Legislature(2005 - 2006)SENATE FINANCE 532
02/13/2006 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB188 | |
| HB243 | |
| SB207 | |
| HB243 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 188 | TELECONFERENCED | |
| += | HB 243 | TELECONFERENCED | |
| + | SB 207 | TELECONFERENCED | |
| + | TELECONFERENCED |
CS FOR HOUSE BILL NO. 243(FIN)
"An Act relating to the financial plan for the intertie
between the Swan Lake and Tyee Lake hydroelectric projects;
and providing for an effective date."
This was the second hearing for this bill in the Senate Finance
Committee.
AT EASE 10:08:05 AM / 10:08:38 AM
Co-Chair Green ordered the bill SET ASIDE as the bill's presenter
was unavailable at the moment.
[NOTE: This bill was re-addressed later in the meeting. See Time
Stamp 10:35:18 AM.]
CS FOR HOUSE BILL NO. 243(FIN)
"An Act relating to the financial plan for the intertie
between the Swan Lake and Tyee Lake hydroelectric projects;
and providing for an effective date."
10:35:18 AM
Co-Chair Green ordered the bill back before the Committee. [See
Time Stamp 10:08:05 AM for previous Committee action on this bill.]
RON MILLER, Executive Director, Alaska Industrial Development &
Export Authority and Alaska Energy Authority, testified via
teleconference from Anchorage and noted that Dave Carlson, Chief
Executive Officer, Four Dam Pool Power Agency (FDPPA) had provided
his testimony on the bill during its first hearing before the
Committee.
Mr. Miller stated that the prior Legislative Session, the House
Finance committee substitute for this bill had been transmitted to
this Committee. That bill, CS HB 243(FIN), extended the date by
which the FDPPA must provide a financing plan to the Alaska
Industrial Development & Export Authority (AIDEA) for approval.
Mr. Miller reminded the Committee that the initial agreement for
the sale and purchase of the Four Dam Pool was outlined in a
Memorandum of Understanding (MOU) that specified a $73 million
purchase price and a five million dollar credit that was based on
certain contingencies being met. One of those contingencies was
that the FDPPA present to AIDEA, by April 11, 2005, a finance plan
that demonstrated committed funds sufficient to complete the power
line intertie system between Swan Lake and Tyee Lake. The plan
FDPPA provided to AIDEA in 2005 was based on "the request and
receipt" of federal and State grants. AIDEA determined that the
plan did not demonstrate "committed funds necessary to complete the
Project", and, as a result, they notified FDPPA that the five
million dollar credit was due to the Power Cost Equalization
Endowment.
Mr. Miller stated that during the Legislative Interim, FDPPA and
the Alaska Energy Authority (AEA) reached an agreement to amend the
original credit provisions of the Four Dam Pool Power Project. AEA
agreed to allow FDPPA to place five million dollars into an
interest bearing escrow account and to provide FDPPA additional
time in which to secure funds to complete the Swan Lake and Tyee
Lake intertie project. Were that project not completed, that money
and the interest would be released to the Power Cost Equalization
Endowment.
Mr. Miller stated that in order to proceed, that August 2005
agreement to extend the date and revise the five million dollar
credit conditions must receive Legislative approval. These amended
provisions are specified in committee substitute, Version 24-
GH1138\X that is being offered to the Committee for consideration.
AT EASE 10:38:16 AM / 10:38:38 AM
Co-Chair Wilken moved the adopt committee substitute, Version 24-
GH1138\X, as the working document.
There being no objection, the Version "X" committee substitute was
ADOPTED as the working document.
10:39:06 AM
Senator Stedman spoke to the importance of the Swan Lake and Tyee
Lake intertie project, which is the issue pertinent to the five
million dollar escrow agreement. The FDPPA is in the process of
updating their power load study analysis that would assist in the
completion of that project. The study should be completed in March
2006. "There is more than a reasonable chance" that that project
would be completed.
10:39:55 AM
BRIAN BJORKQUIST, Senior Assistant Attorney General, Labor and
State Affairs Section, Civil Division (Anchorage), Department of
Law, testified via teleconference from Anchorage and informed the
Committee that he would be available to answer questions.
SARA FISHER-GOUD, Alaska Energy Authority, Department of Commerce,
Community and Economic Development testified via teleconference
from Anchorage and noted that she also would be available to answer
questions.
10:40:29 AM
DAVE CARLSON, Chief Executive Officer, Four Dam Pool Power Agency,
testified via teleconference from Anchorage and informed the
Committee that the FDPPA is in support of this legislation. FDPPA
has worked diligently with AEA on this effort. The Swan Lake and
Tyee Lake intertie would provide a "vital link of major
infrastructure" to the power grid of southern Southeast Alaska.
This bill would allow that project to continue to move forward.
JON BOLLING, Chair, Energy Committee, Southeast Conference
testified via teleconference from offnet site and stated that this
intertie project is "strongly supported" by the Conference. He also
acknowledged the efforts conducted by FDPPA and AEA. He urged the
Committee to support the legislation.
Co-Chair Green ordered the bill HELD in Committee.
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