Legislature(1999 - 2000)

04/09/1999 03:24 PM House L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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HB 62 - ALASKA PUBLIC UTILITIES COMMISSION                                                                                      
                                                                                                                                
Number 0083                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG announced the committee's next order of business                                                              
is HB 62, "An Act relating to the Alaska Public Utilities                                                                       
Commission; and providing for an effective date."  The chairman                                                                 
pointed out the committee has before it CSHB 62(URS), Version H.                                                                
                                                                                                                                
Number 0094                                                                                                                     
                                                                                                                                
WILDA RODMAN, Legislative Administrative Assistant to                                                                           
Representative Gene Therriault, Alaska State Legislature, came                                                                  
forward to present HB 62 on behalf of the bill sponsor.  She noted                                                              
Representative Therriault apologizes for his absence; he has a                                                                  
House Finance Standing Committee commitment.  Ms. Rodman summarized                                                             
the sponsor statement.  Under AS 42.05 and AS 42.06, the Alaska                                                                 
Public Utilities Commission (APUC) regulates public utilities by                                                                
certifying qualified providers of public utility and pipeline                                                                   
services.  The commission is designed to ensure utilities provide                                                               
safe and adequate services and facilities at reasonable rates.                                                                  
Under AS 44.66.010, termination of state boards and commissions,                                                                
APUC will expire June 30, 1999.  If the legislature does not act to                                                             
extend the commission, APUC would have one year, until June 30,                                                                 
2000, to conclude its affairs.  The CS for HB 62 was amended to                                                                 
extend the commission for two years, instead of four, to allow the                                                              
legislature to revisit the commission's progress toward addressing                                                              
several problems identified through the public hearing process.                                                                 
                                                                                                                                
MS. RODMAN explained HB 62 was intentionally introduced with a                                                                  
broad title because Representative Therriault believes the reason                                                               
the legislature specifies the sunset date is to address possible                                                                
commission shortcomings.  Representative Therriault believes                                                                    
shortcomings have been identified through the hearing process.  Ms.                                                             
Rodman indicated the sponsor prefers the legislation's original                                                                 
title but, because of the short time remaining in the legislative                                                               
session, does not object to passage of the current version in a                                                                 
timely manner.                                                                                                                  
                                                                                                                                
Number 0199                                                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI asked for clarification regarding the                                                                  
sponsor's non-support of the title change.  [HB 62's original title                                                             
was, "An Act relating to the Alaska Public Utilities Commission;                                                                
and providing for an effective date."  CSHB 62(URS)'s title is, "An                                                             
Act extending the termination date of the Alaska Public Utilities                                                               
Commission until June 30, 2001; and providing for an effective                                                                  
date."]                                                                                                                         
                                                                                                                                
MS. RODMAN related the title was changed over the sponsor's                                                                     
objections.  The sponsor wished the title to remain broad and to                                                                
address some structural problems with the commission.  She noted                                                                
many of the structural problems have been identified, and some are                                                              
being addressed in another bill.  In response to Representative                                                                 
Murkowski's request for further clarification, Ms. Rodman confirmed                                                             
the sponsor supports the commission's extension, but not the                                                                    
current title change.  She added the sponsor supports the two-year                                                              
extension, as opposed to the four-year extension contained in the                                                               
original bill.  Ms. Rodman clarified for Representative Cissna that                                                             
the title change contained more than just the change in extension                                                               
period.  She indicated the much narrower new title means many other                                                             
issues relating to the commission cannot be dealt with. Ms. Rodman                                                              
noted the sponsor would like the record to reflect that he thinks                                                               
it is not good public policy to usher the sunset through without                                                                
dealing with the problems; the reason for the sunset is to deal                                                                 
with shortcomings in the commission.  However, the sponsor wishes                                                               
to see the bill move.                                                                                                           
                                                                                                                                
Number 0247                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG said he is also a member of the House Special                                                                 
Committee on Utility Restructuring (URS).  This particular                                                                      
legislation received significant hearing in that committee.  As the                                                             
sponsor's staff indicates, the original bill contained additions                                                                
beyond the sunset.  The chairman noted the audit had not been                                                                   
completed when the bill came to URS; that audit is now complete.                                                                
From the testimony before it, URS determined restructuring of APUC                                                              
is necessary.  Chairman Rokeberg indicated the House Labor and                                                                  
Commerce Standing Committee would be receiving the legislation                                                                  
dealing with this restructuring and would have ample opportunity to                                                             
take up the issues surrounding the commission at that time.  The                                                                
chairman further indicated, noting he had been part of the                                                                      
decision-making process, that the prior committee determined it                                                                 
would be cleaner to do this with a shorter horizon.  He emphasized                                                              
the need for the APUC to be extended because of the effect of a                                                                 
sunset on industry, the existing dockets, and business before the                                                               
commission.                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG commented the testimony was that the commission                                                               
is dysfunctional enough without the threat of a "wind-down" year,                                                               
and the resulting cost of that to the utilities.  The chairman                                                                  
noted, therefore, the bill sponsor has agreed to allow this bill to                                                             
move forward, although the sponsor had wished to do further                                                                     
restructuring with his legislation.  Chairman Rokeberg stated his                                                               
intention to move CSHB 62(URS) as rapidly as possible.  In response                                                             
to Representative Halcro's question about whether the National                                                                  
Regulatory Research Institute's (NRRI) report ["audit"] on APUC in                                                              
the bill packet was done in lieu of LB&A's [Joint Committee on                                                                  
Legislative Budget and Audit] audit, the chairman answered in the                                                               
negative.  He indicated the LB&A audit picked up a great deal of                                                                
the NRRI report and the committee would be dealing extensively with                                                             
that report unless URS did more work by the following week.                                                                     
Chairman Rokeberg noted the presence of Walter Wilcox, Sr., aide to                                                             
the House Special Committee on Utility Restructuring.                                                                           
                                                                                                                                
Number 0379                                                                                                                     
                                                                                                                                
JIM ROWE, Director, Alaska Telephone Association (ATA), testified                                                               
via teleconference from Anchorage in support of CSHB 62(URS).                                                                   
Noting he appreciated the chairman's remarks, Mr. Rowe said the ATA                                                             
is very much in support of passage of this reauthorization and they                                                             
look forward to working on APUC restructuring issues in another                                                                 
bill.  In response the chairman's question, Mr. Rowe confirmed ATA                                                              
is in support of this bill.                                                                                                     
                                                                                                                                
Number 0402                                                                                                                     
                                                                                                                                
MARK VASCONI, Director of Regulatory Affairs, AT&T Alascom, came                                                                
forward to testify in support of CSHB 62(URS).  He thinks the                                                                   
chairman's comments were accurate; if the commission went into a                                                                
"wind-down" period, more problems might arise from that.  Mr.                                                                   
Vasconi believes industry wants at least the assurance of some                                                                  
continuity.  He noted other possible structural changes are being                                                               
addressed in another bill, expressing that they would all probably                                                              
have an opportunity to comment on those changes in the near future.                                                             
                                                                                                                                
CHAIRMAN ROKEBERG closed the public hearing on HB 62 after                                                                      
confirming no one else wished to testify.  The chairman confirmed                                                               
the committee had no further questions or discussion regarding the                                                              
legislation.                                                                                                                    
                                                                                                                                
Number 0455                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO made a motion to move CSHB 62(URS) out of                                                                 
committee with individual recommendations and the attached zero                                                                 
fiscal note.  There being no objection, CSHB 62(URS) moved out of                                                               
the House Labor and Commerce Standing Committee.                                                                                

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