CS FOR HOUSE BILL NO. 110(L&C) "An Act amending the powers and duties of the legislative audit division regarding the Regulatory Commission of Alaska; amending annual report requirements for the Regulatory Commission of Alaska; extending the termination date for the Regulatory Commission of Alaska; and providing for an effective date." This was the first hearing for this bill in the Senate Finance Committee. Co-Chair Stedman stated that this bill would extend the termination date of the Regulatory Commission of Alaska (RCA). REPRESENTATIVE KURT OLSON, the bill's sponsor, stated that this bill would extend the termination date of the RCA four years. The bill also contained a provision that required a "report card" to be compiled every two years. The report card would review the information provided in the RCA's annual report to determine whether or not the RCA was in compliance with such things as specified timelines and other performance measures. The four year extension timeframe was considered reasonable following discussions with the Governor Sarah Palin Administration, the presiding officers of the House of Representatives and the Senate, and in consideration of new timelines specified in HB 209. Co-Chair Stedman announced that public testimony would now commence. 2:52:42 PM DON REED, Vice President, Regulatory Affairs, Matanuska Telephone Association, testified via teleconference from Mat-Su in support of the bill. While the Association has not always received favorable rulings from the RCA nor would expect that, they have received and do expect "a fair and impartial unbiased review of our cases." Mr. Reed voiced that the Association has also witnessed a tremendous increase in the efficiency of the services provided by the RCA. This would include more timely docket reviews and improved and clearly written orders. Access to information online has also been beneficial. The improvements made by the Commission have made dealing with them easier and less costly. In conclusion, the Association fully supports the bill. 2:54:20 PM DENNIS NEIDERMEYER, Representative, Bristol Bay Telephone Association, testified via teleconference from Anchorage and echoed Mr. Reed's comments in support of the bill. The work conducted by the Commission is appreciated. Four years is the shortest extension period that should be considered. 2:55:04 PM JACK RHYNER, President and Chief Executive Officer, TelAlaska Inc., testified via teleconference from Anchorage and advised the Committee that TelAlaska Inc., which operates two telephone companies in the State, is in favor of reauthorizing the RCA. "It would be practically impossible to regulate utilities to operate without the RCA." The efforts of Chairman Giard and the other RCA commissioners to shorten the time in which matters are addressed and orders are completed are noticeable. 2:55:54 PM STEVE HAMLEN, President, United Utilities, testified via teleconference from Anchorage, in support of this bill on behalf of his company. United Utilities provides telecommunication service to 70 different communities, primarily in the Yukon- Kuskokwim Delta. Mr. Hamlen avowed that there is a linkage between what the Commission does and the need to conduct that business in cooperation with the Federal Communications Commission (FCC). The State is the recipient of millions of federal dollars in support of telemedical services, distance learning services, and services to low-income households. In order to facilitate these services, the RCA must work closely with the FCC. The RCA must be fully staffed, be "up and running" and be fully funded in order for the State to receive the federal benefits. Mr. Hamlen stated that Chair Giard has been instrumental in getting public access points established in many communities throughout the State for broadband services, telemedicine services, and services to low-income households. 2:57:32 PM DEAN THOMPSON, Legal Representative, Municipal Light & Power, testified via teleconference from Anchorage in support of reauthorizing the RCA. He noted that, for the regulated utilities, "predictability and continuity is important. We need to know what the rules are, and having a level of continuity without interruptions of threats of sunset assists that." 2:58:06 PM VIRGINIA RUSCH, Representative, AARP, testified via teleconference from Anchorage. AARP is in support of extending the commission. "RCA is essential to protect consumers by setting just and reasonable rates." 2:58:33 PM JIM ROWE, Executive Director, Alaska Telephone Association, testified via teleconference from Anchorage in favor of extending the Commission four years. This regulatory body is needed. He urged the Committee to advance the bill in short order. 2:59:11 PM KRISTI CATLIN, Representative, AT&T, testified via teleconference from Anchorage, in support of extending the RCA. AT&T believes "the Commission has done a tremendous job in reducing timelines and dealing with issues." 2:59:43 PM KATE GIARD, Chair, Regulatory Commission of Alaska, testified via teleconference from an offnet location. The issue of extending the RCA is a public policy decision. The Commission would be pleased with a four year extension. 3:00:07 PM Co-Chair Hoffman moved to report the bill from Committee with individual recommendations and accompanying fiscal note. There being no objection, CS HB 110(L&C) was REPORTED from Committee with previous fiscal note #2 from the Department of Commerce, Community and Economic Development. AT EASE 3:00:42 PM / 3:01:38 PM