Legislature(2025 - 2026)SENATE FINANCE 532
01/20/2026 10:00 AM House LEGISLATIVE BUDGET & AUDIT
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| Audio | Topic |
|---|---|
| Start | |
| Approval of Agenda | |
| Consideration of Contract Award for Pegasus-global Holdings, Inc. | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
LEGISLATIVE BUDGET AND AUDIT COMMITTEE
January 20, 2026
10:02 a.m.
MEMBERS PRESENT
Senator Elvi Gray-Jackson, Chair
Representative Zack Fields, Vice Chair
Senator Bert Stedman
Senator Cathy Giessel
Senator Lyman Hoffman
Senator Bill Wielechowski
Representative Neal Foster
Representative Andy Josephson
Representative Chuck Kopp
Representative Bryce Edgmon (alternate)
MEMBERS ABSENT
Senator Scott Kawasaki (alternate)
OTHER LEGISLATORS PRESENT
Representative Julie Coulombe
Representative Louise Stutes
Representative Jeremy Bynum
COMMITTEE CALENDAR
APPROVAL OF AGENDA
CONSIDERATION OF CONTRACT AWARD FOR PEGASUS-GLOBAL HOLDINGS~
INC.
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
JEFF STEPP, Staff
Senator Elvi Gray-Jackson
Alaska State Legislature
POSITION STATEMENT: Summarized the Pegasus-Global Holdings,
Inc. proposal, a memorandum from Senator Giessel, and a written
justification for exemption from Legislative Legal Services.
ACTION NARRATIVE
10:02:43 AM
CHAIR GRAY-JACKSON called the Legislative Budget and Audit
Committee meeting to order at 10:02 a.m. Representatives
Josephson, Kopp, Edgmon (alternate), and Fields and Senators
Stedman, Wielechowski, Hoffman, Giessel, and Gray-Jackson were
present at the call to order. Representative Foster arrived as
the meeting was in progress. Also present were Representatives
Coulombe, Stutes, and Bynum.
^APPROVAL OF AGENDA
APPROVAL OF AGENDA
10:04:00 AM
SENATOR GRAY-JACKSON announced that the first order of business
would be the approval of the agenda.
VICE CHAIR FIELDS moved that the Legislative Budget and Audit
Committee approve the agenda. There being no objection, the
agenda was approved.
^CONSIDERATION OF CONTRACT AWARD FOR PEGASUS-GLOBAL HOLDINGS,
INC.
CONSIDERATION OF CONTRACT AWARD FOR PEGASUS-GLOBAL HOLDINGS,
INC.
10:04:14 AM
SENATOR GRAY-JACKSON announced that the next order of business
would be the consideration of a contract award for Pegasus-
Global Holdings, Inc.
VICE CHAIR FIELDS moved that the Legislative Budget & Audit
Committee, under section 040(a)(1) of the Legislative
Procurement Procedures, authorize the Chair to enter into a
contract with Pegasus-Global Holdings, Inc. to provide
independent, expert analysis related to the planning and
execution of megaprojects, such as the Alaska LNG Project, for
an amount not to exceed $250,000.00.
SENATOR GRAY-JACKSON objected. She noted that the "not to
exceed" amount is based on the amount of funds currently
available in the budget, without completely depleting funding
for any additional contractual services.
10:05:20 AM
JEFF STEPP, Staff, Senator Elvi Gray-Jackson, gave a summary of
the memorandum from Senator Giessel, the Pegasus-Global
Holdings, Inc. proposal, and a written justification for
exemption from Legislative Legal Services from the following
prepared remarks [original punctuation provided]:
First: Senator Giessel's Request
As you mentioned, Madam Chair, this request
originates from Senator Giessel in her capacity as
Chair of the Senate Resources Committee.
Senator Giessel formally requested that the
Committee retain Pegasus to provide independent,
expert advice to legislators as the Alaska LNG project
advances toward potential final investment decisions.
Senator Giessel's "requested consultation
subjects" include assistance in understanding the
implications of:
o Project ownership and governance structure,
o Cost controls and supervision of costs &
finance agreements,
o EPC (or Engineering, Procurement, and
Construction) contracts, offtake agreements for
in-state gas,
o Financial decisions related to tax
structure, royalty, and production tax,
o Schedule risk,
o And the need for ongoing independent
monitoring as the project evolves.
As noted in the memo, the timing is critical.
Senator Giessel emphasized that having Pegasus
available by the start of session would allow the
Senate Resources Committee to engage with Pegasus as
soon as this week.
Second: Summary of the Pegasus Proposal
After receiving the request, Senator Gray-Jackson
facilitated a Teams meeting with leadership from
Pegasus to determine their interest and availability
and she requested a formal proposal from the company.
The proposal summarizes their Key Capabilities,
Representative Experience, and Core Team Members.
Notably, Pegasus has direct prior experience with
the Alaska LNG project, having previously worked under
contract to this committee in 20182019 and having
briefed the Senate and House Resources committees in
April, 2025.
Their Current Proposal emphasizes a comprehensive
scope of services that focuses on:
1) "The risks and challenges associated with
megaprojects such as the Alaska LNG Project; and
2) "Recommendations to the Alaska State
Legislature on how it may address these risks and
challenges."
The proposal explicitly acknowledges the current
project structure, including Glenfarne's role and the
anticipated early-2026 FID timeline.
Finally: Summary of the Written Justification for the
Procurement Exemption
The written justification notes that:
o The Alaska LNG project is advancing on an
accelerated timeline, with public statements
indicating a potential Final Investment Decision
in early 2026.
o Immediate access to specialized expertise is
necessary to protect the State's fiscal and
governance interests.
o A standard competitive process would take a
minimum of several months and would materially
impair the Legislature's ability to receive
timely, actionable advice during a critical
window.
o Pegasus' prior work, subject-matter
expertise, and familiarity with Alaska's
institutional framework allow the firm to provide
immediate value without onboarding delay.
For these reasons, the Chair who serves as the
Procurement Officer has determined that the
exemption is found to be both warranted and in the
best interest of the Legislative Budget & Audit
Committee and the State of Alaska.
10:10:20 AM
SENATOR STEDMAN opined that the committee should support this
proposal. He pointed out that there has been substantial
turnover in the legislature since gas line and oil issues were
considered over a decade and a half ago; consequently, there is
a gap in the body's knowledge about these issues. He shared his
belief that Pegasus-Global Holdings, Inc. ("Pegasus") would be
helpful in filling that gap and would be a first step of many.
Further, he characterized it as "absurd" when presentations
"dummy down" the project, use outdated financial information,
and tell the legislature it has no involvement in the project
aside from lowering property taxes. He stated that the
legislature needs to be brought up to speed, rather than waiting
for the project to move along without it and being put at a
financial disadvantage. He opined that Pegasus did a good job
in their previous work for the legislature.
10:11:52 AM
SENATOR HOFFMAN pointed out that the legislature has been
waiting on this project for a long time. He recalled that
during his summary, Mr. Stepp had stated that a potential Final
Investment Decision (FID) would come in early 2026, and
questioned who would be making that announcement.
MR. STEPP replied he does not have any inside information.
10:12:33 AM
SENATOR GRAY-JACKSON removed her objection. There being no
further objection, the motion to enter into a contract with
Pegasus-Global Holdings, Inc. for an amount not to exceed
$250,000 was approved.
10:13:29 AM
ADJOURNMENT
There being no further business before the committee, the
Legislative Budget and Audit Committee meeting was adjourned at
10:13 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| LBAC Agenda 01.20.26 FINAL .pdf |
JBUD 1/20/2026 10:00:00 AM |
|
| Memo from Senator Giessel requesting Pegasus 12.08.25.pdf |
JBUD 1/20/2026 10:00:00 AM |
|
| Proposal from Pegasus related to AK State Legislature Support (January 2026).pdf |
JBUD 1/20/2026 10:00:00 AM |
|
| Written Justification for Section 040 (a)(1) Exemption_Pegasus_(January 2026).pdf |
JBUD 1/20/2026 10:00:00 AM |