SB 157-REG. COST CHARGES: UTILITIES/PIPELINES  CHAIR CON BUNDE announced SB 157 to be up for consideration. KATE GIARD, Chairman, Regulatory Commission of Alaska (RCA), said that SB 157 is in response to complaints about the RCA's lack of transparency, its being non-responsive and creating a burdensome regulatory environment because of the time it takes to make decisions. She ran for the position of chairman to resolve that problem. 2:17:52 PM The reason dockets sit is because the RCA has no mechanism to tell her, as chair, what her staff of 56 people are doing on a regular basis. I don't know what they do; I can't account for their time, because we have no time management system. The industries that file with us don't know whenever we're going to get an answer to their questions.... People don't know what we're doing and when we're doing it. The systems are developed and are out there that can assist the RCA in certainly being more prompt, being more transparent, but we' don't have them here. 2:21:36 PM CHAIR BUNDE asked if she hears general agreement or opposition from the utilities on this bill. MS. GIARD replied that Chugach Electric, ML&P, ConocoPhillips, AT&T Alas COM, ACS, GCI, Alaska Power Association, all strongly support it. "They think that it's long overdue." She has not heard from anyone that this is a bad idea. 2:23:11 PM CHAIR BUNDE said she indicated in a letter to the legislature that the bottom line is with the consumer and if a consumer uses three regulated services - telephone, gas and electric - that the total impact of this legislation is estimated to be $6.48 for three years; then this rate increase would go away. MS. GIARD replied that is correct. She explained that she did not ask for this money to be put into a capital plan, because it is needed in the form of a range of monies. At first, she estimated her plan would cost $1.5 million. But upon seeing that, Chugach Electric recommended that she form an advisory group, which she did in January 2005. It was comprised of Chugach ML&P, AWWU and GCI all of which dedicated their time and IT resources to help formulate the budget. They came up with a budget range of $2 million to $3 million. Because of the unique way the RCA statute is written, the money would come into the operating budget and if it is not all spent, it will offset the RCC calculation for the next year. If it went to the capital budget and wasn't spent, it would sit there and the RCA could use it for something else in the future. "That's not beneficial to rate-payers." 2:26:04 PM CHAIR BUNDE referenced her letter again that says the money would be spent on creating a staff and time management system. He asked if she planned to add staff. MS. GIARD responded. What I mean is I don't know what they do with their time. So, I'd like to know their time resource, where they spend it. Do they spend it on electric utilities? Do they spend it on telephone? Are they doing admin seven hours a day? It's not likely, but because there's no real reporting, I don't know where our resources are going. So I can't tell you what the optimal staffing level is...whether we need more staff or fewer staff. I suspect if we get these systems in place, we should be able to operate with fewer staff and we actually recently reduced our staff size from 62 to 56 - because our docket load is approximately 125 dockets. 2:27:18 PM CHAIR BUNDE continue saying that the second item in the letter says she would use the monies for a system to receive, store and retrieve data filed with the RCA electronically. MS. GIARD replied yes and that most utilities are now computer savvy. 2:28:36 PM DAN DICKRAF, Treasurer and Manager, Division of Finance and Rates, EnStar Natural Gas Company, said he has dealt with regulatory matters for years and supported the efficiencies and funding mechanism in SB 157. It would make information available easier and faster for the commission, utilities and customers. It would save on paper, storage, filing costs and is ecological in that respect, as well. Rate payers will save and get better regulation. 2:30:34 PM CHAIR BUNDE said this is straight-forward, but not knowing RCA issues, he wanted to hold the bill until the next committee meeting. SENATOR ELLIS asked, "What's the time frame for some sort of net benefit to consumers?" MR. DICKRAF replied that he is not the person to ask because he doesn't know what the delivery times to the RCA are for the individual systems. They will create costs as they come on line. Filing costs, for example, if that can be done electronically, would be an immediate savings on paper copies, a courier, et cetera. As a practical matter, a utility's rate might not drop until it comes in for a rate case or it may not have to ask for additional cost at some point in the future. The timeframe would depend on the individual utility. SENATOR ELLIS asked if before the next meeting Ms. Giard could provide the committee with a better understanding of the phase- in of the new systems and technologies that will save money down the line. He also wanted to know when the benefits of paying more would catch up to the consumers. MS. GIARD responded that she would be happy to do that. CHAIR BUNDE said he would set SB 157 aside until Thursday and adjourned the meeting at 2:35:41 PM.