Legislature(2005 - 2006)HOUSE FINANCE 519
03/16/2006 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB441 | |
| SB157 | |
| HB478 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 176 | TELECONFERENCED | |
| + | HB 271 | TELECONFERENCED | |
| + | HB 441 | TELECONFERENCED | |
| + | SB 157 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 478 | TELECONFERENCED | |
CS FOR SENATE BILL NO. 157(FIN)
"An Act relating to the maximum annual regulatory cost
charge collected from certain regulated public utilities and
pipeline carriers and to public utility liability associated
with operating certain transmission lines under a Regulatory
Commission of Alaska order for joint use and
interconnection; and providing for an effective date."
Representative Stoltze MOVED to ADOPT Work Draft 24-
GS1138\I, Wayne, 3/8/06. There being NO OBJECTION, the
Committee Substitute was ADOPTED.
1:57:24 PM
KATE GIARD, CHAIR, REGULATORY COMMISSION OF ALASKA testified
regarding the bill. She indicated that the bill would
provide a funding mechanism for the purchase and
implementation of data systems that would allow regulated
utilities and pipeline companies in Alaska access to a secure
web-based RCA portal, through which all day to day business
transactions could be performed electronically. The project
was valuated by a user utility committee and underwent a
public process with the RCA in 2004/05, and is supported by
utilities companies as a positive move for the regulatory
environment in the State. She noted that the bill would
increase utility cost for consumers by approximately $1 per
year, since the costs were spread over a very large rate
base. She requested that the Committee pass the legislation
as a good policy for Alaska.
Representative Hawker asked about the AIDEA receipts as a
funding source. Ms. Gaird noted that these were actually
Regulatory Cost Charge (RCC) receipts. Representative Hawker
proposed that the fiscal note be changed to reflect the
correction in the funding source.
Vice-Chair Meyer opened the floor to public testimony.
TED MONINSKI, DIRECTOR OF REGULARTORY AFFAIRS, ALASKA
COMMUNICATION SYSTEMS, testified via teleconference. He
noted that ACS was supportive of RCA plans to update its
internal case management systems, and strongly supports its
plans to create an electronic filing capability and enhanced
searchable data system.
2:00:49 PM
Mr. Moninski noted his experience in the field, representing
public utilities before the RCA, and stressed the value of
automating the operations of these agencies. He outlined
ACS's experience with the Federal Communications System,
implementing tools for efficiency such as its EDOC system and
various searchable data bases. He proposed that such systems
would ultimately pass benefits on to utility customers.
2:02:12 PM
Mr. Moninski also expressed concern about whether certain
modules of the system would not be implemented if not
adequately funded. He noted the importance of such
efficiency tools, while acknowledging the impact on
consumers, and the importance to carefully evaluate any
increased rates. ACS recommended that that Legislature and
RCA work together to ensure a real rate of return on rate-
payers' investment. He proposed that once the funding
increased over a two year period - and stated support of an
increase of the RCA cap to $1.9 for two years - it may
generate an amount of funding that allowed consumers to be
refunded rate increases. He urged legislators to consider
this forward thinking legislation.
2:04:17 PM
BILL SAUPE, AT&T ALASCOM, testified via teleconference. He
stated that he has worked with the Anchorage law firm of
Ashburn and Mason, representing utility companies before the
RCA since 1985. He stated that AT&T Alascom believed that
the proposed $3 million increase in the Regulatory Cost
Charge was the most reasonable means to upgrade the RCA's
computer systems.
Mr. Saupe noted their understanding that the funds would be
administered by a users committee, made up of a broad
spectrum of utility industry and public interest
representatives. The committee would work to create an
improved computer system to allow for a searchable data base
as well as other improvements to the agency's efficiency, and
quality of its orders. He also surmised that it would save a
great deal of money in terms of time savings. He raised
concern that if implemented in stages, there was a risk that
some aspects would not be completed. He also suggested that
any surplus would be passed back to the consumers in savings.
He proposed that they ensure that Regulatory Commission of
Alaska increase be sufficient to provide adequate funding for
the entire project developed by the user committee.
2:07:27 PM
DAN DIECKGRAEFF, TREASURER AND MANAGER OF FINANCE AND RATES,
ENSTAR NATIONAL GAS COMPANY, testified via teleconference.
He noted his experience with the company and the spectrum of
his company's service in Alaska.
2:09:21 PM
Mr. Dieckgraeff stated that Enstar supported the RCA's
initiative to update its information systems and to fund it
with the proposed two-year limited increase in the RCC. He
indicated the advantages for the utility companies, such as
tracking of cases and cost of cases, making information
available faster and easier, and savings in storage and
filing. He concluded that it was important to his
corporation that RCA have the necessary funding to complete
all aspects of the project.
2:10:54 PM
Mr. Dieckgraeff recounted a recently completed project during
which historical information had been added into a data base,
similar to the system proposed by the Commission. He stated
his belief that this would be a very helpful system.
2:11:39 PM
JIM POSEY, MANAGER, ANCHORAGE MUNICIPAL LIGHT AND POWER,
ANCHORAGE, testified in support of the bill. He noted the
complicated nature of dealings with the Commission in terms
of filing documents and information. He confirmed that
having a simultaneous filing of information would enable
communication with regulators, noting that recent filing of
information had decreased the amount of time spent in such
endeavors.
2:14:43 PM
JIM ROWE, EXECUTIVE DIRECTOR, ALASKA TELEPHONE ASSOCIATION,
testified via teleconference in support of the increase in
the RCC charge for the reasons outlined by previous
testimony.
Mr. Rowe noted that in rural areas, the FCC electronic filing
has saved a great deal of time. He suggested that for the
Regulatory Commission of Alaska to have the same type of
filing system would be of similar benefit. He noted that all
of his directors supported the legislation for its potential
increase in efficiency. He read a note from an employee with
Matanuska Telephone Association. The letter expressed the
lessening burden of filing through new FCC electronic system,
but asked about the extent of document filing. Mr. Rowe
concluded that such efficiency would pass along savings to
customers.
2:18:23 PM
Representative Stoltze asked whether there was a point when
accumulated regulatory charges might comprise more than half
of a service rate, and if in such cases this might represent
a concern of public policy.
Mr. Rowe acknowledged that half of the companies in his
membership were cooperatives, and were experiencing a
significant amount of service charges. He acknowledged that
these breakout charges were not formerly seen on bills, but
that total customer charges may not actually have increased.
2:19:36 PM
He acknowledged that network access fees had been reduced
recently at the request of cooperatives. He noted the
perception that some local phone calls were "free", and that
in fact charges were sometimes not what they appeared.
2:21:01 PM
Representative Stoltze noted the improvements in phone
charges.
There being no further public testimony, Vice-Chair Meyer
closed public testimony.
Representative Kerttula asked regarding Sections 3 and 6 of
the bill, regarding retroactivity and liability for damages.
She wished to ensure that she did not have a conflict of
interest, since her family had a current law suit pending.
Ms. Gaird confirmed that the retroactivity only deals with
damages after December 1, 2004.
2:22:40 PM
Representative Kerttula asked if the state of Alaska would
become liable if damages were awarded.
Ms. Giard explained that the amendment resulted from a
Regulatory Commission of Alaska order requiring MEA to
provide service to the Alaska intertie in the Matanuska
valley. She explained that the MEA was the only utility in
this area using its own facilities to provide its own
intertie service. The RCA ordered the utility to provide the
service at 138 kilovolts, and the utility's design was for a
lower power production level. She proposed that this section
of the bill was in the public interest, because it exempts
MEA from liability should any harm result from running the
line at this reduced level.
2:24:23 PM
Representative Kerttula followed up and Ms. Giard confirmed
that the state of Alaska has assumed liability for any
plaintiff damages.
Representative Kertulla wished to ensure that no sovereign
unity or waiver would be put forward. Ms. Giard noted that
the bill had been evaluated by Legislative Budget and Audit
and the Attorney General's office when it had been heard in
Senate Finance the previous year. She noted that at that
time, no discussion occurred around the possibility of a
plaintiff not being able to seek recovery.
2:25:20 PM
Representative Kerttula expressed her dissatisfaction with
the directness of this response, and stated that she would
follow up with the Attorney General's office.
Representative Chenault asked if the Regulatory Commission of
Alaska had already been out for bid on the project, and if
the funds were truly adequate to provide the proposed system.
Ms. Giard explained that that system was comprised of three
primary components: first building the system core of an
electronic case management system; a content management
system which will maintain data for a goal of seven years,
allowing companies to research data for that time; and the
ability of the utilities and pipeline companies to use the
web interface to file with the Regulatory Commission of
Alaska and eliminate paper filing.
2:27:54 PM
Ms. Giaird noted that she had originally estimated a $1.5
million budget on the project. She went on to explain that
utilities during public process indicated that this was not
sufficient. A utility user committee was formed, and a
conceptual budgeting process ensued, developing a range of
budgets between $890 thousand and $2.2 million. Within that
process, the committee added the ability for companies to
view old data, relying on pictures of data that had been
taken in past years, something not included in the current
funding. She noted that utilities had expressed a desire to
compile historical information into searchable data. She
reiterated that this historical research was not part of the
currently proposed funding.
In response to a follow up question by Representative
Chenault, Ms. Giard confirmed that she was comfortable with
the proposed funding level of $1.5 million to build the
three-part core system.
2:30:36 PM
Ms. Giard noted that the second phase of the project would
require a range of $.5 million to $1.0 million to convert
historical information into searchable data. She stated that
this funding was contained in the version of the bill passed
by the Senate Committee, but not in the current Committee
Substitute. She stated that while there was every
opportunity for utilities to return and request future
increases of the RCC, it was not likely that the RCA would
make such a request.
2:31:41 PM
Representative Kelly speculated that a future request might
be made for the second phase of the project. He pointed out
that he had met with the Commissioner on this issue to ensure
that future projects might receive consideration. He
proposed that the project may then be extended if
appropriate.
Commissioner Giard stated that utilities would need to
approach the legislature for such action, and noted that the
RCA was scheduled to sunset, and would not be likely to ask
the administration to sponsor a future bill.
2:33:18 PM
Representative Foster MOVED to REPORT CS SB 157 out of
Committee with individual recommendations and attached fiscal
notes. There being NO OBJECTIONS, it was so ordered.
CSSB 157 (FIN) was REPORTED OUT of Committee with Individual
Recommendations and one new fiscal note (HFC for DCED).
| Document Name | Date/Time | Subjects |
|---|