JOINT MEETING HOUSE SPECIAL COMMITTEE ON UTILITY RESTRUCTURING SENATE LABOR & COMMERCE COMMITTEE April 14, 1999 8:07 a.m. COMMITTEE CALENDAR PRESENTATION: CH2M HILL FINAL REPORT BY KARL RABAGO HOUSE BILL NO. 183 "An Act relating to the powers and duties of the chair of the Alaska Public Utilities Commission; relating to membership on the Alaska Public Utilities Commission; and relating to the annual report of the Alaska Public Utilities Commission." - SCHEDULED BUT NOT HEARD TAPE(S) 99-14, SIDES A&B 99-15, SIDE A CALL TO ORDER Representative Hudson, Chairman, convened the Joint House Special Committee on Utility Restructuring and Senate Labor & Commerce Committee meeting at 8:07 a.m. PRESENT House Special Committee on Utility Restructuring members present at the call to order were Representatives Hudson, Cowdery, and Davies. Representative Rokeberg arrived at 8:25 a.m. and Representatives Berkowitz and Green [alternate to Representative Porter] arrived at 8:27 a.m. Representative Kott was not present. Senate Labor & Commerce Committee member(s) present was Senator Loren Leman. OTHERS PRESENT Karl Rabago, Consultant, CH2M HILL; Tom Feiler, EIC. SUMMARY OF INFORMATION KARL RABAGO, Consultant, CH2M HILL, presented an overview of the findings and recommendations regarding the electric utility restructuring study for the State of Alaska. Mr. Rabago reviewed a handout entitled, "Electric Utility Restructuring Report to the Alaska Legislature and the Alaska Public Utilities Commission." He noted that the full report can be accessed via the Internet. Mr. Rabago presented three possible scenarios regarding utility restructuring which are detailed in the report. He discussed stranded costs and what Alaska faces in that respect. Mr. Rabago discussed the ability of Alaska to restructure, the benefits of such, and the costs of restructuring. TOM FEILER, EIC, explained the reasoning behind the use of the modeling exercise, its objectives, and its results. He reviewed the cases that were ran. Mr. Feiler stressed that computer modeling of competitive markets are analytic tools intended to inform judgement. Furthermore, computer modeling is sensitive to initial assumptions and variables which are listed in the aforementioned handout. There was discussion regarding the comparison of the study provided to the committee with the Black and Beech (ph) study. Mr. Feiler discussed how prices are determined. COMMITTEE ACTION The committee took no action. ADJOURNMENT The meeting recessed to the call of the chair at 10:05 a.m. NOTE: The meeting was recorded and handwritten log notes were taken. A copy of the tape(s) and log notes may be obtained by contacting the House Records Office at 130 Seward Street, Suite 211, Juneau, Alaska 99801-1182, (907) 465-2214, and after adjournment of the second session of the Twenty-first Alaska State Legislature, in the Legislative Reference Library.