HOUSE CONCURRENT RESOLUTION NO. 21 Relating to establishing the Alaska Energy Policy Task Force. Co-Chair Harris MOVED to ADOPT work draft #23-LS1079\D, Lauterbach, 5/8/03, as the version of the legislation before the Committee. There being NO OBJECTION, it was adopted. Co-Chair Harris explained that the resolution would establish the Alaska Energy Policy Task Force, the first stage for developing a statewide energy plan. Initially, the plan will address Rail belt concerns and the issues in these areas. The plan will also provide the Legislature with a report addressing power cost equalization (PCE) concerns, mining and other general interests. General obligation (GO) bonds will be discussed next year and a framework will be developed. TOM WRIGHT, STAFF, REPRESENTATIVE JOHN HARRIS, explained the changes made to the committee substitute. The Board's composition resulted from changes adopted in the work draft. Originally, the Chair of the Regulatory Commission of Alaska (RCA) was scheduled to be the Chair of the task force. Following conversations with RCA and the Alaska Industrial Development and Export Authority (AIDEA), concern had been voiced that the RCA Chair could have a conflict of interest, that chair was removed. It has been requested that a member of the Alaska Energy Authority (AEA) be added to that position. A member was also added, jointly chosen by the Minority leaders of the House & Senate and named by the President, making a nine-member panel with full representation of members chosen by the Governor, the President of the Senate and the Speaker of the House. Co-Chair Harris referenced the fiscal note, providing for board member travel and per diem. Representative Stoltze inquired if there would be outside hire. Co-Chair Harris responded that it is intended to hire someone currently working for the Legislature. Mr. Wright added that the Alaska Energy Authority and AIDEA are willing to work with the task force providing as much expertise as possible. He believed the utilities would also "come on board". Representative Stoltze suggested that at the proposed salary, the position would be someone willing to work "pro bono". RON MILLER, (TESTIFIED VIA TELECONFERENCE), EXECUTIVE DIRETOR, ALASKA INDUSTRIAL DEVELOPMENT EXPORT AUTHORITY (AIDEA), ANCHORAGE, interjected that AIDEA intended to help. LARRY MARKLEY, LOBBYIST, ALASKA REGIONAL ELECTRIC COOPERATIVE ASSOCIATION (ARECA), ANCHORAGE, stated that ARECA had discussed this proposal informally as it had only recently been introduced. ARECA has not yet taken a formal resolution regarding the concern, however, from conversations, there appears to be support. There have been recommendations made and he preferred that Mr. Yould address those suggestions in more detail. · ARECA members recommend that the task force members elect the chair. · ARECA recommends increasing the number of utilities from two to three, two from the Rail belt and one from the rural areas. Presently, one comes from the Rail belt and the other from non- Rail belt areas. He added that because the utilities will be very involved, it would be good to have the extra person representing a Rail belt utility. · To place someone from the mining industries on the task force. Co-Chair Harris believed that the President of the Senate or the Speaker of the House would place someone from the mining industry on the board if they thought that person was good. He agreed that the board should choose the Chair and recommended that an amendment be made. Representative Stoltze questioned the intent of RCA's involvement the RCA. Co-Chair Harris explained that RCA is the critical component because they have previously been involved in these types of cases. They should be "on board". He realized the conflict of interest, and that RCA would only be involved in the decisions and the effort. ERIC YOULD, (TESTIFIED VIA TELECONFERENCE), EXECUTIVE DIRECTOR, ALASKA REGIONAL ELECTIRC COOPERATIVE ASSOCIATION (ARECA), ANCHORAGE, noted that the members of ARECA believe that the resolution has merit and that they do support HCR 21. ARECA suggests modification to the number of members on the task force. He questioned if RCA should be the chair or even have membership on the commission. He indicated that ARECA supports the task force electing their own chair. Co-Chair Harris pointed out that the new committee substitute has the membership from the Regulatory Commission removed. At this time, membership consists of: · One member from AEA · Commissioner of Revenue · Two members appointed by the Governor who are not members of the Legislature · Three members chosen by the President of the Senate who are not members of the Legislature · One member chosen by the Minority Leaders of the House & Senate · Two members chosen by the Speaker of the House who are not members of the Legislature Mr. Yould agreed with those placements. He suggested that because the issue is about the utility industry, there should be three members from the electric utility industry, two of which should come from the Rail belt, primarily because that is where the majority of the power comes from. ARECA recommends consideration that the mining industry be included in membership. He offered to answer questions of the Committee. Co-Chair Harris noted that the resolution is written to indicate that a utility would not have more than one member on the task force. It states that at least one member would be from a Rail belt utility and one from a non-Rail belt utility. He indicated that he would support that someone from the mining industry is represented, suggesting that to the Senate President and/or the Speaker of the House. Mr. Yould voiced his appreciation and agreed that Commissioner Corbus would be a great addition. Representative Stoltze asked if there would be support to include a consumer on the board that buys more than $50 million dollars worth of power. Mr. Yould stated that ARECA would not oppose that. Co-Chair Harris indicated that he did not support the idea, pointing out that person could be chosen. He hoped to keep the board "relatively small" and not too political. Co-Chair Harris MOVED to AMEND Page 2, Line 18, deleting language, "who shall act as chair of the task force" and inserting on Page 2, Line 27, adding a new subsection #6, "The Chair will be appointed by the Board". Co-Chair Harris asked if Representative Berkowitz was comfortable with that language. REPRESENTATIVE ETHAN BERKOWITZ commented that it would be important to have members from the Denali Commission. Representative Foster MOVED to report CS HCR 21 (FIN) out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. CS HCR 21 (FIN) was reported out of Committee with a "do pass" recommendation and with a new fiscal note by the Legislative Affairs Agency.