HB 313-PUBLIC UTILITY REGULATORY COST CHARGE  4:14:16 PM CHAIR SUMNER announced that the next order of business would be HOUSE BILL NO. 313, "An Act relating to the calculation of the regulatory cost charge for public utilities and pipeline carriers; and providing for an effective date." [The committee adopted Amendment 1 to HB 313 at the hearing on 4/8/24.] 4:14:35 PM CHAIR SUMNER moved to adopt Amendment 3 to HB 313, as amended, labeled 33-GH2516\A.4, Walsh, 4/12/24, which read as follows: Page 1, line 2, following "carriers;": Insert "exempting utilities that furnish  residential waste collection services in competitive  markets from regulation;" Page 2, following line 4: Insert a new bill section to read: "* Sec. 2. AS 42.05.711 is amended by adding a new subsection to read: (w) A utility that furnishes collection and disposal service of garbage, refuse, trash, or other waste material to residential customers in an area where two or more utilities are competing to furnish identical service is exempt from the provisions of this chapter." Renumber the following bill sections accordingly. REPRESENTATIVE CARRICK objected. 4:14:38 PM The committee took an at-ease from 4:14 p.m. to 4:16 p.m. 4:15:50 PM CHAIR SUMNER explained that Amendment 3 would exempt certain local utilities from tax in the name of stimulating competition. He gave an example of his hometown that utilized such tax exemptions to stimulate economic growth. 4:16:56 PM REPRESENTATIVE FIELDS commented that he is supportive of Amendment 3. 4:17:14 PM REPRESENTATIVE CARRICK asked how Amendment 3 would affect areas without competing trash collection companies. 4:17:42 PM CHAIR SUMNER directed the question to Robert Doyle. 4:18:18 PM ROBERT DOYLE, Chair, Regulatory Commission of Alaska, gave a list of communities that the proposed amendment would affect and said that it is possible for both of the utilities to provide the service regardless of the proposed exemption and added his belief that "competition is the ultimate form of regulation." 4:19:54 PM REPRESENTATIVE PRAX asked why the proposed amendment would be limited to residential markets and not commercial markets. CHAIR SUMNER replied that commercial markets aren't regulated in the same way that residential markets are regulated. REPRESENTATIVE PRAX asked if the Regulatory Commission of Alaska (RCA) would have to deregulate if another company were to come into play. CHAIR SUMNER explained that he does not recommend complete deregulation, but it might be important in certain areas. REPRESENTATIVE PRAX asked about the initial regulation of a company and how it affects its success. CHAIR SUMNER answered that under the current Alaska statutes, residential trash collection companies under a certain size are exempt from certain regulations imposed on [larger] commercial trash collection companies. 4:21:57 PM REPRESENTATIVE SADDLER asked if the RCA currently identifies individual utility service areas. 4:22:23 PM MR. DOYLE said that the RCA does require a regulatory definition for how utility service areas are defined. 4:22:51 PM BECKI ALVEY, Advisory Section Manager, Regulatory Commission of Alaska, in further response, explained that the RCA does not define specific areas in statute, rather each utility works under a certificate that allows it to operate in a specific service area. 4:23:47 PM REPRESENTATIVE SADDLER asked whether a utility could change its service area to avoid regulation. MR. DOYLE responded that if there were two companies in the Matanuska-Susitna ("Mat-Su") Valley, the RCA would investigate. In response to a follow-up question, he explained that the term "identical service" is a term limited to residential waste collection services. 4:27:01 PM CHAIR SUMNER clarified that the legislative intent of HB 313 is not to monopolize a small service area or to squander a smaller utility provider. REPRESENTATIVE CARRICK removed her objection. There being no further objection, Amendment 3 was adopted. 4:27:59 PM The committee took an at-ease from 4:27 p.m. to 4:28 p.m. 4:28:17 PM REPRESENTATIVE WRIGHT moved to report HB 313, as amended, out of committee with individual recommendations and attached fiscal notes. 4:28:42 PM REPRESENTATIVE RUFFRIDGE objected. REPRESENTATIVE RUFFRIDGE opined that the ability to increase the regulatory cost charge is not appropriate. 4:29:07 PM A roll call vote was taken. Representatives Prax, Saddler, Wright, Carrick, Fields, and Sumner voted in favor of reporting HB 313, as amended, out of committee with individual recommendations and attached fiscal notes. Representative Ruffridge voted against it. Therefore, CSHB 313(L&C) was reported out of the House Labor and Commerce Standing Committee by a vote of 6-1. 4:29:42 PM The committee took a brief at-ease at 4:29 p.m. 4:29:48 PM CHAIR SUMNER clarified that CSHB 313(L&C) had been reported out of committee.