Juneau -- The Alaska Senate Wednesday approved a measure to restructure the Alaska Public Utilities Commission (APUC) by repealing the current commission and transferring its duties to the new Regulatory Commission of Alaska (RCA).

Senate Bill 133 also establishes the groundwork for eventually merging the Alaska Oil and Gas Conservation Commission (AOGCC) into the new state regulatory agency, if warranted. In the meantime, the bill requires AOGCC to relocate to the same building as the RCA to save administration costs.

"The creation of the Regulatory Commission of Alaska will improve the long-term function, effectiveness, and efficiency of utility and pipeline regulation in our state," said Senate President Senator Drue Pearce (R-Anchorage), sponsor of SB 133. "By co-locating the APUC and the AOGCC, additional efficiencies will be gained by sharing office space, clerical staff, and record keeping facilities," Pearce said.

"Both commissions are tasked with ensuring Alaska's best interests are met when reviewing and enforcing state regulations. Under this new structure the RCA will be more capable of addressing the current expanding workload of the utility commission, while the AOGCC will benefit from having access to additional hearing officers at the RCA," said Pearce.

SB 133 would repeal the APUC July 1, and authorizes Legislative Budget and Audit (LB&A) to prepare a report to address both commissions and their functions. The report will make recommendations on possible changes that will best serve the interest of the state. That report is due on the first day of next year's legislative session.

"With the pending BP-Arco acquisition, the bill was amended to delay the repeal and absorption of the AOGCC and wait for the recommendations from LB&A," said Pearce. "It is unwise to make changes to the AOGCC until we know where the state stands in terms of the BP-Arco merger. In the meantime, LB&A will develop a report containing recommendations for restructuring the commissions to best serve the state's interests."

Restructuring the APUC will allow work to be performed under a new system where the chair assigns three or more commissioners to each case. The chair will have limited authority over the commissioners, and general oversight of commission functions. "This type of system will expedite the process by allowing the chair to assign an appropriate number of commissioners to each case depending on the magnitude," said Pearce.

"It will also eliminate the current potential for conflicts when assigning staff to each case," explained Pearce. "SB 133 creates a separate public advocate section within the commission to represent the public interest when necessary. Under the current system, staff is often placed in the awkward position of being a public advocate on one case, while acting as an advisor on another," said Pearce.

The APUC regulates utilities while the AOGCC regulates oil and gas production. SB 133 now goes to the House for additional hearings.

Broadcasters note: Audio comments are available on the Majority Actuality line, 1-800-478-6540
= Drue Pearce, 36 K