Legislature(1999 - 2000)

04/16/1999 02:08 PM House URS

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
  HOUSE SPECIAL COMMITTEE ON UTILITY RESTRUCTURING                                                                              
                   April 16, 1999                                                                                               
                     2:08 p.m.                                                                                                  
                                                                                                                                
MEMBERS PRESENT                                                                                                                 
                                                                                                                                
Representative Bill Hudson, Chairman                                                                                            
Representative John Cowdery, Vice Chairman                                                                                      
Representative Pete Kott                                                                                                        
Representative Norman Rokeberg                                                                                                  
Representative Brian Porter                                                                                                     
Representative John Davies (via teleconference)                                                                                 
Representative Ethan Berkowitz                                                                                                  
Representative Joe Green (alternate)                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
* HOUSE BILL NO. 183                                                                                                            
"An Act relating to the powers and duties of the chair of the                                                                   
Alaska Public Utilities Commission; relating to membership on the                                                               
Alaska Public Utilities Commission; and relating to the annual                                                                  
report of the Alaska Public Utilities Commission."                                                                              
                                                                                                                                
     - MOVED CSHB 183 (URS) OUT OF COMMITTEE                                                                                    
                                                                                                                                
(* First public hearing)                                                                                                        
                                                                                                                                
PREVIOUS ACTION                                                                                                                 
                                                                                                                                
BILL: HB 183                                                                                                                    
SHORT TITLE: ALASKA PUBLIC UTILITIES COMMISSION                                                                                 
SPONSOR(S): SPECIAL COMMITTEE ON UTIL RESTRUCTURING                                                                             
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 4/09/99       702     (H)  READ THE FIRST TIME - REFERRAL(S)                                                                   
 4/09/99       702     (H)  URS, L&C                                                                                            
 4/14/99               (H)  URS AT  8:00 AM BUTROVICH ROOM 205                                                                  
 4/14/99               (H)  SCHEDULED BUT NOT HEARD                                                                             
 4/16/99               (H)  URS AT  2:00 PM CAPITOL 120                                                                         
                                                                                                                                
                                                                                                                                
WITNESS REGISTER                                                                                                                
                                                                                                                                
WALT WILCOX, Legislative Assistant                                                                                              
   for Representative Bill Hudson                                                                                               
Alaska State Legislature                                                                                                        
Capitol Building, Room 108                                                                                                      
Juneau, Alaska  99801                                                                                                           
Telephone:  (907) 465-6820                                                                                                      
POSITION STATEMENT:  Introduced HB 183 and provided a sectional                                                                 
                     analysis.                                                                                                  
                                                                                                                                
JIM BALDWIN, Assistant Attorney General                                                                                         
Civil Division                                                                                                                  
Department of Law                                                                                                               
P.O. Box 110300                                                                                                                 
Juneau, Alaska  99811                                                                                                           
                                                                                                                                
Telephone:  (907) 465-3600                                                                                                      
POSITION STATEMENT:  Provided clarification on Amendment 3.                                                                     
                                                                                                                                
ERIC YOULD                                                                                                                      
Alaska Rural Electric Cooperative Association, ARECA                                                                            
703 West Tudor Road                                                                                                             
Anchorage, Alaska  99503                                                                                                        
Telephone:  (907) 561-6103                                                                                                      
POSITION STATEMENT:  Provided clarification on Amendment 5.                                                                     
                                                                                                                                
JIM ROWE                                                                                                                        
Alaska Telephone Association (ATA)                                                                                              
201 East 56th                                                                                                                   
Anchorage, Alaska  99518                                                                                                        
Telephone:  (907) 563-4000                                                                                                      
POSITION STATEMENT:  Provided clarification on Amendment 7.                                                                     
                                                                                                                                
BOB LOHR, Executive Director                                                                                                    
Alaska Public Utilities Commission                                                                                              
1016 West 6th                                                                                                                   
Anchorage, Alaska  99503                                                                                                        
Telephone:  (907) 276-6222                                                                                                      
POSITION STATEMENT:  Provided information on the APUC.                                                                          
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 99-16, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
[NOTE:  This meeting is a continuance of the April 14, 1999,                                                                    
meeting which was recessed to the call of the chair.]                                                                           
                                                                                                                                
CHAIRMAN BILL HUDSON called the House Special Committee on Utility                                                              
Restructuring meeting to order at 2:08 p.m.  Members present at the                                                             
call to order were Representatives Hudson, Cowdery, Rokeberg,                                                                   
Porter, Davies, and Green (alternate).  Representatives Kott and                                                                
Berkowitz arrived at 2:12 p.m.                                                                                                  
                                                                                                                                
HB 183 - ALASKA PUBLIC UTILITIES COMMISSION                                                                                     
                                                                                                                                
CHAIRMAN HUDSON announced that the first order of business was                                                                  
House Bill No. 183, "An Act relating to the powers and duties of                                                                
the chair of the Alaska Public Utilities Commission; relating to                                                                
membership on the Alaska Public Utilities Commission; and relating                                                              
to the annual report of the Alaska Public Utilities Commission."                                                                
                                                                                                                                
Number 0163                                                                                                                     
                                                                                                                                
WALT WILCOX, Legislative Assistant for Representative Bill Hudson,                                                              
Alaska State Legislature, introduced HB 183 and provided a                                                                      
sectional analysis, which stated:                                                                                               
                                                                                                                                
     Section 1:                                                                                                                 
          A. Gender correction from chairman to chair.                                                                          
          B. Makes the chair responsible for the administration of                                                              
             the commission and commission employees.                                                                           
                                                                                                                                
     Section 2:                                                                                                                 
          No more than 2 members of the commission may be from the                                                              
          same party.  Commissioners may not change parties during                                                              
          the year prior.                                                                                                       
                                                                                                                                
     Section 3:                                                                                                                 
          The chair, rather than the commission may establish                                                                   
          offices for the APUC.                                                                                                 
                                                                                                                                
     Section 4:                                                                                                                 
          The chair, rather than the commission may employ                                                                      
          temporary legal counsel.                                                                                              
                                                                                                                                
     Section 5:                                                                                                                 
          The chair, rather than the commission may hire outside                                                                
          consultants, and experts with the approval of the                                                                     
          commission.                                                                                                           
                                                                                                                                
     Section 6:                                                                                                                 
          In addition to the annual report the APUC will present to                                                             
          the Legislature the commission activities, and timeliness                                                             
          of docket activity for the previous year.                                                                             
                                                                                                                                
     Section 7:                                                                                                                 
          Repealers - removes employee/public category                                                                          
          requirements.                                                                                                         
                                                                                                                                
Number 0428                                                                                                                     
                                                                                                                                
MR. WILCOX introduced the amendments, which included:                                                                           
                                                                                                                                
     Amendment 1                                                                                                                
          Removal of the commissioner by the Governor.  The                                                                     
          amendment deletes the requirement that the Legislature                                                                
          approve the termination of a commissioner.                                                                            
                                                                                                                                
     Amendment 2                                                                                                                
          Prohibits commission members from participation in:                                                                   
               Political campaigns                                                                                              
               Partisan fund-raising activities                                                                                 
               Lobbying activities beyond their duties as a                                                                     
               commissioner.                                                                                                    
                                                                                                                                
Number 0579                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN  referred to Amendment 1, line 4, where it                                                                 
reads, "Page 1, following line 9," and pointed out that the                                                                     
amendment would start in the middle of a sentence.                                                                              
                                                                                                                                
MR. WILCOX clarified that rather than have the amendment redrafted,                                                             
the 3/15/99 version was used.  He asked the committee to ignore                                                                 
line 4 of the amendment and he noted that the real interest is the                                                              
meat of the amendment being inserted in the proper place.                                                                       
                                                                                                                                
REPRESENTATIVE GREEN suggested that "following line 10" be                                                                      
substituted for "following line 9" on line 4 of Amendment 1.                                                                    
                                                                                                                                
REPRESENTATIVE BERKOWITZ made a motion to adopt the technical                                                                   
amendment to Amendment 1.  There being no objection, the amendment                                                              
to Amendment 1 was adopted.                                                                                                     
                                                                                                                                
CHAIRMAN HUDSON indicated that Amendment 1 is before the committee                                                              
for discussion.                                                                                                                 
                                                                                                                                
REPRESENTATIVE ROKEBERG objected to Amendment 1.  He pointed out                                                                
that the amendment takes away the power of the legislature and                                                                  
grants it to the governor.                                                                                                      
                                                                                                                                
REPRESENTATIVE PORTER agreed with Representative Rokeberg.  He                                                                  
stated that the APUC would be the only commission where the                                                                     
legislature must concur with the termination of a commissioner.  He                                                             
is not aware of any other commission that has that provision.                                                                   
                                                                                                                                
Number 0764                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG stated that for the this commission there                                                               
are some distinctions made in statute for cause of removal.  There                                                              
is an application in statute as to how to they are treated with                                                                 
regards to appointment, because they can only be removed by cause,                                                              
whereas other commissioners can be removed for any other reason.                                                                
He pointed out that there are appointees who are appointed for a                                                                
term not necessarily consistent with the governor's term of office                                                              
who can only be removed by cause.                                                                                               
                                                                                                                                
REPRESENTATIVE BERKOWITZ indicated that he would have preferred the                                                             
claim for cause language, but the language in Amendment 1, which                                                                
reads,"inefficiency, neglect of duty, or misconduct in office, or                                                               
because the member, while serving on the commission, is convicted                                                               
of a misdemeanor for violating a statute or regulation related to                                                               
public utilities or is convicted of a felony," seems to cover                                                                   
cause.                                                                                                                          
                                                                                                                                
REPRESENTATIVE ROKEBERG clarified that the issue is whether the                                                                 
legislature should participate in the removal of a commissioner.                                                                
                                                                                                                                
Number 0865                                                                                                                     
                                                                                                                                
REPRESENTATIVE BERKOWITZ pointed out that the governor hires the                                                                
commissioners and the legislature confirms them, so the governor                                                                
can fire them.  He indicated that he does not think the power of                                                                
the legislature is being given up.                                                                                              
                                                                                                                                
REPRESENTATIVE ROKEBERG disagreed with Representative Berkowitz,                                                                
because the APUC, Oil and Gas Conservation Commission and the                                                                   
Alaska Royalty Oil and Gas Development Advisory Board have                                                                      
different removal procedures, which means the governor can't fire                                                               
the commissioners.                                                                                                              
                                                                                                                                
REPRESENTATIVE BERKOWITZ stated, "But we can."                                                                                  
                                                                                                                                
MR. WILCOX explained that the APUC is different in that it is one                                                               
of the very few, if not the only commission, that requires the                                                                  
legislature to concur with the termination of a commissioner.  A                                                                
question that has been brought up is what happens if the governor                                                               
decides to terminate a commissioner during the interim.  Would                                                                  
there need to be a special session?                                                                                             
                                                                                                                                
CHAIRMAN HUDSON stated that is the problem presently.  One of two                                                               
things can be done; one, ignore it, or two, require the relief of                                                               
legislative oversight or concurrence during an interim proceeding.                                                              
                                                                                                                                
REPRESENTATIVE PORTER indicated that he could support Amendment 1                                                               
the way it is worded.  The alternative could be to change the bill                                                              
so that the Legislative Council could act on behalf of the                                                                      
legislature during the interim.                                                                                                 
                                                                                                                                
Number 1033                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG agreed with Representative Porter.  He said                                                             
that the erosion of legislative power has been under such attack                                                                
that he hates to give up anything.                                                                                              
                                                                                                                                
REPRESENTATIVE BERKOWITZ expressed his concern involving giving                                                                 
authority to the Legislative Council, because it is not assembled                                                               
with majority/minority proportionality.                                                                                         
                                                                                                                                
CHAIRMAN HUDSON indicated that nobody has made a motion to adopt                                                                
Amendment 1 and he is leaving it up to the will of the body.                                                                    
                                                                                                                                
Number 1120                                                                                                                     
                                                                                                                                
REPRESENTATIVE BERKOWITZ made a motion to adopt Amendment 1, which                                                              
read:                                                                                                                           
                                                                                                                                
     Page 1, line 2, following ";":                                                                                             
          Insert "relating to removal of commissioners of the                                                                   
     Alaska Public Utilities Commission;"                                                                                       
                                                                                                                                
     Page 1, following line 9:                                                                                                  
          Insert a new bill section to read:                                                                                    
     "* Sec.2.  AS 42.05.035 is repealed and reenacted to read:                                                                 
               Sec. 42.05.035.  Removal of commissioners.  The                                                                  
          commissioner from office only for inefficiency, neglect                                                               
          of duty, or misconduct in office, or because the member,                                                              
          while serving on the commission, is convicted of a                                                                    
          misdemeanor for violating a statute or regulation related                                                             
          to public utilities or is convicted of a felony.  The                                                                 
          governor shall deliver to the commissioner a copy of the                                                              
          charges against the commissioner.  The commissioner shall                                                             
          have an opportunity to present a defense in person or                                                                 
          through counsel at a public hearing before the governor                                                               
          or the governor's designee.  The commissioner shall be                                                                
          informed of the hearing by registered mail at least 10                                                                
          days before the hearing date.  At the hearing, the                                                                    
          commissioner may confront and cross-examine adverse                                                                   
          witnesses.  Upon removal of the commissioner, the                                                                     
          findings and a complete statement of all charges made                                                                 
          against the commissioner shall be filed in the Office of                                                              
          the Lieutenant Governor."                                                                                             
                                                                                                                                
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 2, following line 21:                                                                                                 
          Insert a new bill section to read:                                                                                    
     "*Sec. 7.  The provisions of AS 42.05.035, repealed and                                                                    
     reenacted by sec. 2 of this Act, apply to a member of the                                                                  
     Alaska Public Utilities Commission serving on the effective                                                                
     date of this Act.  This Act is intended to extinguish any                                                                  
     existing right of a sitting commissioner to the removal                                                                    
     procedure specified in former AS 42.05.035."                                                                               
                                                                                                                                
     Renumber the following bill section accordingly.                                                                           
                                                                                                                                
REPRESENTATIVE ROKEBERG objected.                                                                                               
                                                                                                                                
REPRESENTATIVE DAVIES (via teleconference) stated that another                                                                  
reason to support Amendment 1 is that it makes the removal from the                                                             
APUC consistent with the way all other commissions are done; the                                                                
APUC is the only commission presently that requires legislative                                                                 
approval.                                                                                                                       
                                                                                                                                
REPRESENTATIVE ROKEBERG stated that he could support Amendment 1 if                                                             
the bill was changed so the Legislative Council could act on behalf                                                             
of the legislature during the interim.                                                                                          
                                                                                                                                
CHAIRMAN HUDSON asked if that would be a conceptual amendment.                                                                  
                                                                                                                                
REPRESENTATIVE BERKOWITZ stated that it goes to the Labor and                                                                   
Commerce Committee next.                                                                                                        
                                                                                                                                
A roll call vote was taken.  Representatives Berkowitz, Cowdery,                                                                
Davies, Kott, Porter and Hudson voted for the amendment.                                                                        
Representative Rokeberg voted against it.  Therefore, Amendment 1                                                               
passed by a vote of 6-1.                                                                                                        
                                                                                                                                
Number 1267                                                                                                                     
                                                                                                                                
REPRESENTATIVE BERKOWITZ made a motion to adopt Amendment 2, which                                                              
read:                                                                                                                           
                                                                                                                                
     Page 1, line 12, following "members.":                                                                                     
          Insert "relating to political conduct by members of the                                                               
     Alaska Public Utilities Commission;"                                                                                       
                                                                                                                                
     Page 1, line 12, following "members.":                                                                                     
          Insert "(a)"                                                                                                          
                                                                                                                                
     Page 2, following line 1:                                                                                                  
          Insert a new subsection to read:                                                                                      
               "(b) A member of the commission may not participate                                                              
                    in                                                                                                          
                    (1) political management or in a political                                                                  
          campaign for a candidate for election to federal, state,                                                              
          or local office regardless of whether the campaign is                                                                 
          partisan or nonpartisan or for passage or defeat of a                                                                 
          ballot measure of any type;                                                                                           
                    (2) the campaign of, or attend campaign                                                                     
          fund-raising events for, a candidate for                                                                              
          governor or the legislature;                                                                                          
                    (3) a fund-raising event held on behalf of a                                                                
          political party or attend a political party fund-raising                                                              
          even; or                                                                                                              
                    (4) lobbying activities that would require a                                                                
          person to register as a lobbyist."                                                                                    
                                                                                                                                
REPRESENTATIVE PORTER objected for the purpose of discussion.                                                                   
                                                                                                                                
REPRESENTATIVE BERKOWITZ stated that if the committee is going to                                                               
ensure that there isn't going to be any partisanship then he feels                                                              
some of the restrictions that are applied to the Ethics Committee                                                               
should be applied to the APUC as well.                                                                                          
                                                                                                                                
REPRESENTATIVE PORTER wondered if the language is in addition to as                                                             
opposed to replacing the language in HB 183.                                                                                    
                                                                                                                                
REPRESENTATIVE BERKOWITZ replied yes.                                                                                           
                                                                                                                                
Number 1308                                                                                                                     
                                                                                                                                
CHAIRMAN HUDSON clarified that there can be no more than two                                                                    
members of any one political party, which is already stated in the                                                              
bill, and those members would be subject to the provisions outlined                                                             
by Amendment 2.  He asked if there was any objection to the motion                                                              
to adopt Amendment 2.                                                                                                           
                                                                                                                                
REPRESENTATIVE PORTER removed his objection.                                                                                    
                                                                                                                                
CHAIRMAN HUDSON stated that there being no objection, Amendment 2                                                               
is adopted.                                                                                                                     
                                                                                                                                
Number 1349                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG made a motion to adopt a conceptual                                                                     
amendment, "to remove Section 2 as amended in its entirety."                                                                    
                                                                                                                                
                                                                                                                                
REPRESENTATIVE PORTER objected.                                                                                                 
                                                                                                                                
REPRESENTATIVE BERKOWITZ said that he considered Representative                                                                 
Rokeberg's amendment to be a friendly amendment.                                                                                
                                                                                                                                
REPRESENTATIVE ROKEBERG clarified that it was a friendly amendment.                                                             
                                                                                                                                
Number 1388                                                                                                                     
                                                                                                                                
CHAIRMAN HUDSON explained that the conceptual amendment would                                                                   
remove the political qualifications all together by removing                                                                    
Section 2 as amended.                                                                                                           
                                                                                                                                
REPRESENTATIVE PORTER stated that his objection was maintained.                                                                 
                                                                                                                                
A roll call vote was taken.  Representatives Berkowitz, Davies,                                                                 
Kott, Rokeberg and Hudson voted for the amendment.  Representatives                                                             
Cowdery and Porter voted against it.  Therefore, Amendment 3 was                                                                
adopted by a vote of 5-2.                                                                                                       
                                                                                                                                
REPRESENTATIVE PORTER requested clarification on whether adopting                                                               
Amendment 3 returns them to the original criteria that exists in                                                                
statute now.                                                                                                                    
                                                                                                                                
REPRESENTATIVE DAVIES clarified that it does.                                                                                   
                                                                                                                                
REPRESENTATIVE ROKEBERG said that it doesn't.                                                                                   
                                                                                                                                
REPRESENTATIVE PORTER stated that indeed it does, because the                                                                   
elimination of the original criteria that exists in statute was                                                                 
taken out by adopting Amendment 3.                                                                                              
                                                                                                                                
CHAIRMAN HUDSON indicated that by the removal of Section 2, which                                                               
repealed and reenacted, they are back to the original statutory                                                                 
language.                                                                                                                       
                                                                                                                                
REPRESENTATIVE PORTER pointed out that the members of the                                                                       
commission can now all be from the same party.                                                                                  
                                                                                                                                
REPRESENTATIVE DAVIES agreed with Representative Hudson that the                                                                
adoption of Amendment 3 brings them back to the original statutory                                                              
language on qualifications.                                                                                                     
                                                                                                                                
Number 1555                                                                                                                     
                                                                                                                                
REPRESENTATIVE HUDSON called an at-ease at 2:35 p.m. and called the                                                             
meeting back to order at 2:36 p.m.                                                                                              
                                                                                                                                
Number 1570                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG stated that the intention of the conceptual                                                             
amendment was to remove lines 12, 13, and 14 on page 1, and line 1                                                              
on page 2 of HB 183.  The intent was not to replace the AS                                                                      
42.05.040 as is in the current statute.  He added that his                                                                      
intention was to take out the political partisanship aspects.                                                                   
                                                                                                                                
REPRESENTATIVE DAVIES asked Representative Rokeberg if he wanted                                                                
Section 2 to read, "AS 42.05.040 is repealed."                                                                                  
                                                                                                                                
REPRESENTATIVE ROKEBERG replied yes.                                                                                            
                                                                                                                                
REPRESENTATIVE GREEN stated that AS 42.05.040 is gone, which means                                                              
that there are no qualifications for any commissioners.                                                                         
                                                                                                                                
REPRESENTATIVE PORTER informed the committee that if the intent of                                                              
Amendment 3 is to remove any qualifications for members of the                                                                  
commission, he cannot support it.                                                                                               
                                                                                                                                
Number 1766                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG made a motion to rescind Amendment 3.  He                                                               
explained that his intention with regards to Amendment 3 is to                                                                  
remove the political considerations.  The professional type                                                                     
qualifications have already been repealed in HB 183.  He commented                                                              
that he appreciates Representative Porter's explanation, but he                                                                 
still believes that the legislature has the right to have consent                                                               
to the appointment of the commissioners.                                                                                        
                                                                                                                                
REPRESENTATIVE PORTER asked the committee to consider what the                                                                  
check and balance would be if the majority of the legislature and                                                               
the governor were of the same party.                                                                                            
                                                                                                                                
CHAIRMAN HUDSON stated that if there is no objection, Amendment 3                                                               
is again before the committee.                                                                                                  
                                                                                                                                
MR. WILCOX requested clarification on whether Amendment 2 is still                                                              
incorporated in Amendment 3.                                                                                                    
                                                                                                                                
CHAIRMAN HUDSON stated that Amendment 3, which was explained by                                                                 
Representative Rokeberg, will repeal Section 2, as amended.                                                                     
                                                                                                                                
Number 1933                                                                                                                     
                                                                                                                                
JIM BALDWIN, Assistant Attorney General, Civil Division, Department                                                             
of Law, requested clarification on whether Representative                                                                       
Rokeberg's motion is to insert a repeal of Section 42.05.040, which                                                             
would wipe out the language that amends AS 42.05.040, or repeals                                                                
and reenacts it, and just repeal it all together.                                                                               
                                                                                                                                
REPRESENTATIVE GREEN asked, "If we say yes to this, we leave what                                                               
is in statute?"                                                                                                                 
                                                                                                                                
CHAIRMAN HUDSON responded that if the committee adopts Amendment 3                                                              
what is in statute will be taken out.  Both AS 42.05.040 and Sec.                                                               
42.05.040 will be repealed.                                                                                                     
                                                                                                                                
A roll call vote was taken.  Representatives Davies and Rokeberg                                                                
voted for the amendment.  Representatives Cowdery, Green, Kott,                                                                 
Porter and Hudson voted against it.  Therefore, Amendment 3 failed                                                              
by a vote of 5-2.                                                                                                               
                                                                                                                                
REPRESENTATIVE DAVIES made a motion to adopt the original version                                                               
of Amendment 3, call it Amendment 4, which would delete Section 2                                                               
as amended from the bill.                                                                                                       
                                                                                                                                
REPRESENTATIVE PORTER objected.                                                                                                 
                                                                                                                                
REPRESENTATIVE HUDSON pointed out that Representative Davies was                                                                
making the same motion that was made originally.                                                                                
                                                                                                                                
REPRESENTATIVE DAVIES responded that it is not the same motion.  He                                                             
stated that by deleting Section 2 of HB 183 the existing language                                                               
in statute would remain.  His intention is to take out the                                                                      
political qualifications, but leave in the existing qualifications                                                              
in AS 42.05.040.                                                                                                                
                                                                                                                                
REPRESENTATIVE PORTER maintained his objection.                                                                                 
                                                                                                                                
A roll call vote was taken.  Representative Davies voted in favor                                                               
of the amendment.  Representatives Cowdery, Green, Kott, Porter,                                                                
Rokeberg and Hudson voted against it.  Therefore, Amendment 4                                                                   
failed by a vote of 6-1.                                                                                                        
                                                                                                                                
                                                                                                                                
Number 2167                                                                                                                     
                                                                                                                                
MR. WILCOX introduced Amendment 5, which reads:                                                                                 
                                                                                                                                
     Page 2, line 19:                                                                                                           
          Delete "considered [IT CONSIDERS]"                                                                                    
          Insert "the commission [IT] considers"                                                                                
                                                                                                                                
REPRESENTATIVE ROKEBERG offered another way to do the amendment,                                                                
which would be to insert, after the word necessary, "by the                                                                     
commission."                                                                                                                    
                                                                                                                                
REPRESENTATIVE PORTER pointed out that the amendment is trying to                                                               
keep the chair from making the final decision.  He said that the                                                                
committee might want to consider inserting, "the commission may                                                                 
employ" and deleting, "the chair of the commission may employ."                                                                 
                                                                                                                                
Number 2291                                                                                                                     
                                                                                                                                
ERIC YOULD, Alaska Rural Electric Cooperative Association, ARECA,                                                               
provided information via teleconference from Anchorage.  He stated                                                              
that he believes the committee and the legislature is trying to                                                                 
empower a little more administrative authority in the chair,                                                                    
without giving the chair all the authority.  Instead they want to                                                               
see the chair acting on behalf of the commission.  He recommended                                                               
inserting, "by the commission," after the word, "necessary," on                                                                 
line 19, page 2.                                                                                                                
                                                                                                                                
REPRESENTATIVE PORTER said that the wording proposed by Mr. Yould                                                               
would only allow the commission to determine that there was a need                                                              
for a particular position and still allow the chair to make the                                                                 
final selection.                                                                                                                
                                                                                                                                
Number 2355                                                                                                                     
                                                                                                                                
MR. YOULD clarified that any administrative body has a hiring                                                                   
process and the chair would not unilaterally go out and use his own                                                             
criteria to make the selection.  The commission needs to be able to                                                             
give some basic policy direction to the chair and then allow the                                                                
chair to exercise his executive duties on behalf of the commission.                                                             
                                                                                                                                
MR. BALDWIN  confirmed that the language does set up a requirement                                                              
that first the commission has to decide the services necessary, but                                                             
the chair is actually given the power to do the employing.                                                                      
                                                                                                                                
CHAIRMAN HUDSON asked if it is the interest of the committee to                                                                 
have the chair take action at the approval of the commission.                                                                   
                                                                                                                                
TAPE 99-16, SIDE B                                                                                                              
                                                                                                                                
CHAIRMAN HUDSON inquired as to what that would allow.                                                                           
                                                                                                                                
MR. BALDWIN explained that before the chair could hire someone,                                                                 
there would have to be a determination by the commission that such                                                              
action is necessary.  Mr. Baldwin indicated that he respected Mr.                                                               
Yould's opinion.                                                                                                                
                                                                                                                                
Number 2448                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG moved that the committee adopt Amendment 5                                                              
which reads as follows:                                                                                                         
                                                                                                                                
     Page 2, line 19 after "necessary"                                                                                          
          Insert "by the commission"                                                                                            
                                                                                                                                
MR. YOULD pointed out that on page 2, line 17, the language says                                                                
"the commission may employ".  If Amendment 5 is adopted, Mr. Yould                                                              
recommended that "may" be changed to "shall".                                                                                   
                                                                                                                                
CHAIRMAN HUDSON relayed Representative Rokeberg's concern that if                                                               
the language is changed from "may" to "shall", there could be                                                                   
unintended budget consequences.                                                                                                 
                                                                                                                                
MR. YOULD said that he could not advise the committee on that                                                                   
matter as well as Mr. Baldwin could.  Mr. Yould agreed with                                                                     
Representative Rokeberg and stated that the "may" language should                                                               
remain.                                                                                                                         
                                                                                                                                
CHAIRMAN HUDSON asked if there were any objections to Amendment 5.                                                              
There being no objection, Amendment 5 was adopted.                                                                              
                                                                                                                                
MR. WILCOX requested that the committee consider inserting an                                                                   
effective date clause due to the reinstatement of the removal                                                                   
provision.                                                                                                                      
                                                                                                                                
CHAIRMAN HUDSON clarified that an immediate effective date would be                                                             
necessary for the adopted removal clause.                                                                                       
                                                                                                                                
Number 2334                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG moved that the committee adopt Section 8,                                                               
the immediate effective date, Amendment 6.                                                                                      
                                                                                                                                
MR. WILCOX pointed out that the committee packet includes a zero                                                                
fiscal note and two pages from Representative Rokeberg.                                                                         
                                                                                                                                
CHAIRMAN HUDSON asked if there was objection to Amendment 6.  There                                                             
being no objection, Amendment 6 was adopted.                                                                                    
                                                                                                                                
REPRESENTATIVE GREEN noted that he had given the chair an                                                                       
unnumbered amendment which he assumed would be Amendment 7.                                                                     
Amendment 7 would return subsection (b) to the way it is currently                                                              
in statute.  This change was due to Mr. Rowe's testimony regarding                                                              
the ability of the chair to utilize his staff, but acquiring                                                                    
consultants should be a function of the commission as is the case                                                               
currently.  Representative Green stated that Amendment 7 would do                                                               
the following:                                                                                                                  
     Page 2, line 22                                                                                                            
          Delete, "the"                                                                                                         
          Insert, "its"                                                                                                         
          Delete, "chair of the"                                                                                                
                                                                                                                                
REPRESENTATIVE GREEN explained that Mr. Rowe was concerned that                                                                 
giving the chair of the commission the ability to acquire                                                                       
consultants could skew things as opposed to the desires of the                                                                  
commission.                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG objected in order to ask if Mr. Rowe agreed                                                             
with Amendment 7.                                                                                                               
                                                                                                                                
JIM ROWE, Alaska Telephone Association, ATA, testified via                                                                      
teleconference from Anchorage.  He said that he believed the                                                                    
committee addressed this two weeks ago by changing the language on                                                              
page 2, lines 23 and 24 to read, "the commission considers                                                                      
necessary."  Mr. Rowe stated that he was probably satisfied with                                                                
the current language.                                                                                                           
                                                                                                                                
REPRESENTATIVE GREEN withdrew Amendment 7.                                                                                      
                                                                                                                                
Number 2134                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG noted that the purpose of his memorandum                                                                
was to receive comments from the committee members regarding issue                                                              
raised by the ATA White Paper and/or the National Regulatory                                                                    
Research Institute (NRRI) report.  Firstly, the staff to the                                                                    
commissioners "may be too big of a bite."  Perhaps, a "light"                                                                   
version of HB 183 would be more appropriate.  Secondly, the                                                                     
advocacy issue seems to be in control and does not necessarily need                                                             
to be addressed.  Thirdly, the issue of timeliness seems to be one                                                              
which everyone agrees, but the manner in which to achieve such is                                                               
not certain.  Representative Rokeberg added that the types of                                                                   
dockets should be analyzed.  He suggested that House Labor &                                                                    
Commerce Standing Committee could review this in order to determine                                                             
if there is any mechanism that could be utilized.                                                                               
                                                                                                                                
REPRESENTATIVE PORTER pointed out that there is an additional                                                                   
provision requiring reporting back to the legislature.                                                                          
                                                                                                                                
CHAIRMAN HUDSON clarified that HB 183 requires that the commission                                                              
provide a summary of activities during the previous year, report on                                                             
the evaluation of the commission's timeliness with dockets during                                                               
the previous year.                                                                                                              
                                                                                                                                
REPRESENTATIVE ROKEBERG indicated the need to develop a mechanism                                                               
that could develop universal currency without hindering the                                                                     
commission.  With regard to timeliness, Representative Rokeberg                                                                 
commented on the three member quorum and the use of leave time of                                                               
the commissioners.  Some of the commissioners have been around long                                                             
enough to take up to seven or eight weeks of leave.  The commission                                                             
does not take up dockets if all five members are not present.  He                                                               
suggested that the commission could take testimony with less than                                                               
five members before a ruling is made.  Representative Rokeberg said                                                             
that he was looking for suggestions regarding whether that should                                                               
be statutorily mandated.                                                                                                        
                                                                                                                                
REPRESENTATIVE ROKEBERG continued with the fourth issue listed in                                                               
his memorandum.  The commission should have the ability to hire its                                                             
own legal counsel rather than rely on the Department of Law.                                                                    
                                                                                                                                
REPRESENTATIVE PORTER expressed concern with the fiscal                                                                         
ramifications.  The cost of the commission are returned to the                                                                  
consumers.  He acknowledged that there have been some increases in                                                              
staff, but he was not sure if all the staff had been hired.                                                                     
Representative Porter did not think it an appropriate time to add                                                               
more staff positions.                                                                                                           
                                                                                                                                
Number 1989                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG explained that currently the commission                                                                 
relies on the Department of Law and the attorney general.  The                                                                  
counselors work for the attorney general not for the chairman or                                                                
the commission, therefore there could be potential conflicts.                                                                   
Representative Rokeberg believed that the counselors should work                                                                
for the commission.  However, Representative Rokeberg agreed with                                                               
Representative Porter that if the commission cannot hire and                                                                    
replace people with regard to costs, that is not a good idea.  The                                                              
fifth issue is regarding consumer complaints and enhancing the use                                                              
of administrative hearing officers.  The sixth issue was throwing                                                               
it off the books which has already been addressed.  Representative                                                              
Rokeberg stated that the biggest thing he is hearing is the desire                                                              
for legislative intent language.  That the management information                                                               
system be implemented somewhat like the BASIS system is now.                                                                    
                                                                                                                                
REPRESENTATIVE GREEN asked, "Under the current system, if we're                                                                 
using the AG [attorney general] Department of Law; do they RSA                                                                  
[reimbursable services agreement] costs that could be offset by                                                                 
having our own counsel?  Or are these costs that they are going to                                                              
occur anyway?"                                                                                                                  
                                                                                                                                
MR. BALDWIN believed that there was an RSA for two positions.  He                                                               
deferred to Mr. Lohr.                                                                                                           
                                                                                                                                
BOB LOHR, Executive Director, Alaska Public Utilities Commission                                                                
(APUC), testified via teleconference from Anchorage.  He informed                                                               
the committee that currently the commission has a reimbursable                                                                  
services agreement with the Department of Law for $268,000 which                                                                
covers two full-time assistant attorney generals.  There is a                                                                   
separate RSA for one associate attorney position for the                                                                        
commission.                                                                                                                     
                                                                                                                                
CHAIRMAN HUDSON inquired as to whether Mr. Lohr was able to secure                                                              
the services of the third member from the private sector.                                                                       
                                                                                                                                
MR. LOHR said that he believed that currently any procurement of                                                                
attorneys by the commission would require approval by the attorney                                                              
general under the general provisions of the Procurement Act.                                                                    
                                                                                                                                
REPRESENTATIVE GREEN asked if the work load is such that those two                                                              
attorneys and the one extra are kept busy or is the work load                                                                   
cyclical requiring more attorneys at some time while none at other                                                              
times.                                                                                                                          
                                                                                                                                
MR. LOHR said that the two attorneys are extremely busy.  If there                                                              
was a third attorney present, the cyclical situation might be of                                                                
consideration.  He was not sure that three full-time attorney's                                                                 
would be kept busy all the time.                                                                                                
                                                                                                                                
Number 1767                                                                                                                     
                                                                                                                                
CHAIRMAN HUDSON asked if the attorneys are paid for through                                                                     
Regulatory Cost Changes(RCC) or through general funds.                                                                          
                                                                                                                                
MR. LOHR stated that the attorneys are paid for through the RCCs.                                                               
The commission does not have any general funds in its budget at                                                                 
all.                                                                                                                            
                                                                                                                                
CHAIRMAN HUDSON informed the committee that he would like to move                                                               
HB 183 without any further changes and then the committee could                                                                 
offer Representative Rokeberg guidance in the House Labor &                                                                     
Commerce Committee.                                                                                                             
                                                                                                                                
Number 1703                                                                                                                     
                                                                                                                                
REPRESENTATIVE COWDERY moved to report HB 183 out of committee with                                                             
individual recommendations and the zero fiscal note.                                                                            
Representative Cowdery requested unanimous consent.  There being no                                                             
objection, it was so ordered.                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                     
                                                                                                                                
There being no further business before the committee, the House                                                                 
Special Committee on Utility Restructuring meeting was adjourned at                                                             
3:15 p.m.                                                                                                                       
                                                                                                                                

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