SB 143-RAILBELT ENERGY & TRANSMISSION CORP.                                                                       
                                                                                                                              
2:45:54 PM                                                                                                                    
CHAIR MCGUIRE announced the consideration of SB 143.                                                                            
                                                                                                                                
JOE BALASH, Intergovernmental  Coordinator, Department of Natural                                                               
Resources (DNR), said since the last  hearing on this bill he has                                                               
worked with  utility managers  on a  variety of  modifications to                                                               
bring some  comfort to their concerns.  The bill lays out  a two-                                                               
step  process   putting  the   corporation  and   the  governance                                                               
structure  in place  developing a  course for  the Railbelt  as a                                                               
region and  then putting together  transition and   finance plans                                                               
to  be completed  and based  on  the findings  of the  integrated                                                               
resource plan that is now under way.                                                                                            
                                                                                                                                
He  said he  had  provided  a lengthy  amendment  to enact  those                                                               
changes in  a CS. However, since  that time a meeting  of all six                                                               
utility  boards in  the Railbelt  was convened  and they  decided                                                               
that they  would like more  input into the governance  portion of                                                               
the process. As  a result, he was expecting a  letter from all of                                                               
them on  the process  they will  see as the  ideal makeup  of the                                                               
governance structure.  He expected  that the boards  will endorse                                                               
the  Greater  Railbelt  Energy Transmission  Corporation  (GRETC)                                                               
proposal, but with  a few more important details  added. He asked                                                               
the committee  to hold SB  143, so it could  be worked on  in the                                                               
Interim.                                                                                                                        
                                                                                                                                
2:48:47 PM                                                                                                                    
MR. BALASH  said the fiscal note  is about the startup  money for                                                               
the  corporation  much  of  which would  go  into  identifying  a                                                               
business location, housing employees,  getting the various pieces                                                               
of  technology  in place  -  a  control room,  communication-type                                                               
centers  and  things  like  that.  But  much  of  that  might  be                                                               
unnecessary.  A significant  portion  of that  fiscal note  would                                                               
have been  used by the  Alaska Energy  Authority (AEA) to  do its                                                               
part  in carrying  the load  in the  transition and  finance plan                                                               
development process  this fall. These  funds would still  be very                                                               
necessary for them  to stay on track for  having everything ready                                                               
for next session. It would then be a one-step bill.                                                                             
                                                                                                                                
CHAIR MCGUIRE asked what figure he was thinking about.                                                                          
                                                                                                                                
MR.  BALASH answered  less than  $1.5 million.  The total  fiscal                                                               
note is  $6.7 million and that  the Railbelt Energy Fund  be used                                                               
as the funding source.                                                                                                          
                                                                                                                                
2:50:52 PM                                                                                                                    
CHAIR MCGUIRE said  the committee looked forward  to working with                                                               
Mr. Balash in the Interim on SB 143.