Legislature(2005 - 2006)
05/04/2005 04:52 PM House FIN
| Audio | Topic |
|---|---|
| SB155 | |
| HB280 | |
| HB243 | |
| SB110 | |
| Adjourn | |
| Start | |
| HB280 | |
| HB283 | |
| SB158 | |
| SB155 |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 243
"An Act relating to the maximum annual regulatory cost
charge collected from certain regulated public
utilities and pipeline carriers; and providing for an
effective date."
Representative Stoltze MOVED to ADOPT work draft for HB 243
labeled 24-GH1138\Y, Craver, 5.3.05. There being NO
OBJECTION, it was so ordered.
Representative Kelly observed that the legislation has the
support of the Governor and Alaska Industrial Development
and Export Authority (AIDEA). The legislation would extend
for one year the opportunity for the Four Dam Pool utilities
to create a financing agreement that is satisfactory to
AIDEA.
9:23:16 AM
Representative Hawker spoke in support of the legislation
and pointed out that there would be a zero fiscal note from
Department of Commerce, Community and Economic Development.
9:24:03 AM
Vice-Chair Stoltze requested comments from Mr. Miller.
RON MILLER, EXECUTIVE DIRECTOR, ALASKA INDUSTRIAL
DEVELOPMENT AND EXPORT AUTHORITY, (AIDEA), (via
teleconference) explained that the one year extension would
allow the Four Dam Pool power agencies to provide a
financing plan demonstrating committed funds for completion
of the Swan/Tyee project. According to the original
Memorandum of Understanding (MOU), the Four Dam Pool Power
Agency had until April 11, 2005 to provide such a financing
plan to AIDEA. A plan contingent on state and federal grants
was submitted, but not accepted. An alternative was
proposed, which would require the Agency to deposit $5
million with AIDEA or Alaska Energy Authority (AEA) in an
escrow account. The $5 million would be a credit that the
Four Dam Pool Power Agency would be required to pay into the
PCE endowment should they not come up with a financing plan
showing committed sums to complete the project. This was
agreed to in the MOU. He observed that AIDEA has proposed a
mechanism to allow the Agency to retain interest on the $5
million proposal. He noted that AIDEA does not support of
oppose the legislation.
9:27:20 AM
In response to a question by Vice-Chair Stoltze, Mr. Miller
clarified that the legislation pertains to the Four Dam Pool
Power Agency and is not connected to Healy coal production.
There is a potential impact to the PCE endowment. There
could be a possible loss in earnings to the endowment from a
one-year delay. He observed that it is a policy call for the
legislature.
9:29:26 AM
Representative Weyhrauch summarized that the legislation is
an innocent extension to allow the parties to establish the
terms of a MOU. The potential impact of the PCE is a by-
product of the extension. In response to a question by
Representative Weyhrauch, Mr. Miller noted that the Four Dam
Pool Power Agency is a joint action agency that was created
to acquire the Four Dam Pool assets from the Alaska Energy
Authority. Wrangell, Ketchikan, Kodiak, Copper Valley and
Petersburg make up the agency, which is not a state agency.
The MOU agreement is between the AEA and the Four Dam Pool
Power Agency.
9:31:24 AM
Representative Kelly referred to "may" on page 4, line 10,
which would benefit AEA and AIDEA. He noted that the
Governor is in support of this bill.
9:32:26 AM
Representative Hawker asked if the fiscal note was from the
Regulatory Commission of Alaska and asked AIDEA if a zero
note is appropriate.
9:32:58 AM
SHARON FISHER, ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT
AUTHORITY, (AIDEA), (via teleconference) stated that the
fiscal note should be indeterminate due to the loss of a
year's worth of interest, if money is not held in escrow.
9:33:57 AM
Representative Hawker MOVED to remove of the Regulatory
Commission of Alaska fiscal note and adopt an indeterminate
note from AIDEA. There being NO OBJECTION, it was so
ordered.
Representative Kelly agreed with the indeterminate note.
Vice-Chair Stoltze said he is operating under a good-faith
effort by allowing an indeterminate fiscal note.
9:35:48 AM
Representative Kelly MOVED to report CSHB 243 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CSHB 243 (FIN) was REPORTED out of Committee with a "no
recommendation" recommendation and with a new indeterminate
fiscal impact note by the Department of Commerce, Community
and Economic Development.
9:36:28 AM
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