{"id":44159,"date":"2019-03-05T03:30:00","date_gmt":"2019-03-05T12:30:00","guid":{"rendered":"https:\/\/www.juneauempire.com\/news\/capitol-live-house-energy-committee-gets-overview-of-power-cost-equalization\/"},"modified":"2019-03-05T18:43:25","modified_gmt":"2019-03-06T03:43:25","slug":"capitol-live-house-energy-committee-gets-overview-of-power-cost-equalization","status":"publish","type":"post","link":"https:\/\/www.juneauempire.com\/news\/capitol-live-house-energy-committee-gets-overview-of-power-cost-equalization\/","title":{"rendered":"Capitol Live: More testimony on back-pay PFD payments on the way"},"content":{"rendered":"\n\t\t\t\t

6:40 p.m.<\/strong><\/p>\n\t\t\t\t

Here are a few more testimonies on the three back-pay or “super-size” Alaska Permanent Fund Dividends as outlined in Senate Bills 23, 24:<\/p>\n\t\t\t\t

• Scott Adams of Palmer says his two sons were able to go to college because of the Permanent Fund Dividend, so he supports the two bills.<\/p>\n\t\t\t\t

• Ariel Starbuck in Sitka, opposes the bills and compares it to the old adage about giving a man a fish and feeding him for a day, and teaching a man to fish and feeding him for a lifetime. She said, “we will be left with nothing.”<\/p>\n\t\t\t\t

•Jennie Roller in Sutton supports the super-size PFD. She says the PFD was “unlawfully taken” when the Permanent Fund earnings were used to fund government in 2016 – 2018.<\/p>\n\t\t\t\t

— Kevin Baird<\/em><\/p>\n\t\t\t\t

6:30 p.m.<\/strong><\/p>\n\t\t\t\t

Sen. Mike Shower, R-Wasilla, clarifies saying that people can mention the budget, but reminds them they have only one minute and they should be quick about the their testimony on Senate Bills 23, 24. Here are more testimonies on the three back-pay or “super-size” Alaska Permanent Fund Dividends:<\/p>\n\t\t\t\t

• Summer Koster, a Juneau school teacher, says, “Our schools need more money not less.”<\/p>\n\t\t\t\t

• Michael Gouzdor of Wasilla says “I’m for getting the PFD payback,” and “Not only will it help Alaskans but give small businesses a boost.”<\/p>\n\t\t\t\t

• Christine Mann of Anchorage is opposed to the bills. “I recommend we reduce the PFD for this year, bringing it down from $3,000 to $2,000 maybe more.” Suggests using that money to fix the deficit.<\/p>\n\t\t\t\t

• Carolyn McIntyre in Sitka says the PFD, “was great when we had oil oil oil.” She said she would “gladly give my permanent fund to educate Alaskans.” Adds that “Our children are more important than our permanent fund.”<\/p>\n\t\t\t\t

• Patrick Meyer of Yakutat stands in opposition to these bills. Says the funds should be directed back into the general fund to pay for services.<\/p>\n\t\t\t\t

• Geri Maxwell in Fairbanks strongly opposes SB 23 and 24.<\/p>\n\t\t\t\t

• Tammie Schmidt from Wasilla says, “I’m a 68-year -old homestead raised Alaskan. I do support these bills.” She says it was the original intent of the late Gov. Jay Hammond to pay out a full PFD.<\/p>\n\t\t\t\t

— Kevin Baird<\/em><\/p>\n\t\t\t\t

6:18 p.m.<\/strong><\/p>\n\t\t\t\t

Here are some testimonies for Senate Bills 23 and 24, which would give qualified Alaskans three back-pay or “super-size” Alaska Permanent Fund Dividends:<\/p>\n\t\t\t\t

• Laura Vess of Juneau “strongly” opposes SB 23, 24. She says she works for the University of Alaska Southeast. She tells Sen. Mike Shower, R-Wasilla, that it’s very difficult to say she does not support the bills, without mentioning the budget. Shower had encouraged people not to talk about the budget and stick to the topic. She says the PFD and budget tied together.<\/p>\n\t\t\t\t

• Kathleen Shoop in Palmer says, “I vote yes.” She says, “It’s best for the Alaska economy.”<\/p>\n\t\t\t\t

• Pat Holmes of Sitka. I’m opposed to 23 and 24 and “I think we should go back to where this state was before with a income tax and a head tax.”<\/p>\n\t\t\t\t

• Lori Walton of Fairbanks says she is strongly opposed to “proposed cuts to education and the ferry, I would much rather have my portion of the PFD go to those valuable things that make my community (great).”<\/p>\n\t\t\t\t

• Elizabeth Brennan of Nome says, “They are not good policy” in regards to SB 23 and 24. “They threaten the state I love. I do not support SB 23 24 and neither should the Senate State Affairs Committee. “<\/p>\n\t\t\t\t

— Kevin Baird<\/p>\n\t\t\t\t

5:51 p.m.<\/strong><\/p>\n\t\t\t\t

The Senate State Affairs Committee is about to get a second helping of testimony on Senate Bills 23, 24, which are Gov. Mike Dunleavy’s super-size, or back-pay Alaska Permanent Fund Dividend bills. Last week Dunleavy tweeted to his constituents hoping they would testify in favor of the bills, but far more people testified against the duo of <\/a>bills<\/a>. Dunleavy tweeted again<\/a> about the super-size PFD, encouraging people to testify today.”<\/p>\n\t\t\t\t

“Alaskans, tonight we need your help. At 6pm, call in to the #AKLeg Senate State Affairs Committee and show your support for restoring the PFD and paying back what Alaskans are owed,” Dunleavy tweeted.<\/p>\n\t\t\t\t

There were 46 people signed up to testify today as of approximately 5:53 p.m.<\/p>\n\t\t\t\t

— Kevin Baird<\/em><\/p>\n\t\t\t\t

4 p.m.<\/strong><\/p>\n\t\t\t\t

The House Finance subcommittee on Health and Social Services is going through a budget overview. Alaska Health and Social Services Division of Public Assistance would save almost $20 million by repealing the Senior Benefits Payment Program.<\/p>\n\t\t\t\t

Rep. Sharon Jackson, R-Eagle River, is questioning the wisdom in repealing the Alaska Permanent Fund Dividend Hold Harmless fund. It would save the Division of Public Assistance $17.7 million. However, Jackson recalls the PFD Hold Harmless fund prevented the state from incurring federal fines.<\/p>\n\t\t\t\t

Sara Efird, the Administrative Services Director, says she will get back to Jackson with an answer, later.<\/p>\n\t\t\t\t

— Kevin Baird<\/em><\/p>\n\t\t\t\t

3:45 p.m.<\/strong><\/p>\n\t\t\t\t

Sara Efird, the Administrative Services Director of Health and Social Services is giving an overview of the department’s budget. Major changes within the Pioneer Homes budget includes the following:<\/p>\n\t\t\t\t

• Travel reduction of $13.3 million.<\/p>\n\t\t\t\t

• An implementation of new rates to cover the cost of care.<\/p>\n\t\t\t\t

• A $15 million payment assistance fund for those who cannot afford the Pioneer Homes.<\/p>\n\t\t\t\t

— Kevin Baird<\/em><\/p>\n\t\t\t\t

3:35 p.m.<\/strong><\/p>\n\t\t\t\t

We are gaveled in to the House Health and Social Services subcommittee.<\/p>\n\t\t\t\t

Rep. Jennifer Johnston, R-Anchorage, said “We have a real aggressive agenda” and this meeting could run as late as 6 p.m.<\/p>\n\t\t\t\t

— Kevin Baird<\/em><\/p>\n\t\t\t\t

1:45 p.m.<\/strong><\/p>\n\t\t\t\t

If a catastrophic event were to happen preventing Gov. Mike Dunleavy to fulfill his role as governor, Lt. Gov. Kevin Meyer would become governor and Department of Education and Early Development Commissioner Michael Johnson would be lieutenant governor. Statute allows the governor to pick who fills this back-up leadership role, and Dunleavy tagged Johnson for the role last month<\/a>.<\/p>\n\t\t\t\t

But Sen. John Coghill, R-North Pole, has filed a bill that would change the way this contingency leadership role is filled. Senate Bill 73 would assign this duty to the attorney general, and outlines the the succession of back-up leaders in case of a catastrophe:<\/p>\n\t\t\t\t

• Third in line to be governor: Attorney general<\/p>\n\t\t\t\t

• Fourth in line: Health and Social Services commissioner.<\/p>\n\t\t\t\t

• Fifth in line: Education commissioner<\/p>\n\t\t\t\t

• Sixth in line: Administration commissioner<\/p>\n\t\t\t\t

• Seventh in line: Adjutant general of the Military and Veterans Affairs<\/p>\n\t\t\t\t

• Eighth in line: Commerce Community and Economic Development, commissioner<\/p>\n\t\t\t\t

• Ninth in line: Labor and Workforce Development commissioner<\/p>\n\t\t\t\t

• Tenth in line: Public Safety commissioner<\/p>\n\t\t\t\t

The bill has been referred to the Senate State Affairs Committee.<\/p>\n\t\t\t\t

— Kevin Baird<\/em><\/p>\n\t\t\t\t

11:15 a.m.<\/strong><\/p>\n\t\t\t\t

Rep. Tiffany Zulkosky, D-Bethel, asks if renewable energy in rural Alaskan communities is the future.<\/p>\n\t\t\t\t

“This has always been the golden fleece that we’ve looked for is how do we displace diesel,” Kohler says. “The big player there really is efficiency. If we can get another kilowatt per hour of diesel fuel, that’s an 8 percent increase in efficiency right off the bat. We’ve actually achieved a very high displacement rate.”<\/p>\n\t\t\t\t

—Mollie Barnes<\/em><\/p>\n\t\t\t\t

11:10 a.m.<\/strong><\/p>\n\t\t\t\t

“We try very hard to maximize community PCE,” Kohler says.<\/p>\n\t\t\t\t

Now she’s talking about how some people think the PCE is abused.<\/p>\n\t\t\t\t

“This has been a longstanding fallacy that PCE has been abused by communities,” Kohler says, noting that many villages don’t have accountants who can capture some of the benefits. She notes that AVEC writes off less than one half of one percent each year on bad debts.<\/p>\n\t\t\t\t

Her last slide in her presentation is about why the state subsidizes rural Alaska.<\/p>\n\t\t\t\t

“This was a compromise reached in 1984, when the Legislature recognized that there was no answer to bring affordable power to rural Alaska,” Kohler says. “We can’t afford to go back to annual battles for PCE. We need folks to understand how vital this program is.”<\/p>\n\t\t\t\t

— Mollie Barnes<\/em><\/p>\n\t\t\t\t

10:50 a.m.<\/strong><\/p>\n\t\t\t\t

There’s 58 villages involved with AVEC. It accounts for 38 percent of PCE population served, about 32,000 people. Ninety-two percent are Alaska Native. It’s a private, nonprofit organization.<\/p>\n\t\t\t\t

They operate 50 power plants and have 13 wind systems serving 20 villages.<\/p>\n\t\t\t\t

— Mollie Barnes<\/em><\/p>\n\t\t\t\t

10:35 a.m.<\/strong><\/p>\n\t\t\t\t

Community facilities receive 100 percent coverage up to a certain threshold Kohler says.<\/p>\n\t\t\t\t

“About half of that limit is used by communities,” says Kohler. “They simply don’t have a need. That threshold has proved pretty solid.”<\/p>\n\t\t\t\t

Fuel cost since 1985 has gone up by 127 percent in 2017, but efficiency is also up 32 percent.<\/p>\n\t\t\t\t

“Things have improved dramatically,” Kohler says.<\/p>\n\t\t\t\t

The most recent year’s funding was at $28 million. That is at 100 percent funding, she says.<\/p>\n\t\t\t\t

— Mollie Barnes<\/em><\/p>\n

\"Meera<\/a>

Meera Kohler, President and CEO of the Alaska Village Electric Cooperative, speaks to members of the House Labor and Commerce Committee about the history of the Power Cost Equalization program at the Capitol on Tuesday, March 5, 2019. (Michael Penn | Juneau Empire)<\/p><\/div>\t\t\t\t

10:25 a.m.<\/strong><\/p>\n\t\t\t\t

In 1977, oil first flowed down the pipeline. There was virtually no transmission system in Alaska, Kohler says. Diesel fuel was the primary energy source in all of Alaska, except Fairbanks, which relied on oil and coal, she says. There was very little hydropower.<\/p>\n\t\t\t\t

After oil started flowing, studies were done to identify projects to reduce the cost of electricity throughout Alaska. Oil prices peaked in 1979 triggering the first power cost assistance program, which was a precursor to the PCE program as it is known today, she says.<\/p>\n\t\t\t\t

— Mollie Barnes<\/em><\/p>\n\t\t\t\t

10:18 a.m.<\/strong><\/p>\n\t\t\t\t

The House Energy Committee is meeting this morning in the Capitol to get an overview of the Power Cost Equalization from Meera Kohler, the president and CEO of the Alaska Village Electric Cooperative.<\/p>\n\t\t\t\t

The committee is holding off on introductions today until they have a full meeting.<\/p>\n\t\t\t\t

— Mollie Barnes<\/em><\/p>\n\t\t\t","protected":false},"excerpt":{"rendered":"

Follow along with live updates from Alaska’s Capitol. <\/p>\n","protected":false},"author":106,"featured_media":44160,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_stopmodifiedupdate":false,"_modified_date":"","wds_primary_category":9,"footnotes":""},"categories":[9,4],"tags":[448],"yst_prominent_words":[],"class_list":["post-44159","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-home","category-news","tag-state-legislature"],"_links":{"self":[{"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/posts\/44159","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/users\/106"}],"replies":[{"embeddable":true,"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/comments?post=44159"}],"version-history":[{"count":0,"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/posts\/44159\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/media\/44160"}],"wp:attachment":[{"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/media?parent=44159"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/categories?post=44159"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/tags?post=44159"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/yst_prominent_words?post=44159"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}