Sponsor Statement for SB 175

By: Senator Bert Sharp

This legislation was suggested by AIDEA to revise AIDEA's authorization language in Section 29, Chapter 18, SLA 1993.

As you will note, it more specifically defines the bonds as revenue bonds and goes on to allow the borrowers to be one or more of the participating utilities and to jointly join in the financing of the Healy-Fairbanks and Anchorage-Kenai transmission lines.

The existing statute only allows Golden Valley Electric to individually own the Healy-Fairbanks intertie and the same for Chugach on the Anchorage-Kenai line.

AIDEA prefers the added security of revenue bonding and possible multiple obligee's and has recommended this rewording.

After four years of working to put the various agreements together, it is believed the replacement of the single ownership mandate with a joint financing-ownership option will assure a more equitable sharing of financial responsibilities and benefits of ownership.

This legislation does not increase the original bonding limits nor does it change the purposes of the authorization regarding projects.

Both AIDEA and all potential participating utilities support this bill and urge its passage this year.

I urge your favorable consideration.