00 CS FOR HOUSE BILL NO. 539(L&C) 01 "An Act extending and relating to the Alaska Public Utilities Commission; and 02 relating to regulation of public utilities and to regulatory cost charges; and 03 providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 36.30.850(b) is amended by adding a new paragraph to read: 06  (33) contracts for professional services or testimony related to 07 proceedings before the Alaska Public Utilities Commission, including the commission's 08 procurement of temporary legal counsel under AS 42.05.111(b). 09 * Sec. 2. AS 42.05.141(a) is amended to read: 10  (a) The Alaska Public Utilities Commission may 11  (1) regulate every public utility engaged or proposing to engage in a 12 utility [SUCH A] business inside the state, except to the extent exempted by 13 AS 42.05.711; [, AND] the powers of the commission shall be those specifically 14 conferred by statute or necessarily implied by a statutory grant of authority 01 [LIBERALLY CONSTRUED TO ACCOMPLISH ITS STATED PURPOSES]; 02  (2) investigate, upon complaint or upon its own motion, the rates, 03 classifications, rules, regulations, practices, services, and facilities of a public utility 04 and hold hearings on them; 05  (3) make or require just, fair, and reasonable rates, classifications, 06 regulations, practices, services, and facilities for a public utility; 07  (4) prescribe the system of accounts and regulate the service and safety 08 of operations of a public utility; 09  (5) require a public utility to file reports and other information and 10 data; 11  (6) appear personally or by counsel and represent the interests and 12 welfare of the state in all matters and proceedings involving a public utility pending 13 before an officer, department, board, commission, or court of the state or of another 14 state or the United States and to intervene in, protest, resist, or advocate the granting, 15 denial, or modification of any petition, application, complaint, or other proceeding; 16  (7) examine witnesses and offer evidence in any proceeding affecting 17 the state and initiate or participate in judicial proceedings to the extent necessary to 18 protect and promote the interests of the state. 19 * Sec. 3. AS 42.05.253(a) is amended to read: 20  (a) A regulated public utility operating in the state shall pay to the commission 21 an annual regulatory cost charge in an amount not to exceed .8 [.61] percent of gross 22 revenue derived from operations in the state, as modified under (c) of this section if 23 appropriate. An exempt utility shall pay the actual cost of services provided to it by 24 the commission. 25 * Sec. 4. AS 42.05.253(c) is amended to read: 26  (c) In determining the amount of the regulatory cost charge imposed under (a) 27 of this section, 28  (1) a utility selling utility services at wholesale shall modify its gross 29 revenue by deducting payments it receives for wholesale sales; 30  (2) a local exchange telephone utility shall modify its gross revenue by 31 deducting payments received from other carriers for settlements or access charges; 01  (3) an electric utility shall reduce its gross revenue by subtracting 02 the cost of power; in this paragraph, "cost of power" means the costs of 03 generation and purchased power reported to the commission; 04  (4) a cable television utility shall include in gross revenue only 05 revenue attributable to services that the commission has authority to regulate 06 under this chapter. 07 * Sec. 5. AS 42.05.253(e) is amended to read: 08  (e) The commission shall administer the charge imposed under this section. 09 The Department of Revenue shall collect and enforce the charge imposed under this 10 section. The Department of Administration shall identify the amount of the 11 operating budget of the commission that lapses into the general fund each year. 12 The legislature may appropriate an amount equal to the lapsed amount to the 13 commission for its operating costs for the next fiscal year. If the legislature does 14 so, the commission shall reduce the total regulatory cost charge collected for that 15 fiscal year by a comparable amount. 16 * Sec. 6. AS 42.05.711(e) is amended to read: 17  (e) Notwithstanding any other provisions of this chapter, any electric or 18 telephone utility that does not gross $50,000 annually is exempt from regulation under 19 this chapter unless [25 PERCENT OF] the subscribers petition the commission for 20 regulation under AS 42.05.712(h). 21 * Sec. 7. AS 42.05.711(f) is amended to read: 22  (f) Notwithstanding any other provisions of this chapter, an electric or 23 telephone utility that does not gross $500,000 [$325,000] annually may elect to be 24 exempt from the provisions of this chapter other than AS 42.05.221 - 42.05.281 under 25 the procedure described in AS 42.05.712. 26 * Sec. 8. AS 42.05.711(g) is amended to read: 27  (g) A utility, other than a telephone or electric utility, that does not gross 28 $150,000 [$100,000] annually may elect to be exempt from the provisions of this 29 chapter other than AS 42.05.221 - 42.05.281 under the procedure described in 30 AS 42.05.712. 31 * Sec. 9. AS 42.05.711(i) is amended to read: 01  (i) A utility that [WHICH] furnishes collection and disposal service of 02 garbage, refuse, trash, or other waste material and has annual gross revenues of 03 $300,000 [$200,000] or less is exempt from the provisions of this chapter, other than 04 the certification provisions of AS 42.05.221 - 42.05.281, unless [25 PERCENT OF] 05 the subscribers [OR SUBSCRIBERS REPRESENTING 25 PERCENT OF THE 06 GROSS REVENUE OF THE UTILITY] petition the commission for regulation under 07 AS 42.05.712(h). Notwithstanding AS 42.05.712(b) and (g), if subscribers 08 representing 25 percent of the gross revenue of the utility petition the commission 09 for regulation, the utility is subject to the provisions of this chapter. 10 * Sec. 10. AS 42.05.711(k) is amended to read: 11  (k) A utility that [WHICH] furnishes cable television service is exempt from 12 the provisions of this chapter other than AS 42.05.221 - 42.05.281 [,] unless [25 13 PERCENT OF] the subscribers petition the commission for regulation under 14 AS 42.05.712(h). 15 * Sec. 11. AS 42.05.712(h) is amended to read: 16  (h) A utility or cooperative that is already exempt from regulation under this 17 section or that is exempt from regulation under AS 42.05.711(e), (i), or (k) may 18 elect to terminate its exemption in the same manner. 19 * Sec. 12. AS 42.06.285(a) is amended to read: 20  (a) A pipeline carrier operating in the state shall pay to the commission an 21 annual regulatory cost charge in an amount not to exceed .8 [.61] percent of gross 22 revenue derived from operations in the state. A regulatory cost charge may not be 23 assessed on pipeline carrier operations unless the operations are within the jurisdiction 24 of the commission. 25 * Sec. 13. AS 42.06.285(c) is amended to read: 26  (c) The commission shall administer the charge imposed under this section. 27 The Department of Revenue shall collect and enforce the charge imposed under this 28 section. The Department of Administration shall identify the amount of the 29 operating budget of the commission that lapses into the general fund each year. 30 The legislature may appropriate an amount equal to the lapsed amount to the 31 commission for its operating costs for the next fiscal year. If the legislature does 01 so, the commission shall reduce the total regulatory cost charge collected for that 02 fiscal year by a comparable amount. 03 * Sec. 14. AS 44.66.010(a)(4) is amended to read: 04  (4) Alaska Public Utilities Commission (AS 42.05.010) -- June 30, 05 1998 [1994]; 06 * Sec. 15. REPEAL OF SUNSET OF REGULATORY COST CHARGES. Sections 22, 07 26, 36, and 38, ch. 2, FSSLA 1992, are repealed. 08 * Sec. 16. APUC STAGGERED TERMS. Notwithstanding AS 42.05.030(a), after the 09 expiration in 1999 of the term of the member of the Alaska Public Utilities Commission with 10 a major or experience in engineering, the vacancy shall next be filled for a term of four years 11 in order to adjust the staggering of the terms of the members of the commission so that no 12 more than one commission member's term expires each year. 13 * Sec. 17. APPLICATION TO ONGOING PROCEEDINGS. The amendment to 14 AS 42.05.141(a), made by sec. 2 of this Act, applies to proceedings begun on or after the 15 effective date of sec. 2 of this Act. 16 * Sec. 18. Section 2 of this Act takes effect July 1, 1995. 17 * Sec. 19. Except as provided in sec. 17, this Act takes effect July 1, 1994.