04/14/2005 01:30 PM Senate LABOR & COMMERCE

         SB 157-REG. COST CHARGES: UTILITIES/PIPELINES                                                                      
                                                                                                                                
CHAIR CON BUNDE announced SB 157 to be up for consideration.                                                                    
                                                                                                                                
KATHY GIARD, Executive Director,  Regulatory Commission of Alaska                                                               
(RCA), commented  that she was  asked in the previous  meeting on                                                               
this  bill how  much  more  a ratepayer  would  pay  to fund  the                                                               
proposed  information  technology  (IT)   projects  and  the  RCA                                                               
estimated that a typical ratepayer  with three regulated services                                                               
would pay up  to $6.48 more over a three-year  period or about $2                                                               
a year.                                                                                                                         
                                                                                                                                
A  second question  is how  the RCA  plans to  phase in  those IT                                                               
projects. First, Ms. Giard said, it  is important that the RCA do                                                               
these projects to  address the complaints and  concerns that have                                                               
been expressed. The goal is  to have them substantially completed                                                               
before 2007 when the sunset provision takes effect.                                                                             
                                                                                                                                
She explained  that the commission  discussed the  temporary rate                                                               
increase from  .7 percent to .9  percent and reducing it  back to                                                               
.685 rather  than 7 percent.  She related that  AWWU deregulation                                                               
and  moving  RAPA to  the  Attorney  General's office  removed  a                                                               
substantial portion of the RCA's  revenues and her workforce will                                                               
be reduced by eight employees on May 2.                                                                                         
                                                                                                                                
1:49:41 PM                                                                                                                    
SENATOR RALPH SEEKINS joined the committee.                                                                                     
                                                                                                                                
MS.  GIARD  continued  explaining   that  the  Governor's  office                                                               
suggested  bringing the  rate back  to  .7 percent  just in  case                                                               
costs do increase.  She is not certain of what  the RCA's revenue                                                               
streams are going to be in the future.                                                                                          
                                                                                                                                
1:52:39 PM                                                                                                                    
The way  the IT  projects are  going to be  implemented is  to do                                                               
those projects  which will  provide the  RCA internally  with the                                                               
best ability to  quickly get to a higher level  of performance in                                                               
the management of dockets. Her  priority would be to move forward                                                               
with putting  the case management  system in place,  which tracks                                                               
staff resources  and that  will indicate whether  she is  over or                                                               
under-staffed  and will  provide the  docket tracking  mechanism.                                                               
Then  she  would  put  in  the  electronic  filing  project  that                                                               
contains  the  electronic  content   management  system  for  the                                                               
utilities,  which will  allow her  to update  the web  portal and                                                               
website.                                                                                                                        
                                                                                                                                
MS. GIARD  said, "The entire  project will span three  years; the                                                               
majority of the work will be  performed in FY 2006 and early 2007                                                               
with the  goal of  coming to  you in  January for  sunset saying,                                                               
'We've addressed these problems.' "                                                                                             
                                                                                                                                
1:54:54 PM                                                                                                                    
SENATOR ELLIS said  he thought this action was  necessary, but at                                                               
the  same  time wanted  to  be  cognizant  of people  with  fixed                                                               
incomes.                                                                                                                        
                                                                                                                                
MS.  GIARD gave  her word  that she  would be  cognizant of  that                                                               
issue.                                                                                                                          
                                                                                                                                
1:56:34 PM                                                                                                                    
ERIC  YOULD,   Executive  Director,  Alaska   Power  Association,                                                               
supported SB  157. He said  the revenue from  temporarily raising                                                               
the RCC would benefit both the agency and consumers.                                                                            
                                                                                                                                
CHAIR BUNDE closed public testimony.                                                                                            
                                                                                                                                
1:59:13 PM                                                                                                                    
SENATOR  STEVENS   moved  CSSB   157(L&C)  from   committee  with                                                               
individual  recommendations. Senators  Davis, Ellis,  Ben Stevens                                                               
and  Chair  Bunde  voted  yea;   and  CSSB  157(L&C)  moved  from                                                               
committee.