Legislature(1995 - 1996)

02/14/1995 03:40 PM Senate STA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
 SSTA - 2/14/95                                                                
                                                                               
          SB  54 ELECTRIC UTIL & SOLID WASTE REMOVAL                         
                                                                               
 CHAIRMAN SHARP calls the Senate State Affairs Committee to order at           
 3:40 p.m and brings up SB 54 as the first order of business before            
 the committee.  The chairman informs the committee that the                   
 proposed committee substitute for SB 54 corrects a drafting error.            
 On page 1, line 14, the language to be deleted should be [AND                 
 PRESENTLY OR FORMERLY SERVED BY], and not simply [PRESENTLY OR                
 FORMERLY], as was specified in the original version of the bill.              
 The chairman also notes that the committee has received written               
 testimony from the Alaska Rural Electric Cooperative Association,             
 Inc. (ARECA) and Commercial Refuse.                                           
                                                                               
 CHAIRMAN SHARP states it is his intent to take as much testimony as           
 possible today to hear input for possible changes to SB 54.  The              
 committee will hold SB 54 in order to work on the bill, and will              
 hear it again next week.  The chairman calls the first witness.               
                                                                               
 Number 070                                                                    
                                                                               
 DAVE HUTCHENS, Executive Director, Alaska Rural Electric                      
 Cooperative Association, Inc. (ARECA), asserts that utilities are             
 most efficient when they are monopolies.  In lieu of competition,             
 services and rates are regulated by the APUC (Alaska Public                   
 Utilities Commission), unless the consumers of a particular utility           
 vote to opt out of regulation.  Mr. Hutchens repeats information              
 already submitted to the committee in his written statement.  Mr.             
 Hutchens states ARECA supports SB 54.                                         
                                                                               
 Number 165                                                                    
                                                                               
 CHAIRMAN SHARP asks Mr. Hutchens if he thinks the wording change in           
 the proposed committee substitute is required.                                
                                                                               
 MR. HUTCHENS thinks it is required.                                           
                                                                               
 Number 170                                                                    
                                                                               
 JIM ARNESON, Commercial Refuse, testifying from Anchorage via                 
 teleconference, states he has already provided written copy of his            
 comments to the committee.  Mr. Arneson would like to see either              
 full or partial deregulation of the refuse industry.  He does not             
 think the refuse industry possesses the characteristics of a                  
 natural monopoly.  Mr. Arneson repeats the information already                
 submitted to the committee in writing.                                        
                                                                               
 Number 228                                                                    
                                                                               
 SENATOR RANDY PHILLIPS asks Mr. Arneson how many certificates have            
 been issued for refuse hauling in the Anchorage area.                         
                                                                               
 MR. ARNESON lists four companies with certification.                          
                                                                               
 SENATOR RANDY PHILLIPS asks Mr. Arneson if he is asking for                   
 deregulation of the certificates.                                             
                                                                               
 MR. ARNESON responds he is asking for some sort of deregulation,              
 either partial or total.  He is cautious about asking for total               
 deregulation.                                                                 
                                                                               
 Number 257                                                                    
                                                                               
 SENATOR RANDY PHILLIPS asks Mr. Arneson if he is currently only               
 serving commercial operations.                                                
                                                                               
 MR. ARNESON replies that is correct.                                          
                                                                               
 SENATOR RANDY PHILLIPS asks if the other operations are serving               
 commercial and residential operations.                                        
                                                                               
 MR. ARNESON replies that is correct.                                          
                                                                               
 SENATOR RANDY PHILLIPS asks Mr. Arneson if he thinks the other                
 companies would object to his suggestion of deregulation.                     
 MR. ARNESON responds the other companies would object, mainly                 
 because they do not want any competition.                                     
                                                                               
 Number 295                                                                    
                                                                               
 SENATOR LEMAN comments he philosophically agrees with Mr. Arneson.            
 Senator Leman is interested in taking a look possibly implementing            
 some of Mr. Arneson's suggestions.                                            
                                                                               
 CHAIRMAN SHARP reminds the committee that SB 54 will be held in               
 order to consider suggestions.                                                
                                                                               
 Number 307                                                                    
                                                                               
 SENATOR RANDY PHILLIPS asks Mr. Arneson how he heard about SB 54.             
                                                                               
 MR. ARNESON answers he tries to stay informed.  He came across SB
 54 while doing some research at the Anchorage Legislative                     
 Information Office.                                                           
                                                                               
 Number 320                                                                    
                                                                               
 JIMMY JACKSON, Attorney for GCI, states that, though GCI is not               
 directly affected by SB 54, maintaining the possibility of                    
 competition in all utility markets is in the best interest of the             
 public.  Therefore, GCI opposes SB 54, and particularly section 1.            
 Mr. Jackson thinks SB 54 is unnecessary.  The APUC already has                
 ample authority to prevent harmful competition.  He also thinks SB
 54 would be harmful.  Mr. Jackson says the trend in many places is            
 towards competition, not towards protecting service areas.  The               
 affect of SB 54 may very well be to deny Alaska's citizens the                
 benefits of competition.                                                      
                                                                               
 Number 355                                                                    
                                                                               
 SENATOR LEMAN says he was instrumental in passing legislation                 
 allowing intrastate telephone competition.  At the time, the                  
 company that had the monopoly on intrastate telephone service said            
 allowing competition would not work.  Time has shown that                     
 competition is good for telephone companies and consumers.  Senator           
 Leman asks Mr. Jackson if GCI's revenues have increased.                      
                                                                               
 MR. JACKSON says GCI's revenues have increased.  He is not sure if            
 Alascom's revenues have increased though.  On the national level,             
 Mr. Jackson says both MCI and AT&T's revenues have increased with             
 competition.  Mr. Jackson states monopolists will always assert               
 that competition cannot work.  He does not think people will demand           
 that an extra set of wires be put down the street.                            
                                                                               
 Number 385                                                                    
                                                                               
 CHAIRMAN SHARP comments, wires were put down both sides of the                
 street in some areas of Anchorage, until exclusive service areas              
 were established.  So he has a problem allowing competition to come           
 in and "cherry-pick" the large, profitable loads.  He is a strong             
 supporter of deregulating the whole system.                                   
                                                                               
 Number 405                                                                    
                                                                               
 SENATOR RANDY PHILLIPS asks Mr. Hutchens if the CEA (Chugach                  
 Electric) or MEA (Matanuska Electric) has a position on SB 54.                
                                                                               
 MR. HUTCHENS does not think that CEA and MEA are opposed to SB 54.            
 He thinks MEA supports SB 54, but does not think there is an                  
 official position from CEA.                                                   
                                                                               
 Number 420                                                                    
                                                                               
 CHAIRMAN SHARP asks if anyone else wishes to testify on SB 54.                
 Hearing none, he announces that SB 54 will be held for future                 
 consideration.                                                                

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