Legislature(2007 - 2008)HOUSE FINANCE 519
04/12/2007 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB152 | |
| HB28 | |
| SB49 | |
| HB229 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 28 | TELECONFERENCED | |
| + | HB 152 | TELECONFERENCED | |
| *+ | HB 229 | TELECONFERENCED | |
| + | SB 49 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE BILL NO. 28
An Act requiring retail suppliers of electricity to
disclose sources of electricity to consumers.
REPRESENTATIVE JAY RAMRAS, SPONSOR, stated that there is a
need for more public awareness of fuels used by electricity
sold to Alaskan consumers. Many of Alaska's electricity
providers are using innovative alternative methods for
generating electricity or buying power from companies that
do. If residents statewide become more aware of it, they
could in turn become more aware of the need to conserve
decreasing supply of traditional fuels. HB 28 requires all
retail suppliers of electricity in Alaska to annually
disclose fuel sources to all consumers, raising awareness of
how power is generated and the existence of alternatives to
fossil fuels. The simple once-a-year report would also help
explain increases in costs per kw/hr and help answer
consumers questions.
1:49:59 PM
Vice Chair Stoltze asked if it was possible to find out the
cost per kilowatt hour (kw/hr). He wanted to guarantee that
the State would not be buying into something more expensive
than currently used. Representative Ramras explained that
the idea is that regular citizens would be offered an
opportunity to understand the kilowatt costs that they
personally use. He added that Alaskan citizens should
address alternative energy and that HB 28 provides a "modest
step" toward that direction.
Vice Chair Stoltze worried that it was an expensive decision
made for utilities; he hoped to see the bill made better.
Representative Ramras replied he would support any action to
make it better; he only wanted to see discussion begin
regarding portfolio of kilowatt costs.
1:54:14 PM
Vice Chair Stoltze noted that the utility that represents
his area is a customer within a larger utility. As the bill
is written, who assumes the responsibility for mailing the
insert. Representative Ramras requested that the Regulatory
Commission of Alaska would be better qualified to respond to
that query. He added that the expense burden would not be
exorbitant.
Vice Chair Stoltze inquired if wind generation maintenance
costs could be quantified. Representative Ramras responded
that the bill addresses only existing used kilowatt hours.
He listed the four sources of kilowatts:
· Coal
· Natural gas
· Fuel oil
· Hydro
The only intention of the bill is to create a dialogue
regarding current kw/hr costs & the sources of those
kilowatts.
1:58:02 PM
Vice Chair Stoltze inquired how to sequester & achieve a
consumer preference. Representative Ramras stated he wanted
to see more & cheap energy.
1:59:22 PM
Representative Gara commented on amending language, which
could provide information to the consumers. Representative
Ramras recommended that consideration be discussed with the
RCA.
Representative Gara noted the main concerns with renewable
energy:
· Power source
· Level of green house emissions going into the
atmosphere
Representative Gara asked if the sources of the power were a
fair estimate of how much carbon dioxide comes from those
sources. He inquired if the sponsor was amenable to
including that information. Representative Ramras offered
to consider it in 2008.
Representative Gara hoped to add reasonable language to the
proposed bill. Representative Ramras noted it was the first
time the idea had come forward; he preferred to handle
projects incrementally. He was not interested in adding the
language as it brings an element of "science" to the bill.
2:02:45 PM
Representative Gara stated that he wanted to work on
responsible language to let people know the kinds of green
house emissions occurring from their power sources.
2:03:19 PM
RICHARD GAZAWAY, (TESTIFIED VIA TELECONFERENCE), HEARING
EXAMINER, REGULATORY COMMISSION OF ALASKA, ANCHORAGE,
offered to answer questions of the Committee.
Vice Chair Stoltze asked about the relationship with his
consumer utilities.
2:05:02 PM
Representative Ramras explained that there had been
testimony in the House Labor and Commerce Committee
regarding Vice Chair Stoltze's concern. The utilities were
amenable to providing the "stuffers"; they do not see it as
an additional cost.
2:06:38 PM
Representative Nelson questioned which utilities had been
contacted. Representative Ramras stated that the smaller
utilities were contacted. He asked that RCA testify
regarding the size be excused.
Representative Nelson pointed out that the source of utility
in rural Alaska was diesel energy and did not imagine they
would need "stuffers". The companies do not offer annual
reports. Representative Ramras guaranteed that the
legislation would not be a burden to the small communities.
2:08:09 PM
Co-Chair Chenault asked for a list of which utilities would
be affected. Representative Ramras explained it was
addressed through exclusion of the small power generating
utilities - there is no list. There has been a lot of
discussion on the dollar amount separating the smaller from
the larger utilities.
Co-Chair Chenault inquired if single-source utilities would
be exempt. Representative Ramras responded that the
legislation goes with the dollar amount of how many
kilowatts are generated, which abides by RCA dialogue, in
the House Labor & Commerce Committee.
Co-Chair Chenault noted that Juneau was fully hydro and that
for them to implement the program, there would be a small
cost passed to the consumers, which he thought was be a
waste. Representative Ramras agreed, however, pointed out
that it could be a way to bring information to consumer's
attention.
2:11:48 PM
Representative Hawker voiced confusion regarding disclosure
of source and cost, pointing out that the bill only requires
source disclosure.
Representative Nelson pointed out language on Page 2, Line
23, indicating an electric utility that does not gross $500
thousand annually, may elect to be exempt. Representative
Hawker advised that the following language: "Provision other
than", would change that. Representative Ramras requested
an amendment to address that correction, the intention is to
exclude small utilities.
2:13:49 PM
Representative Gara pointed out that $500 thousand dollars
annually amounted to approximately 250 customers. He
worried how that would affect small & rural areas.
Representative Ramras indicated the number was determined
during discussion in the House Labor and Commerce Committee.
2:14:55 PM
MARK JOHNSON, CHAIR, REGULATORY COMMISSION OF ALASKA (RCA),
ANCHORAGE, clarified that the $500 thousand dollar amount is
the amount in current law and it is not amended by the
proposed legislation. He recommended a threshold could be
further discussed.
Representative Gara encouraged that it be applied to
utilities that serve at least a 1,000 consumers or more.
Representative Ramras liked that idea for big utilities &
encouraged whatever language change needs to happen to
tighten it up.
Co-Chair Meyer asked Representative Hawker to consider a
conceptual amendment addressing the issue. Representative
Hawker recommended tabling the bill.
2:17:09 PM
PUBLIC TESTIMONY CLOSED
2:17:20 PM
Vice Chair Stoltze inquired about the obligations providing
for consumers. Mr. Johnson pointed out that current wording
places an obligation to conduct rule-making in order to
conduct things such as exemptions on the Regulatory
Commission of Alaska.
Vice Chair Stoltze referenced his community utility
newsletter and asked if that would be a good place to insert
the information. He thought the goal was to have little or
no costs passed on to the consumers.
2:20:26 PM
Co-Chair Meyer noted that the bill needs work, and he
recommended that a couple conceptual amendments be written
and then considered.
HB 28 was HELD in Committee for further consideration.
2:21:05 PM
| Document Name | Date/Time | Subjects |
|---|