03/27/2009 03:30 PM Senate RESOURCES

        SB  54-PRICE GOUGING INVOLVING ENERGY RESOURCES                                                                     
                                                                                                                              
3:42:54 PM                                                                                                                    
CO-CHAIR WIELECHOWSKI  announced the  consideration of SB  54. He                                                               
noted  that  the bill  was  heard  previously  and has  two  more                                                               
committees of referral.                                                                                                         
                                                                                                                                
SENATOR  FRENCH   moved  to  adopt   the  work   draft  committee                                                               
substitute (CS)  to SB  54, labeled  26-LS0209\T, as  the working                                                               
document.  There being  no objection,  version T  was before  the                                                               
committee.                                                                                                                      
                                                                                                                                
SENATOR   HUGGINS  observed   that  there   have  been   multiple                                                               
modifications to the  bill and a subsequent  committee might make                                                               
more. For  example, on page 2,  line 25, it might  be appropriate                                                               
to address  amortization of exorbitant and  excessive prices. The                                                               
other topic  to look at  is whether to place  a cap on  the civil                                                               
penalty on page  2, line 9, instead of the  current "10 times the                                                               
economic benefit" penalty. He is  concerned that refineries might                                                               
decide that the best choice is to shut down.                                                                                    
                                                                                                                                
3:44:52 PM                                                                                                                    
CHAIR WIELECHOWSKI  said the sole  intent of  the bill is  to get                                                               
some relief for  Alaska consumers. He agrees  with the suggestion                                                               
about amortization; there is no  intent to penalize a refiner who                                                               
charges  a higher  price for  a  period of  time to  make up  for                                                               
previous lower prices.  In future committees he  would be willing                                                               
to entertain suggestions about a cap.                                                                                           
                                                                                                                                
3:45:59 PM                                                                                                                    
SENATOR FRENCH  moved to report CS  to SB 54 from  committee with                                                               
individual  recommendations and  attached  fiscal note(s).  There                                                               
being no objection, CSSB 54(RES)  moved from the Senate Resources                                                               
Standing Committee.