Legislature(2011 - 2012)SENATE FINANCE 532
04/14/2011 09:00 AM Senate FINANCE
Audio | Topic |
---|---|
Start | |
HB105 | |
HB24 | |
HB126 | |
HB119 | |
Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
+= | HB 105 | TELECONFERENCED | |
+ | HB 24 | TELECONFERENCED | |
+ | HB 126 | TELECONFERENCED | |
+ | HB 119 | TELECONFERENCED | |
+ | TELECONFERENCED |
CS FOR HOUSE BILL NO. 24(FIN) "An Act extending the termination date of the Regulatory Commission of Alaska; and providing for an effective date." 9:16:16 AM Co-Chair Hoffman proposed committee substitute, work draft #27-LS0173/D, Kirsch/Kane, 4/13/11. Co-Chair Stedman OBJECTED for purpose of discussion. Co-Chair Stedman explained that the CS amended the sunset date to June 30, 2012 and inserted intent language. The Regulatory Commission of Alaska (RCA) provided the legislature with a proposal to reduce the statutory timeline for tariff filings. He stated that he was working with Senator Thomas to correct the problem of excessively long timelines and resolve late case filings. The compromise was devised to provide RCA an opportunity to address the problem internally and report to the committee in January 2012. If the committee remained unsatisfied with the proposal, the issue would be addressed in 2012. Co-Chair Stedman WITHDREW his OBJECTION. There being NO OBJECTION, it was so ordered. Version D was adopted. 9:17:49 AM REPRESENTATIVE KURT OLSON introduced himself and his staff. CONRAD JACKSON, CHIEF OF STAFF, REPRESENTATIVE OLSON, explained the CS. The bill extends the Regulatory Commission of Alaska sunset. The CS provided a one year extension. He felt that the Regulatory Commission of Alaska continued to serve the public interest. The Regulatory Commission of Alaska provided continuity of utilities balanced with the consumer's ability to pay a reasonable price. He stated that the Regulatory Commission of Alaska's job was to protect the public. 9:19:58 AM Co-Chair Stedman mentioned one Senate Finance Committee fiscal note reflecting the cost of $8,932,100 in program receipts for a one year extension of the Regulatory Commission of Alaska. The funding also existed in the FY12 operating budget. Senator Thomas understood the problem that had arisen including the opening of documents without addressing the issue. He wished to address the issue with a plan from the Regulatory Commission of Alaska. He acknowledged that much of the issue involved consumer protection. He looked forward to better understanding and resolution of the problem. 9:21:05 AM Senator Ellis expressed confidence in the current chair Mr. Bob Pickett. He noted large improvement over the previous leadership. Representative Olson expressed concerns about promises made three and four years ago. He wished to correct the problems without eradicating the Regulatory Commission of Alaska. He expressed confidence in Chair Pickett. He hoped to balance past problems with the future Regulatory Commission of Alaska. 9:22:41 AM Senator McGuire appreciated the clean sunset bill. 9:23:15 AM KRISTIN WINTERS, GOLDEN HEART UTILITIES (via teleconference), testified in support of the legislation. She supported the reduction of the statutory timeline for rate filings. She informed that she was the director of regulatory affairs for Golden Heart Utilities. She explained that Golden Heart Utilities filed rate cases annually beginning in 1999. She pointed out that she continued to have increased operating, infrastructure, and investment costs without a growing customer base. She noted the need to file rate cases annually. The consequences of regulatory lag resulted from excessively long statutory periods to resolve rate case filings. She believed that the reasonable time for the filing of a rate case was 9 months and the process in use expanded to fill the available time. The rate setting process in Alaska was outdated and failed to reflect the changing nature of the utility industry or the rapidly changing economy. She pointed out that 27 states were required to conclude rate cases in 9 months or less. The lag means that the Regulatory Commission of Alaska had not decided disputed issues prior to the utilities filing their next rate case. Thus, subsequent rate filings include the disputed issues, which led to more disputed issues, inefficiencies, and increased cost as the parties continued to debate the undecided issues. The result was high rate case costs. She urged support of the reduction in the statutory timeline. She advocated for the commission to issue a final order for a tariff filing that changed the utilities revenue requirement or rate design from 450 days to 270 days. 9:29:09 AM BOB PICKETT, REGULATORY COMMISSION, ALASKA CHAIRMAN, spoke about the Regulatory Commission of Alaska's recent legislative audit. He stated that the Regulatory Commission of Alaska was at a critical point in its history and confronted with large issues. He explained his work on a procedural schedule offering Alaskan's the ability to participate in solving the Regulatory Commission of Alaska's issues. Part of the responsibility of the Regulatory Commission of Alaska was to work with the Alaska Energy Authority (AEA) on the administration of the Power Cost Equalization program (PCE). The PCE was critical to the health of the rural communities. Some of the rural utilities were struggling. Capable, confident, and committed staff was necessary to ease the struggles. He expressed concern with the one year extension given the fact that the Department of Administration (DOA) classification study from last August resulted in the loss of 100 percent of the tariff staff. Commissioners and staff would interpret a one year extension as a wind down of the commission and would make personal decisions accordingly. 9:34:52 AM Co-Chair Stedman stated that he had no intent to move the bill from the committee. He wished to provide adequate time for Mr. Pickett to review the CS and allow for communication. Co-Chair Hoffman requested further dialog with the chairman regarding water and sewer rates in rural Alaska. He did not view the one year extension as intent to wind down and terminate the commission. 9:36:34 AM Co-Chair Stedman concurred that there was no intention of winding down the Regulatory Commission of Alaska. Senator McGuire echoed the comments of the chairman. She commented on the viability of Regulatory Commission of Alaska as discussed in years past. She complimented Mr. Pickett on his leadership since 2008. She appreciated his communication with the lawmakers. Senator McGuire asked about South-central Alaska, where many gas contracts were not approved by the Regulatory Commission of Alaska. She stated that the contracts would have provided a healthy supply of natural gas to the Cook Inlet. The failure to approve the contracts contributed to the situation of "rolling blackouts." She wondered about action taken by Regulatory Commission of Alaska to improve the situation. 9:38:57 AM Mr. Pickett answered that five gas supply agreements were approved in the last 26 months. The situation was tenuous and deteriorating during the last 10 years. He admitted difficulty approving capital expenditures and including them into the rate base. He intended to hold a public meeting with the utilities regarding the import of gas into Cook Inlet. The area required a source of natural gas to fuel the gas generation equipment. He stated that he could not speak to the dynamics of past gas supply agreements. He noted that the role of the attorney general and interveners must be thought of in terms of system reliability. He stated that the Regulatory Commission of Alaska was charged to ensure just and reasonable rates for rate payers, along with reliable utility service. 9:40:40 AM Senator McGuire asked if the statute must be changed to reflect the necessary balance. Mr. Pickett responded that changes in the statutes lead to conflicts. He opined that addressing the extension and policy issues separately was a sound method of tackling the problem. Senator McGuire asked about the issue of renewable energy. She stated the strong approach for adding renewable energy as a portion of the portfolio of available energy supply. She explained that the intention was not to supplant hydrocarbons, but to provide an option. The "incentivization" produced results. She credited Mr. Pickett with excellent communication. 9:43:19 AM Mr. Pickett stated that the role of the board was to review the power sale agreement between the independent power producer and the regulated utility. He mentioned that the legislature created an exemption for Fire Island from certification requirements. He noted that a power supply agreement for Fire Island would be reviewed. Senator McGuire asked about a conversation between Commissioner Guierd and Armstrong Oil and Gas. Mr. Pickett explained that he was not privy to the conversation. He noted the great impact of the conversation. He admitted to reading part of the conversation transcript. Senator McGuire requested a question and answer process with Commissioner Guiard regarding the conversation. She opined that the conversation provided a deterrent to development in the state. She requested a written response regarding the commissioner's response. Mr. Pickett agreed. He informed the committee that the commissioners on the panel worked diligently to achieve the operating authority approved and he reported that gas is flowing through the pipeline. 9:47:00 AM PAT DAVIDSON, DIVISION OF LEGISLATIVE AUDIT, explained that the evaluation of the Regulatory Commission of Alaska identified no new recommendations. The division encouraged the Regulatory Commission of Alaska to continue its implementation of the prior audit recommendation, which was to develop regulations that would enhance the transparency, accountability, and efficiency of the decision making process. She stated that the Regulatory Commission of Alaska partially implemented the recommendation. The portion that remained outstanding, was the work related to developing regulations to establish standards for certain aspects of discovery. The audit made a recommendation to extend the Regulatory Commission of Alaska for eight years. A new audit requirement states that the division of legislative audit must review the accuracy and completeness of Regulatory Commission of Alaska's annual report every two years. The annual report required compliance with statutory timelines. The audit requirement supplemented the sunset review leading to the eight year recommendation. Co-Chair Hoffman asked if the one year extension would require an audit review. Ms. Davidson responded that when a board or commission is extended for one year, she consulted with the chairman of the budget and audit committee to determine the type of audit needed. Co-Chair Hoffman asked about possible language in the extension that deletes the requirement for an audit. Ms. Davidson responded yes. 9:49:46 AM HB 24 was HEARD and HELD in Committee for further consideration.
Document Name | Date/Time | Subjects |
---|---|---|
CSHB 126(FIN) Sponsor Statement.pdf |
SFIN 4/14/2011 9:00:00 AM |
HB 126 |
HB 105 Transmittal.pdf |
HFIN 3/22/2011 1:30:00 PM SFIN 4/14/2011 9:00:00 AM |
HB 105 |
HB 105 AFA Letter of Support 1.12.2011.pdf |
SFIN 4/13/2011 9:00:00 AM SFIN 4/14/2011 9:00:00 AM |
HB 105 |
HB 105 BOF Support Letter 4-1-11.pdf |
SFIN 4/13/2011 9:00:00 AM SFIN 4/14/2011 9:00:00 AM |
HB 105 |
HB 105 Coffman Cove Letter of Support.pdf |
SFIN 4/13/2011 9:00:00 AM SFIN 4/14/2011 9:00:00 AM |
HB 105 |
HB 105 JCB Letter of Support.pdf |
SFIN 4/13/2011 9:00:00 AM SFIN 4/14/2011 9:00:00 AM |
HB 105 |
HB 105 Land Ownership and Mill Status.pdf |
SFIN 4/13/2011 9:00:00 AM SFIN 4/14/2011 9:00:00 AM |
HB 105 |
HB 105 Parcel Maps 12.20.2010.pdf |
SFIN 4/13/2011 9:00:00 AM SFIN 4/14/2011 9:00:00 AM |
HB 105 |
HB 105 RDC Letter of Support.pdf |
SFIN 4/13/2011 9:00:00 AM SFIN 4/14/2011 9:00:00 AM |
HB 105 |
HB 105 SAF Letter of Support.pdf |
SFIN 4/13/2011 9:00:00 AM SFIN 4/14/2011 9:00:00 AM |
HB 105 |
HB 105 Value Added 3.30.2011.pdf |
SFIN 4/13/2011 9:00:00 AM SFIN 4/14/2011 9:00:00 AM |
HB 105 |
HB 105 Vicinity Map.pdf |
SFIN 4/13/2011 9:00:00 AM SFIN 4/14/2011 9:00:00 AM |
HB 105 |
HB126 HFIN CS Changes.pdf |
SFIN 4/14/2011 9:00:00 AM |
HB 126 |
HB24 Sponsor Statement ver B.pdf |
SFIN 4/14/2011 9:00:00 AM |
HB 24 |
HB24 Supporting Documents - Leg Audit #08-20067-11 Summary.pdf |
SFIN 4/14/2011 9:00:00 AM |
HB 24 |
HB24 Supporting Documents - Email Mike O'Meara 3-15-2011.pdf |
SFIN 4/14/2011 9:00:00 AM SFIN 4/16/2011 10:00:00 AM |
HB 24 |
HB24 Supporting Documents - Leg Audit #08-20067-11.pdf |
SFIN 4/14/2011 9:00:00 AM |
HB 24 |
HB24 Supporting Documents - Fax AARP 3-14-2011.pdf |
SFIN 4/14/2011 9:00:00 AM |
HB 24 |
HB24 Supporting Documents - Letter GCI 3-15-2011.pdf |
SFIN 4/14/2011 9:00:00 AM |
HB 24 |
HB126 BBH Auditor Cover Ltr.pdf |
SFIN 4/14/2011 9:00:00 AM |
HB 126 |
HB126 BDE Auditor Cover Ltr.pdf |
SFIN 4/14/2011 9:00:00 AM |
HB 126 |
SEAALASKA McDowell Group studies.pdf |
HRES 2/14/2011 1:00:00 PM SFIN 4/14/2011 9:00:00 AM |
HB 105 |
HB 105 Public Briefing 1.24.2011.pdf |
HFIN 3/22/2011 1:30:00 PM SFIN 4/14/2011 9:00:00 AM |
HB 105 |
HB126 BON Auditor Cover Ltr.pdf |
SFIN 4/14/2011 9:00:00 AM |
HB 126 |
HB 119 - CSC CSHB119 Questions and Answers.pdf |
SFIN 4/14/2011 9:00:00 AM SFIN 4/15/2011 9:00:00 AM |
HB 119 |
HB 119 - SCS CSHB119 Explanation of Changes.pdf |
SFIN 4/14/2011 9:00:00 AM SFIN 4/15/2011 9:00:00 AM |
HB 119 |
HB 119 - SCS CSHB119 Sectional Analysis.pdf |
SFIN 4/14/2011 9:00:00 AM SFIN 4/15/2011 9:00:00 AM |
HB 119 |
HB 119 - 1.21.11 Gov Transmittal LTR.pdf |
SFIN 4/14/2011 9:00:00 AM |
HB 119 |
HB 119 - SCS CSHB119_Hearing_Information.pdf |
SFIN 4/14/2011 9:00:00 AM |
HB 119 |
HB 24 - Letter from Kate Giard.PDF |
SFIN 4/14/2011 9:00:00 AM SFIN 4/16/2011 10:00:00 AM |
HB 24 |