Legislature(1997 - 1998)
11/18/1998 10:00 AM Senate EUR
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
JOINT COMMITTEE ON ELECTRIC UTILITY RESTRUCTURING
NOVEMBER 18, 1998
10:00 am
Note: These minutes were prepared by Co-Chairman Rokeberg's staff.
TAPES
1 Sub-Committee Report, Testimony, Committee Discussion
2 Black & Veatch Report, Committee Discussion
CALL TO ORDER
CO-CHAIRMAN NORMAN ROKEBERG convened the Joint Committee on Electric Utility
Restructuring at 10:12 am.
PRESENT
Committee members present were Co-Chair(s) Rokeberg, Sharp, Senator Leman, Repr
Dyson, Karisse Ackerman for Representative Davies in Fairbanks.
ABSENT
Committee members absent were Senator Adams, Senator Taylor, Representative Aus
ALSO ATTENDING
Ed Kozak, Kodiak Electric Association; Jim Patras, Homer Electric Association;
Chugach Electric; Carol Hegman, Chugach Electric; Anne Hays, IBEW; Robert Hanse
Valley Electric; Tom Staudenmaier; Meera Kohler, ML&P; Mary Fisher, ARECA; Vivi
Kinnaird, Chugach Electric; Robert Maxwell, Alaska Energy Associates; Hart Hodg
Economics; Mary Ann Pease, Aurora Power; Theresa Jurotich, Black & Veatch; Myro
Black & Veatch; Paul Morrison, APUC; Joanne Stoop, GVEA; M. Riddle, GVEA.
SUMMARY OF INFORMATION
OPENING REMARKS
CO-CHAIR ROKEBERG: Calls roll and welcomes all committee members and people att
meeting either in person or by teleconference. We do have a quorum to conduct
over agenda, after report given by Senator Leman, will open up the hearing for
testimony, we will conclude the public testimony and will have ample opportunit
committee discussion before the lunch break and possibly include audience membe
discussion. JOINT COMMITTEE ON ELECTRIC UTILITY RESTRUCTURING
NOVEMBER 18, 1998
CO-CHAIR ROKEBERG: Will reconvene after lunch break for a presentation on the p
pooling and central dispatch study at 1:30 pm. After presentation there will b
and hope to be able to adjourn before 3:00 pm if not sooner. With that, I woul
Senator Leman to give a brief report and recommendation as to the RFP and his w
committee with the APUC.
SENATOR LEMAN, Chairman of EUR Sub-Committee: Thank you Mr. Chairman. The
members will recall that at a meeting in September we went through the draft, s
a proposed study to be done jointly with the APUC. Senator Leman met with the
and technical people and together they refined the scope of work, incorporating
several members made, particularly Representative Davies, and Representative Dy
other comments made at the September sub-committee meeting. Senator Leman & AP
spoke with a representative from NRRI by teleconference to discuss the RFP scop
was done without cost. Scope of this report was very thorough, the NRRI repres
committee was asking for so much, "we" agreed with that and he suggested we ref
of work to make it more understandable in a request for proposals and we incorp
guidelines as an appendix to the request for proposal. During this meeting wor
to make this report understandable to anyone reading it for the first time and
understand the background of Alaska. The first priority is the pilot study in
and identified an earlier delivery of that work product. APUC suggested March
Leman would like it done a little earlier than that. Target date for a draft r
March and a presentation to the Legislature on or about April 19th. This would
committees or joint committees of the Legislature that would hear the presentat
contractor would issue a final report by June 30th. The APUC advertised in sta
one or two responses; APUC requested and was given permission to advertise outs
They are receiving more calls and requests for the request for proposal packet.
the proposal is to be due December 9th, interviews have been schedule December
committee will include representation from the Legislative branch and the APUC.
has been approved by the commission for up to $200,000.00. Expects to have som
contract and (indisc. coughing), and should begin prior to the start of the Leg
The committee members discussed the target award date of January 12th. There m
delay of a few days, but should have somebody under contract shortly after Janu
Leman referred to the request for proposal which was sent electronically to eac
member. Co-Chairman Rokeberg asked if anyone was aware of something being remo
the APUC's docket at their last meeting? No one from the APUC was at the morni
and question could not be answered at that time.
JOINT COMMITTEE ON ELECTRIC UTILITY RESTRUCTURING
NOVEMBER 18, 1998
CO-CHAIR ROKEBERG: Thanked Senator Leman and the members of the sub-committee f
working on this project. He is aware that a good deal of time and effort was p
committee really appreciates that. It was discussed at the Fairbanks meeting t
recommendations were put together a poll of members would be conducted, but thi
not been formally accomplished. The Chair would entertain a motion that we acc
sub-committee report and make a recommendation to the APUC to move forward with
contract.
CO-CHAIR SHARP: So motioned.
CO-CHAIR ROKEBERG: Any objections? Seeing none, so ordered.
CO-CHAIR ROKEBERG: Opened public testimony.
ED KOZAK, Kodiak Electric Association: See written testimony.
TOM STAUDENMAIER: See written testimony.
CO-CHAIR ROKEBERG: Asks if anyone else would like to testify, as there is no on
wishes to testify, closes public testimony and begins a committee discussion.
COMMITTEE DISCUSSION
CO-CHAIR ROKEBERG: Next scheduled meeting is January 6, 1999. The committee wi
make final recommendations to take back to 21st Legislature. Discussed how muc
Legislature needs to be involved in managing these changes or allow the APUC to
day details.
CO-CHAIR SHARP: Time frame of the study was brought up and what the study will
and the scope of the study. Is very interested in hearing the Black & Veatch r
APUC has come up with in regards to how to implement study. After hearing this
committee will have a better understanding of the scope of the pilot program an
informed to make the final recommendations to the 21st Legislature.
CO-CHAIR ROKEBERG: Agrees with Senator Sharp. Final resolution will include st
regarding the study. States committee will take into consideration all the pub
has been heard and pass this along to the 21st Legislature. The House has esta
committee to take up any telecommunications issues as well as electric utility
during the 21st Legislature; this will be under the purview of the Labor & Comm
of both "Houses".
JOINT COMMITTEE ON ELECTRIC UTILITY RESTRUCTURING
NOVEMBER 18, 1998
CO-CHAIR SHARP: The recommendations of this committee will get the new committe
ground zero" a good place to start.
CO-CHAIR ROKEBERG: The record of this committee is the foundation of the entire
making process and will expedite it substantially. Thanks all the people who pa
process. Believes this committee has honed down a lot of the issues and will b
assistance and an asset to the new committees and the 21st Legislature. Would
of the committee as Ms. Seitz & Ms. Kreitzer and everyone else and their staffs
on some recommendations for the committee which we can circulate over the holid
prior to our meeting, to get a sense of the committee. To work on drafts to de
want to go in the issue about Legislature making policy, statues, and how much
to give the APUC.
SENATOR LEMAN: Reiterated his opinion that the Legislature should be involved i
policy statements and the APUC should be involved in the detail and implementat
APUC is reticent in using the power that they have to move to implement some ar
competition. One question that needs to be addressed by the next Legislature i
competition is the norm unless demonstrated otherwise. This is much like game m
fisheries management, the Legislature does much better by establishing general
that detail be done by others. Would be willing to support something like that
little guidance on how to implement policy.
CO-CHAIR ROKEBERG: Discuss whether to recommend to the next Legislature, strand
development, reliability and totality of those issues that we have identified.
committee should make any statutory recommendations other than in a more genera
SENATOR LEMAN: The committee can offer a number of possibilities, if we don't w
a side on it now because we have the study ongoing I can understand that. Beli
committee does have the capacity to lay out some options which may help the con
responding to us, give different approaches.
REPRESENTATIVE DYSON: Reluctant to speak on this. States he may be out of step
committee. Recommends fundamental questions the committee needs to deal with,
policy level. Is not sure if competition is the norm for electric power. Does
competition is the norm for water distribution or sewage. Need to ask the funda
is there a public responsibility for universal service for power distribution.
water, waste disposal in rural Alaska; for this we need electric power.
JOINT COMMITTEE ON ELECTRIC UTILITY RESTRUCTURING
NOVEMBER 18, 1998
REPRESENTATIVE DYSON: Electric power is important to schools, medical facilitie
communications. Thinks we need to consider the question is providing electric
human service that the state has a responsibly to see is available. Touches on
communications industry and problems that were faced. Also brings up the huge
in the lower 48, electric competition has not demonstrated that we know how to
it well. Touches on a few of the horror stories that the committee has heard.
needs to lead or be in the forefront of deciding how this is done in North Amer
learn from the lower 48's mistakes. Mentions power pooling, economic dispatch
competition and retail competition.
CO-CHAIR SHARP: Let's wait and see what the APUC presents this afternoon and en
questions to them on other peripheral topics regarding competition that may be
minds. How would this work, they must have some kind of perception of what the
have to be done if we come out with a mandate or perimeters legislatively that
position basically of not having to approve rate tariffs anymore because condom
associations can come in and negotiate or other small groups deciding how much
division should pay.
REPRESENTATIVE DYSON: Wants APUC to be more pro-active and not reactive. Doesn'
like it is in the consumers' best interest in forcing the utilities to do the v
capable of, this should have been done voluntarily.
CO-CHAIRMAN ROKEBERG: Recessed for lunch at 11:30 am. Committee will reconvene
1:30 pm
CO-CHAIRMAN ROKEBERG: Reconvened the meeting at 1:46 pm. Called roll, quorum t
conduct business.
MYRON ROLLINS, Black & Veatch: See written testimony.
CO-CHAIR ROKEBERG: Senator Sharp will you be able to attend the next meeting?
CO-CHAIR SHARP: No, I'm not sure I can be here, I will probably attend by telec
CO-CHAIR ROKEBERG: In that case, I'm going to take this opportunity to .since t
your last chance to get a gavel in your hand, turn the gavel over to you.
CO-CHAIR SHARP: I'm good at adjourning, is that what you want me to do? (laught
JOINT COMMITTEE ON ELECTRIC UTILITY RESTRUCTURING
NOVEMBER 18, 1998
CO-CHAIR ROKEBERG: It may be your last opportunity after an illustrious decade
in the Legislature to do so, and I will turn the meeting over to you, we were d
various things about the direction of this committee. Would you like to discus
CO-CHAIR SHARP: Thank you Mr. Co-Chair. Doesn't have anything to add at this t
have allowed us to participate quite frequently in the discussion. Looks forwa
contact between now and the January meeting to have some additional information
from the APUC and we can get some information on what the actual prospectus was
(indisc.) or what the draft may be. Has nothing further to add, asks for comme
committee members.
SENATOR LEMAN: Applauds the Co-Chairs on their leadership of the committee. Do
sound like we have come to anymore consensus then when we started, except for t
are moving ahead. I would suggest that we make a positive statement to the nex
about competition, or we at least make a statement would somehow be positive to
about pilot study (a well-crafted study) in the Anchorage area. States this is
well designed it may give us the information we need to move on. Mr. Chairman
to take that up at our January meeting?
CO-CHAIR ROKEBERG: I would hope that we can reach a general outline and general
consensus points that we could present a document and discuss that document at
meeting.
SENATOR LEMAN: Looking for common ground.
CO-CHAIR ROKEBERG: Would be helpful if we could do that.
REPRESENTATIVE DYSON: Would like committee to recommend that the Legislature
consider universal service. This would be a precursor to any reevaluation that
cost equalization. Is providing affordable electric power to communities is a
CO-CHAIR ROKEBERG: Shares Representative Dyson's concern about the importance o
universal service, doesn't believe a linkage between the power cost equalizatio
issue before this committee is appropriate. Counsels very strongly against it.
we are not going to be able to make any political progress whatsoever, and I wo
that. Appreciates your point.
REPRESENTATIVE DYSON: (indisc.) logical, but probably politically inadvisable.
JOINT COMMITTEE ON ELECTRIC UTILITY RESTRUCTURING
NOVEMBER 18, 1998
CO-CHAIR ROKEBERG: Brings up cherry picking, states if we approach a pilot prog
we recommend it be a percentage of a market area, but not what percentage it sh
be a large enough area to generate "good" information and data. Equalize comme
residential service to avoid cherry picking.
REPRESENTATIVE DYSON: States this gets back to universal service question, one
to cherry picking is we say as an entry into this market, if you want to go aft
have agree to take any of them.
CO-CHAIR ROKEBERG: Mandate it.
REPRESENTATIVE DYSON: Right.
CO-CHAIR SHARP: There is a diverse opinion between the four members of the comm
who are here. I will work with my co-chair to state what I feel needs to be in
before the January meeting and that we all work together to do the same. Pilot
have merits, as long as we don't hog-tie the commission into an impossible situ
have nothing else to add.
CO-CHAIR ROKEBERG: Mr. Chairman, why don't we request that all committee member
we will send out a memo to make a recommendation in writing to my office, right
Subjects, issues or so forth they would like to see in the committee's recommen
CO-CHAIR SHARP: Would you please see that all members get that invitation to pa
early in the first couple of weeks in December.
CO-CHAIR ROKEBERG: Need to get a target date. How about December 7th.
CO-CHAIR SHARP: As there is no objection so ordered. Okay you will be sending
correspondence to all committee members. Anything else Mr. Co-Chairman.
CO-CHAIR ROKEBERG: Thank you and a happy holiday season to everybody. Look for
to meeting with everyone after the first of the year.
CO-CHAIR SHARP: (Indisc.) I will be on teleconference. Thank you.
JOINT COMMITTEE ON ELECTRIC UTILITY RESTRUCTURING
NOVEMBER 18, 1998
CO-CHAIRMAN SHARP adjourned the committee meeting at 2:58 pm.
Adjournment
NOTE
The meeting was recorded and handwritten log notes were taken. A copy of the t
notes may be obtained by contacting the House Records Office at 130 Seward Stre
Juneau, Alaska 99801-1182, and after adjournment of the second session of the
Alaska State Legislature in the Legislative Reference Library.
| Document Name | Date/Time | Subjects |
|---|