Legislature(1997 - 1998)

04/29/1997 02:00 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
  SENATE BILL NO. 175                                                          
                                                                               
       "An Act relating to revenue  bonds issued by the Alaska                 
       Industrial   Development   and  Export   Authority  for                 
       interties  between  Healy  and  Fairbanks  and  between                 
       Anchorage and the Kenai Peninsula; and providing for an                 
       effective date."                                                        
                                                                               
  KEITH  LAUGER,  ALASKA  INDUSTRIAL  DEVELOPMENT  AND  EXPORT                 
  AUTHORITY (AIDEA) testified  via the teleconference  network                 
  in support of  SB 175.  He  observed that SB 175  provides a                 
  technical  fix for  legislative bonding  Authority  to issue                 
  revenue   bonds  relating  to   the  Northern  and  Southern                 
  interties.  The  original bond authorization was  enacted in                 
  1993, for AIDEA to issue up to $60  million dollars in bonds                 
  for each  intertie.   The authorizing  legislation contained                 
  specific  provisions relating to ownership of the interties.                 
  Since the passage  of the legislation utilities  have worked                 
  out  agreements  that  provide  for  a  different  ownership                 
  structure.  The Bond  Counsel has determined that under  the                 
  existing  statute  the Authority  would  be unable  to issue                 
  bonds for the new ownership  structure that is contemplated.                 
  Senate  Bill  175  would  clarify   that  ownership  is  not                 
  important, who  is going  to benefit from  the interties  is                 
  important.  He observed that AIDEA supports the legislation.                 
                                                                               
  ERIC  YOULD,  EXECUTIVE   DIRECTOR,  RURAL  ALASKA  ELECTRIC                 
  COOPERATIVE  ASSOCIATION  testified  via the  teleconference                 
  network in support of SB 175.   He noted that he  represents                 
  the six utilities that would be affected by the legislation.                 
  He stated that the legislation would authorize revenue bonds                 
  to  be  sold  on  behalf  of  AIDEA  for  the  participating                 
  communities and  utilities.   The legislation also  provides                 
  for joint ownership by the utilities.                                        
                                                                               
  VAYLA  COLONELL, VALLEY  ELECTRIC ASSOCIATION  testified via                 
  the teleconference network in support of SB 175.                             
                                                                               
  DUANE PARLOW, HOMER  ELECTRIC ASSOCIATION testified via  the                 
  teleconference network in support of SB 175.                                 
                                                                               
  Representative  Martin  MOVED  to  report   SB  175  out  of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal note.  There  being NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  SB  175  was reported  out  of  Committee with  a  "do pass"                 
  recommendation   Department   of   Commerce   and   Economic                 
  Development, 4/21/97.                                                        
                                                                               
                               12                                              
                                                                               
                                                                               

Document Name Date/Time Subjects