2000-04-12                     House Journal                      Page 3079
HB 447                                                                       
HOUSE BILL NO. 447 by the House Rules Committee by request of                  
the Governor, entitled:                                                        
                                                                               

2000-04-12                     House Journal                      Page 3080
HB 447                                                                       
"An Act making appropriations relating to power cost equalization             
and the sale of the four dam pool hydroelectric project and to                 
capitalize funds; and providing for an effective date."                        
                                                                               
was read the first time and referred to the Finance Committee.                 
                                                                               
The Governor's transmittal letter dated April 11, 2000, appears below:         
                                                                               
"Dear Speaker Porter:                                                          
                                                                               
This appropriation bill, along with a companion authorization bill,            
implements the Memorandum of Understanding (MOU) between the                   
Alaska Energy Authority (AEA) and several Alaska communities and               
utilities for the sale of the Four Dam Pool facilities.                        
                                                                               
The bill appropriates the proceeds from the sale to the Power Cost             
Equalization (PCE) Endowment Fund created by the companion bill.               
The appropriation includes the purchase price, an insurance fund, an           
amount originally designated for a loan for the Southeast Intertie, debt       
service payments from the Four Dam Pool until July 1, 2001, and any            
future repayments of credits extended under the MOU.  Some of the              
debt service payments would directly fund the PCE program for FY 01            
during a transition period until earnings are realized from the                
endowment.                                                                     
                                                                               
Once fully established, the endowment will contain more than $100              
million and will contribute more than $7.5 million annually to the PCE         
program.  Coupled with a portion of the annual Alaska Industrial               
Development & Export Authority dividend, this will provide a                   
sustainable, dependable source of long-term funding for a program              
critical to meeting the necessities of health, safety and welfare of rural     
residents faced with extraordinarily high costs of energy.                     
                                                                               
The sale of the Four Dam Pool provides fair value to the State,                
benefits to local communities and ratepayers, and long-term funding            
for PCE.  I urge your prompt consideration of this measure.                    
                                                                               
							Sincerely,                                                              
							/s/                                                                     
							Tony Knowles                                                            
							Governor"