Legislature(1999 - 2000)

04/05/2000 08:09 AM 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 5, 2000                                                                                         
                            8:09 a.m.                                                                                           
                                                                                                                                
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
STATEWIDE TELECOMMUNICATIONS ISSUES/OVERVIEW                                                                                    
                                                                                                                                
HOUSE BILL NO. 169                                                                                                              
"An Act relating to including the costs of expansion activities                                                                 
and political activities in rates of electric cooperatives."                                                                    
                                                                                                                                
     - BILL HEARING POSTPONED                                                                                                   
                                                                                                                                
TAPES [No tapes available due to recording difficulties]                                                                        
                                                                                                                                
CALL TO ORDER                                                                                                                   
                                                                                                                                
CHAIRMAN  BILL  HUDSON convened  the  House Special  Committee  on                                                              
Utility  Restructuring meeting  at  8:09 a.m.    He explained  the                                                              
purpose of  the meeting and the  importance of keeping  abreast of                                                              
telecommunications issues.                                                                                                      
                                                                                                                                
PRESENT                                                                                                                         
                                                                                                                                
Committee members  present were  Representatives Hudson,  Cowdery,                                                              
Davies, Porter, Green and Berkowitz.                                                                                            
                                                                                                                                
SUMMARY OF INFORMATION                                                                                                          
                                                                                                                                
LIEUTENANT GOVERNOR  FRAN ULMER gave  an update on  the activities                                                              
of  the  Telecommunications  Information Council  and  the  Denali                                                              
Commission.   She talked  about Alaska's  schools benefiting  from                                                              
"E-Rate"  to make  Internet  access  in rural  Alaska  affordable.                                                              
Alaska's  schools, she  said, are  second in the  nation in  being                                                              
wired for Internet access.                                                                                                      
                                                                                                                                
GREG BERBERICH,  Vice President, Matanuska Telephone  Association,                                                              
a full-service,  member-owned telephone company, talked  about the                                                              
evolution of  telecommunications  in recent years.   He  said that                                                              
serving rural  customers is costly  and that public  policy makers                                                              
should carefully scrutinize competition issues.                                                                                 
                                                                                                                                
MARK VASCONI, Director, Regulatory  Affairs, AT&T Alascom (largest                                                              
long-distance carrier in Alaska),  explained that his company is a                                                              
carrier of last  resort; it operates more than  200 earth stations                                                              
in Alaska,  a microwave network and  the Aurora II satellite.   He                                                              
said AT&T  Alascom continues to  invest in digital  equipment that                                                              
connects  to global  networks,  and will  replace  Aurora II  with                                                              
Aurora  III  at  a  cost of  $45  million.    He  described  other                                                              
investments, the costs  of doing business in Alaska,  and concerns                                                              
about access rates.  He asked the  Regulatory Commission of Alaska                                                              
to  work toward  driving  prices  to cost.   He  answered  several                                                              
questions from committee members.                                                                                               
                                                                                                                                
BILL   BEHNKE,   Senior   Vice   President   -Marketing,   General                                                              
Communications,  Inc.,  talked  about access  cost  problems;  the                                                              
RCA's being  challenged to manage  new paradigm shift  to "active,                                                              
vibrant market" in the industry;  the difficulty in hiring trained                                                              
Alaskans; the need for more time  to train users; and other issues                                                              
relating  to developing  competitive  markets.   He also  answered                                                              
questions from committee members.                                                                                               
                                                                                                                                
MARY  ANN  PEASE,  Vice President  -  External  Relations,  Alaska                                                              
Communications Systems (ACS), provided  a Power Point presentation                                                              
about  ACS's expansion  and advanced  services  development.   She                                                              
answered questions from committee members.                                                                                      
                                                                                                                                
MARC  FARMER, Western  Regional Business  Manager, National  Rural                                                              
Telecommunications   Cooperative  (NRTC),   explained  that   NRTC                                                              
provides products  and services to more than 1,000  rural electric                                                              
and  telephone utilities;  20  members  are in  Alaska.   NRTC  is                                                              
intent  upon  helping to  bring  more  bandwidth to  rural  Alaska                                                              
through  support of  new federal  legislation and  testing of  new                                                              
satellite services.                                                                                                             
                                                                                                                                
DAVE  LEWIS,  Operations  and Maintenance  manager,  Alaska  Fiber                                                              
Star, concurred with  most points presented by  other speakers and                                                              
said  he was  pleased to  hear various  industry  viewpoints.   He                                                              
answered questions from committee members.                                                                                      
                                                                                                                                
JACK  RHYNER,  President  and General  Manager,  TelAlaska,  Inc.,                                                              
stressed the  importance of  the Universal  Service Fund  to rural                                                              
Alaskans.    He  also expressed  some  concerns  about  the  RCA's                                                              
handling of  a certain docket as  it relates to separation  of RCA                                                              
staff.  He answered questions from the committee.                                                                               
                                                                                                                                
CHAIR  HUDSON   asked   RCA  chair  Nanette   Thompson,   who  was                                                              
participating  by  teleconference,  to  send  a  response  to  the                                                              
committee regarding the concerns expressed by Mr. Rhymer.                                                                       
                                                                                                                                
[There being  no time left, Karen  Morgan, Acting Director  of the                                                              
Information  Technology group, Department  of Administration,  did                                                              
not make her scheduled presentation.]                                                                                           
                                                                                                                                
COMMITTEE ACTION                                                                                                                
                                                                                                                                
The committee took no action.                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                     
                                                                                                                                
CHAIRMAN HUDSON adjourned the House Special Committee on Utility                                                                
Restructuring meeting at 9:54 a.m.                                                                                              
                                                                                                                                
NOTE:                                                                                                                           
                                                                                                                                
There   are  no   tapes  for   this  meeting   due  to   recording                                                              
difficulties.   However, handwritten  log notes were  taken; those                                                              
are  available from  the Legislative  Reference  Library, 129  6th                                                              
Street, Suite 102, Juneau, Alaska  99801, (907) 465-3808.                                                                       
                                                                                                                                

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