05/10/2004 11:20 AM House FIN

SENATE BILL NO. 392                                                                                                             
                                                                                                                                
     An  Act  relating  to  the  expenses  of  investigation,                                                                   
     hearing,  or  public  advocacy   before  the  Regulatory                                                                   
     Commission of  Alaska, to calculation of  the regulatory                                                                   
     cost charge  for public utilities and  pipeline carriers                                                                   
     to include  the Department of Law's costs  of its public                                                                   
     advocacy  function, to inspection  of certain  books and                                                                   
     records by the attorney general  when participating as a                                                                   
     party in  a matter before  the Regulatory  Commission of                                                                   
     Alaska; and providing for an effective date.                                                                               
                                                                                                                                
DANIEL   PATRICK   OTIERNEY,  ASSISTANT   ATTORNEY   GENERAL,                                                                   
REGULATORY  AFFAIRS,  DEPARTMENT  OF LAW,  stated  that  last                                                                   
year's   Executive    Order   (EO)   111    transferred   the                                                                   
responsibility  for  advocacy  on  behalf of  the  public  in                                                                   
utility matters  before the  Regulatory Commission  of Alaska                                                                   
(RCA) from the  RCA to the attorney general,  and established                                                                   
the public  advocacy function  within the Department  of Law.                                                                   
As a result, the RCA personnel,  historically responsible for                                                                   
public advocacy,  now acts under the authority  and direction                                                                   
of the Department.  The bill completes  the prior transfer of                                                                   
authority by providing for execution aspects.                                                                                   
                                                                                                                                
SB 392  clarifies that regulatory  cost charge  receipts (not                                                                   
general fund) would continue to  pay for the general costs of                                                                   
public advocacy  now administered by the Department,  just as                                                                   
the  receipts historically  paid  for public  advocacy  costs                                                                   
when the function was performed by RCA personnel.                                                                               
                                                                                                                                
The bill also adjusts the regulatory  cost charge ceiling and                                                                   
creates two,  distinct percentages  of total regulatory  cost                                                                   
charge  receipts   to  separately   fund  the  RCA   and  the                                                                   
Department public advocacy function  in order to provide each                                                                   
entity with budgetary independence from the other.                                                                              
                                                                                                                                
Mr.  Otierney   advised  that   SB  392  would   provide  the                                                                   
Department qualified  access to  utility or pipeline  carrier                                                                   
records  similar to  that afforded  the  RCA's former  public                                                                   
advocacy staff  to maintain  efficient and economical  access                                                                   
to   information   where   the  RCA   has   determined   that                                                                   
comprehensive review.   Also,  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 to the State.                                                                                    
                                                                                                                                
Representative Stoltze  thought that the request  should have                                                                   
been included  in the  Department of  Law's operating  budget                                                                   
request.    Mr.  Otierney  disagreed  that  the  request  was                                                                   
misplaced.                                                                                                                      
                                                                                                                                
Co-Chair Harris asked if Mr. Otierney's  job was "on the line                                                                   
if the bill did  not pass".  Mr. Otierney stated  it was not.                                                                   
The  funding source  for  public  advocacy had  already  been                                                                   
transferred  and currently  is  from regulatory  cost  charge                                                                   
receipts.  In  that scenario, the Department  of Law's public                                                                   
advocacy function is in RDU within  the RCA budget and funded                                                                   
from regulatory cost charge receipts.   The bill provides the                                                                   
appropriate  independence of  the budget  for that  function.                                                                   
He added, there would be no change  in the source of funding.                                                                   
                                                                                                                                
Co-Chair  Harris   inquired  why  the  issue   had  not  been                                                                   
submitted in  the Department of  Law's budget.   Mr. Otierney                                                                   
understood  that it  was not  a  function funded  out of  the                                                                   
general fund but rather a regulatory cost-charge.                                                                               
                                                                                                                                
Co-Chair Harris referenced Mr.  Otierney's statement that the                                                                   
request  was "off-budget",  pointing  out that  there are  no                                                                   
"off-budget" requests.   All funds are receipts  for services                                                                   
and are  taken into  consideration.   Mr. Otierney  indicated                                                                   
that  he did  not  take issue  to  that and  that  he is  the                                                                   
"substantive  guy" with the  responsibility to implement  the                                                                   
advocacy function.                                                                                                              
                                                                                                                                
Co-Chair Harris noted that he supports the bill.                                                                                
                                                                                                                                
Representative  Foster   MOVED  to  report  SB   392  out  of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal  note.  There being NO  OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
SB   392   was   reported   out   of   Committee   with   "no                                                                   
recommendation" and with fiscal  note #3 by the Department of                                                                   
Law.