Legislature(2023 - 2024)BELTZ 105 (TSBldg)
03/04/2024 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB154 | |
| SB102 | |
| SB257 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 154 | TELECONFERENCED | |
| *+ | SB 102 | TELECONFERENCED | |
| + | SB 44 | TELECONFERENCED | |
| *+ | SB 257 | TELECONFERENCED | |
SB 102-REFUSE UTILITY REGULATIONS
1:50:12 PM
CHAIR BJORKMAN reconvened the meeting and announced the
consideration of SENATE BILL NO. 102, "An Act relating to refuse
utility rates and Regulatory Commission of Alaska regulations
regarding refuse utilities; and providing for an effective
date."
1:50:34 PM
SENATOR ROBERT MYERS, District Q, Alaska State Legislature,
Juneau, Alaska, sponsor of SB 102. He paraphrased the sponsor
statement for SB 102:
[Original punctuation provided.]
SB 102 - Sponsor Statement
REFUSE UTILITY REGULATIONS
"An Act relating to refuse utility rates and
Regulatory Commission of Alaska regulations regarding
refuse utilities; and providing for an effective
date."
The Regulatory Commission of Alaska (RCA) is an
independent, quasi-judicial regulatory body that was
formed by the legislature in 1999 to replace the
Alaska Public Utilities Commission. The RCA is charged
with regulating public utilities and pipeline
services. Among these regulated utilities are refuse
waste collection providers throughout the state.
Unfortunately, due to workload and protracted legal
processes it has been the experience of some refuse
utility providers that rate filings have taken years
consuming a large number of resources for both the
companies and the RCA. The prolonged filling process
has also led to consumer price shock due to the time
lapse between the refuse utilities filling years and
when new rates take effect.
SB 102 streamlines the rate adjustment process for
refuse utilities by allowing them to make use of the
already existing simplified rate filing procedure.
This procedure allows utilities to apply for rate
adjustments over a specified period, provided they
meet certain regulatory requirements.
The RCA will be required to adopt specific regulations
tailored to the unique nature of refuse utilities.
These regulations will include provisions for
sufficient public notice and meaningful opportunities
for ratepayers to comment on rate filings. By doing
so, the bill promotes transparency and accountability
in the rate-setting process, safeguarding the
interests of both consumers and utility providers.
SB 102 establishes a balanced approach to regulating
refuse utility rates in Alaska, prioritizing fairness,
transparency, public participation, and expediency.
1:52:17 PM
DAWSON MANN, Staff, Senator Robert Myers, Alaska State
Legislature, Juneau, Alaska, presented the sectional analysis
for SB 102:
[Original punctuation provided.]
SB 102 v. A Sectional Analysis
REFUSE UTILITY REGULATIONS
"An Act relating to refuse utility rates and
Regulatory Commission of Alaska regulations regarding
refuse utilities; and providing for an effective
date."
Section 1: Page 1, Lines 4-14, Page 2, Lines 1-4
This section amends AS 42.05.381(e) to include refuse
utilities. AS 42.05.381(e) is the section of statutes
that provides for a simplified rate filing procedure.
This section also outlines that the Regulatory
Commission of Alaska shall adopt regulations
specific to refuse utilities to provide sufficient
public notice and time for ratepayers to meaningfully
comment on rate filings.
Section 2: Page 2, Line 5
This section establishes an immediate effective date.
1:53:19 PM
SENATOR DUNBAR noted that not all waste companies are regulated
by the Regulatory Commission of Alaska (RCA) and asked if SB 102
would change this.
1:53:44 PM
SENATOR MYERS replied that SB 102 would not change which waste
companies are regulated; rather, an existing regulatory process
would be applied to waste companies.
1:54:01 PM
SENATOR DUNBAR asked if Solid Waste Services (SWS) has any
expressed any views on SB 102.
1:54:29 PM
MR. MANN deferred to RCA representatives to speak to the
relationship between RCA and municipal trash collection.
1:55:00 PM
ROBERT DOYLE, Chair, Regulatory Commission of Alaska, Anchorage,
Alaska, answered questions on SB 102. He said that RCA does not
regulate specific landfills but does regulate refuse utilities.
He stated that this process is straightforward and simple. He
explained that this will avoid costs and save and/or reduce time
consuming processes and make moderate adjustments. He added that
the maximum is controlled can only be increased 8 percent in 12
months or 20 percent in 36 months. For telecoms, this would be 6
percent in 12 months and 15 percent over 36 months. This would
keep the size of the increase down. This is a result of the
public comment process. He reiterated that RCA regulates the
refuse collection utilities but does not regulate the landfills.
1:56:24 PM
SENATOR DUNBAR commented that SWS is unique in that it is both
the collection utility and the landfill. He questioned how SWS
would be impacted by this legislation.
1:56:44 PM
MR. DOYLE replied that SWS would be impacted as a regulated
entity for the refuse collection portion of the business. He
noted that SWS could apply as for simplified rate filing (SRF).
He clarified that for any business entity, SB 102 would only
apply to the refuse collection portion.
1:57:16 PM
SENATOR GRAY-JACKSON sought clarification that SB 102 is adding
refuse utilities to the list of cooperatives and utilities that
are regulated by the RCA.
1:57:31 PM
SENATOR MYERS clarified that refuse utilities are already
regulated by RCA. He explained that SB 102 would allow these
utilities to use a simplified rate-filing process. He noted that
electrical cooperatives already use this service.
1:58:00 PM
CHAIR BJORKMAN referred to subsection (e) and asked if RCA
currently regulates local exchange telephone utilities.
1:58:25 PM
MR. DOYLE replied yes and clarified that many of these utilities
are regulated. He gave an example of a regulated utility in
Kotzebue. He said that there are local exchange carriers (LEC)
and interstate carriers as well as interstate and intrastate
carriers. He briefly noted the distinction between interstate
and intrastate carriers.
1:59:07 PM
CHAIR BJORKMAN asked if RCA wants to change the telephone
utility language.
1:59:20 PM
MR. DOYLE replied not to his knowledge. He explained that he was
on the Matanuska Electric Association, Inc. board for 12 years
and said that SRF filing is a straightforward process that is
less time-consuming and costly.
2:00:25 PM
CHAIR BJORKMAN opened public testimony on SB 102.
2:00:40 PM
KURT FROENING, Division Vice President, Alaska Waste, Anchorage,
Alaska, testified in support of SB 102. He said that the
simplified rate-filing process would make it much easier to
adjust rates to current market conditions. He explained that
currently, this is a 450-day process; this means that by the
time rate changes are enacted, the data and expenses have
changed drastically. Additionally, he said that rate cases are
expensive to prepare and added that the most recent rate case
cost Alaska Waste close to half a million dollars to prepare.
This cost is then passed along to ratepayers. He surmised that
SB 102 would streamline this process and make it less expensive.
He pointed out that this process is already in place for
electrical cooperatives and local exchange telephone utilities;
SB 102 would simply allow refuse utilities to also utilize this
process.
2:02:31 PM
CHAIR BJORKMAN held public testimony on SB 102 open.
2:02:53 PM
CHAIR BJORKMAN opined that SB 102 is "common sense" and added
that refuse utilities should be able to take advantage of this
process.
2:03:00 PM
CHAIR BJORKMAN held SB 102 in committee.