Legislature(2025 - 2026)BARNES 124

03/19/2025 01:00 PM House RESOURCES

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01:03:23 PM Start
01:04:22 PM Confirmation Hearing(s):|| Regulatory Commission of Alaska
02:36:01 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Consideration of Governor’s Appointees: TELECONFERENCED
-Regulatory Commission of Alaska: John
Springsteen, Mark Johnston, and Steven Devries
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURCES STANDING COMMITTEE                                                                             
                         March 19, 2025                                                                                         
                           1:03 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Robyn Niayuq Burke, Co-Chair                                                                                     
Representative Maxine Dibert, Co-Chair                                                                                          
Representative Carolyn Hall                                                                                                     
Representative Donna Mears                                                                                                      
Representative Zack Fields                                                                                                      
Representative Dan Saddler                                                                                                      
Representative Julie Coulombe                                                                                                   
Representative Bill Elam                                                                                                        
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative George Rauscher                                                                                                  
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CONFIRMATION HEARING(S):                                                                                                        
                                                                                                                                
Regulatory Commission of Alaska                                                                                               
                                                                                                                                
     Steven Devries - Anchorage                                                                                                 
     Mark Johnston - Anchorage                                                                                                  
     John Springsteen - Anchorage                                                                                               
                                                                                                                                
     - CONFIRMATION(S) HELD                                                                                                     
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
STEVEN DEVRIES, Appointee                                                                                                       
Regulatory Commission of Alaska                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified as appointee to the Regulatory                                                                 
Commission of Alaska.                                                                                                           
                                                                                                                                
MARK JOHNSTON, Appointee                                                                                                        
Regulatory Commission of Alaska                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:   Testified as  appointee to  the Regulatory                                                             
Commission of Alaska.                                                                                                           
                                                                                                                                
JOHN SPRINGSTEEN, Appointee                                                                                                     
Regulatory Commission of Alaska                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:   Testified as  appointee to  the Regulatory                                                             
Commission of Alaska.                                                                                                           
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:03:23 PM                                                                                                                    
                                                                                                                                
CO-CHAIR ROBYN  NIAYUQ BURKE called the  House Resources Standing                                                             
Committee  meeting  to  order  at   1:03  p.m.    Representatives                                                               
Coulombe,  Hall, Mears,  Dibert, and  Burke were  present at  the                                                               
call  to  order.    Representatives  Fields,  Elam,  and  Saddler                                                               
arrived as the meeting was in progress.                                                                                         
                                                                                                                                
^CONFIRMATION HEARING(S):                                                                                                       
^Regulatory Commission of Alaska                                                                                                
                                                                                                                                
                    CONFIRMATION HEARING(S):                                                                                
                Regulatory Commission of Alaska                                                                             
                                                                                                                                
1:04:22 PM                                                                                                                    
                                                                                                                                
CO-CHAIR BURKE  announced that the  only order of  business would                                                               
be the  confirmation hearing on  the governor's appointee  to the                                                               
Regulatory Commission of  Alaska.  She described the  role of the                                                               
commission  and  stated  that   public  testimony  regarding  the                                                               
appointees would be scheduled for a later date.                                                                                 
                                                                                                                                
1:04:52 PM                                                                                                                    
                                                                                                                                
STEVEN  DEVRIES,  Appointee,  Regulatory  Commission  of  Alaska,                                                               
testified  as   the  Governor's   appointee  to   the  Regulatory                                                               
Commission  of Alaska  (RCA).   He described  his background  and                                                               
professional  experience including  previous  work  with the  RCA                                                               
[resume included in the committee file].                                                                                        
                                                                                                                                
1:07:11 PM                                                                                                                    
                                                                                                                                
MR. DEVRIES  responded to  several questions  from Representative                                                               
Saddler  by explaining  how his  legal background  and experience                                                               
representing the  Alaska Attorney  General's office  was relevant                                                               
to the work of the commission.   He also described the process of                                                               
evaluating utility rates that would  be fair, reasonable, and not                                                               
excessive while  simultaneously ensuring  that the  utilities are                                                               
safe and effective.                                                                                                             
                                                                                                                                
1:10:38 PM                                                                                                                    
                                                                                                                                
MR.  DEVRIES,   in  response  to   several  questions   posed  by                                                               
Representative  Mears, described  the  commission  as a  reactive                                                               
agency which acted  on matters brought before it.   He noted that                                                               
some  of  the energy  challenges  faced  by Alaska  included  the                                                               
potential shortage  of natural  gas in Cook  Inlet, the  needs of                                                               
Railbelt  utilities, transmission  constraints  of the  Railbelt,                                                               
assisting open access of the  transmission system, and how energy                                                               
costs on the Railbelt impacted rural Alaska.                                                                                    
                                                                                                                                
1:16:18 PM                                                                                                                    
                                                                                                                                
MR. DEVRIES  addressed a question posed  by Representative Fields                                                               
regarding the  drastic utility rate escalation  which occurred in                                                               
Aniak  in 2023  and  how  the commission  could  help avoid  such                                                               
situations  in  the  future.    He  described  several  potential                                                               
solutions that have been brought before the RCA.                                                                                
                                                                                                                                
1:20:27 PM                                                                                                                    
                                                                                                                                
MR.   DEVRIES,   in   response    to   several   questions   from                                                               
Representative  Saddler,  described RCA's  employment  challenges                                                               
and  the impacts  of attrition.   He  posited that  despite those                                                               
challenges,  the  RCA does  excellent  work.    On the  topic  of                                                               
incentives,  he  said  that  when he  considered  coming  out  of                                                               
retirement, the increased salaries were  an enticement but not as                                                               
much of a factor as his interest in RCA's work.                                                                                 
                                                                                                                                
1:25:12 PM                                                                                                                    
                                                                                                                                
MR.  DEVRIES responded  to a  question from  Representative Mears                                                               
regarding coordinating  the utilities along the  Railbelt and how                                                               
to ensure  that utilities  meet the requirements  set out  by the                                                               
RCA.   He described the  types of enforcement tools  available to                                                               
the  commission   but  emphasized  the  importance   of  imposing                                                               
realistic objectives  and using subtle encouragement  rather than                                                               
coercive steps.                                                                                                                 
                                                                                                                                
1:30:41 PM                                                                                                                    
                                                                                                                                
MR. DEVRIES addressed a question  from Co-Chair Dibert, regarding                                                               
the  expense of  utilities  in Fairbanks.    He acknowledged  the                                                               
difficulties  faced   by  Fairbanks   residents  and   said  that                                                               
potential viable  solutions brought  before the  commission would                                                               
receive serious consideration.                                                                                                  
                                                                                                                                
1:33:31 PM                                                                                                                    
                                                                                                                                
MR. DEVRIES  responded to a  question from  Representative Fields                                                               
by describing a typical approval process for utility projects.                                                                  
                                                                                                                                
1:38:33 PM                                                                                                                    
                                                                                                                                
MR.  DEVRIES,  in  response to  a  question  from  Representative                                                               
Saddler,  provided   examples  of  matters  the   commission  has                                                               
responded  to.     He  pointed   out  that  the   commission  has                                                               
jurisdictional boundaries.                                                                                                      
                                                                                                                                
1:40:53 PM                                                                                                                    
                                                                                                                                
HEARD AND HELD                                                                                                                  
                                                                                                                                
1:40:58 PM                                                                                                                    
                                                                                                                                
CO-CHAIR BURKE  announced that the  next order of  business would                                                               
be consideration  of Mark Johnston,  the governor's  appointee to                                                               
the Regulatory Commission of Alaska.                                                                                            
                                                                                                                                
1:41:22 PM                                                                                                                    
                                                                                                                                
MARK  JOHNSTON,  Appointee,   Regulatory  Commission  of  Alaska,                                                               
testified  as   the  Governor's   appointee  to   the  Regulatory                                                               
Commission  of  Alaska  (RCA).    He  described  his  background,                                                               
professional  experience, and  how his  appointment aligned  with                                                               
statutory requirements [resume included in the committee file].                                                                 
                                                                                                                                
1:44:10 PM                                                                                                                    
                                                                                                                                
MR.   JOHNSTON  responded   to   Representative  Mears   question                                                               
regarding the sale  of Municipal Light & Power  (ML&P) to Chugach                                                               
Electric.   He  described  the process,  the  rationale, and  the                                                               
advantages of the sale.                                                                                                         
                                                                                                                                
1:48:38 PM                                                                                                                    
                                                                                                                                
MR. JOHNSTON addressed several  questions posed by Representative                                                               
Fields.   He discussed tariff  actions and  the cost of  power in                                                               
various Alaskan  communities.   He touched  on the  importance of                                                               
understanding  new  technologies   and  mentioned  the  Anchorage                                                               
landfill "trash  to energy" project.   He also discussed  ways to                                                               
increase energy efficiency.                                                                                                     
                                                                                                                                
1:57:01 PM                                                                                                                    
                                                                                                                                
MR. JOHNSTON responded to a  question from Representative Saddler                                                               
regarding   the  2023   Alaska   Federation   of  Natives   (AFN)                                                               
resolution.    He  emphasized the  importance  of  having  highly                                                               
qualified  RCA commissioners  who can  deal with  Alaska's unique                                                               
challenges.                                                                                                                     
                                                                                                                                
1:59:16 PM                                                                                                                    
                                                                                                                                
MR. JOHNSTON,  in response  to a  question from  Co-Chair Dibert,                                                               
discussed  the energy  costs faced  by Fairbanks  residents.   He                                                               
described several projects that  could help lower costs, pointing                                                               
out  the  importance  of  looking   at  a  variety  of  potential                                                               
solutions.   He discussed  cold weather  heat pumps  and programs                                                               
for implementing efficiency upgrades to homes .                                                                                 
                                                                                                                                
2:06:34 PM                                                                                                                    
                                                                                                                                
MR. JOHNSTON  responded to   Representative Mears  question about                                                               
variable or differential  rates for utility costs.   He explained                                                               
that the RCA can make  suggestions in response to petitions which                                                               
could incentivize  a customer  or a rate  payer to  make specific                                                               
types of changes.                                                                                                               
                                                                                                                                
2:09:37 PM                                                                                                                    
                                                                                                                                
MR.   JOHNSTON,   in   response   to   several   questions   from                                                               
Representative Coulombe,  explained that  wind farms  could lower                                                               
utility  rates  depending  on  the  equipment  being  used.    He                                                               
discussed the  variables that should be  taken into consideration                                                               
when considering renewable  energy.  He described  the RCA's role                                                               
in helping  determine what the  actual cost would be  and whether                                                               
there was a benefit to ratepayers.                                                                                              
                                                                                                                                
2:13:47 PM                                                                                                                    
                                                                                                                                
HEARD AND HELD                                                                                                                  
                                                                                                                                
2:14:06 PM                                                                                                                    
                                                                                                                                
CO-CHAIR BURKE announced  that the final order  of business would                                                               
be consideration  of John  Springsteen, the  governor's appointee                                                               
to the Regulatory Commission of Alaska.                                                                                         
                                                                                                                                
2:14:30 PM                                                                                                                    
                                                                                                                                
JOHN  SPRINGSTEEN, Appointee,  Regulatory  Commission of  Alaska,                                                               
testified  as   the  Governor's   appointee  to   the  Regulatory                                                               
Commission  of  Alaska  (RCA).    He  described  his  background,                                                               
professional  experience,  and   his  familiarity  with  Alaska's                                                               
energy concerns [resume included in the committee file].                                                                        
                                                                                                                                
2:19:43 PM                                                                                                                    
                                                                                                                                
MR. SPRINGSTEEN,  in response to  a question  from Representative                                                               
Elam, described  the RCA's  role as being  largely reactive.   He                                                               
pointed out  that more considerations  come into play  when there                                                               
are  different   energy  developers  working  with   the  utility                                                               
companies.  He referred to a  previous anchor tenet in Japan that                                                               
drew natural  gas from Alaska  and had  allowed Alaska to  have a                                                               
relatively  low-cost supply  of natural  gas.   He described  the                                                               
advantages  of having  that type  of relationship  with different                                                               
companies.                                                                                                                      
                                                                                                                                
2:22:27 PM                                                                                                                    
                                                                                                                                
MR.  SPRINGSTEEN  responded  to a  question  from  Representative                                                               
Fields  regarding  whether the  RCA  can  look beyond  technology                                                               
proposals  brought  before  the   commission  and  suggest  other                                                               
generation and storage  technologies.  He explained  that some of                                                               
the key  tenets of the RCA  concerned whether a project  is "fit,                                                               
willing, and able"  as it applies to energy.   The discussions of                                                               
projects  included consideration  of intermittency,  seasonality,                                                               
and  distance.   He  pointed  out  the  advantages of  having  an                                                               
advanced look  if a variety  of technologies were brought  to the                                                               
table such  as through public  presentations.  He  also described                                                               
the use of storage batteries as transition devices.                                                                             
                                                                                                                                
2:25:55 PM                                                                                                                    
                                                                                                                                
MR. SPRINGSTEEN,  in response to  a question  from Representative                                                               
Mears, discussed  the challenges of retaining  staffing, pointing                                                               
out  that  these  concerns  were  being faced  by  the  state  in                                                               
general.     He   described  how   the  RCA   supports  workforce                                                               
development to retain qualified employees.                                                                                      
                                                                                                                                
2:28:56 PM                                                                                                                    
                                                                                                                                
MR. SPRINGSTEEN, in response to  a question from Co-Chair Dibert,                                                               
explained  how   his  work  with   the  Alaska   Housing  Finance                                                               
Corporation for  energy and weatherization  loans applied  to the                                                               
work of the RCA.  He  also referenced the Alaska Energy Authority                                                               
and the  work they did  assisting with larger scale  rural energy                                                               
programs.                                                                                                                       
                                                                                                                                
2:30:45 PM                                                                                                                    
                                                                                                                                
MR. SPRINGSTEEN  addressed several questions  from Representative                                                               
Saddler by  discussing the  RCA's work  with the  Railbelt energy                                                               
cooperatives,  the Railbelt  Reliability Council,  the integrated                                                               
resource plans,  and the Railbelt Transmission  Organization.  He                                                               
referenced needing  to be aware of  pancaking of rates.   He also                                                               
pointed   out  the   importance  of   considering  intermittency,                                                               
seasonality,  and distance  and how  those concerns  affected the                                                               
planning process.   He explained  that the RCA worked  within the                                                               
boundaries established by the legislature  and did not set energy                                                               
policies.                                                                                                                       
                                                                                                                                
2:34:06 PM                                                                                                                    
                                                                                                                                
MR. SPRINGSTEEN responded to a  question from Representative Hall                                                               
regarding workforce development and how  the RCA worked to retain                                                               
employees.                                                                                                                      
                                                                                                                                
2:35:31 PM                                                                                                                    
                                                                                                                                
HEARD AND HELD                                                                                                                  
                                                                                                                                
2:36:01 PM                                                                                                                    
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Resources Standing Committee meeting was adjourned at 2:36 p.m.                                                                 

Document Name Date/Time Subjects
John Springsteen RCA Resume_Redacted.pdf HRES 3/19/2025 1:00:00 PM
Mark Johnston RCA Resume_Redacted.pdf HRES 3/19/2025 1:00:00 PM
Steven Devries RCA Resume_Redacted.pdf HRES 3/19/2025 1:00:00 PM