04/18/2002 10:39 AM Senate RLS

                SB 185-PCE BASED ON HIGHEST COST                                                                            
                                                                                                                                
SENATOR COWDERY  moved to  calendar SB  185 with its  accompanying                                                              
fiscal note at the Chairman's discretion.                                                                                       
                                                                                                                                
SENATOR ELLIS objected.                                                                                                         
                                                                                                                                
SENATOR  HALFORD  said  his  question   pertains  to  the  sponsor                                                              
statement, and read, "The revisions  contained in SB 185 result in                                                              
slightly  higher  payments  being   made  to  12  percent  of  the                                                              
communities receiving PCE."                                                                                                     
                                                                                                                                
MS.  DEB DAVIDSON,  staff to  Senator  Donley, sponsor,  explained                                                              
that it has  to do with the  way PCE payments are  calculated. The                                                              
Regulatory Commission  of Alaska  (RCA) and the Alaska  Industrial                                                              
Development  and  Export  Authority  (AIDEA)  have  a  complicated                                                              
method of  calculating  payments. She assumes  that the  increases                                                              
are based on the historical usage  of the community facilities and                                                              
residences. She  noted that committee  members' packets  contain a                                                              
table of information  provided by AIDEA that shows  the difference                                                              
of what  communities would receive  as a whole under  the existing                                                              
program  and what  they  will receive  if  the  bill passes.  Some                                                              
would, in fact, get an increase.                                                                                                
                                                                                                                                
SENATOR THERRIAULT asked if some  communities are not PCE-eligible                                                              
under  the current  program  and  pay higher  rates  than the  PCE                                                              
communities.                                                                                                                    
                                                                                                                                
MS. DAVIDSON said that is correct.                                                                                              
                                                                                                                                
SENATOR HALFORD asked if that remains the case.                                                                                 
                                                                                                                                
MS. DAVIDSON  said she  believes that  is correct  in a  couple of                                                              
instances.  She  believes  some areas  within  the  Copper  Valley                                                              
Electric Association  pay close to 20 cents per  kilowatt hour and                                                              
that Kodiak Electric Association  pays 16 to 17 cents per kilowatt                                                              
hour.  Even with  the revisions,  a couple  of areas  will not  be                                                              
eligible  for PCE that  would be  paying a  higher rate.  However,                                                              
this bill will bring the rate closer to the statewide average.                                                                  
                                                                                                                                
There being no  further discussion, the motion to  calendar SB 185                                                              
carried with Senators  Therriault, Cowdery, and  Phillips in favor                                                              
and Senators Ellis and Halford opposed.