04/17/2024 03:15 PM House LABOR & COMMERCE

          HB 313-PUBLIC UTILITY REGULATORY COST CHARGE                                                                      
                                                                                                                                
4:14:16 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER announced  that the next order of  business would be                                                               
HOUSE BILL  NO. 313, "An Act  relating to the calculation  of the                                                               
regulatory  cost   charge  for  public  utilities   and  pipeline                                                               
carriers; and providing  for an effective date."   [The committee                                                               
adopted Amendment 1 to HB 313 at the hearing on 4/8/24.]                                                                        
                                                                                                                                
4:14:35 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER  moved to adopt Amendment  3 to HB 313,  as amended,                                                               
labeled 33-GH2516\A.4, Walsh, 4/12/24, which read as follows:                                                                   
                                                                                                                                
     Page 1, line 2, following "carriers;":                                                                                   
          Insert    "exempting   utilities    that   furnish                                                                  
      residential waste collection services in competitive                                                                    
     markets from regulation;"                                                                                                
                                                                                                                                
     Page 2, following line 4:                                                                                                  
          Insert a new bill section to read:                                                                                    
       "* Sec. 2. AS 42.05.711 is amended by adding a new                                                                   
     subsection to read:                                                                                                        
          (w)  A utility that furnishes collection and                                                                          
     disposal service  of garbage,  refuse, trash,  or other                                                                    
     waste  material to  residential  customers  in an  area                                                                    
     where two  or more  utilities are competing  to furnish                                                                    
     identical  service is  exempt  from  the provisions  of                                                                    
     this chapter."                                                                                                             
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
REPRESENTATIVE CARRICK objected.                                                                                                
                                                                                                                                
4:14:38 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 4:14 p.m. to 4:16 p.m.                                                                       
                                                                                                                                
4:15:50 PM                                                                                                                    
                                                                                                                                
CHAIR  SUMNER explained  that Amendment  3  would exempt  certain                                                               
local utilities from tax in  the name of stimulating competition.                                                               
He  gave  an example  of  his  hometown  that utilized  such  tax                                                               
exemptions to stimulate economic growth.                                                                                        
                                                                                                                                
4:16:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS commented that he is supportive of                                                                        
Amendment 3.                                                                                                                    
                                                                                                                                
4:17:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CARRICK asked how Amendment 3 would affect areas                                                                 
without competing trash collection companies.                                                                                   
                                                                                                                                
4:17:42 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER directed the question to Robert Doyle.                                                                             
                                                                                                                                
4:18:18 PM                                                                                                                    
                                                                                                                                
ROBERT  DOYLE, Chair,  Regulatory  Commission of  Alaska, gave  a                                                               
list of communities that the  proposed amendment would affect and                                                               
said that  it is possible  for both  of the utilities  to provide                                                               
the service  regardless of the  proposed exemption and  added his                                                               
belief that "competition is the ultimate form of regulation."                                                                   
                                                                                                                                
4:19:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRAX asked  why the  proposed amendment  would be                                                               
limited to residential markets and not commercial markets.                                                                      
                                                                                                                                
CHAIR SUMNER replied that commercial  markets aren't regulated in                                                               
the same way that residential markets are regulated.                                                                            
                                                                                                                                
REPRESENTATIVE PRAX asked if the  Regulatory Commission of Alaska                                                               
(RCA) would  have to deregulate  if another company were  to come                                                               
into play.                                                                                                                      
                                                                                                                                
CHAIR  SUMNER  explained  that he  does  not  recommend  complete                                                               
deregulation, but it might be important in certain areas.                                                                       
                                                                                                                                
REPRESENTATIVE  PRAX  asked about  the  initial  regulation of  a                                                               
company and how it affects its success.                                                                                         
                                                                                                                                
CHAIR  SUMNER answered  that under  the current  Alaska statutes,                                                               
residential trash  collection companies under a  certain size are                                                               
exempt from  certain regulations  imposed on  [larger] commercial                                                               
trash collection companies.                                                                                                     
                                                                                                                                
4:21:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER asked  if  the  RCA currently  identifies                                                               
individual utility service areas.                                                                                               
                                                                                                                                
4:22:23 PM                                                                                                                    
                                                                                                                                
MR. DOYLE said that the  RCA does require a regulatory definition                                                               
for how utility service areas are defined.                                                                                      
                                                                                                                                
4:22:51 PM                                                                                                                    
                                                                                                                                
BECKI ALVEY,  Advisory Section Manager, Regulatory  Commission of                                                               
Alaska,  in further  response, explained  that the  RCA does  not                                                               
define  specific  areas in  statute,  rather  each utility  works                                                               
under  a certificate  that allows  it  to operate  in a  specific                                                               
service area.                                                                                                                   
                                                                                                                                
4:23:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  asked whether a utility  could change its                                                               
service area to avoid regulation.                                                                                               
                                                                                                                                
MR.  DOYLE responded  that if  there  were two  companies in  the                                                               
Matanuska-Susitna ("Mat-Su")  Valley, the RCA  would investigate.                                                               
In response to  a follow-up question, he explained  that the term                                                               
"identical  service"  is  a term  limited  to  residential  waste                                                               
collection services.                                                                                                            
                                                                                                                                
4:27:01 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER clarified  that the legislative intent of  HB 313 is                                                               
not to monopolize  a small service area or to  squander a smaller                                                               
utility provider.                                                                                                               
                                                                                                                                
REPRESENTATIVE  CARRICK removed  her objection.   There  being no                                                               
further objection, Amendment 3 was adopted.                                                                                     
                                                                                                                                
4:27:59 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 4:27 p.m. to 4:28 p.m.                                                                       
                                                                                                                                
4:28:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WRIGHT moved to report  HB 313, as amended, out of                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
notes.                                                                                                                          
                                                                                                                                
4:28:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RUFFRIDGE objected.                                                                                              
                                                                                                                                
REPRESENTATIVE RUFFRIDGE opined that  the ability to increase the                                                               
regulatory cost charge is not appropriate.                                                                                      
                                                                                                                                
4:29:07 PM                                                                                                                    
                                                                                                                                
A  roll call  vote  was taken.    Representatives Prax,  Saddler,                                                               
Wright, Carrick, Fields,  and Sumner voted in  favor of reporting                                                               
HB   313,  as   amended,   out  of   committee  with   individual                                                               
recommendations  and  attached   fiscal  notes.    Representative                                                               
Ruffridge  voted  against  it.    Therefore,  CSHB  313(L&C)  was                                                               
reported out of  the House Labor and  Commerce Standing Committee                                                               
by a vote of 6-1.                                                                                                               
                                                                                                                                
4:29:42 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease at 4:29 p.m.                                                                                 
                                                                                                                                
4:29:48 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER clarified  that CSHB 313(L&C) had  been reported out                                                               
of committee.