HB 20:  ELECTRICAL SERVICE EXTENSION FUND GRANTS                             
                                                                               
  CHAIRMAN OLBERG called an at ease from 2:38 to 2:40 p.m.                     
                                                                               
  REPRESENTATIVE CURT MENARD, PRIME SPONSOR OF HB 20, began by                 
  testifying, "I was involved in the legislation that set up                   
  the small electric grant fund (Title 44.83.370) a few years                  
  ago which was a 60/40 match...  One of the things that upset                 
  me with the way we structured the Alaska Energy Authority                    
  (AEA) fund, was that the Executive Director makes the total                  
  grant applications.  ...Under this bill (HB 20), the AEA                     
  directors would make the decision after receiving the                        
  recommendation from the executive director.  It would also                   
  require the directors to state, in writing, the reasons for                  
  awarding or denying applications."                                           
                                                                               
  REPRESENTATIVE MENARD then read his sponsor statement into                   
  the record.  (A copy of this sponsor statement may be found                  
  in the House Community and Regional Affairs Committee Room,                  
  Capitol 110, and after the adjournment of the second session                 
  of the 18th Alaska State Legislature, in the Legislative                     
  Reference Library.)  He added, "My contention is:  I feel                    
  homesteaders that are on generators on the end of a line                     
  have every bit as equal access to that fund as a large                       
  commercial development.  All I want is a level playing                       
  field."                                                                      
                                                                               
  Number 242                                                                   
                                                                               
  REPRESENTATIVE TOOHEY pointed out she probably has a                         
  conflict of interest because she "lives on a road, seven                     
  miles out" and has no electricity.  She then asked, "Does                    
  this include municipal property?"                                            
                                                                               
  REPRESENTATIVE MENARD was unsure.                                            
                                                                               
  CHAIRMAN OLBERG said, "Almost by definition, this is going                   
  to be people beyond the end of the line.  It isn't going to                  
  be folks in town."                                                           
                                                                               
  Number 288                                                                   
                                                                               
  REPRESENTATIVE DAVIES said, "I don't have any problem with                   
  requiring the directors to consider a cost benefit analysis,                 
  but I think oftentimes public policy considerations come                     
  into play where the right thing to do is not necessarily the                 
  one that's most cost effective."  He added, "I wonder if you                 
  would consider a friendly amendment to modify that in such a                 
  way that it said they shall give consideration to this, but                  
  not necessarily give priority to them."                                      
                                                                               
  REPRESENTATIVE MENARD explained in detail the financial                      
  mechanisms involved with HB 20.                                              
                                                                               
  CHAIRMAN OLBERG said, "You're suggesting that if we                          
  eliminate the lowest costs per customer criteria, we need                    
  some other?"                                                                 
                                                                               
  Number 352                                                                   
                                                                               
  REPRESENTATIVE MENARD said, "Your eight customers would have                 
  to get together with your utility.  You'd have to have all                   
  your eight customers willing to sign up for it.  The utility                 
  would give you the estimate on what it would cost.  They                     
  would tell you what your forty percent is.  You'd have to                    
  divide that forty percent up..."                                             
                                                                               
  REPRESENTATIVE DAVIES said, "My concern is that there are                    
  many varying circumstances around the state, and if we                       
  happen to have a circumstance where there's only five people                 
  at the end of one particular line...  I'm just wondering if                  
  we can allow the board of directors some (discretion)."                      
                                                                               
  CHAIRMAN OLBERG said, "I'm on record as suggesting that you                  
  can't pass a piece of legislation in the state of Alaska                     
  that's equitable throughout the state."                                      
                                                                               
  Number 409                                                                   
                                                                               
  REPRESENTATIVE DAVIES MOVED that HB 20 be passed out of                      
  committee with individual recommendations.  There were no                    
  objections, and the MOTION CARRIED.                                          
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  CHAIRMAN OLBERG adjourned the meeting at 2:40 p.m.