Legislature(1993 - 1994)
1993-02-19 Senate Journal
Full Journal pdf1993-02-19 Senate Journal Page 0412 SB 124 SENATE BILL NO. 124 by the Senate Rules Committee by request of the Governor, entitled: "An Act relating to the powers and finances of the Alaska Energy Authority; and providing for an effective date." was read the first time and referred to the Labor and Commerce, Judiciary and Finance Committees. Zero fiscal note published today from Department of Commerce and Economic Development. Governor's transmittal letter dated February 19: Dear Mr. President: Under the authority of art. III, sec. 18, of the Alaska Constitution, I am transmitting a bill relating to the financial reorganization of the Alaska Energy Authority. This bill reorganizes most of the loan portfolios, funds, and revenue managed by the Alaska Energy Authority into a single energy authority revolving fund. The substantive statutory language for certain existing funds is retained or modified to provide direction to the authority in carrying out future loan programs or investments. Several existing funds are renamed as accounts in the new revolving fund as follows: 1993-02-19 Senate Journal Page 0413 SB 124 -- "power project fund" (AS44.83.170) becomes "energy project loan account," -- "power development fund" (AS44.83.382) becomes "energy development account", and -- "power development revolving loan fund" (AS44.83.500) becomes "energy development loan account." The bulk fuel revolving loan fund (AS44.83.600 - 44.83.650) and the rural electrification revolving loan fund (AS44.83.361 - 44.83.363) are repealed since their purposes become consolidated in the new energy project loan account. The electrical service extension fund (AS44.83.370) and the power cost equalization fund (AS44.83.162) would still remain separate funds. It is the intent of this bill to consolidate revenue streams of the authority into the new energy authority revolving fund and thus to provide a more predictable non-general-fund source of financing for energy projects and other programs, including construction of electrical transmission interties from Anchorage to the Kenai Peninsula and from Healy to Fairbanks. It is anticipated that in the future the energy authority revolving fund will allow for funding and financing of energy projects such as interties for the Copper Valley region and Southeast Alaska. The fund further allows and plans for power cost equalization (PCE) money to be appropriated from the fund so that by the year 2001 no appropriations will be necessary from the general fund to sustain PCE at the level of $17 million per year through the year 2013. It is the intent of this legislation that the authority manage the revolving fund in such a manner as to allow the legislature to appropriate from the fund for PCE $2,429,000 in fiscal year 1995, $4,857,000 in fiscal year 1996, $7,286,000 in fiscal year 1997, $9,714,000 in fiscal year 1998, $12,143,000 in fiscal year 1999, $14,571,000 in fiscal year 2000, and $17,000,000 in fiscal years 2001 through 2013, while allowing the authority to provide, from the revolving fund, a no-interest loan of $90,000,000 for railbelt interties, and no-interest loans of $40,000,000 each for interties or other energy projects in the Copper Valley region and Southeast Alaska. 1993-02-19 Senate Journal Page 0414 SB 124 For interties that meet the criteria of connecting two or more utility systems that were not previously linked or that provide a second circuit to improve reliability and transfer capability, this legislation allows the authority to issue loans up to a 50-year term at no interest. I urge your favorable consideration of this important legislation. Sincerely, /s/ Walter J. Hickel Governor