Legislature(1999 - 2000)
04/09/1999 03:24 PM House L&C
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 62 - ALASKA PUBLIC UTILITIES COMMISSION
Number 0083
CHAIRMAN ROKEBERG announced the committee's next order of business
is HB 62, "An Act relating to the Alaska Public Utilities
Commission; and providing for an effective date." The chairman
pointed out the committee has before it CSHB 62(URS), Version H.
Number 0094
WILDA RODMAN, Legislative Administrative Assistant to
Representative Gene Therriault, Alaska State Legislature, came
forward to present HB 62 on behalf of the bill sponsor. She noted
Representative Therriault apologizes for his absence; he has a
House Finance Standing Committee commitment. Ms. Rodman summarized
the sponsor statement. Under AS 42.05 and AS 42.06, the Alaska
Public Utilities Commission (APUC) regulates public utilities by
certifying qualified providers of public utility and pipeline
services. The commission is designed to ensure utilities provide
safe and adequate services and facilities at reasonable rates.
Under AS 44.66.010, termination of state boards and commissions,
APUC will expire June 30, 1999. If the legislature does not act to
extend the commission, APUC would have one year, until June 30,
2000, to conclude its affairs. The CS for HB 62 was amended to
extend the commission for two years, instead of four, to allow the
legislature to revisit the commission's progress toward addressing
several problems identified through the public hearing process.
MS. RODMAN explained HB 62 was intentionally introduced with a
broad title because Representative Therriault believes the reason
the legislature specifies the sunset date is to address possible
commission shortcomings. Representative Therriault believes
shortcomings have been identified through the hearing process. Ms.
Rodman indicated the sponsor prefers the legislation's original
title but, because of the short time remaining in the legislative
session, does not object to passage of the current version in a
timely manner.
Number 0199
REPRESENTATIVE MURKOWSKI asked for clarification regarding the
sponsor's non-support of the title change. [HB 62's original title
was, "An Act relating to the Alaska Public Utilities Commission;
and providing for an effective date." CSHB 62(URS)'s title is, "An
Act extending the termination date of the Alaska Public Utilities
Commission until June 30, 2001; and providing for an effective
date."]
MS. RODMAN related the title was changed over the sponsor's
objections. The sponsor wished the title to remain broad and to
address some structural problems with the commission. She noted
many of the structural problems have been identified, and some are
being addressed in another bill. In response to Representative
Murkowski's request for further clarification, Ms. Rodman confirmed
the sponsor supports the commission's extension, but not the
current title change. She added the sponsor supports the two-year
extension, as opposed to the four-year extension contained in the
original bill. Ms. Rodman clarified for Representative Cissna that
the title change contained more than just the change in extension
period. She indicated the much narrower new title means many other
issues relating to the commission cannot be dealt with. Ms. Rodman
noted the sponsor would like the record to reflect that he thinks
it is not good public policy to usher the sunset through without
dealing with the problems; the reason for the sunset is to deal
with shortcomings in the commission. However, the sponsor wishes
to see the bill move.
Number 0247
CHAIRMAN ROKEBERG said he is also a member of the House Special
Committee on Utility Restructuring (URS). This particular
legislation received significant hearing in that committee. As the
sponsor's staff indicates, the original bill contained additions
beyond the sunset. The chairman noted the audit had not been
completed when the bill came to URS; that audit is now complete.
From the testimony before it, URS determined restructuring of APUC
is necessary. Chairman Rokeberg indicated the House Labor and
Commerce Standing Committee would be receiving the legislation
dealing with this restructuring and would have ample opportunity to
take up the issues surrounding the commission at that time. The
chairman further indicated, noting he had been part of the
decision-making process, that the prior committee determined it
would be cleaner to do this with a shorter horizon. He emphasized
the need for the APUC to be extended because of the effect of a
sunset on industry, the existing dockets, and business before the
commission.
CHAIRMAN ROKEBERG commented the testimony was that the commission
is dysfunctional enough without the threat of a "wind-down" year,
and the resulting cost of that to the utilities. The chairman
noted, therefore, the bill sponsor has agreed to allow this bill to
move forward, although the sponsor had wished to do further
restructuring with his legislation. Chairman Rokeberg stated his
intention to move CSHB 62(URS) as rapidly as possible. In response
to Representative Halcro's question about whether the National
Regulatory Research Institute's (NRRI) report ["audit"] on APUC in
the bill packet was done in lieu of LB&A's [Joint Committee on
Legislative Budget and Audit] audit, the chairman answered in the
negative. He indicated the LB&A audit picked up a great deal of
the NRRI report and the committee would be dealing extensively with
that report unless URS did more work by the following week.
Chairman Rokeberg noted the presence of Walter Wilcox, Sr., aide to
the House Special Committee on Utility Restructuring.
Number 0379
JIM ROWE, Director, Alaska Telephone Association (ATA), testified
via teleconference from Anchorage in support of CSHB 62(URS).
Noting he appreciated the chairman's remarks, Mr. Rowe said the ATA
is very much in support of passage of this reauthorization and they
look forward to working on APUC restructuring issues in another
bill. In response the chairman's question, Mr. Rowe confirmed ATA
is in support of this bill.
Number 0402
MARK VASCONI, Director of Regulatory Affairs, AT&T Alascom, came
forward to testify in support of CSHB 62(URS). He thinks the
chairman's comments were accurate; if the commission went into a
"wind-down" period, more problems might arise from that. Mr.
Vasconi believes industry wants at least the assurance of some
continuity. He noted other possible structural changes are being
addressed in another bill, expressing that they would all probably
have an opportunity to comment on those changes in the near future.
CHAIRMAN ROKEBERG closed the public hearing on HB 62 after
confirming no one else wished to testify. The chairman confirmed
the committee had no further questions or discussion regarding the
legislation.
Number 0455
REPRESENTATIVE HALCRO made a motion to move CSHB 62(URS) out of
committee with individual recommendations and the attached zero
fiscal note. There being no objection, CSHB 62(URS) moved out of
the House Labor and Commerce Standing Committee.
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