04/03/2008 01:30 PM House FINANCE

SENATE BILL NO. 255                                                                                                           
                                                                                                                                
     An  Act relating  to  refunding of  certain  outstanding                                                                   
     bonds issued  by the  Alaska Industrial Development  and                                                                   
     Export     Authority    concerning    the     Snettisham                                                                   
     hydroelectric project and  related assets; and providing                                                                   
     for an effective date.                                                                                                     
                                                                                                                                
SENATOR KIM  ELTON, SPONSOR, explained  that the bill  was at                                                                   
the  request  of Alaska  Industrial  Development  and  Export                                                                   
Authority,  (AIDEA), to  help out Alaska  Electric Light  and                                                                   
Power  (AEL&P).  It  is  specific   only  to  the  Snettisham                                                                   
hydroelectric  project. AEL&P  operates, maintains,  and pays                                                                   
the debt service on Snettisham,  which was transferred to the                                                                   
State  in 1988.  Legal  counsel  for AIDEA  needs  additional                                                                   
authority  in  order to  roll  costs  of  a new  issuance  in                                                                   
premiums for early  retirement of existing higher  cost bonds                                                                   
into new,  lower cost bonds. There  is no new project  in the                                                                   
bill and the  bond market must be favorable  before AIDEA and                                                                   
AEL&P move  forward. The  savings, around $400,000  annually,                                                                   
will go to the rate-payers.                                                                                                     
                                                                                                                                
3:07:51 PM                                                                                                                    
                                                                                                                                
Representative  Hawker  asked if  DOR  is supportive  of  the                                                                   
bill. Senator Elton thought so.                                                                                                 
                                                                                                                                
PUBLIC TESTIMONY CLOSED.                                                                                                        
                                                                                                                                
Co-Chair Chenault mentioned the fiscal note.                                                                                    
                                                                                                                                
3:09:10 PM                                                                                                                    
                                                                                                                                
Representative  Foster   moved  to  report  SB   255  out  of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal notes.  There  being NO OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
SB  255  was REPORTED  out  of  Committee  with a  "do  pass"                                                                   
recommendation  and with  zero fiscal  note by Department  of                                                                   
Commerce, Community and Economic Development.