SB 181-SALE OF THE FOUR DAM POOL                                                                                
                                                                                                                                
Number 060                                                                                                                      
                                                                                                                                
SENATOR ROBIN TAYLOR stated this is the culmination of 16 years of                                                              
efforts, since the creation of the four dam pool in 1985.  The                                                                  
power sales agreement is encompassed within SSSB 181, so the                                                                    
members of the four dam pool communities have protection for future                                                             
utility rates.  Senator Taylor referred to SSSB 182.  SSSB 181, and                                                             
SSSB 182 provide for a stabilized funding source for the power cost                                                             
equalization program.  Because of difficulties, funding over the                                                                
past few years has been in jeopardy.                                                                                            
                                                                                                                                
MR. CHARLES WALLS, CEO of the Alaska Rural Electric Company (AREC),                                                             
stated AREC provides electric service to 51 villages in Western                                                                 
Alaska.  The power cost equalization program is important to these                                                              
villages.  Mr. Walls stated support for SSSB 181.                                                                               
                                                                                                                                
MR. ERIC YOULD (ph), Executive Director of Alaska Rural Electric                                                                
Company (AREC), stated AREC generates approximately 90 percent of                                                               
the electricity in Alaska.  Mr. Yould (ph) stated support for SSSB                                                              
181, SSSB 182, SB 306, and SB 307.  Power cost equalization was the                                                             
biggest initiative AREC supported, and the resolution was adopted                                                               
unanimously by the board of director's for AREC.  Sixty-one percent                                                             
of the population not served by AREC support continued long-term                                                                
funding by the State for the power cost equalization program.                                                                   
                                                                                                                                
CHAIRMAN KELLY asked if all of the communities affected by the four                                                             
dam pool are supportive.                                                                                                        
                                                                                                                                
MR. DAVE CARLSON, Council Member from Petersburg, stated all five                                                               
communities affected by the four dam pool support all legislation.                                                              
                                                                                                                                
SENATOR MACKIE moved SB 307 out of committee with individual                                                                    
recommendations.  Without objection, the motion carried.                                                                        
                                                                                                                                
SENATOR MACKIE asked Senator Taylor if he supported the Governor's                                                              
bill as it was drafted.                                                                                                         
                                                                                                                                
SENATOR TAYLOR replied yes.                                                                                                     
                                                                                                                                
SENATOR MACKIE moved to delete the contents of SSSB 181, and                                                                    
replace the contents of SB 306 into the body of SSSB 181; thus                                                                  
creating CSSSSB 181.  Without objection, the motion carried.                                                                    
                                                                                                                                
SENATOR MACKIE moved CSSSSB 181 out of committee with individual                                                                
recommendations.  Without objection, the motion carried.