Legislature(1993 - 1994)
03/29/1994 03:00 PM House L&C
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 539 - APUC EXTENSION AND REGULATORY COST CHARGE Number 242 CHAIRMAN HUDSON brought up HB 539 and stated that the CS corrects some errors in the original draft. Number 279 DON SCHROER, Chairman, Alaska Public Utilities Commission, Department of Commerce and Economic Development, testified via teleconference in support of HB 539 with the two small amendments noted. Number 300 REP. GREEN moved adoption of CSHB 539(L&C) to bring it before the committee. No objections were heard; it was so ordered. REP. MULDER asked why an increased assessment was necessary as provided for in Section 1. Number 308 MR. SCHROER responded that this section gives the commission some flexibility when setting their budget. He added that the assessment rate is still subject to legislative approval. Number 321 REP. MULDER questioned how the rate of assessment would be still subject to legislative approval. He understood APUC's budget to be cost plus; they determine what their costs to be and then charge a rate appropriately. Number 330 MR. SCHROER explained that his budget still goes through the administration and then the legislature. Number 336 REP. PORTER asked for an explanation for paragraph 3. Number 340 MR. SCHROER responded that it was requested by the Alaska Rural Electric Power Cooperative. He added that the effect of the paragraph will be to lower the amount a user pays on their electrical bill in order to meet the budget and will raise the amount to all the other utilities and oil companies. Number 349 CHAIRMAN HUDSON asked Mr. Schroer to run the committee through the bill. Number 352 MR. SCHROER explained each section of the bill. Number 426 DAVE HUTCHENS, Executive Director, Alaska Rural Electric Cooperative Association (ARECA), testified in support of HB 539. He stated three points: 1) Supports extension of APUC. 2) Believes that if the APUC is funded through a regulatory cost charge than it ought to be fair. ARECA thinks the formula needs to be overhauled. 3) Amendment to remove the liberally construed language from the APUC statute and replace it with directive that the powers of the commission would be those specially conferred by statute or necessarily implied by those specific grants of authority. Number 552 CHAIRMAN HUDSON asked Mr. Hutchens where this would fit into the bill. MR. HUTCHENS replied that it would need to be a new section. CHAIRMAN HUDSON read the amendment to Mr. Schroer. Number 575 MR. SCHROER stated the APUC (Alaska Public Utilities Commission) was totally opposed to the deletion liberally construed language from the statute. Mr. Schroer read a prepared statement for the record. (available in the committee files.) Number 617 REED STOOPS, Lobbyist, GCI, testified in support of the amendment and in opposition to the amendment deleting the language regarding liberally construed. MR. STOOPS stated that the APUC cannot foresee everything given the changing nature of telecommunications. Number 630 GARY HAYNES, Vice President of Operations, Prime Cable, testified via teleconference in support of amendment by Mr. Hutchens. TAPE 94-30, SIDE B (Number 001 - Number 031 dead space) Number 031 REP. MULDER moved Amendment 2, page 2, line 5, following "commission" insert ";(4) a cable television utility shall include in gross revenue only revenue attributable to services that the commission has authority to regulate under this chapter". No objections were heard; it was so ordered. Number 045 JAMES ROWE, Executive Director, Alaska Telephone Association (ATA), testified via teleconference in support of Mr. Hutchens' amendment regarding "liberally construed". He complimented the members of the current commission but commented that it was uncertain what kind of talent the future commissions would have. Number 069 REP. PORTER asked Mr. Lohr where in the bill is the provision to change the qualifications of one of the commission members. Number 080 BOB LOHR, Executive Director, Alaska Public Utilities Commission (APUC), Department of Commerce and Economic Development, responded via teleconference that it was in Section 14 of the original bill. MR. LOHR explained that the change would allow for substitution of five years of experience for a degree. Number 092 REP. PORTER stated that he had received information recently regarding a recent appointee that did not meet the qualifications of the statute. He asked if this change was tailored for an individual. Number 102 MR. LOHR explained that the language was recommended by the legislative auditor and will not take effect until the expiration in 1999. Number 110 CHAIRMAN HUDSON announced that the bill will be held over for further information from the APUC in writing concerning Amendment 3 regarding "liberally construed". REP. PORTER added that he would like to hear from Legislative Audit regarding the numbers ARECA has submitted and to whom the costs are shifted to. Number 133 RANDY WELKER, Legislative Auditor, Legislative Audit Division, Legislative Affairs Agency, stated he had not looked at the numbers referenced above, but at a glance they looked to be in order. Number 151 REP. PORTER asked Mr. Welker if the formula being proposed in this bill would correct the problems the audit addresses. MR. WELKER felt that the bill would correct the problem, but added that it may not be to the exactness the Division of Legislative Audit was hoping to see. Number 170 CHAIRMAN HUDSON asked Mr. Welker if most of the points in the audit had been covered during the current hearing. Number 176 MR. WELKER responded that yes, most points had been covered. The bill does address the inequity in the current formula although it's a different solution than the division had recommended.
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