Juneau -- At its annual meeting last week, ARECA, the Alaska Rural Electric Cooperative Association, presented Representative Alan Austerman (R-Kodiak) with its David Hutchens Public Service Award. ARECA created this award in honor of former ARECA Executive Director Dave Hutchens to commend those people outside the utility industry who have provided exceptional public service in the interests of electric consumers in Alaska.

Ken Lancaster, President of ARECA presented the award, affirming that Austerman, a life-long resident of Kodiak and a strong advocate for enhancing the quality of life for Alaska residents was well-deserving for his many efforts on behalf of consumers. He applauded him for his continuing accomplishments and leadership on behalf of Alaska's electric consumers and their utilities.

Mr. Lancaster summarized these accomplishments, stating that "In his ongoing efforts to provide outstanding public service for the benefit of electric consumers in Alaska, in April of 1999, Representative Austerman sponsored House Concurrent Resolution No. 10, a resolution proposing recommendations concerning the sale of the Four Dam Pool hydroelectric facilities. The legislation was to allow the Alaska Energy Authority to divest itself of its interest in the Four Dam Pool power projects by preparing a request for proposals for the sale of the projects. The sale would be open only to the electric utilities in the communities served by the Four Dam Pool projects or to a consortium of electric utilities in those communities. On May 11, 1999, HCR 10 passed the House with strong support. The strong support was due in a large part to the behind the scenes efforts that Representative Austerman put into the resolution."

Austerman's advocacy set the stage for the Commission On Privatization and Delivery of Government Services to recommend selling or soliciting proposals for the sale of the Four Dam Pool for fair market value, and subsequent studies by AIDEA and the Four Dam Pool to determine the fair market value. On January 12, 2000 the Purchasing Utilities of the Four Dam Pool presented a proposal to AIDEA to purchase the assets of the Four Dam Pool. In June of this year, Governor Tony Knowles signed HB 446 authorizing the sale. Also passed and signed was HB 447, a companion piece that provides additional monies to the Power Cost Equalization (PCE) program creating a virtual energy endowment that affects more than 78,000 rural residents. It was Austerman's bold amendment to HB 447 that appropriates $90 million to the endowment and $10 million to fund next year's PCE program from the Constitutional Budget Reserve.

Attachments:

• Sponsor Statement for HCR 10
• Alaska Energy Authority summary of the Four Dam Pool
• Power Cost Equalization Program Summary

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