04/15/1993 07:07 PM Senate FIN

                                                                               
  SENATE BILL NO. 106:                                                         
                                                                               
       An Act authorizing power transmission interties between                 
       Anchorage and  the Kenai  Peninsula, between Healy  and                 
       Fairbanks,  and  between the  Swan  Lake and  Tyee Lake                 
       hydroelectric  projects, and  approving the  design and                 
       construction costs of the interties; and providing  for                 
       an effective date.                                                      
                                                                               
  CO-CHAIR DRUE PEARCE  announced that  the CSSB 106(FIN)  had                 
  been adopted in  a prior meeting, and  invited Brent Petrie,                 
  Manager  /Planning  &  Project  Development,  Alaska  Energy                 
  Authority,  to join  the committee members  at the  table to                 
  speak to the bill and the three fiscal notes.                                
                                                                               
  BRENT  PETRIE  said  that  CSSB  106(FIN)  was  complex  and                 
  affected three components  of the budget.   He said the  PCE                 
  administration component would be reduced  by about $4M over                 
  a twenty-year period  by the  bill, and the  PCE grant  line                 
  from the general fund reduced  allocations by $272M over the                 
  same twenty year period.  He explained  that funding sources                 
  would be changed from the general  fund to the new revolving                 
  fund.    The  third  component   is  the  agency  operations                 
  component  and   in  FY  94,   the  agency  would   need  an                 
  appropriation of $447.0  to start  the interty  work.   That                 
  money  would  come  back  to  the  agency  to  initiate  the                 
  negotiation with the utilities for design, construction, and                 
  financing for the projects.                                                  
                                                                               
  Senator  Sharp  MOVED  for  passage  of CSSB  106(FIN)  from                 
  committee with  individual recommendations.   No  objections                 
  being heard,  CSSB 106(FIN)  was REPORTED  OUT of  committee                 
  with  a  "do pass,"  and  with  three fiscal  notes  for the                 
  Department of Commerce & Economic Development - two zero and                 
  one for $447.0.  Co-chairs Pearce and Frank, Senators Kelly,                 
  Sharp,  and Jacko signed  "do pass."   Senator Rieger signed                 
                                                                               
                                                                               
  "no recommendation."   Senator Kerttula was absent  from the                 
  meeting and did not sign.