Lights-out for power commission?

MAT-SU -- Legislators stalled in Juneau over whether or not to extend the authority of the Regulatory Commission of Alaska, and Valley utility cooperatives are split over the importance of the issue.

The Regulatory Commission of Alaska was created July 1, 1999, after the expiration of the Alaska Public Utilities Commission. The commission was created to ensure safe and adequate service to all public utility patrons, "without discrimination and at reasonable rates, consistent with the interests of both the public and the utility," according to an audit compiled by Pat Davidson, legislative auditor, in November 2001. The commission regulates pipeline, telephone, electric, natural gas, water, sewer, refuse, cable television and steam services.

RCA's authority sunsets on June 30 this year. If it's not renewed, its oversight of Alaska's utilities would end on June 30, 2003. A bill was submitted early in the session to extend the commission's authority until June 30, 2006.

But that bill didn't get a hearing in the Senate Judiciary committee, chaired by Sen. Robin Taylor, R-Wrangell. Instead, it sat untouched for weeks. At the end of the session, after two days of negotiating over the issue, the bill was still unresolved. Gov. Tony Knowles, last week, announced he will call legislators back to Juneau for a special session on June 24, six days before the commission would be required to enter its sunset year and prepare to cease operations.

According to a plaintive letter sent by Nanette Thompson, the commission's chair, to Taylor in hopes of sparking movement on the bill, entering a sunset year can hobble utilities and their members.

The commission, she wrote, would have to cease work on new regulations, including pole attachments, access charges, small water and sewer utility certifications. New public advocacy regulations would be closed. No new applications for utilities and pipelines or requests to transfer operating authority would be accepted, and the review of those pending would stop. The commission's existing caseload would be prioritized and, based on public interest and estimated time to completion, the most pertinent cases will be dealt with. No new cases would be accepted.

Matanuska Telephone Association's chief executive officer Greg Berberich said the telephone cooperative has taken a strong stance in favor of RCA's renewal.

"We are absolutely adamant about the commission being reauthorized," Berberich said Thursday. "We don't want to see them sunset. We've been through a two-year rate case with them and felt that they did an outstanding job."

Berberich said his staff has contacted Valley legislators, encouraging them to extend the commission's authority.

"MTA is absolutely in favor of the reauthorization of the commission, and we've been pushing hard to make that happen," Berberich said.

Matanuska Electric Association, meanwhile, has taken a neutral stance. MEA spokesman Mike Pauley said Thursday the co-op was taking a wait-and-see approach.

"We just don't have a dog in that fight," Pauley said. "There doesn't appear to be any doubt the legislature contends there will be some regulatory body … there's going to continue to be regulation of monopoly utilities. I think that ceasing to be lies somewhere between a zero and a zero [percent chance]."

Pauley said MEA's pending 1-percent rate reduction will likely not be affected if the commission goes into a wind-down year, since no action by the commission would allow the rate to go into effect. MEA does have an interest in one case that could be affected by the sunset, but Pauley said he's not worried.

MEA has a pending rate case against its primary energy supplier, Chugach Electric Association. But because the commission agreed to hear its remaining cases on a public-interest basis, Pauley said he's comfortable the matter will be decided before RCA sunsets.