Legislature(2001 - 2002)
04/18/2002 10:39 AM Senate RLS
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 185-PCE BASED ON HIGHEST COST SENATOR COWDERY moved to calendar SB 185 with its accompanying fiscal note at the Chairman's discretion. SENATOR ELLIS objected. SENATOR HALFORD said his question pertains to the sponsor statement, and read, "The revisions contained in SB 185 result in slightly higher payments being made to 12 percent of the communities receiving PCE." MS. DEB DAVIDSON, staff to Senator Donley, sponsor, explained that it has to do with the way PCE payments are calculated. The Regulatory Commission of Alaska (RCA) and the Alaska Industrial Development and Export Authority (AIDEA) have a complicated method of calculating payments. She assumes that the increases are based on the historical usage of the community facilities and residences. She noted that committee members' packets contain a table of information provided by AIDEA that shows the difference of what communities would receive as a whole under the existing program and what they will receive if the bill passes. Some would, in fact, get an increase. SENATOR THERRIAULT asked if some communities are not PCE-eligible under the current program and pay higher rates than the PCE communities. MS. DAVIDSON said that is correct. SENATOR HALFORD asked if that remains the case. MS. DAVIDSON said she believes that is correct in a couple of instances. She believes some areas within the Copper Valley Electric Association pay close to 20 cents per kilowatt hour and that Kodiak Electric Association pays 16 to 17 cents per kilowatt hour. Even with the revisions, a couple of areas will not be eligible for PCE that would be paying a higher rate. However, this bill will bring the rate closer to the statewide average. There being no further discussion, the motion to calendar SB 185 carried with Senators Therriault, Cowdery, and Phillips in favor and Senators Ellis and Halford opposed.
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