03/13/2012 03:00 PM House ENERGY

                 HB 294-POWER COST EQUALIZATION                                                                             
                                                                                                                                
3:07:37 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FOSTER announced that the  first order of business would                                                               
be  HOUSE BILL  NO.  294,  "An Act  relating  to  the power  cost                                                               
equalization program."                                                                                                          
                                                                                                                                
3:08:16 PM                                                                                                                    
                                                                                                                                
CO-CHAIR PRUITT moved to adopt  the proposed committee substitute                                                               
(CS) for HB 294, Version 27-LS1108\B, as the working document.                                                                  
                                                                                                                                
3:08:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER objected for the purpose of discussion.                                                                  
                                                                                                                                
3:08:52 PM                                                                                                                    
                                                                                                                                
PAUL LABOLLE,  staff to Representative Neal  Foster, Alaska State                                                               
Legislature,  speaking   on  behalf  of   Representative  Foster,                                                               
cosponsor, described the differences  between the proposed CS for                                                               
HB 294 and  the original bill.    On page 1, line 11,  the cap on                                                               
the number of kilowatt hours used  to reduce the cost was changed                                                               
from 700 to 600.  Also,  schools were removed from the power cost                                                               
equalization (PCE)  beneficiary list  because relief  for schools                                                               
should be addressed by the  district cost factors assessed by the                                                               
Department  of  Education  and  Early  Development,  and  because                                                               
school electric loads are so  large, PCE benefits on 600 kilowatt                                                               
hours per  month are insignificant.   Also, on page 2,  lines 3-4                                                               
and lines  15-16, businesses with  a monthly usage of  over 2,400                                                               
kilowatt  hours are  excluded, the  reason being  that if  PCE is                                                               
applied to less  than 25 percent of a  business's monthly utility                                                               
bill, it  is not  helping enough  "for the  state to  actually be                                                               
stepping in on it."                                                                                                             
                                                                                                                                
3:10:52 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FOSTER  observed that the  sponsor of the  original bill                                                               
was not  present, thus  the substance  of the  bill would  not be                                                               
discussed.                                                                                                                      
                                                                                                                                
3:11:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER removed  his objection.   There  being no                                                               
further objection, Version B was adopted.                                                                                       
                                                                                                                                
[Although  Co-Chair  Foster  identified  the CS  for  HB  294  as                                                               
Version M, Version B was treated as adopted.]                                                                                   
                                                                                                                                
3:11:29 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FOSTER held over HB 294.                                                                                               
                                                                                                                                
3:11:45 PM