Legislature(1999 - 2000)
05/10/1999 07:03 PM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
May 10, 1999
7:03 PM
TAPES
SFC-99 # 132, Sides A and B
CALL TO ORDER
Co-Chair Torgerson convened the meeting at approximately
7:03 P.M.
PRESENT
In addition to Co-chair Torgerson, Senators Dave Donley,
Loren Leman, Gary Wilken, Pete Kelly, Lyda Green and Randy
Phillips were present when the meeting was reconvened.
Senators Parnell and Adams arrived shortly thereafter.
Also Attending: MARY GORE, staff to Senator Mike Miller;
DAVID ESSARY, Director, Division of Finance, Department of
Administration; LAMAR COTTEN, Deputy Commissioner,
Department of Community and Regional Affairs; DICK
EMMERMAN, Division of Energy, Department of Community and
Regional Affairs; aides to committee members and other
members of the Legislature.
Attending via Teleconference:
SUMMARY INFORMATION
Co-chair Torgerson reconvened the committee at
approximately 7:03 p.m. He called SB 10.
SENATE BILL NO. 10
"An Act relating to an optional exemption from
municipal property taxes for recreational facilities."
SPONSOR SUBSTITUTE FOR SENATE BILL NO. 10
"An Act requiring a utility that provides services in
a municipality with a population of more than 100,000
to have an ongoing program of placing existing
overhead utility lines underground; and relating to
rates for recovering the cost of placing existing
overhead utility lines underground."
CS FOR SPONSOR SUBSTITUTE FOR SENATE BILL NO. 10(L&C)
"An Act requiring a utility that provides services in
a municipality with a population of more than 100,000
to have an ongoing program of placing existing
overhead utility distribution lines underground; and
relating to rates for recovering the cost of placing
existing overhead utility distribution lines
underground."
Senator Donley MOVED CSSSSB 10(FIN) and WITHOUT OBJECTION
it was REPORTED OUT with individual recommendations and
accompanying fiscal notes AK Public Utilities zero.
Co-chair Torgerson called SB 155. Senator Donley made
brief introductory comments.
SENATE BILL NO. 155
"An Act relating to methods of payment of and reports
concerning certain state salaries and business
expenses."
MARY GORE, staff to Senator Mike Miller was invited to join
the committee. In speaking to the amendment she said it
would require the railroad to comply with the act.
Senator Donley MOVED amendment #1. Senator Wilken MOVED
to divide amendment #1 between lines two and three.
WITHOUT OBJECTION it was divided 1(a) and 1(b) between
lines two and three.
Senator Wilken commented regarding amendment 1(a). This
part of the amendment created concerns on the part of the
railroad. They should be allowed a courtesy to reply to
this section.
By a roll call vote of 6 yeas (Torgerson, Donley, Leman,
Kelly, Green, Phillips) and 1 nay (Wilken) (Parnell
abstain; Adams absent) amendment 1(a) was ADOPTED.
By a roll call vote of 7 yeas (Torgerson, Parnell, Donley,
Leman, Kelly, Green, Phillips) and 1 nay (Wilken) (Adams
absent) amendment #1(b) was ADOPTED.
Senator Donley indicated he would like to hear from the
department regarding the fiscal note.
DAVID ESSARY, Director, Division of Finance, Department of
Administration was invited to join the committee and
testified on the fiscal note.
Senator Leman felt that the whole situation should be
reevaluated.
Mr. Essary felt the report should be complete and accurate.
It would be their intent in the future to automate the
system a much as possible.
Senator Donley said he felt the fiscal note was a bargain
but would not object to lowering it. Co-chair Torgerson
said he would only make changes in the fiscal note further
on out. He had no objection with the fiscal note as
presented.
Senator Phillips MOVED CSSB 155(FIN) and WITHOUT OBJECTION
it was REPORTED OUT with individual recommendations and
accompanying fiscal note for the Department of
Administration, Centralized Administrative Services in the
amount of $18.2.
Co-chair Torgerson called SB 157 back before the committee.
SENATE BILL NO. 157
"An Act relating to power cost equalization; and
providing for an effective date."
The committee took a brief at ease.
Co-chair Torgerson called the meeting back to order.
Senator Adams WITHDREW amendment #6 and WITHOUT OBJECTION
it was WITHDRAWN.
Senator Parnell WITHDREW amendment #7. He MOVED amendment
to appropriations from the National Petroleum Reserve -
Alaska special revenue fund to the power cost equalization
and rural electric capitalization fund.
Senator Adams commented briefly to the amendment and said
they were trying to get away from using general funds. He
said he would support the amendment.
Senator Wilken asked about monies from a lease sale last
week and asked if they would be available for the 50-50
split. Senator Parnell responded that a portion of them
would. Senator Wilken said he felt all options should be
looked at, not just PCE and capital equalization.
Senator Adams said the impacted communities were subject to
Federal law. Senator Wilken said the legislation referred
to by Senator Adams was passed in 1980 and the fifty
percent is subject to appropriation by the Federal
Congress. Senator Adams said it was correct that they were
subject to appropriation. Co-chair Torgerson said the
amendment, in fact, was subject to appropriation.
By a roll call vote of 6 yeas (Torgerson, Parnell, Leman,
Adams, P. Kelly, Green) and 3 nays (Donley, Wilken,
Phillips) amendment #7(a) was ADOPTED.
Senator Adams MOVED amendment #8.
LAMAR COTTEN, Deputy Commissioner, Department of Community
and Regional Affairs was invited to join the committee. He
said they now feel they have enough cash for the smaller
communities' demands. He explained these were only loans
and the interest rates vary.
Co-chair Torgerson questioned page two, line two of
amendment #8. Has any determination been made by AIDEA
that sufficient funds were available to complete the power
transmission intertie between the Swan Lake and Tyee Lake
hydroelectric projects? Mr. Cotten indicated they had not.
He said the funds were all subject to appropriation.
Senator Wilken asked if they could have an approximation of
how much money was involved? Mr. Cotten said it was
roughly $11 million. $2.2 goes to the project fund for
smaller communities; $4.4 to Southeast Energy fund and the
remaining to PCE. The Southeast energy plan is from line
fourteen, page one of amendment #8 through line nine, page
two.
Senator Wilken said there were three pots of money and
asked they be explained again. Mr. Cotten indicated that
twenty percent was for small loans, forty percent was for
PCE and the remaining forty percent went to Southeast
Energy. The Southeast fund was for a connection between
Swan Lake and Tyee Lake hydroelectric projects. He noted
currently that approximately $10 million was in the
Southeast Energy fund.
Co-chair Torgerson asked what would happen if the power
project fund ran below? Mr. Cotten said the corpus of the
fund was being repaid and they felt confident.
Co-chair Torgerson indicated he supported the amendment.
WITHOUT OBJECTION amendment #8 was ADOPTED.
Senator Parnell MOVED amendment #9. Senator Leman
OBJECTED. Co-chair Torgerson explained briefly.
Senator Leman MOVED amendment to amendment #9 and briefly
explained.
Senator Phillips asked if there should not be 350 kWh/month
divided by 12? Senator Leman said it worked either way.
However, Senator Leman said he thought the accounting
worked better the way it was in the amendment for the
department.
DICK EMMERMAN, Division of Energy, Department of Community
and Regional Affairs was invited to join the committee.
Senator Phillips posed a question regarding monthly maximum
limits that must not exceed 350 kWh/month and wondered if
someone could manipulate this. There were many variations
suggested by Senator Leman, but Mr. Emmerman felt the way
the amendment was written it would work. He said the
division would be ordered to adopt regulations according to
this amendment. It was clear that the monthly maximum
limits must not exceed 350 kWh/month and that no individual
month may exceed 500 kWh.
Senator Leman MOVED to delete "sum of the" from amendment
Senator Adams was concerned about usage during the winter
months. The average may be higher. Rates increased during
the darker months and the size of the family. Mr. Emmerman
responded that monthly usage of many recipients during the
winter months increase. He agreed that in the wintertime
reducing the cap from 750 to 500 would affect those
recipients. He further agreed that deletion of the words
"sum of the" was more appropriate.
Senator Leman also felt the words "per month" should also
be deleted.
(Tape number 132, Side A switched to Side B.)
Senator Leman MOVED to amend the amendment to amendment #9
by deleting "sum of the" and "per month". Senator Adams
and Senator Green OBJECTED. Mr. Emmerman indicated this
amended amendment would work. OBJECTIONS withdrawn.
WIHTOUT OBJECTION amendment to amendment #9 was ADOPTED.
Senator Adams OBJECTED to amended amendment #9.
By a roll call vote of 7 yeas (Torgerson, Parnell, Donley,
Leman, Wilken, Green, Phillips) and 2 nays (Adams, Kelly)
amended amendment #9 was ADOPTED.
Senator Adams WITHDREW amendments #10 and #11.
Senator Adams MOVED amendment #12. Senator Donley
OJBECTED. Senator Adams briefly explained the amendment.
The committee took a brief at ease.
Co-chair Torgerson called the committee back to order.
Senator Parnell MOVED amendment to amendment #12, to delete
"12.5" and insert "13.5". Senator Leman OBJECTED. The
objection was WITHDRAWN. He agreed, after a brief
explanation by Co-chair Torgerson, that it should work.
Mr. Emmerman said that the numbers being used presently
were only estimates. He explained the formula used. This
would bring them down to $12 million.
By a roll call vote of 6 yeas (Torgerson, Parnell, Leman,
Wilken, Green, Phillips) and 3 nays (Donley, Adams, P.
Kelly) amendment to amendment #12 was ADOPTED.
Senator Adams OBJECTED to the amended amendment #12. By a
roll call vote of 4 yeas (Torgerson, Parnell, Leman,
Wilken) and 5 nays (Donley, Adams, P.Kelly, Green,
Phillips) amended amendment #12 FAILED.
Senator Parnell MOVED amendment #13.
MARY JACKSON, staff to Senator John Torgerson was invited
to join the committee. She explained amendment #13.
WITHOUT OBJECTION amendment #13 was ADOPTED.
Senator Adams MOVED amendment #14. Co-chair Torgerson
OBJECTED. Senator Adams referred to the letter received
from AIDEA this afternoon.
By a roll call vote of 4 yeas (Torgerson, Parnell, Adams,
P. Kelly) and 5 nays (Donley, Leman, Wilken, Green,
Phillips) amendment #14 FAILED.
The committee took a brief at ease.
Senator P. Kelly MOVED to rescind the committee action on
amendment #12. WITHOUT OBJECTION it was rescinded.
Senator Leman MOVED to delete "13.5" and insert "14".
Senator Kelly OBJECTED. By a roll call vote of 4 yeas
(Parnell, Donley, Leman, Phillips) and 5 nays (Torgerson,
Wilken, Adams, P. Kelly, Green) amendment to amendment #12
FAILED.
There followed brief discussion between the members and Mr.
Emmerman.
Senator Donley OBJECTED to the amended amendment #12. By a
roll call vote of 8 yeas (Torgerson, Parnell, Leman,
Wilken, Adams, P. Kelly, Green, Phillips) and 1 nay
(Donley) amended amendment #12 was ADOPTED.
Mr. Emmerman advised the committee that he could have runs
available by tomorrow.
Senator Parnell MOVED CSSB 157(FIN). Senator Donley
OBJECTED and briefly spoke to his objection. He felt some
sort of reduction should be looked at so that a gradual one
would be in place. Senator Adams felt they were looking at
ways to get away from general funds and finding other
sources for funding. He did appreciate the change in
amendment #12 to "13.5". Senator Wilken said he was also a
bit disappointed. He concurred with Senator Adams to get
off the general fund stream. Also, there would be
incentives put in place to bring down the cost and usage;
also explore other methods of generating power. The cost
of power in rural areas needs to be addressed. He feels
more work needs to be done. Perhaps some sort of revisit
clause should be put on the bill. It should not go as is
today.
By a roll call vote of 6 yeas (Torgerson, Parnell, Leman,
Kelly, Green, Phillips) and 3 nays (Donley, Wilken, Adams,)
CSSB 157(FIN) was REPORTED OUT with individual
recommendations and accompanying fiscal notes: Alaska
Public utilities, zero; Department of Community and
Regional Affairs, Division of Energy, as prepared by the
Senate Finance Committee, $12.100.0.
Co-chair Torgerson indicated that the committee would meet
again at 5:00 p.m. tomorrow evening.
ADJOURNMENT
Co-chair Torgerson adjourned the committee at approximately
8:45 p.m.
SFC-99 -1- 05/10/99 pm
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