HCS CS for Sponsor Substitute to Senate Bill 10 (CRA) requires that electric or telephone utilities that provide services in municipalities with populations of over 200,000 have an ongoing program of placing existing overhead utility lines underground. HCS CSSSSB 10 (CRA) codifies in state statute the requirement that such utilities must spend at least one percent of their annual gross revenue derived from retail customers placing existing overhead utility lines underground.

Specifically, HCS CSSSSB 10 (CRA) addresses the issues surrounding overhead utility lines in large communities by requiring utilities to spend at least one percent of their annual gross revenue derived from retail customers on a program of placing existing overhead utility lines underground. HCS CSSSSB 10 (CRA) is necessary because, although the only current municipality over 200,000 has a specific law on this subject, it has not been successful. Anchorage Municipal Code (AMC 21.90.020) requires that all new overhead or relocated lines be placed underground. Concurrently, AMC 21.90.050-21.90.070 requires that the municipality have a ten-year program designating target areas for the underground placement of 'nonconforming' overhead lines (existing overhead utility distribution lines located where AMC 21.90 requires new or relocated utility distribution lines to be placed underground). AMC 21.90.070 only requires that a utility owning or operating nonconforming utility distribution lines in Anchorage shall spend up to four percent of its gross revenues annually to place utility lines underground.

Because AMC 21.90.070 does not set a minimum expenditure, it allows the utilities to sidestep their responsibility for placing existing overhead utility lines underground. HCS CSSSSB 10 (CRA) remedies this problem by establishing a minimum expenditure, consequently ensuring continued steady progress in the placement of existing overhead utility lines underground.

An ongoing program of placing utility lines underground is good public policy for larger Alaskan communities. The maintenance costs associated with weather induced disruption of utility services will drop dramatically. Also, the aesthetic environment would be dramatically improved by incrementally placing the existing overhead utility lines underground. This concept represents a better long-term public policy by improving utility efficiency and beautifying large urban communities. Establishing a reasonable level of mandatory effort creates a level playing field for any competing utilities and prevents any competitive disincentive to the placement of existing overhead utility lines underground.