02/23/1995 08:40 AM Senate FIN

                                                                               
  SENATE BILL NO. 47                                                           
                                                                               
       Act relating to  the extent to which the  Alaska Public                 
       Utilities  Commission  may  exercise  its  powers  when                 
       regulating  utilities;  establishing a  regulatory cost                 
       charge  on  public  utilities  and  pipeline  carriers;                 
       relating to the allocation of  costs in hearings before                 
       the Alaska Public Utilities Commission; relating to the                 
       method by which  utilities are  exempted from and  made                 
       subject  to regulation  by the Alaska  Public Utilities                 
       Commission; relating  to  the  monetary  threshold  for                 
       regulation of certain kinds of  utilities by the Alaska                 
       Public  Utilities  Commission;  extending   the  Alaska                 
       Public  Utilities  Commission;  relating  to  staggered                 
       terms  for  members  of  the  Alaska  Public  Utilities                 
       Commission; and providing for an effective date."                       
                                                                               
  At this  point in  the meeting,  Co-chairman Frank  directed                 
  that  review of  supplemental  funding  be  interrupted  for                 
  consideration of SB  47.   Co-chairman  Halford acknowledged                 
  proposed  amendments  by  Senator Donley.    Senator  Donley                 
  explained that Amendment No. 1 would "turn the bill into . .                 
  .  a  one-year  extension  of   the  existing  status  quo."                 
  Amendment  No. 2 would  change the extension  portion of the                 
  existing  bill to  a one-year extension.   The  Senator then                 
  MOVED for adoption of Amendment No. 1 (90LS0340\C.2, Cramer,                 
  2/22/95).  Senator  Zharoff asked if  the effect would be  a                 
  two-year extension--an extension of one-year with a one-year                 
  wind   down.     Co-chairman   Halford  concurred   in  that                 
  understanding.   Senator  Phillips  inquired concerning  the                 
                                                                               
                                                                               
  rationale behind the amendment.   Senator Donley voiced need                 
  to  first solve the threat of  dissolution of the APUC.  The                 
  legislature could then review technical  changes in the bill                 
  with greater deliberation.                                                   
                                                                               
  Co-chairman Halford called  for a show of  hands on adoption                 
  of Amendment No. 1.  The motion FAILED  on a vote of 2 to 5.                 
  (Senators Donley  and Zharoff voted  in support.   All other                 
  members were opposed.)                                                       
                                                                               
  Senator Donley next  MOVED for adoption of  Amendment No. 2,                 
  which he explained  would retain all existing  provisions of                 
  the bill with the  exception of extension of sunset  to 1996                 
  rather than 1999.   Senator Sharp quoted from a  legislative                 
  audit report recommending  a ten-year extension to  June 30,                 
  2003.  The proposed bill provides  extension for five years,                 
  a  partial  compromise.    Co-chairman  Halford  noted  that                 
  original sunset  law provided  a four-year  cycle.   Senator                 
  Zharoff  voiced  concern  over extension  to  the  year 2000                 
  because of serious changes within the legislation that could                 
  impact  larger  municipalities.    He suggested  that  those                 
  changes be  reviewed over  the next  year or  two.   Senator                 
  Rieger advised that he would be  more comfortable with a two                 
  rather than five-year extension.   He referenced substantial                 
  technological changes within public utilities.                               
                                                                               
  Co-chairman Halford called  for a show of hands  on adoption                 
  of Amendment No. 2.  The motion FAILED  on a vote of 3 to 4.                 
  (Senators Donley, Rieger, and Zharoff  were in support.  All                 
  other members were opposed.)                                                 
                                                                               
  Senator Sharp renewed his  earlier MOTION for passage of  SB
 with  individual recommendations and  accompanying fiscal                 
  notes.  No objection having been  raised, SB 47 was REPORTED                 
  OUT of committee  with zero fiscal  notes from the Dept.  of                 
  Revenue  and Dept.  of Administration  and  an informational                 
  note from  the Dept.  of Commerce  and Economic  Development                 
  showing funding for APUC contained  within the Governor's FY                 
  96 budget  plus  an additional  $60.7 in  contractual.   Co-                 
  chairmen Frank and  Halford and Senators Phillips  and Sharp                 
  signed the committee report with a "do pass" recommendation.                 
  Senator Rieger signed "no recommendation."   Senator Zharoff                 
  signed  "no recommendation  (too long),  and  Senator Donley                 
  indicated need for amendment.