Legislature(2011 - 2012)SENATE FINANCE 532
04/27/2012 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| Discussion Regarding a Request for Proposals to Identify Potential Price Fixing Issues and Solutions | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
SENATE FINANCE COMMITTEE
April 27, 2012
9:04 a.m.
9:04:15 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 9:04 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Johnny Ellis
Senator Dennis Egan
Senator Donny Olson
Senator Joe Thomas
MEMBERS ABSENT
Senator Lesil McGuire, Vice-Chair
ALSO PRESENT
Senator Bill Wielechowski
SUMMARY
^DISCUSSION REGARDING A REQUEST FOR PROPOSALS TO IDENTIFY
POTENTIAL PRICE FIXING ISSUES AND SOLUTIONS
9:05:45 AM
SENATOR BILL WIELECHOWSKI, read a memo to the Senate
Finance Committee dated April 26, 2012: "Investigation into
energy pricing in Alaska" (copy on file):
Alaska ranks first among the 50 states in terms of our
energy consumption per capita. Unfortunately, the
prices we pay for energy are among the highest in the
nation. The mean price for gasoline far exceeds the
national average, with some communities paying up to
$10/gallon. Alaskans pay 50% more for electricity than
the U.S. average, and heating fuel costs are more than
double the national average. To make matters worse,
these costs are growing. In 2000, low-income
households in remote, rural communities spent 16% of
their income on energy. Over the last decade, this has
grown to 47%. This situation is untenable.
Action needs to be taken to bring energy costs down
and ensure that Alaskans pay fair and reasonable
prices for heating oil, electricity, and gasoline. I
am requesting that the Senate Finance Committee issue
a Request for Proposals to investigate what can be
done to ensure Alaskans have access to more affordable
and reliable energy supplies. What factors cause
Alaska's energy prices to far exceed national
averages? Is price gouging occurring and, if so, to
what extent? Other states have laws which prohibit the
charging of "unconscionable" or "excessive" prices for
critical energy sources. Should Alaska follow suit?
What other actions can be taken to bring down energy
prices for the wellbeing of Alaskan families and the
competitiveness and success of our businesses?
A robust Alaskan economy with plentiful, well-paying
jobs depends on reasonably priced power. Similarly, a
decent and dignified quality of life for Alaskans
across the state depends on access to affordable
energy supplies. Continued work during the interim on
this issue will provide the legislature with options
to consider during the 28th legislative session.
Co-Chair Hoffman commented that the current year would be
approaching $15 billion in the state's savings, and crude
oil was at the highest cost in history. He stressed that
the people of Alaska were facing extremely high energy
costs, and encouraged the committee to explore the subject
of the high energy costs to Alaskans.
Co-Chair Hoffman MOVED that the committee approve up to
$150,000 to continue work in reviewing energy pricing in
Alaska over the interim, to provide the legislature with
options to consider during the 28th Alaska Legislative
Session. Co-Chair Stedman OBJECTED for purpose of
discussion.
Senator Ellis noted that there had been some unsuccessful
efforts in the past and did not realize that financial
distress reached across the entire state. He envisioned a
more robust and aggressive research process, rather than
working solely with the administration. Co-Chair Stedman
agreed.
Senator Olson wondered if $150,000 was an accurate amount
to study the issue statewide. He noted that his district
was paying far in excess of the standard cost of fuel.
Senator Wielechowski replied that he felt that an expert
needed to be hired, and there were many aspects that needed
to be explored. He felt that $150,000 was a sufficient
amount money to address the issue.
Senator Thomas suggested the addition of the subject of the
cost of jet fuel. He stated that the production cost of the
heat stock at the Flint Hills refinery had caused Alaska to
import jet fuel from Malaysia.
Co-Chair Stedman WITHDREW his OBJECTION. Seeing NO further
OBJECTION, it was SO ORDERED.
9:12:22 AM
Co-Chair Stedman MOVED that Senator Hoffman, Senator
Thomas, and Senator Wielechowski stand on a subcommittee
dedicated to determining the scope of work for the Request
for Proposal (RFP). He asked the subcommittee members to
select a Senate Finance Committee member as chairman and to
report back to the committee to make a final determination.
Co-Chair Hoffman suggested that any of the three members of
the subcommittee be selected as chairman. Co-Chair Stedman
agreed.
Senator Ellis expressed his support of the formulation of
the subcommittee. He pointed out that many constituents
brought this issue to the forefront most often of any
subject.
Co-Chair Stedman stressed that the issue would be
considered for all areas of the state.
Co-Chair Hoffman clarified that the subcommittee would
explore the work of the RFP, review the RFP, and award the
work. Co-Chair Stedman agreed, and requested that the
subcommittee keep the Senate Finance Committee up-to-date
on its progress. He felt that the entire Senate Finance
Committee was not required to review findings during the
interim.
Co-Chair Stedman noted that there would be some additional
interim work and discussions regarding oil taxation.
ADJOURNMENT
9:17:08 AM
The meeting was adjourned at 9:17 AM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 042712 Wielechowski Energy Pricing Memo.pdf |
SFIN 4/27/2012 9:00:00 AM |