04/17/2009 01:30 PM House FINANCE

SENATE BILL 88                                                                                                                
                                                                                                                                
     "An  Act   repealing  certain  provisions   relating  to                                                                   
     modifying  the  factors  that  apply  to  calculate  the                                                                   
     amount  of power  cost  equalization;  providing for  an                                                                   
     effective date  by repealing the effective  date of sec.                                                                   
     3, ch.  2, 4SSLA  2008; and  providing for an  effective                                                                   
     date."                                                                                                                     
                                                                                                                                
JAY  LIVEY, STAFF,  SENATOR  HOFFMAN, summarized  that  Power                                                                   
Cost   Equalization  (PCE)   is  a   program  that   provides                                                                   
assistance  to  residents  in  rural  areas  to  be  able  to                                                                   
purchase  electricity   at  more   affordable  prices.     He                                                                   
requested consideration of the bill.                                                                                            
                                                                                                                                
ERIN HARRINGTON, STAFF, REPRESENTATIVE  AUSTERMAN, echoed Mr.                                                                   
Livey's comments.                                                                                                               
                                                                                                                                
Co-Chair Stoltze closed public testimony.                                                                                       
                                                                                                                                
1:31:06 PM                                                                                                                    
                                                                                                                                
Mr. Livey  addressed the fiscal  note, which would  add about                                                                   
$5.5 million  in general fund  costs if the PCE  formula were                                                                   
to change from 52 cents to $1.                                                                                                  
                                                                                                                                
Vice-Chair Thomas emphasized that this bill was a priority.                                                                     
                                                                                                                                
Representative Austerman  thanked the Committee  for its work                                                                   
on the bill.                                                                                                                    
                                                                                                                                
Representative  Austerman  MOVED  to  report  SB  88  out  of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal  note.  There being NO  OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
SB  88  was  REPORTED  out of  Committee  with  a  "do  pass"                                                                   
recommendation and  with a new  fiscal note by  Department of                                                                   
Commerce, Community and Economic Development.                                                                                   
                                                                                                                                
1:33:24 PM                                                                                                                    
                                                                                                                                
Co-Chair  Hawker  pointed out  that  the  fiscal note  was  a                                                                   
notational  note and  the amount  was already  funded in  the                                                                   
operating budget.  Whichever bill passes will be funded.                                                                        
                                                                                                                                
Representative  Foster commended the  Committee for  its work                                                                   
on PCE.                                                                                                                         
                                                                                                                                
1:35:11 PM                                                                                                                    
                                                                                                                                
Representative  Gara requested that  testimony be  allowed on                                                                   
SB  75 as  it  pertains to  the  governor's  gas line  budget                                                                   
request.                                                                                                                        
                                                                                                                                
RECESSED:      1:35:37 PM