04/20/2004 02:04 PM Senate L&C

             SB 392-REGULATORY COMMISSION OF ALASKA                                                                         
                                                                                                                                
CHAIR CON BUNDE  announced SB 392 to be up  for consideration and                                                               
said that it was requested by the administration.                                                                               
                                                                                                                                
MR.   DANIEL   PATRICK,   Senior  Assistant   Attorney   General,                                                               
Regulatory Affairs,  Department of Law  (DOL), said the  need for                                                               
this bill arises as a result  of last year's Executive Order 111,                                                               
which transferred  the responsibility  for advocacy on  behalf of                                                               
the public in  utility matters from the  Regulatory Commission of                                                               
Alaska (RCA) to  the Attorney General's Office.  That has already                                                               
occurred. SB  392 is essentially  a compliment to that  bill. The                                                               
RCA  personnel who  were responsible  for that  advocacy now  act                                                               
under the  direction of  the DOL. This  bill would  complete that                                                               
transfer of  control by expressly  providing four aspects  of its                                                               
execution. They are:                                                                                                            
                                                                                                                                
   1. The bill would clarify that regulatory cost charge                                                                        
     receipts, not  general funds,  will continue  to pay  of the                                                               
     costs  of  public  advocacy, but  now  administered  by  the                                                               
     Department  of  Law  - just  as  those  off-budget  receipts                                                               
     historically paid  for the advocacy costs  when the function                                                               
     was performed within the RCA.                                                                                              
   2. The bill modifies the regulatory cost charge ceiling and                                                                  
     creates two  distinct budget  components -  one for  the RCA                                                               
     and one  for the  DOL public advocacy  function in  order to                                                               
     provide  each entity  with budgetary  independence from  the                                                               
     other.  The  purpose  for  that  is that  the  RCA,  in  its                                                               
     context, functions as the adjudicator  and the Department of                                                               
     Law,  as the  public advocate,  will be  an advocate  before                                                               
     them  as   a  party  and   it's  important  that   there  be                                                               
     independence between  the two as  in any judicial  or quasi-                                                               
     judicial setting.                                                                                                          
   3. The bill provides the Department of Law with qualified                                                                    
     access  to  utility  or   pipeline  carrier  records,  again                                                               
     similar to  that that was  afforded the RCA's  former public                                                               
     advocacy  staff in  order to  maintain efficient  economical                                                               
     access to information.                                                                                                     
   4. Finally, the bill clarifies that state agencies are exempt                                                                
     from paying the allocated costs  of RCA proceedings to which                                                               
     the state agency is a party,  because there is no net fiscal                                                               
     benefit  in  the current  arrangement.  You  have one  state                                                               
     agency, that from time to time and unexpectedly, may cost-                                                                 
     allocate  to  another  state  agency  and  then  that  state                                                               
     agency,  whether  it's  the  state   as  the  state  or  the                                                               
     Department  of  Law  public  advocate,  would  come  to  the                                                               
     Legislature to  get a supplemental  to pay those  costs. So,                                                               
     it would eliminate that exercise.                                                                                          
                                                                                                                                
MR. PATRICK summarized that the  bill completes the consolidation                                                               
of the  public advocacy  function within the  DOL and  gives that                                                               
function  budgetary independence  for  the RCA.  It provides  the                                                               
advocate with qualified  access to records and  it eliminates the                                                               
inefficiency by exempting key agencies  from paying RCA allocated                                                               
costs.                                                                                                                          
                                                                                                                                
MR.  PAT  LUBY,  Advocacy  Director, AARP,  said  it  has  76,000                                                               
members in Alaska, all of whom consume utilities. He said:                                                                      
                                                                                                                                
     All  too  often  the  RCA is  perceived  as  a  referee                                                                    
     between competing  utilities as they battle  for market                                                                    
     share. From  AARP's perspective, the RCA  is our voice,                                                                    
     our  watchdog,  our  public  advocate  in  the  utility                                                                    
     marketplace.                                                                                                               
                                                                                                                                
     Now that the responsibilities  for public advocacy have                                                                    
     been shifted to the  Attorney General's Office, we know                                                                    
     that the  budget will  always be  limited. The  cost of                                                                    
     representing the  public on  utility issues  should not                                                                    
     have to  be weighed in comparison  with other important                                                                    
     functions in the AG's office.  If the issues before the                                                                    
     RCA do not,  in effect, cost the  Attorney General some                                                                    
     of  his limited  budget, he  would be  more comfortable                                                                    
     allowing  his   staff  to  proceed  as   necessary  and                                                                    
     appropriate knowing  the utilities  will be  picking up                                                                    
     the cost. This  is as it should be.  AARP families need                                                                    
     the RCA, we need them to  have the budget and the staff                                                                    
     to  do the  investigations  necessary  for all  utility                                                                    
     issues and we encourage your support of SB 392.                                                                            
                                                                                                                                
SENATOR  STEVENS  moved  to  pass  SB  392  from  committee  with                                                               
individual recommendations  and attached fiscal note.  There were                                                               
no objections and it was so ordered.