SB  34-PCE ENDOWMENT FUND INVESTMENT                                                                          
                                                                                                                                
1:51:18 PM                                                                                                                    
CHAIR   COSTELLO  reconvened   the  meeting   and  announced   the                                                              
consideration  of SB  34. "An Act  relating to  investment  of the                                                              
power  cost equalization  endowment  fund;  and providing  for  an                                                              
effective date." Finding  no public testimony, she  closed it. She                                                              
asked the members if there were any questions.                                                                                  
                                                                                                                                
1:52:16 PM                                                                                                                    
SENATOR  STEVENS  asked  if  the  return  on  the  endowment  fund                                                              
investments had ever fallen below seven percent.                                                                                
                                                                                                                                
1:52:36 PM                                                                                                                    
JERRY BURNETT,  Deputy Commissioner,  Department of Revenue  (DOR)                                                              
clarified that  the return  hasn't fallen  below seven  percent in                                                              
the past  five years,  but it  did in  2008-2009. Since  inception                                                              
the geometric  average  return is  6.05 percent,  but in the  last                                                              
five years it's over 14 percent.                                                                                                
                                                                                                                                
SENATOR STEVENS  observed that the  intention is to reach  a seven                                                              
percent return but that isn't always possible.                                                                                  
                                                                                                                                
MR.  BURNETT  related  the  concern  that  setting  an  investment                                                              
policy  based on  an  expectation  in any  given  year to  achieve                                                              
seven percent introduces additional risk to the fund by.                                                                        
                                                                                                                                
CHAIR  COSTELLO  found  no  further   questions  and  solicited  a                                                              
motion.                                                                                                                         
                                                                                                                                
1:53:54 PM                                                                                                                    
SENATOR GIESSEL  motioned  to report SB  34, labeled  LS-GS1018\A,                                                              
from  committee  with  individual   recommendations  and  attached                                                              
fiscal note(s).                                                                                                                 
                                                                                                                                
CHAIR  COSTELLO  announced  that   without  objection,  SB  34  is                                                              
reported from the Senate Labor and Commerce Standing Committee.