00 SENATE BILL NO. 47 01 "An Act relating to the extent to which the Alaska Public Utilities Commission 02 may exercise its powers when regulating utilities; establishing a regulatory cost 03 charge on public utilities and pipeline carriers; relating to the allocation of costs 04 in hearings before the Alaska Public Utilities Commission; relating to the method 05 by which utilities are exempted from and made subject to regulation by the 06 Alaska Public Utilities Commission; relating to the monetary threshold for 07 regulation of certain kinds of utilities by the Alaska Public Utilities Commission; 08 extending the Alaska Public Utilities Commission; relating to staggered terms for 09 members of the Alaska Public Utilities Commission; and providing for an effective 10 date." 11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 12 * Section 1. AS 42.05.141(a) is amended to read: 13 (a) The Alaska Public Utilities Commission may do all things necessary or 14 proper to carry out the purposes and exercise the powers expressly granted or 01 reasonably implied in this chapter, including 02 (1) regulate every public utility engaged or proposing to engage in a 03 utility [SUCH A] business inside the state, except to the extent exempted by 04 AS 42.05.711 [, AND THE POWERS OF THE COMMISSION SHALL BE 05 LIBERALLY CONSTRUED TO ACCOMPLISH ITS STATED PURPOSES]; 06 (2) investigate, upon complaint or upon its own motion, the rates, 07 classifications, rules, regulations, practices, services, and facilities of a public utility 08 and hold hearings on them; 09 (3) make or require just, fair, and reasonable rates, classifications, 10 regulations, practices, services, and facilities for a public utility; 11 (4) prescribe the system of accounts and regulate the service and safety 12 of operations of a public utility; 13 (5) require a public utility to file reports and other information and 14 data; 15 (6) appear personally or by counsel and represent the interests and 16 welfare of the state in all matters and proceedings involving a public utility pending 17 before an officer, department, board, commission, or court of the state or of another 18 state or the United States and to intervene in, protest, resist, or advocate the granting, 19 denial, or modification of any petition, application, complaint, or other proceeding; 20 (7) examine witnesses and offer evidence in any proceeding affecting 21 the state and initiate or participate in judicial proceedings to the extent necessary to 22 protect and promote the interests of the state. 23 * Sec. 2. AS 42.05 is amended by adding a new section to read: 24 Sec. 42.05.254. PUBLIC UTILITY REGULATORY COST CHARGE. (a) 25 A regulated public utility operating in the state shall pay to the commission an annual 26 regulatory cost charge in an amount not to exceed .8 percent of gross revenue derived 27 from operations in the state, as modified under (c) of this section if appropriate. An 28 exempt utility shall pay the actual cost of services provided to it by the commission. 29 (b) The commission shall by regulation establish a method to determine 30 annually the amount of the regulatory cost charge for a public utility. If the amount 31 the commission expects to collect under (a) of this section and under AS 42.06.286(a) 01 exceeds the authorized budget of the commission, the commission shall, by order, 02 reduce the percentages set out in (a) of this section so that the total amount of the fees 03 collected approximately equals the authorized budget of the commission for the fiscal 04 year. 05 (c) In determining the amount of the regulatory cost charge imposed under (a) 06 of this section, 07 (1) a utility selling utility services at wholesale shall modify its gross 08 revenue by deducting payments it receives for wholesale sales; 09 (2) a local exchange telephone utility shall modify its gross revenue by 10 deducting payments received from other carriers for settlements or access charges; 11 (3) an electric utility shall reduce its gross revenue by subtracting the 12 cost of power; in this paragraph, "cost of power" means the costs of generation and 13 purchased power reported to the commission. 14 (d) The commission shall calculate the total regulatory cost charges to be 15 levied against all regulated electric utilities under this section. The commission shall 16 allocate the total amount among the regulated electric utilities by using an equal charge 17 per kilowatt hour sold at retail. 18 (e) The commission shall administer the charge imposed under this section. 19 The Department of Revenue shall collect and enforce the charge imposed under this 20 section. The Department of Administration shall identify the amount of the operating 21 budget of the commission that lapses into the general fund each year. The legislature 22 may appropriate an amount equal to the lapsed amount to the commission for its 23 operating costs for the next fiscal year. If the legislature does so, the commission shall 24 reduce the total regulatory cost charged collected for that fiscal year by a comparable 25 amount. 26 (f) The commission shall allow a public utility to recover all payments made 27 to the commission under this section. The commission may not require a public utility 28 to file a rate case in order to be eligible to recover the regulatory cost charge. 29 (g) The commission may adopt regulations under AS 44.62 (Administrative 30 Procedure Act) necessary to administer this section, including requirements and 31 procedures for reporting information and making quarterly payments. The Department 01 of Revenue may adopt regulations under AS 44.62 (Administrative Procedure Act) for 02 investigating the accuracy of filed information, and for collecting required payments. 03 (h) In this section, 04 (1) "exempt utility" means a public utility that is certificated by the 05 commission under AS 42.05.221 - 42.05.281 but, in accordance with AS 42.05.711, 06 is exempt from other regulatory requirements of this chapter; 07 (2) "gross revenue" means the total operating revenue from intrastate 08 services, as shown in a utility's annual report required by the commission by 09 regulation; 10 (3) "regulated utility" means a public utility that is certificated by the 11 commission under AS 42.05.221 - 42.05.281 and that is subject to the other regulatory 12 requirements of this chapter; 13 (4) "wholesale sales" means sales to another utility for resale under 14 circumstances that make revenue from the resale subject to the regulatory cost charge 15 imposed under this section. 16 * Sec. 3. AS 42.05.651(a) is amended to read: 17 (a) During [AFTER COMPLETION OF] a hearing or investigation held under 18 this chapter, the commission may [SHALL] allocate the costs of the hearing or 19 investigation among the parties, including the commission, as is just under the 20 circumstances. In allocating costs, the commission shall consider the regulatory cost 21 charge paid by a utility under AS 42.05.254 and may consider the results, ability 22 to pay, evidence of good faith, other relevant factors, and mitigating circumstances. 23 Notwithstanding an intervening party's ability to pay, if the commission determines 24 that an intervening party has conducted its intervention in a frivolous manner, the 25 commission shall allocate all costs associated with the intervention to that party. The 26 costs allocated may include the costs of any time devoted to the investigation or 27 hearing by hired consultants, whether or not the consultants appear as witnesses or 28 participants. The costs allocated may also include any out-of-pocket expenses incurred 29 by the commission in the particular proceeding. The commission shall provide an 30 opportunity for any person objecting to an allocation to be heard before the allocation 31 becomes final. 01 * Sec. 4. AS 42.05.711(e) is amended to read: 02 (e) Notwithstanding any other provisions of this chapter, any electric or 03 telephone utility that does not gross $50,000 annually is exempt from regulation under 04 this chapter unless [25 PERCENT OF] the subscribers petition the commission for 05 regulation under AS 42.05.712(h). 06 * Sec. 5. AS 42.05.711(f) is amended to read: 07 (f) Notwithstanding any other provisions of this chapter, an electric or 08 telephone utility that does not gross $500,000 [$325,000] annually may elect to be 09 exempt from the provisions of this chapter other than AS 42.05.221 - 42.05.281 under 10 the procedure described in AS 42.05.712. 11 * Sec. 6. AS 42.05.711(g) is amended to read: 12 (g) A utility, other than a telephone or electric utility, that does not gross 13 $150,000 [$100,000] annually may elect to be exempt from the provisions of this 14 chapter other than AS 42.05.221 - 42.05.281 under the procedure described in 15 AS 42.05.712. 16 * Sec. 7. AS 42.05.711(i) is amended to read: 17 (i) A utility that [WHICH] furnishes collection and disposal service of 18 garbage, refuse, trash, or other waste material and has annual gross revenues of 19 $300,000 [$200,000] or less is exempt from the provisions of this chapter, other than 20 the certification provisions of AS 42.05.221 - 42.05.281, unless [25 PERCENT OF] 21 the subscribers [OR SUBSCRIBERS REPRESENTING 25 PERCENT OF THE 22 GROSS REVENUE OF THE UTILITY] petition the commission for regulation under 23 AS 42.05.712(h). Notwithstanding AS 42.05.712(b) and (g), if subscribers 24 representing 25 percent of the gross revenue of the utility petition the commission 25 for regulation, the utility is subject to the provisions of this chapter. 26 * Sec. 8. AS 42.05.711(k) is amended to read: 27 (k) A utility that [WHICH] furnishes cable television service is exempt from 28 the provisions of this chapter other than AS 42.05.221 - 42.05.281 [,] unless [25 29 PERCENT OF] the subscribers petition the commission for regulation under the 30 procedure described in AS 42.05.712. 31 * Sec. 9. AS 42.05.712(h) is amended to read: 01 (h) A utility or cooperative that is already exempt from regulation under this 02 section or that is exempt from regulation under AS 42.05.711(e), (i), or (k) may 03 elect to terminate its exemption in the same manner. 04 * Sec. 10. As 42.06 is amended by adding a new section to read: 05 Sec. 42.06.286. PIPELINE CARRIER REGULATORY COST CHARGE. (a) 06 A pipeline carrier operating in the state shall pay to the commission an annual 07 regulatory cost charge in an amount not to exceed .8 percent of gross revenue derived 08 from operations in the state. A regulatory cost charge may not be assessed on pipeline 09 carrier operations unless the operations are within the jurisdiction of the commission. 10 (b) The commission shall by regulation establish a method to determine 11 annually the amount of the regulatory cost charge. If the amount the commission 12 expects to collect under (a) of this section and under AS 42.05.254(a) exceeds the 13 authorized budget of the commission, the commission shall, by order, reduce the 14 percentage set out in (a) of this section so that the total amount of the fees collected 15 approximately equals the authorized budget of the commission for the fiscal year. 16 (c) The commission shall administer the charge imposed under this section. 17 The Department of Revenue shall collect and enforce the charge imposed under this 18 section. The Department of Administration shall identify the amount of the operating 19 budget of the commission that lapses into the general fund each year. The legislature 20 may appropriate an amount equal to the lapsed amount to the commission for its 21 operating costs for the next fiscal year. If the legislature does so, the commission shall 22 reduce the total regulatory cost charged collected for that fiscal year by a comparable 23 amount. 24 (d) The commission may adopt regulations under AS 44.62 (Administrative 25 Procedure Act) necessary to administer this section, including requirements and 26 procedures for reporting information and making quarterly payments. The Department 27 of Revenue may adopt regulations under AS 44.62 (Administrative Procedure Act) for 28 investigating the accuracy of filed information, and for collecting required payments. 29 (e) In this section, "gross revenue" means the total intrastate operating revenue 30 as shown in a pipeline carrier's annual report required by the commission by 31 regulation. 01 * Sec. 11. AS 42.06.610(a) is amended to read: 02 (a) During a proceeding held under this chapter, the commission may 03 [SHALL] allocate the cost of the proceeding among the parties, including the 04 commission, as is just under the circumstances. In allocating costs, the commission 05 shall consider the regulatory cost charge paid directly or indirectly under 06 AS 42.06.286. The costs allocated may include the costs of any time devoted to 07 investigations or hearings by hired consultants, whether or not the consultants appear 08 as witnesses or participants. The commission shall provide an opportunity for any 09 person objecting to an allocation to be heard before the allocation becomes final. 10 * Sec. 12. AS 44.66.010(a)(4) is amended to read: 11 (4) Alaska Public Utilities Commission (AS 42.05.010) -- June 30, 12 1999 [1994]; 13 * Sec. 13. APUC STAGGERED TERMS. Notwithstanding AS 42.05.030(a), after the 14 expiration in 1999 of the term of the member of the Alaska Public Utilities Commission with 15 a major or experience in engineering, the vacancy shall next be filled for a term of four years 16 in order to adjust the staggering of the terms of the members of the commission so that no 17 more than one commission member's term expires each year. 18 * Sec. 14. APPLICATION TO ONGOING PROCEEDINGS. The amendment to 19 AS 42.05.141(a), made by sec. 1 of this Act, applies to proceedings begun on or after the 20 effective date of sec. 1 of this Act. 21 * Sec. 15. Section 1 of this Act takes effect July 1, 1996. 22 * Sec. 16. Except as provided in sec. 15 of this Act, this Act takes effect immediately 23 under AS 01.10.070(c).