03/18/1993 01:50 PM Senate L&C

  SENATOR KELLY announced SB 163 POWER COST EQUALIZATION to be                 
  up for consideration.                                                        
                                                                               
  SENATOR PEARCE said that  approximately $600,000 more  would                 
  be  needed  in the  fiscal year  '94  budget for  power cost                 
  equalization.                                                                
                                                                               
  SENATOR  RIEGER asked  why federal  facilities are  exempted                 
  from the PCE.   SENATOR  PEARCE replied that  at the  moment                 
  federal  facilities  receive  PCE.   Now  federal  and state                 
  facilities with the exception of public schools will not get                 
  subsidized power.                                                            
                                                                               
  Number 132                                                                   
                                                                               
  DAVE  HUTCHINS, Executive  Director,  Alaska Rural  Electric                 
  Coop   Association,   said  many   of   their   members  are                 
  participants in the  PCE program and  they do not oppose  SB
.  They  think the change  is appropriate as a  defensive                 
  measure for the program.                                                     
                                                                               
  MR.  HUTCHINS  remarked  on  page  2,  line  9  the  phrase,                 
  "considering the rate  of fuel  cost and power  demand"   is                 
  nonsensical and needs to be rationalized.                                    
                                                                               
  SENATOR PEARCE said  this was the  first time she has  heard                 
  that issue mentioned and she thought  it could be dealt with                 
  in Finance Committee.                                                        
                                                                               
  Number 176                                                                   
                                                                               
  SENATOR SHARP asked  if there  were guidelines somewhere  in                 
  statute about adjusting individual utilities.   MR. HUTCHINS                 
  answered yes.                                                                
                                                                               
  SENATOR SHARP  moved to  pass SB  163 and  fiscal note  from                 
  committee  with individual  recommendations.  There  were no                 
  objections and it was so ordered.