HB 62 - ALASKA PUBLIC UTILITIES COMMISSION Number 0083 CHAIRMAN ROKEBERG announced the committee's next order of business is HB 62, "An Act relating to the Alaska Public Utilities Commission; and providing for an effective date." The chairman pointed out the committee has before it CSHB 62(URS), Version H. Number 0094 WILDA RODMAN, Legislative Administrative Assistant to Representative Gene Therriault, Alaska State Legislature, came forward to present HB 62 on behalf of the bill sponsor. She noted Representative Therriault apologizes for his absence; he has a House Finance Standing Committee commitment. Ms. Rodman summarized the sponsor statement. Under AS 42.05 and AS 42.06, the Alaska Public Utilities Commission (APUC) regulates public utilities by certifying qualified providers of public utility and pipeline services. The commission is designed to ensure utilities provide safe and adequate services and facilities at reasonable rates. Under AS 44.66.010, termination of state boards and commissions, APUC will expire June 30, 1999. If the legislature does not act to extend the commission, APUC would have one year, until June 30, 2000, to conclude its affairs. The CS for HB 62 was amended to extend the commission for two years, instead of four, to allow the legislature to revisit the commission's progress toward addressing several problems identified through the public hearing process. MS. RODMAN explained HB 62 was intentionally introduced with a broad title because Representative Therriault believes the reason the legislature specifies the sunset date is to address possible commission shortcomings. Representative Therriault believes shortcomings have been identified through the hearing process. Ms. Rodman indicated the sponsor prefers the legislation's original title but, because of the short time remaining in the legislative session, does not object to passage of the current version in a timely manner. Number 0199 REPRESENTATIVE MURKOWSKI asked for clarification regarding the sponsor's non-support of the title change. [HB 62's original title was, "An Act relating to the Alaska Public Utilities Commission; and providing for an effective date." CSHB 62(URS)'s title is, "An Act extending the termination date of the Alaska Public Utilities Commission until June 30, 2001; and providing for an effective date."] MS. RODMAN related the title was changed over the sponsor's objections. The sponsor wished the title to remain broad and to address some structural problems with the commission. She noted many of the structural problems have been identified, and some are being addressed in another bill. In response to Representative Murkowski's request for further clarification, Ms. Rodman confirmed the sponsor supports the commission's extension, but not the current title change. She added the sponsor supports the two-year extension, as opposed to the four-year extension contained in the original bill. Ms. Rodman clarified for Representative Cissna that the title change contained more than just the change in extension period. She indicated the much narrower new title means many other issues relating to the commission cannot be dealt with. Ms. Rodman noted the sponsor would like the record to reflect that he thinks it is not good public policy to usher the sunset through without dealing with the problems; the reason for the sunset is to deal with shortcomings in the commission. However, the sponsor wishes to see the bill move. Number 0247 CHAIRMAN ROKEBERG said he is also a member of the House Special Committee on Utility Restructuring (URS). This particular legislation received significant hearing in that committee. As the sponsor's staff indicates, the original bill contained additions beyond the sunset. The chairman noted the audit had not been completed when the bill came to URS; that audit is now complete. From the testimony before it, URS determined restructuring of APUC is necessary. Chairman Rokeberg indicated the House Labor and Commerce Standing Committee would be receiving the legislation dealing with this restructuring and would have ample opportunity to take up the issues surrounding the commission at that time. The chairman further indicated, noting he had been part of the decision-making process, that the prior committee determined it would be cleaner to do this with a shorter horizon. He emphasized the need for the APUC to be extended because of the effect of a sunset on industry, the existing dockets, and business before the commission. CHAIRMAN ROKEBERG commented the testimony was that the commission is dysfunctional enough without the threat of a "wind-down" year, and the resulting cost of that to the utilities. The chairman noted, therefore, the bill sponsor has agreed to allow this bill to move forward, although the sponsor had wished to do further restructuring with his legislation. Chairman Rokeberg stated his intention to move CSHB 62(URS) as rapidly as possible. In response to Representative Halcro's question about whether the National Regulatory Research Institute's (NRRI) report ["audit"] on APUC in the bill packet was done in lieu of LB&A's [Joint Committee on Legislative Budget and Audit] audit, the chairman answered in the negative. He indicated the LB&A audit picked up a great deal of the NRRI report and the committee would be dealing extensively with that report unless URS did more work by the following week. Chairman Rokeberg noted the presence of Walter Wilcox, Sr., aide to the House Special Committee on Utility Restructuring. Number 0379 JIM ROWE, Director, Alaska Telephone Association (ATA), testified via teleconference from Anchorage in support of CSHB 62(URS). Noting he appreciated the chairman's remarks, Mr. Rowe said the ATA is very much in support of passage of this reauthorization and they look forward to working on APUC restructuring issues in another bill. In response the chairman's question, Mr. Rowe confirmed ATA is in support of this bill. Number 0402 MARK VASCONI, Director of Regulatory Affairs, AT&T Alascom, came forward to testify in support of CSHB 62(URS). He thinks the chairman's comments were accurate; if the commission went into a "wind-down" period, more problems might arise from that. Mr. Vasconi believes industry wants at least the assurance of some continuity. He noted other possible structural changes are being addressed in another bill, expressing that they would all probably have an opportunity to comment on those changes in the near future. CHAIRMAN ROKEBERG closed the public hearing on HB 62 after confirming no one else wished to testify. The chairman confirmed the committee had no further questions or discussion regarding the legislation. Number 0455 REPRESENTATIVE HALCRO made a motion to move CSHB 62(URS) out of committee with individual recommendations and the attached zero fiscal note. There being no objection, CSHB 62(URS) moved out of the House Labor and Commerce Standing Committee.