Legislature(1995 - 1996)
02/21/1995 01:30 PM Senate L&C
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* first hearing in first committee of referral
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SENATE LABOR AND COMMERCE COMMITTEE
February 21, 1995
1:30 p.m.
MEMBERS PRESENT
Senator Tim Kelly, Chairman
Senator John Torgerson, Vice Chairman
Senator Mike Miller
Senator Judy Salo
MEMBERS ABSENT
Senator Jim Duncan
COMMITTEE CALENDAR
SENATE BILL NO. 65
"An Act expanding the services that may be offered by an electric
cooperative to include direct satellite television, sewer, water,
or gas services when authorized by the Alaska Public Utilities
Commission; relating to officers of a telephone or electric
cooperative; relating to amendment of the articles of incorporation
of a telephone or electric cooperative; and providing for an
effective date."
PREVIOUS ACTION
No previous action
WITNESS REGISTER
Mary Jackson
Legislative Aide to Senator Torgerson
State Capitol
Juneau, Alaska 99811
POSITION STATEMENT: Testified for the sponsor of SB 65
Dave Hutchens
ARECA
703 W. Tudor #200
Anchorage, AK 99503
POSITION STATEMENT: Testified in support of SB 65
ACTION NARRATIVE
TAPE 95-6, SIDE A
CHAIRMAN KELLY called the Senate Labor and Commerce Committee
meeting to order at 1:30 p.m. The committee took up SB 65.
MARY JACKSON testified for Senator Torgerson, sponsor of SB 65.
She explained SB 65 extends services provided by electrical
cooperatives to include satellite television, water, sewer and gas.
The bill was prompted by revisions in the federal government's loan
program which provides loans for water and sewer. Senator
Torgerson's district is particularly interested in the satellite
television service. There is also potential for using this bill to
provide gas service in the smaller areas which is not financially
feasible for larger cooperatives or private ventures. SB 65 also
includes statutory housekeeping changes relating to the titles
established by the by-laws of the corporation. Two fiscal notes
have been submitted, the APUC note shows no cost until the third
year, at which time the cost would be $75,000. The other fiscal
note is zero.
SENATOR KELLY asked if there was a positive fiscal note. MS.
JACKSON explained one of the fiscal notes indicated there would be
a $1,000 cost per year as the result of the permitting process.
Number 60
DAVE HUTCHENS, Executive Director of the Alaska Rural Electric
Cooperative Association (ARECA), stated his support of SB 65. He
commented the most important section of the bill is Section 2 which
provides for the expansion of power that Ms. Jackson described. He
emphasized SB 65 does not give any automatic right to serve in an
area to any electric utility, it is simply a change in the
corporate powers of the electric cooperative. They would still be
required to go through the same regulatory process as anyone else
to get a certificate to provide each of the different services.
Section 1 clarifies that it is not the intent to permit electric
cooperatives to go in on top of someone and provide a service.
Section 2 is specific to corporate powers, and not to anything
related to the Alaska Public Utilities Corporation (APUC). The
bulk of SB 65 is related to housekeeping measures. Several
sections are conforming amendments that correspond to Section 3,
which sets the policy allowing the electric cooperatives, in their
bylaws, to determine what to call their own board officers. This
is not a significant issue for most, but enables a few to go to
Wall Street to obtain financing.
SENATOR KELLY asked when direct satellite cable television would be
able to come on line. MR. HUTCHENS indicated another satellite
would have to be launched, which will take a couple of years.
SENATOR KELLY asked if SB 65 is more of a planning mechanism. MR.
HUTCHENS replied affirmatively, and pointed out the immediate need
is the sewer and water service because of changes in the U.S.
Department of Agriculture that have consolidated those loan
programs. When the change is being made, ARECA would like to have
these additional services made available as well. SB 65 plans for
the eventuality that direct satellite television will be available
in two years. Naknek Electric serves Naknek, South Naknek, and
King Salmon. They think there is natural gas in the area that
would be sufficient for local use and they would like to be able to
provide that service.
Number 132
SENATOR KELLY asked if the satellite television service would
impact any areas that are currently served under a cable so that
the cable alternative would be prohibited. MR. HUTCHENS replied
no, and whether or not SB 65 passes, direct satellite television
will be made available by someone. SB 65 allows the service to be
provided through the electric cooperative, rather than having to
establish separate corporations. Consumers would buy their own
hardware. SENATOR KELLY asked if the electric cooperative would
essentially provide a billing service. MR. HUTCHENS indicated it
would.
SENATOR MILLER expressed concern about the fiscal note, since the
APUC considers the fiscal note a blank check. He asked that the
committee request the Finance Committee to look at the APUC to
prevent them from using fiscal notes to increase their number of
staff.
SENATOR TORGERSON moved SB 65 out of committee with individual
recommendations. SENATOR KELLY noted there has been no notice of
opposition to SB 65. Without objection, SB 65 was moved out of
committee with individual recommendations.
SENATOR KELLY adjourned the meeting at 1:40 p.m.
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