04/24/2003 03:16 PM House O&G

HB 277-PIPELINE UTILITIES REGULATION                                                                                          
                                                                                                                                
Number 0109                                                                                                                     
                                                                                                                                
CHAIR KOHRING  announced that the  first order of  business would                                                               
be HOUSE  BILL NO.  277, "An  Act relating to  the powers  of the                                                               
Regulatory Commission of Alaska  in regard to intrastate pipeline                                                               
transportation services  and pipeline facilities, to  the rate of                                                               
interest for  funds to be  paid by pipeline shippers  or carriers                                                               
at  the  end  of  a  suspension of  tariff  filing,  and  to  the                                                               
prospective  application  of  increased  standards  on  regulated                                                               
pipeline utilities;  allowing the commission to  accept rates set                                                               
in conformity with  a settlement agreement between  the state and                                                               
one  or more  pipeline carriers  and to  enforce the  terms of  a                                                               
settlement  agreement   in  regard   to  intrastate   rates;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
CHAIR KOHRING  explained that the legislation  would be presented                                                               
by  the sponsor  and held  over.   He  asked members  to look  at                                                               
testimony provided in writing.                                                                                                  
                                                                                                                                
Number 0196                                                                                                                     
                                                                                                                                
REPRESENTATIVE   NANCY  DAHLSTROM,   Alaska  State   Legislature,                                                               
sponsor of  HB 277,  explained that  the bill  addresses concerns                                                               
related   to  pipeline   utility  regulation.     She   said  the                                                               
legislative branch  is given sole  authority [with  the exception                                                               
of the  people, through  initiatives] to  write law,  whereas the                                                               
executive branch and state boards  and commissions are authorized                                                               
to  act in  accordance with  those laws.   In  that context,  she                                                               
indicated  HB 277 addresses  issues brought  forward by  some who                                                               
are  involved in  exploration, development,  and delivery  of oil                                                               
and gas  [who have concerns  about the regulatory  authority over                                                               
that process].                                                                                                                  
                                                                                                                                
REPRESENTATIVE DAHLSTROM  said the goal  of HB 277 is  to clarify                                                               
what jurisdiction  the Regulatory Commission of  Alaska (RCA) has                                                               
over   interstate  and   intrastate  rates.     The   legislation                                                               
addresses  RCA's  jurisdiction  over state  right-of-way  leases;                                                               
strives to  clarify RCA's authority over  dismantlement, removal,                                                               
and  restoration  (DR&R);  proposes  that the  RCA  support  rate                                                               
methodologies agreed to in settlement  agreements with the state;                                                               
and  addresses changes  to the  applicable interest  rate charged                                                               
under  RCA orders  so that  it  conforms with  the interest  rate                                                               
applied  in "other,  similar matters."   Characterizing  it as  a                                                               
starting  point,  she indicated  she  would  work with  committee                                                               
members,  the administration,  and  members of  the  oil and  gas                                                               
industry to  come up with  a good  piece of legislation  that she                                                               
would present at the next hearing.                                                                                              
                                                                                                                                
Number 0379                                                                                                                     
                                                                                                                                
CHAIR KOHRING apologized to those  hoping to testify and informed                                                               
listeners  that testimony  would  be taken  at  the next  hearing                                                               
after some issues were worked out.  [HB 277 was held over.]