02/02/1995 01:35 PM Senate L&C

 SL&C - 2/2/95                                                                 
                                                                               
       SB  47 APUC EXTENSION AND REGULATORY COST CHARGE                      
                                                                               
 Number 108                                                                    
                                                                               
 SENATOR KELLY introduced  SB 47  as the next order of business before         
 the committee.                                                                
                                                                               
 JOSH FINK, Legislative Aide to Senator Kelly, informed the                    
 committee that SB 47 is the reintroduction of SB 213 of the                   
 Eighteenth Legislature.  He explained that SB 47 would extend the             
 Alaska Public Utilities Commission (APUC) currently in its sunset             
 year and it would restore the Regulatory Cost Charge (RCC) which              
 has expired.                                                                  
                                                                               
 SENATOR KELLY clarified that SB 47 extends the sunset and the                 
 provisions agreed upon the previous two years.  Any other issue               
 with the APUC would be handled in APUC II.                                    
                                                                               
 JOSH FINK summarized the sectional information contained in the               
 committee packets.                                                            
                                                                               
 Number 250                                                                    
                                                                               
 SENATOR SALO asked why a year was needed to make the transition               
 that the language change in Section 1 specified, from "liberally              
 construed" to "all things necessary and reasonably implied."  JOSH            
 FINK explained that some utilities felt that the language granted             
 too broad a power to the Commission while others thought that                 
 express power was needed.  The year allows the Commission to assess           
 what this change means and how to deal with it.                               
                                                                               
 ALYCE HANLEY, APUC, expressed appreciation to Senator Kelly in                
 drafting and presenting SB 47.  The Commission is in a tenuous                
 position until SB 47 is passed because employees do not know their            
 fate.  As of April 1st the Commission's position worsens because              
 ninety day periods of due process will no longer be available.  She           
 pointed out that an extension of APUC and the reenacting of the RCC           
 as well as the new effective date are supported by APUC.  She                 
 expressed concern with the language change in Section 1.  The new             
 language is the reason for the $60,000 fiscal note; the money would           
 cover increased litigation due to challenges of the meaning of the            
 language.  She recommended, speaking on behalf of the APUC,                   
 deletion of Section 1.  She urged movement of the bill.                       
                                                                               
 SENATOR MILLER asked which parties were those that compromised on             
 Section 1, if the APUC is suggesting that section's deletion.  JOSH           
 FINK stated that he believed that the compromise was between APUC             
 and other groups.  This change occurred in the Senate Finance                 
 Committee.                                                                    
 SENATOR MILLER urged the APUC to review its position in order not             
 to slow this legislation.  ALYCE HANLEY said that the Commission's            
 main concern was to deal with this quickly.  She reiterated the               
 Commission's preference to keep the original language of Section 1,           
 however, she recognized that in order for SB 47 to move quickly               
 that may not happen.                                                          
                                                                               
 Number 349                                                                    
                                                                               
 SENATOR MILLER inquired as to the reasoning behind the increase in            
 staff by one a year and the budget by $300,000 a year reflected in            
 the fiscal note.  ALYCE HANLEY believed that it was due to a                  
 recommendation when the Commission put the budget together.                   
                                                                               
 DON SCHOER explained that the budget and personnel increases are              
 the result of the guidelines from Juneau on how to compute the five           
 year statistics including three and a half percent inflation and              
 expected population growth.  He urged quick action and no                     
 amendments.                                                                   
                                                                               
 JIM ROWE, Executive Director of the Alaska Telephone Association,             
 discussed the history of SB 47 and the compromises that it                    
 contains.   He expressed disappointment that the legislation was              
 not passed last year.  He stated the Association's support of SB 47           
 in its present form.                                                          
                                                                               
 Number 396                                                                    
                                                                               
 JIMMY JACKSON, GCI, reiterated that the main priority is quick                
 passage of legislation reauthorizing APUC.  He felt that a prompt             
 reauthorization of the APUC would be in the best interest of the              
 public.  He expressed the need to have the issue of reauthorization           
 in separate legislation.  SB 47 addresses many issues as well as              
 reauthorization of APUC.  The language change in Section 1 of SB 47           
 is not in the best interest of the public.  He stated that the                
 world of utilities changes quickly and the Commission needs to                
 adjust accordingly.  The Commission cannot wait to receive                    
 authority from the legislature when problems arise that need to be            
 solved quickly.  He indicated that the new legislature should                 
 review the APUC.                                                              
                                                                               
 SENATOR KELLY stated that SB 47 would not receive too many                    
 amendments in this committee.  He explained that APUC II had been             
 introduced and hearings would be held on that legislation in order            
 to deal with the amendments then.                                             
                                                                               
 SENATOR SALO asked if the discussion over the language change in              
 Section 1 of SB 47 would occur with APUC II.  SENATOR KELLY                   
 anticipated that the language would not become a part of APUC II if           
 it remains in SB 47.                                                          
                                                                               
 SENATOR MILLER moved SB 47 out of committee with individual                   
 recommendations.  Without objection, it was so ordered.