Juneau and a Fairbanks rate. That
doesn't accommodate the Kenai Peninsula, the Mat-Su or
anyplace in the state. It's just Kenai, Anchorage and
Fairbanks, and as a practical matter all three of those
are lower than the Kenai Peninsula, which is where I
hail--from which I hail, I should say. So, one of the
concerns was to try to accommodate that statewide average
and make sure that that base rate was within a statewide
average. The most recent numbers that were available in
1995 in the statewide was, I believe, it was 1.3 cents.
So, the floor of 9.5 right now plus this adjustment is a
point zero point four factor raises that floor to 9.9
cents. That's important to realize when you look at the
bill. The bill says 9.5 [cents]. With the adjustment
it's 9.9 [cents] right now. So, we've approached it from
two ways - the ceiling and the floor. The floor being
the 9.5 [cents] plus the adjustment factor and then the
ceiling being the 700 kilowatt hour. What was not
discussed or changed were the community facilities. That
wasn't involved at all with any of the discussion. The
rate again from 700 down to 350 is actually not a monthly
350; it's an averaged 350. So, that the department would
be giving the authority by regulation to make a
determination on what is an appropriate kilowatt rate for
the month of April or the month of May or June or
December. That too was a part of the Governor's Blue
Ribbon Commission's recommendations. I'm not sure what
other information I can give you. Perhaps it would be
best at this point to just answer questions.
Number 1108
CO-CHAIRMAN HALCRO asked Ms. Jackson whether the amendment deleting
funding from the four dam pool is coming from the power project
loan program.
MS. JACKSON replied: "No, actually the, Mr. Chairman, the four dam
pool fund is comprised of three things. One is the 40 percent for
the PCE program. One is a 20 percent for capital projects program,
and the other is 40 percent for the Southeast energy program. The
40 percent for the Southeast energy program is the one that was
removed on the [Senate] floor. The 20 percent for the capital is
still in, and that also was a Blue Ribbon Commission
recommendation, and that nets the program approximately an added $2
million per year."
CO-CHAIRMAN HALCRO clarified as to whether the capital improvement
project is the power project fund.
MS. JACKSON confirmed that it is.
Number 1159
CO-CHAIRMAN HARRIS asked Ms. Jackson to go over again how much
money the Senate's version justifies for the PCE program.
MS. JACKSON replied: "Through the chair, Mr.
Harris--Representative Harris, at this point the numbers are
in--the conference committee number are $4.6 million in the Senate
side, identified fund sources. The House is a unidentified fund
source, so this is part of the dilemma with the program. This bill
would add $2.2 million, which is the approximate value of the 20
percent from the four dam pool. This bill would add a potential
for gift receipts from the Alaska Association of Housing
Authorities. They have on record said they felt they would be able
to commit between $1 and $1.5 million. That won't be known for
some time whether or not that would be available. This bill also
provides for receipt of funds through NPR-A. As we all know that
sale just went through. The dilemma with that program is that
those funds would not be available until September. We don't know
yet exactly the dollar value that would be available through that.
What the Senate Finance Committee was trying to do was identify
fund sources that --that would be out there."
Number 1232
CO-CHAIRMAN HARRIS asked Ms. Jackson what the total amount is
again, according to the Senate version.
MS. JACKSON replied the total amount is between $6 and $8 million
that is known. The dollar value of the NPR-A is not know. The
dollar value of the sale is known, but how much would come down to
the PCE program is not known. The sale money goes into a community
impact fund, then the permanent fund, and then an amount is
deposited into the public schools trust.
Number 1269
CO-CHAIRMAN HALCRO asked Ms. Jackson whether the legislature is
taking a program that costs $18 million a year of which only $6 to
$8 million in funds have been identified.
MS. JACKSON replied in the affirmative.
CO-CHAIRMAN HALCRO stated it looks like a heavy burden is being
placed on the four dam pool revenue stream. He asked Ms. Jackson
whether there was any discussion on the Senate side in regards to
the self-help clause.
MS. JACKSON replied yes. The Senate committee substitute, as
written, would not disrupt the self-help clause, which is why she
said it would be "around" $2 million for the additional funding.
Number 1315
CO-CHAIRMAN HALCRO stated therein lies the problem. That could
throw a real curve into the potential revenue stream for PCEs.
Under the self-help provision, if the utilities want to claim more
for capital improvements they can do so. In addition, just four
days ago the House of Representatives passed a resolution that
promotes the purchase of the four dam pool by the four communities
involved. If he was one of those four communities and he had the
ability to take more revenue to upgrade his facility before buying
it, he's going to do it. It seems like a huge concern. He asked
Ms. Jackson whether that was addressed in the Senate Finance
Committee.
MS. JACKSON replied yes it was discussed. The difficulty is
because the funding for the program is through the PCE fund, which
only has $2.1 million in it - the dilemma this year.
Number 1382
CO-CHAIRMAN HARRIS asked Ms. Jackson whether the bill addresses
businesses or schools that are affected by PCE.
MS. JACKSON replied yes. The bill deletes commercial users
[businesses], and right now schools are defined as businesses, so
it would delete them as well. The program value to schools is
approximately $200,000 per year, which equates to about $1,000 per
month per school. It sounds like that wouldn't be appropriate, but
the maximum that can be received is 700 kilowatts and a school
clearly consumes more than 700 kilowatts a month.
CO-CHAIRMAN HARRIS asked Ms. Jackson whether right now it's about
$200,000 for all the schools in the state.
MS. JACKSON replied yes.
Number 1425
REPRESENTATIVE MURKOWSKI asked Ms. Jackson whether the commercial
users that are directly related to public health and safety are
also out in the Senate committee substitute.
MS. JACKSON replied no. Those are considered community facilities.
REPRESENTATIVE MURKOWSKI asked Ms. Jackson to define the term
"community facilities."
MS. JACKSON replied the definition of community facility includes
city halls, public recreation facilities, government facilities,
etc. The Blue Ribbon Commission discussed this and recommended
removing all facilities except those required for public safety,
which was about a $1 million reduction. The Senate decided not to
do that, however.
Number 1472
REPRESENTATIVE KOOKESH said: "If we're going to short-fund this
and we don't know where all the money is gonna come from, we might
as well fully fund it because we're gonna short-fund it anyway."
Number 1493
CO-CHAIRMAN HALCRO asked Ms. Jackson whether there has been any
estimates in relation to the money appropriated from NPR-A; could
it be $1 million, $10 million?
MR. JACKSON replied the same question was posed several weeks ago
and she has yet to receive an answer. She noted the Lamar Cotten
[Deputy Commissioner, Department of Community and Regional Affairs]
is here and could brief the committee on what the department does
with the funds. It's a fairly extensive process.
Number 1524
REPRESENTATIVE MURKOWSKI asked Ms. Jackson to explain the language,
"gifts, bequests, and contributions from other sources..." [Section
3(3)].
MS. JACKSON replied that subsection was added to provide for the
Alaska Association of Housing Authorities. In conversations with
the association they said, "You know we need to look at this
program. Clearly, when they build a house they need to try to make
sure that the electricity can stay on reasonably enough. They have
supplemental funds that they, as a body, will be talking about
putting aside into a fund so that it would draw interest--it would
gain interest and then that interest would in turn be turned in
toward the PCE fund. That's kind a one of the future fund sources
that the Senate has worked on. At this point, they felt that they
could probably commit $1 to $1.5 million. That's the other fund I
talked about earlier. The dilemma is that they need to have it
approved by their executive board, which in fact they have done.
But then they also need to go back into the communities and make
sure that they are supportive of this concept. And, that will
obviously take some time. So, it's tough to count that as a source
either. But it's a future."
Number 1592
CO-CHAIRMAN HALCRO stated he heard that the [Association of] Alaska
Housing Authorities cannot use their federal funds for PCE. He
asked Ms. Jackson whether she has heard that as well.
MS. JACKSON replied she spoke with Bruce Kavarick (ph) a week ago
at which point their executive committee had approved the same type
of concept. She can't imagine that an executive committee would
support something that is not acceptable.
Number 1627
CO-CHAIRMAN HALCRO asked Ms. Jackson whether there has to be
approval by the North Slope Borough before NPR-A funds can be used.
MS. JACKSON deferred the question to Mr. Lamar Cotten. It has only
been done a few times, so it is relatively new.
Number 1651
REPRESENTATIVE KOOKESH stated the people are going to wonder why
the schools are not being funded when it's only $200,000 in a
budget of $16 to $18 million, especially since it seems like the
state ends up paying for it one way or another. He asked Ms.
Jackson to inform the committee of the discussion in regards to
schools on the Senate side.
MS. JACKSON replied that, practically speaking, $200,000 would come
out of a state source. But beyond that, the Senate considered
whether or not it would pose a hardship because it might put them
to the limit of 70 percent instructional [cap], which was passed in
SB 36. She noted that Senator Torgerson sent a letter to the
department [Department of Education] two months ago asking that
specific question. The response was, if it put a school to the
limit, it would be a justification for a waiver.
Number 1733
REPRESENTATIVE KOOKESH noted that not all of the recommendations by
the Blue Ribbon Commission were taken and indicated it would be
interesting to see the rationale.
MS. JACKSON said: "Mr. Chairman, there were some of the things
that were discussed. Certainly, the raising of the floor was one
of the things that the Blue Ribbon [Commission] recommended. And
in fact, the first CS that [came] before the Senate was effectively
that. It was a 7 cent floor increase, which was the 150 percent
lifeline. That did not set well with the committee. The committee
did then, however, go back and pull bits and pieces of things out
of the Blue Ribbon Commission and also raised the floor somewhat
with what you have in front of you there, and I think you have the
spreadsheet 13 (indisc.) 13, so they did a little of this, a little
of that, a little of this."
Number 1774
REPRESENTATIVE DYSON asked Ms. Jackson whether some of the regional
and village corporations are helping the local residents with their
utility rates.
MS. JACKSON replied she doesn't know.
CO-CHAIRMAN HALCRO called on Mr. Lamar Cotten and asked him whether
there is any estimate of the dollar amount for NPR-A.
LAMAR COTTEN, Deputy Commissioner, Department of Community and
Regional Affairs, replied the lease has provided roughly $104
million. The state receives half, and according to federal
statute, the funds are to be used by subdivisions of the state most
directly or severely impacted by the development of oil and gas.
He noted, in the early 1980s, the state retained that money without
going through that process until it was sued by the North Slope
Borough. Now, the funds are subject to a review or a grant process
for eligible recipients - those impacted by the sale of a lease.
The process within the department will include a notice asking
communities to explain how they want to use the money to respond to
impact of the lease. A decision will be made in the fall of 1999,
at which point the findings and recommendations will be presented
to the legislature. The department will note and make a
recommendation if there isn't enough money to respond to the
impacts.
MR. COTTEN gave an example using hypothetical figures. "Let's say
we use all but $30 million, so then half of the $30 [million] goes
into the permanent fund, and .5 goes into the school foundation,
and then - the way the bill is set up - then the PCE would be
in-line, subject to legislative approval and appropriation, to draw
some money out of that pot for PCE. And once that event's
occurred, then the remainder goes into the general fund for general
governmental purposes. So, it really puts--the way the bill is
written it does still put that discretion in your hands."
Number 1947
CO-CHAIRMAN HALCRO asked Mr. Cotten whether the North Slope Borough
has to approve that because they are impacted.
MR. COTTEN replied he's not sure that the correct term is
"approve." The borough would have to come before the department
and make their case, given the likelihood that its their
communities that would be impacted by NPR-A. The borough could
certainly object and sue the department. Another way to say it is,
yes, when they make their case and the department makes its
recommendation, there would be a response from the borough in one
way or another.
Number 1990
CO-CHAIRMAN HALCRO stated, in an overview of the Department of
Community and Regional Affairs, prior examples of how lease money
was spent included community centers and roads. He is concerned
that if some community has a great need for a road, a community
center, or improvements to a health and safety facility, that would
be a higher priority than funding PCE, and the state would be in
the same position of finding money for it.
MR. COTTEN replied the past approach was a limited guide. The
process set up does require a community to demonstrate impact.
Number 2048
REPRESENTATIVE DYSON asked Mr. Cotten whether some of the regional
corporations are helping their members with PCE.
MR. COTTEN replied, according to his understanding, the North Slope
Regional Corporation is the only regional corporation that assists
its members with utilities.
Number 2069
REPRESENTATIVE DYSON asked Mr. Cotten whether the Department of
Community and Regional Affairs interacts with the state's
waste-heat recovery program.
MR. COTTEN replied yes. He noted that Mr. Percy Frisby and Mr.
Richard Emerman are here from the Division of Energy [Department of
Community and Regional Affairs]. A variety of alternatives for
energy is one of the department's chief components.
Number 2106
MR. COTTEN further stated, in response to an earlier discussion
with the Association of Alaska Housing Authorities, they indicated
that federal funds could be put into a pot and the interest derived
from it could be used for a variety of housing associated
investments. The department believes that PCE is one of those
associated investments.
Number 2166
ERIC YOULD, Executive Director, Alaska Rural Electric Co-Op
Association (ARECA), came before the committee to testify in favor
of SB 157. He also represents the electric utility industry in the
state. The Senate has worked hard to come up with a long-term
funding source and a formula to fit it. Unfortunately, CSSB
157(FIN) am doesn't go far enough. The House committee substitute
before the committee would provide a funding source that is more
reliable. As a member of the utility industry and as a member of
the Blue Ribbon Task Force [Commission], he noted that the figure
of $16 million comports with what is needed for rural Alaska. It
would eliminate commercial [users], schools, and raise the floor a
little bit, but the upshot is that it would provide for a healthy
Alaska.
MR. YOULD further stated that, if this bill does not pass, and if
there isn't any funding for PCE, the legislature will find that the
economies in rural Alaska will be greatly impaired.
TAPE 99-34, SIDE B
Number 0001
MR. YOULD continued. He strongly supports the proposed committee
substitute as offered by Representative Morgan. It raises the
level of the program up to $16 million and attempts to identify a
more stable funding source. He further stated that he is in favor
of funding from NPR-A, but there are certain perturbations in being
able to utilize those funds. In summary, the cost of electricity
in rural Alaska is roughly four times and in many cases
six-to-seven-times the cost of what it is in Anchorage, Juneau and
Fairbanks, yet the disposable income is significantly less -
one-fourth to one-fifth the urban areas. Hence, they are not only
paying more for electricity, but they have less ability to pay for
it in the first place. He reiterated, ARECA strongly supports the
adoption of the proposed House committee substitute.
Number 9943
CO-CHAIRMAN HARRIS asked Mr. Yould whether there will ever be
monies put toward a real strong effort to get communities off of
PCE or at least less dependent on it.
MR. YOULD replied the state has the largest resources for wind,
untapped hydro potentials, coal reserves, and tidal. But the
problem is one of an economy of scale and the ability to develop
them economically for the small villages and communities. In many
respects, some of the technologies are coming along. He cited fuel
cells as an example, which will be a significant contributor once
the research can figure out how diesel power can be used as a feed
stock. Nevertheless, the utilities have done a marvelous job in
becoming more efficient. He cited in 1978 the state was getting
roughly 6 kilowatt-hours per gallon of diesel fuel for electricity
in rural Alaska, while today it's over 12 kilowatt-hours per
gallon.
Number 9836
CO-CHAIRMAN HARRIS asked Mr. Yould whether any of that money is
coming out of the PCE fund, or is other money being directed toward
that from the utilities themselves.
MR. YOULD replied the utilities themselves are using internal funds
to pursue those types projects. He cited AVEC [Alaska Village
Electric Co-Op] is entering into a joint venture with Chugach
Electric [Association, Inc.] to put in place a demonstration
project for micro-turbines to run the AVEC facility in Anchorage.
If it's found to be a good feasible technology, it will be moved
out to rural Alaska as long as the feed power is diesel. At the
same time, however, AVEC is a PCE community so, in effect PCE
contributes to that technology as well.
Number 9793
REPRESENTATIVE KOOKESH said that he is from rural Alaska and he
feels bad sometimes about asking for a handout, but part of that
issue needs to be couched in relation to how much money has been
spent in urban Alaska for projects such as the four dam pool. That
needs to be part of the discussion as well, so that rural Alaskans
feel less guilty about taking some of that money.
REPRESENTATIVE KOOKESH further stated that he would like to get
help from the Majority members in considering a fund to help the
communities get off of PCE. He said that Angoon, under ANILCA
[Alaska National Interest Lands Conservation Act], received a land
exchange which allowed the community to develop a hydro project
called Thayer Lake, but it doesn't have the money or the
wherewithal to proceed with the project. If state and federal
money were directed to that project, four communities could get off
of PCE - Kake, Tenakee, Angoon and Hoonah. He also cited Kotzebue
wind generation and gas turbine developments that are being looked
at. As a long-range vision, he suggested taking the money that
would go to Angoon for PCE for the next 20 years and matching it
with a federal program to get money to work on the hydro project.
Number 9669
MR. YOULD stated the concept of the state putting money towards a
project that would reduce dependancy on PCE is a good way to go.
He noted that Cordova came to the legislature last year looking for
money for the Power Creek project. Part of the deal was forgoing
any future PCE. Certainly, Thayer Creek and other projects would
be eligible for that sort of philosophical consideration by the
legislature.
Number 9628
REPRESENTATIVE KOOKESH stated he is just trying to think in the
long term. He doesn't want to be here with his hand out for the
next twenty years. He wants to do something for his communities to
help them get off of PCE.
Number 9604
REPRESENTATIVE MURKOWSKI said, in response to comments from
Representative Kookesh, she has to deal with a constituency who has
no help with their [utility] bills. It is important to have these
types of discussions so that people in the urban areas don't feel
resentful and those in the rural areas don't feel guilty.
Number 9558
REPRESENTATIVE DYSON said he was told that the state has enough
coal to fuel all of North America's energy requirements for 600
years. In addition to the [economy of] scale factors, there is
also a distribution problem of the energy sources being far away
from the customers. There is also a problem with wind and tidal
sources because they are inconsistent and there needs to be a way
to store that energy, which is difficult and requires high
maintenance. Hydro-electric and tidal projects are marvelous, but
have some environmental and huge political problems to make them
... He encouraged the committee members to not think that
technology is going to rescue the state from these problems in the
near term because the best of them won't make an impact for at
least ten years. That is the reality that the state needs to deal
with.
REPRESENTATIVE DYSON further stated that he has been encouraging
this legislature to look at the bigger picture and decide upon
adopting affordable, reliable and safe electric power as a
universal service, and to put together a statewide program that
allows for cross-subsidization instead of in a piecemeal fashion.
He asked Mr. Yould whether other jurisdictions have treated
electric power as a universal service.
Number 9461
MR. YOULD replied, yes, the entire philosophy of the utility
industry is to spread the cost amongst "all" to get a standard rate
throughout an entire service territory.
REPRESENTATIVE DYSON said, given the state's distribution problem
and the lack of a grid, it has never really dealt with that.
MR. YOULD said: "We have not had to, but you're suggesting a
financial inter-tie, and it's the same thing. You don't need to
have the hard wire so long as you have everybody tied together
financially, which is in some respects what PCE is attempting to
do, but not quite--not as cohesively as what you're suggesting."
CO-CHAIRMAN HALCRO asked Mr. Frisby whether PCE was funded at $18
million for FY 99.
PERCY FRISBY, Director, Division of Energy, Department of Community
and Regional Affairs, came before the committee to answer
questions. He replied yes, it was funded at $17 million and the
department asked for a supplemental [appropriation] of $1.5
million.
CO-CHAIRMAN HALCRO asked Mr. Frisby what will be left in the PCE
fund at the end of the fiscal year.
MR. FRISBY replied the carry forward will be $2.2 million.
CO-CHAIRMAN HALCRO asked Mr. Frisby to share with the committee
members his thought on the revenue stream for the PCE fund.
MR. FRISBY replied he has the same concerns as everybody else in
regards to NPR-A. That being, is the money really there. In his
opinion, the AIDEA [Alaska Industrial Development and Export
Authority] is more of a solid funding source. He doesn't have a
problem with 60 percent of the balance of the four dam pool being
transferred to the PCE fund. He doesn't have a problem with 20
percent for the power project fund. He noted that the power
project fund is self-sustaining; it's a revolving loan fund.
CO-CHAIRMAN HALCRO asked Mr. Frisby what is left in the power
project fund.
MR. FRISBY replied about $14 million, of which, $7 to $8 million is
available for new loans.
CO-CHAIRMAN HALCRO asked Mr. Frisby whether there is $7 to $8
million in cash.
MR. FRISBY replied yes.
Number 9303
REPRESENTATIVE KOOKESH asked Mr. Frisby whether the 18.5 percent
[$18.5 million] funded the program at one hundred percent.
MR. FRISBY replied no. Funding at one hundred percent is about
$22.5 to $23 million.
REPRESENTATIVE KOOKESH asked Mr. Frisby whether it was funded at
about 85 percent.
MR. FRISBY replied yes.
Number 9291
CO-CHAIRMAN HALCRO stated, even if the funding is raised to about
$15.5 to $15.7 [million], the program is still taking almost a $3
million hit from the previous year.
Number 9260
CO-CHAIRMAN HALCRO asked Ms. Jackson to share with the committee
the arguments against using the AIDEA dividend in the Senate.
MS. JACKSON replied the AIDEA dividend is $18 million, and it has
already been spent. It's not there. "The Governor certainly a
month ago now, May 4th, I believe it was went out with a public
discussion about putting you know the AIDEA as a potential funding
source, but you needed to look at the Governor's handouts, which
showed that beginning in fiscal year 2001. We are in fiscal year
2000."
CO-CHAIRMAN HALCRO asked Mr. Jackson what the AIDEA is being spent
on this year.
MS. JACKSON replied she doesn't recall exactly, but noted it is
part of the capital and supplemental budgets.
CO-CHAIRMAN HALCRO stated that the budget for FY 00 has not been
approved yet, so even if it is allocated it could be reallocated.
This is done all the time.
Number 9191
REPRESENTATIVE MORGAN stated, a funding level of $12.1 [million]
and capping the floor at 350 [kilowatts], is affecting his
constituents big time. He cited a refrigerator, a 60 watt light
bulb, a radio and a television would easily consume 350 kilowatts.
He has a real big problem with the original committee substitute.
If the PCE program is broken or underfunded to a great deal, life,
safety and health are being affected. That's how important it is
in rural Alaska. He further stated that the PCE program is not a
subsidy; it's a power cost "equalization" program. A solution in
how to fix the problem should have been looked at in the 1980s when
the state had the money, instead of continuing to fund it at the
same level. As a result, the legislature is reacting and it's
starting to affect individuals emotionally. He noted a temporary
fix is not a solution. He agrees with Representative Kookesh in
looking at other ways to fix it, even though it would cost money in
the beginning, but in the long run it will save money.
REPRESENTATIVE MORGAN said, "We need to get people off PCE." All
the alternative resources need to be reviewed. He noted that all
Alaska's resources are in Bush Alaska. He emphasized the need to
develop the mines, gold mines, which takes energy and electricity.
Representative Morgan pointed out that there is a lot of potential
in his area for gold, but one of the things that's been inhibiting
them is the cost of energy. He further informed the committee that
his district has the highest unemployment. Representative Morgan
stressed that Bush Alaska has really been hit this session which is
of great concern. "Just because we're not seen and not heard from,
please don't take our kindness for weakness."
Number 9008
REPRESENTATIVE MORGAN made a motion to adopt HCS CSSB 157(CRA)
[1-LS0835\S, Cramer/Utermohle, 5/15/99].
CO-CHAIRMAN HARRIS objected for discussional purposes.
REPRESENTATIVE MORGAN read the following sectional analysis into
the record:
Sec. 1 Revises current statute (AS 37.05.530(g)) regarding
the National Petroleum Reserve-Alaska (NPRA) fund so that
amounts which remain AFTER; (1) the community impact grants;
(2) the deposits to the Permanent Fund; and (3) the deposits
to the public school trust fund can be appropriated to the
power cost equalization and rural electric capitalization fund
(PCE) Prior to the balance lapsing to the general fund.
Sec. 2 Revises current statute (AS 42.45.050(b)) to increase
the transfers into the power cost equalization and rural
electric capitalization fund from 40 to 60 percent. The added
20 percent is 20 percent of the existing balance in the four
dam pool fund for the power project fund, which is now
deleted.
Sec. 3 Revises current statute (AS 42.45.100(b)) to include
new potential fund sources for the PCE program; NPRA and
"gifts".
Sec. 4 Revises current statute (AS 42.45.100) and adds a new
subsection (d) to allow for future appropriations beginning
after FY 2000 from AIDEA, and adds a new subsection (e) that,
subject to appropriation, allows 60 percent of the net
proceeds from the sale of the four dam pool, as described in
AS 44.83.398(a).
Sec. 5 Revises current statute (AS 42.45.110(b)) by deleting
commercial customers.
Sec. 6 Revises current statute (AS 42.45.110(c)) by (1)
changing the initiation date from July 1, 1993 to July 1,
1999; increasing the minimum power costs amounts from 9.5 to
12.5 cents. (Current is 9.5 plus 0.4 adjust to total 9.9
cents.)
Sec. 7 Revises current statute (AS 42.45.110(d)) by deleting
commercial customers.
Sec. 8 Revises current statute (AS 42.45.110(i)) by inserting
language to clarify that pro rata deductions must be based on
the amount provided in a fiscal year.
Sec. 9 Revises current statute (AS 42.45.120) by inserting
new language for the existing "notice to customer"
requirement. The new language requires the utility to
indicate the fuel efficiency of the utility.
Sec. 10 AS 42.45.100(d), enacted by sec. 4 of this Act,
applies to the amount made available for appropriation by
AIDEA under AS 44.88.088 for each fiscal year after fiscal
year 2000.
Sec. 11 The effective date of this bill, which is July 1,
1999.
Number 8749
MR. COTTEN came before the committee again to express the
department's support of HCS CSSB 157(CRA). It reaches a number of
goals mentioned by the Governor, the Blue Ribbon Task Force
[Commission], and many members of the rural caucus. He said:
I guess the way I would envision this to occur is that
for FY 00 is that, because of the last clause in this
bill about AIDEA funding, that for FY 00 there would be
a combination of $2.2 million, which is the carry-over
from FY 99. It would be roughly $5.5 million from the
four dam pool revenues, which is 60 percent of those
revenues. That's 5.5. That equals 7.7 and then the
remaining funds would come out of gifts, which I don't
think we have banked on frankly. Although, perhaps it
could come by, but funds that would be derived from the
NPR-A account that would then go into the PCE account.
For the long-term, and I think this is what we've all
been striving for and certainly again I think we
appreciate the hard work by the committee and its staff
and that is up to 40 percent of AIDEA dividends starting
year 2001. That still requires legislative approval.
You can't dedicate funds, so I believe the language is
such that it does ... Subject to appropriation by the
legislature shall be transferred when the funds made
available. So, there is some ambiguity or there's always
going to be some uncertainty, but I think we're very
comfortable with that, and I think clearly it would part
of the budget every year that would be submitted to the
legislature that would reflect that amount.
MR. COTTEN further stated in relation to the floor and ceiling
discussion earlier, the effect of raising the floor means one less
cent per kilowatt that is subsidized or equalized. Therefore,
whether a person lives in Unalaska - a fairly wealthy community -
or Holy Cross, everybody is treated equally. While pushing the
ceiling back to 700 [kilowatts] seems to hurt those with the least
ability to pay more.
Number 8561
REPRESENTATIVE MURKOWSKI asked Mr. Cotten what is the possibility
of the department getting snarled in lawsuits from the community
impact grants that could tie up these monies for the immediate
short-term.
MR. COTTEN replied that is a risk. Two comments - one way is to
have the effective date of the AIDEA provision to go into the year
2000 as a backstop, which the department would not object to. The
other comment is that it requires cooperation between the
communities, that are truly impacted by the NPR-A, the
Administration, and the legislature.
Number 8444
REPRESENTATIVE MURKOWSKI stated, in recognizing that the affected
communities will obviously benefit from this piece of legislation,
she asked Mr. Cotten whether they have been brought into the
conversation yet, or will this piece of legislation come as a
complete surprise to them.
MR. COTTEN replied no he has not had conversations with them, but
he doesn't think it will come as a complete surprise. He wants to
make sure that his testimony today does not reflect any bias
towards any decision making that he may be involved in with those
grants. He wants to make the record clear that he has an open mind
to any kind of grants or decisions that would come across his desk
as a deputy commissioner.
Number 8320
REPRESENTATIVE MURKOWSKI commented it seems that the department
needs a backup plan.
MR. COTTEN replied yes. He further noted that the department is
grappling with this because it is not using general funds, which
has limited its ability to address the bigger fiscal picture.
However, given the options available, both NPR-A and AIDEA seem to
be reasonable places to go.
Number 8291
REPRESENTATIVE MORGAN stated, in relation to the NPR-A discussion,
he has been working very closely with the senator who represents
that district. In fact, it was his recommendation to include
NPR-A.
Number 8255
CO-CHAIRMAN HALCRO asked Mr. Frisby whether there have been any
discussions regarding capital improvements to the utilities to make
them more efficient and to bring them into compliance.
MR. FRISBY replied he has been working with the Denali Commission
and other federal agencies in terms of trying to secure funding for
distribution upgrades and alternative energy. The Division of
Energy [Department of Community and Regional Affairs] is involved
in alternative energy projects including fuel cell development.
The division is trying to determine whether or not these systems
can be scaled down enough so that they are feasible and practical
for rural Alaska. The division is looking at close to $3 million
in upgrades for next year from federal sources, but there is no
state matching [funds] right now. The communities, however, use
the power project loan fund to borrow the necessary money for
system upgrades.
CO-CHAIRMAN HALCRO commented it seems it would go a long way in
promoting efficiency.
Number 8040
CO-CHAIRMAN HARRIS withdrew his objection to adopting the House
proposed committee substitute.
CO-CHAIRMAN HALCRO asked whether there is any further objection.
There being none, it was so adopted.
Number 7998
REPRESENTATIVE MURKOWSKI said she is concerned that the legislature
may be faced with difficulties from the communities impacted by
NPR-A. She is also concerned that the money won't be there to fund
the program.
REPRESENTATIVE MORGAN reiterated the Senator from "that district"
has been working with the communities that would be impacted. He
trusts him.
Number 7894
REPRESENTATIVE DYSON stated he sees the charge for this committee
as looking after community affairs and making policy decisions
related to community life, problems, and developments. The
financial arguments might be better handled in the House Finance
Standing Committee.
CO-CHAIRMAN HALCRO asked Mr. Cotten to give the committee a best
guess scenario for the fiscal note and where the revenues would
come from. There is nothing in writing.
MR. COTTEN replied the bill would require $16.4 million. A balance
of $2.2 million would be carried forward from FY 99, $5.5 million
would come from the four dam pool, and the remainder would come out
of NPR-A (roughly $8.7 million).
Number 7704
CO-CHAIRMAN HARRIS said he will support the House proposed
committee substitute, but he's not happy with it. The Majority
caucus asked for $17 million, a reduction of $1.5 million from last
year. But, having sat through almost one session now, he realizes
that sometimes an "initial will" doesn't always carry through. The
committee is charged with representing the will of the
communities...
TAPE 99-35, SIDE A
Number 0001
CO-CHAIRMAN HARRIS continued. He thinks that the legislature needs
to look at a means to provide communities a way to reduce their
subsidy. Although the testimony today has indicated that is
ongoing, it seems like the state has been in this situation for
many, many years.
Number 0069
CO-CHAIRMAN HALCRO stated that this is - beyond a doubt - the most
important piece of legislation the House Community and Regional
Affairs Standing Committee has dealt with this year. A great deal
of appreciation needs to be expressed to Representative Morgan and
his staff for their work on the proposed committee substitute.
They have been working with House Finance Standing Committee
members in asking for their support and consideration in finding
funding sources. He noted that this is a short-term solution to a
long-term problem. The upgrades, that Mr. Frisby mentioned, and
the technology, that Representative Dyson mentioned, all need to be
considered in a long-term solution.
Number 0199
REPRESENTATIVE KOOKESH said, as a member of the minority, he is
ready to criticize the Majority, but there are times when a "thank
you" is necessary. He is comfortable with the fact that the five
members of the Majority on the House Community and Regional Affairs
Standing Committee have always appeared to be fair and willing to
work towards a solution for all of Alaskans - both urban and rural.
Number 0267
REPRESENTATIVE DYSON made a motion to move the proposed HCS CSSB
157(CRA) from the committee with individual recommendations and the
attached fiscal note(s). There being no objection, it was so moved
from the House Community and Regional Affairs Standing Committee.
ADJOURNMENT
There being no further business before the committee, the House
Community and Regional Affairs Standing Committee was adjourned at
11:13 a.m.
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