SENATE BILL NO. 47 Act relating to the extent to which the Alaska Public Utilities Commission may exercise its powers when regulating utilities; establishing a regulatory cost charge on public utilities and pipeline carriers; relating to the allocation of costs in hearings before the Alaska Public Utilities Commission; relating to the method by which utilities are exempted from and made subject to regulation by the Alaska Public Utilities Commission; relating to the monetary threshold for regulation of certain kinds of utilities by the Alaska Public Utilities Commission; extending the Alaska Public Utilities Commission; relating to staggered terms for members of the Alaska Public Utilities Commission; and providing for an effective date." At this point in the meeting, Co-chairman Frank directed that review of supplemental funding be interrupted for consideration of SB 47. Co-chairman Halford acknowledged proposed amendments by Senator Donley. Senator Donley explained that Amendment No. 1 would "turn the bill into . . . a one-year extension of the existing status quo." Amendment No. 2 would change the extension portion of the existing bill to a one-year extension. The Senator then MOVED for adoption of Amendment No. 1 (90LS0340\C.2, Cramer, 2/22/95). Senator Zharoff asked if the effect would be a two-year extension--an extension of one-year with a one-year wind down. Co-chairman Halford concurred in that understanding. Senator Phillips inquired concerning the rationale behind the amendment. Senator Donley voiced need to first solve the threat of dissolution of the APUC. The legislature could then review technical changes in the bill with greater deliberation. Co-chairman Halford called for a show of hands on adoption of Amendment No. 1. The motion FAILED on a vote of 2 to 5. (Senators Donley and Zharoff voted in support. All other members were opposed.) Senator Donley next MOVED for adoption of Amendment No. 2, which he explained would retain all existing provisions of the bill with the exception of extension of sunset to 1996 rather than 1999. Senator Sharp quoted from a legislative audit report recommending a ten-year extension to June 30, 2003. The proposed bill provides extension for five years, a partial compromise. Co-chairman Halford noted that original sunset law provided a four-year cycle. Senator Zharoff voiced concern over extension to the year 2000 because of serious changes within the legislation that could impact larger municipalities. He suggested that those changes be reviewed over the next year or two. Senator Rieger advised that he would be more comfortable with a two rather than five-year extension. He referenced substantial technological changes within public utilities. Co-chairman Halford called for a show of hands on adoption of Amendment No. 2. The motion FAILED on a vote of 3 to 4. (Senators Donley, Rieger, and Zharoff were in support. All other members were opposed.) Senator Sharp renewed his earlier MOTION for passage of SB 47 with individual recommendations and accompanying fiscal notes. No objection having been raised, SB 47 was REPORTED OUT of committee with zero fiscal notes from the Dept. of Revenue and Dept. of Administration and an informational note from the Dept. of Commerce and Economic Development showing funding for APUC contained within the Governor's FY 96 budget plus an additional $60.7 in contractual. Co- chairmen Frank and Halford and Senators Phillips and Sharp signed the committee report with a "do pass" recommendation. Senator Rieger signed "no recommendation." Senator Zharoff signed "no recommendation (too long), and Senator Donley indicated need for amendment.