SB 133-REGULATORY COMMISSION OF ALASKA    CHAIRMAN HALFORD announced SB 133 to be up for consideration. He said since the merger of BP and ARCO, the AOGCC would have to be better staffed and stronger and be much more willing to get involved to protect the state's interest. He explained that the CS primarily "beefs up" the AOGCC and makes significant improvements to the APUC. SENATOR PEARCE said she appreciated Senator Halford's concerns and also wanted to strengthen the AOGCC, which CSSB 133 does. SB 134 gives it the financial backing that it needs. SENATOR PEARCE explained that SB 133 makes basic structural changes to the APUC and asks LB&A to work with the two Commissions to bring back recommendations as to the best structure for a combined regulatory entity. Many other oil and gas producing states have done this and it worked well. In the meantime, we would continue to make the changes they were making to the APUC. The name would be changed to the Alaska Energy Conservation Commission (AECC) on July 1, 1999 with the expectation that AOGCC would become part of the entity at year end 2000. The Administration would look for a place to house the AOGCC and APUC together so they could begin to benefit from the efficiencies of combined record keeping and staffing. The pay range of the AECC chairperson would be higher than the other commissioners. Everyone else was left at the same rate. TAPE 99-27, SIDE B SENATOR PEARCE said staff for pipeline regulation and all pending pipeline matters, along with two tariff staff, would move to the AOGCC on the effective date of July 1, 1999. Space is available in the building in Muldoon, even though the building is inadequate. Since the AOGCC would be taking on the pipeline regulation, they would have access to the hearing officer being added to the larger group during the transition period. She thought the hearing officer, the additional tariff staff, and the three technical staff (in SB 134) would give them the staffing backup they need to take on the new regulatory pipeline regulation function. Number 560 SENATOR PARNELL noted that the petroleum engineer and geologist were getting paid more. SENATOR PEARCE responded that is their present level and, under this bill, the pay remains exactly as it is today. SENATOR PARNELL suggested that a year later they should all be at the same level. SENATOR PEARCE said she agrees and that she would recommend finding the correct level of pay for the commissioners. She understood the reason AOGCC personnel are paid more is because in the past pay levels have caused problems when trying to find professionally qualified personnel for the AOGCC positions. The chairman of the AECC is being given more responsibility and more power than in the past. CHAIRMAN HALFORD said there was still the question of regulation of refuse and questions regarding the APUC and the new commission but, as chairman of the Resources Committee, he was focusing on resources issues. SENATOR PARNELL moved to adopt the CS to SB 133. There were no objections and it was so ordered. MS. JUDY BRADY, Executive Director, Alaska Oil and Gas Association, said they would comment after seeing the changes being proposed in this bill. MS. MARY HUGHES, Attorney, Municipality of Anchorage, said they own four utilities: telephone, water and waste water, electric and refuse. They have approximately $1.5 billion of taxpayer money in those utilities which provide the municipality with much fiscal stability. The APUC has been a very good organization in their opinion and they feel it would be appropriate to have it remain as it is. One of the resources of the Municipality of Anchorage is refuse collections services and, in the past, small refuse providers spent a lot of money on economic regulation. From that standpoint it would seem appropriate to deregulate. She understands that this bill deregulates, but doesn't do anything for planning for management and regulation of the refuse collection services. Now, approximately 95 percent of Alaska's refuse collection is in the hands of one carrier, Waste Management. It is their belief that when services of 95% of Alaskans are with one carrier, there must be some type of regulation of that carrier. They propose the particular provisions, Sections 2, 3, 9, 16, and 27 be deleted with the idea that participants within the industry could work with legislators to come up with some way in which deregulation is a thoughtful process, so that in the end the consumer and the owners of the utility are well served. Number 453 MS. SHARON DANIEL, Copper Basin Sanitation, said they provide the refuse collection in the unorganized borough in the Copper River basin. Garbage collection is a matter of public health if not properly disposed of. Deregulation of garbage collection will result in areas of the state no longer getting garbage service. CHAIRMAN HALFORD thanked everyone for their testimony. SENATOR GREEN moved to pass CSSB 133(RES) from committee with individual recommendations. There were no objections and it was so ordered.