05/01/1998 03:40 PM Senate JUD

         SB 355 - COMPETITIVE RETAIL SALES ELEC. POWER                         
       CSCR 34(L&C) - JT COM ON ELEC UTILITY RESTRUCTURING                     
                                                                               
MR. ERIC YULA, Executive Director of the Alaska Rural Electric                 
Cooperative Association, testified to his organizations strong                 
support for HCR 34. MR. YULA expressed opposition to SB 355,                   
primarily because of his preference for the process set forth in               
HCR 34. MR. YULA noted that there are several other pieces of                  
legislation dealing with deregulation pending in this Legislature              
and remarked they might all be better rolled into the subcommittee             
study proposed in HCR 34.                                                      
                                                                               
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MR. YULA explained that Alaska is in a unique position in relation             
to the complex issue of deregulation and encouraged the passage of             
HCR 34.                                                                        
                                                                               
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MR. DON EDWARDS, representing Chugach Electric, testified that SB
 was a simple bill, intended only to apply to large, dense                  
systems such as Chugach and the ML&P system. He suggested the bill             
might be amended to exclude other systems that could accidentally              
be included. MR. EDWARDS said the bill would introduce competition             
to larger systems, but would have no impact outside of Anchorage.              
                                                                               
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MR. EDWARDS testified that poll results have shown customer support            
for competition and cited a study by the Brookings Institute which             
concluded that with competition, customers benefit from better                 
service and reliability. MR. EDWARDS stated that other utilities               
oppose choice, but repeated that the legislation will not apply to             
anyone outside Anchorage.                                                      
                                                                               
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MR. EDWARDS concluded his testimony by urging the committee to move            
SB 355.