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HB 539: "An Act extending the Alaska Public Utilities Commission; and relating to regulation of public utilities and to regulatory cost charges."

00HOUSE BILL NO. 539 01 "An Act extending the Alaska Public Utilities Commission; and relating to 02 regulation of public utilities and to regulatory cost charges." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 42.05.253(a) is amended to read: 05  (a) A regulated public utility operating in the state shall pay to the commission 06 an annual regulatory cost charge in an amount not to exceed .8 [.61] percent of gross 07 revenue derived from operations in the state, as modified under (c) of this section if 08 appropriate. An exempt utility shall pay the actual cost of services provided to it by 09 the commission. 10 * Sec. 2. AS 42.05.253(c) is amended to read: 11  (c) In determining the amount of the regulatory cost charge imposed under (a) 12 of this section, 13  (1) a utility selling utility services at wholesale shall modify its gross 14 revenue by deducting payments it receives for wholesale sales;

01  (2) a local exchange telephone utility shall modify its gross revenue by 02 deducting payments received from other carriers for settlements or access charges; 03  (3) an electric utility shall reduce its gross revenue by subtracting 04 the cost of power; in this paragraph, "cost of power" means the costs of 05 generation and purchased power reported to the commission. 06 * Sec. 3. AS 42.05.253(e) is amended to read: 07  (e) The commission shall administer the charge imposed under this section. 08 The Department of Revenue shall collect and enforce the charge imposed under this 09 section. The Department of Revenue shall identify the amount of the operating 10 budget of the commission that lapses into the general fund each year. The 11 legislature may appropriate an amount equal to the lapsed amount to the 12 commission for its operating costs for the next fiscal year. If the legislature does 13 so, the commission shall reduce the total regulatory cost charge collected for that 14 fiscal year by a comparable amount. 15 * Sec. 4. AS 42.05.711(e) is amended to read: 16  (e) Notwithstanding any other provisions of this chapter, any electric or 17 telephone utility that does not gross $50,000 annually is exempt from regulation under 18 this chapter unless [25 PERCENT OF] the subscribers petition the commission for 19 regulation under AS 42.05.712(h). 20 * Sec. 5. AS 42.05.711(f) is amended to read: 21  (f) Notwithstanding any other provisions of this chapter, an electric or 22 telephone utility that does not gross $500,000 [$325,000] annually may elect to be 23 exempt from the provisions of this chapter other than AS 42.05.221 - 42.05.281 under 24 the procedure described in AS 42.05.712. 25 * Sec. 6. AS 42.05.711(g) is amended to read: 26  (g) A utility, other than a telephone or electric utility, that does not gross 27 $150,000 [$100,000] annually may elect to be exempt from the provisions of this 28 chapter other than AS 42.05.221 - 42.05.281 under the procedure described in 29 AS 42.05.712. 30 * Sec. 7. AS 42.05.711(i) is amended to read: 31  (i) A utility that [WHICH] furnishes collection and disposal service of

01 garbage, refuse, trash, or other waste material and has annual gross revenues of 02 $300,000 [$200,000] or less is exempt from the provisions of this chapter, other than 03 the certification provisions of AS 42.05.221 - 42.05.281, unless [25 PERCENT OF] 04 the subscribers [OR SUBSCRIBERS REPRESENTING 25 PERCENT OF THE 05 GROSS REVENUE OF THE UTILITY] petition the commission for regulation under 06 AS 42.05.712(h). Notwithstanding AS 42.05.712(b) and (g), if subscribers 07 representing 25 percent of the gross revenue of the utility petition the commission 08 for regulation, the utility is subject to the provisions of this chapter. 09 * Sec. 8. AS 42.05.711(k) is amended to read: 10  (k) A utility that [WHICH] furnishes cable television service is exempt from 11 the provisions of this chapter other than AS 42.05.221 - 42.05.281 [,] unless [25 12 PERCENT OF] the subscribers petition the commission for regulation under 13 AS 42.05.712(h). 14 * Sec. 9. AS 42.05.712(h) is amended to read: 15  (h) A utility or cooperative that is already exempt from regulation under this 16 section or that is exempt from regulation under AS 42.05.711(e), (i), or (k) may 17 elect to terminate its exemption in the same manner. 18 * Sec. 10. AS 42.06.285(a) is amended to read: 19  (a) A pipeline carrier operating in the state shall pay to the commission an 20 annual regulatory cost charge in an amount not to exceed .8 [.61] percent of gross 21 revenue derived from operations in the state. A regulatory cost charge may not be 22 assessed on pipeline carrier operations unless the operations are within the jurisdiction 23 of the commission. 24 * Sec. 11. AS 42.06.285(c) is amended to read: 25  (c) The commission shall administer the charge imposed under this section. 26 The Department of Revenue shall collect and enforce the charge imposed under this 27 section. The Department of Revenue shall identify the amount of the operating 28 budget of the commission that lapses into the general fund each year. The 29 legislature may appropriate an amount equal to the lapsed amount to the 30 commission for its operating costs for the next fiscal year. If the legislature does 31 so, the commission shall reduce the total regulatory cost charge collected for that

01 fiscal year by a comparable amount. 02 * Sec. 12. AS 44.66.010(a)(4) is amended to read: 03  (4) Alaska Public Utilities Commission (AS 42.05.010) -- June 30, 04 1998 [1994]; 05 * Sec. 13. REPEAL OF SUNSET OF REGULATORY COST CHARGES. Sections 22, 06 26, 36, and 38, ch. 2, FSSLA 1992, are repealed. 07 * Sec. 14. APUC STAGGERED TERMS. Notwithstanding AS 42.05.030(a), after the 08 expiration in 1999 of the term of the member of the Alaska Public Utilities Commission with 09 a major in engineering, the vacancy shall next be filled for a term of four years in order to 10 adjust the staggering of the terms of the members of the commission so that no more than one 11 commission member's term expires each year.