Legislature(2005 - 2006)SENATE FINANCE 532
02/22/2006 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB243 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 243 | TELECONFERENCED | |
| + | TELECONFERENCED |
MINUTES
SENATE FINANCE COMMITTEE
February 22, 2006
9:15 a.m.
CALL TO ORDER
Co-Chair Gary Wilken convened the meeting at approximately 9:15:52
AM.
PRESENT
Senator Gary Wilken, Co-Chair
Senator Con Bunde, Vice Chair
Senator Fred Dyson
Senator Bert Stedman
Attending via Teleconference: From Offnet Sites: RON MILLER,
Executive Director, Alaska Industrial Development & Export
Authority/Alaska Energy Authority, Department of Commerce,
Community and Economic Development; DAVID CARLSON, Chief Executive
Officer, Four Dam Pool Power Agency
SUMMARY INFORMATION
HB 243-SWAN LAKE-TYEE LAKE INTERTIE
Testimony was provided from the Alaska Industrial Development &
Export Authority/Alaska Energy Authority and the Four Dam Pool
Power Agency. The bill reported from Committee.
Under separate business, Co-Chair Wilken distributed a report
titled "FY 05 Wages and Average Employment" [copy on file] relating
to unorganized boroughs in the State. He, assisted by the
Department of Labor and Workforce Development, has been compiling
this information since approximately 1998. The format of the report
would allow for year-to-year comparisons. The report, which
utilizes W-2 records, indicates that in the year 2005, 17,676
people earned total wages of $534,168,915 in unorganized boroughs.
Co-Chair Wilken noted that the report depicts both government and
private employment and wages. A year-to-year look-back would
reflect that the number of people employed by government entities
has decreased and the people employed by private enterprise has
increased. "We're moving in the right direction."
Senator Stedman noted that the fact that the average monthly
employment is 48 percent government and 52 percent private "would
surprise some people" who might anticipate there being less
government employment "in the hinterlands".
Senator Bunde stated that the information is "interesting"; "it
might be useful" to future [unspecified] legislation.
Co-Chair Wilken agreed.
9:18:44 AM
CS FOR HOUSE BILL NO. 243(FIN)
"An Act relating to the financial plan for the intertie
between the Swan Lake and Tyee Lake hydroelectric projects;
and providing for an effective date."
This was the third hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken stated that this bill is sponsored by the Rules
Committee by Request of Governor Frank Murkowski. The bill would
provide "Legislative approval to amend the Memorandum of
Understanding (MOU) authorizing the sale of the Four Dam Pool
hydroelectric project. The amendment addresses an escrow agreement
signed by the Four Dam Pool Agency and the Alaska Energy Authority
(AEA)." Version 24-GH1138\X is before the Committee.
9:19:39 AM
RON MILLER, Executive Director, Alaska Industrial Development &
Export Authority/Alaska Energy Authority, Department of Commerce,
Community and Economic Development testified via teleconference
from an offnet site. As authorized by Chapter 60 SLA 2000, an
agreement and MOU for the sale and purchase of the AEA owned Four
Dam Pool hydroelectric projects to the Four Dam Pool Power Agency
was developed that included establishing a Power Cost Equalization
(PCE) endowment, authorized Alaska Industrial Development & Export
Authority (AIDEA) financing of the sale, and the incorporation into
law of the MOU dated April 11, 2000 between AEA and the purchasing
utilities. The April 2000 MOU and the agreement for the sale "were
amended with the escrow agreement that AEA and the Four Dam Pool
Power Agency entered into."
Mr. Miller noted that the sale price of $73 million was established
and a five million dollar credit was authorized "contingent on
certain" conditions. One of those conditions was that by April 11,
2005, the Four Dam Pool Power Agency must have provided to AIDEA
"an approved financing plan that demonstrated committed funds
sufficient to complete" the Swan Lake and Tyee Lake hydroelectric
projects. The plan also required the Four Dam Pool Power Agency to
provide five million dollars to the PCE endowment. Those conditions
were not met, and the Four Dam Pool Power Agency requested
additional time in which to complete the financing plan. An
agreement was subsequently made that provided the Four Dam Pool
Power Agency additional time in which to complete their financing
provided they deposited five million dollars into an interest
bearing escrow account.
Mr. Miller stated that this bill would provide Legislative approval
allowing that amendment to apply to the original purchasing/sale
agreement in the MOU. Were sufficient funds to complete the project
not forthcoming, the principal and interest in the escrow account
would be deposited in the PCE endowment fund. Were the financing
completed, the principal and interest would be earmarked to provide
the final funding of the project.
9:22:58 AM
DAVID CARLSON, Chief Executive Officer, Four Dam Pool Power Agency,
testified via teleconference from an offnet site and informed the
Committee that once the Four Dam Pool Power Agency completes a 57
mile intertie segment linking the Tyee Lake and Swan Lake
hydroelectric projects, a power transmission line would be
available between Southeast Alaska communities from Ketchikan to
Petersburg. "It has been a difficult project". As stated by Mr.
Miller, one of the provisions in the original MOU was that a
financial plan should have been presented by April 11, 2005, which
was five years after the original agreement was signed. That had
not occurred. This legislation would extend that date and would
allow the five million dollars provided by the Four Dam Pool Power
Agency to be applied toward the construction of the Swan Lake and
Tyee Lake intertie. This project "is important" to both the Four
Dam Pool Power Agency and Southeast Alaska.
9:24:11 AM
Senator Bunde moved to report the bill from Committee with
individual recommendations and accompanying fiscal note.
There being no objection, SCS CS HB 243(FIN) was REPORTED from
Committee with a new zero fiscal note dated February 1, 2006 from
the Department of Commerce, Community and Economic Development.
ADJOURNMENT
Co-Chair Gary Wilken adjourned the meeting at 9:24:59 AM.
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