requesting next year that the
Legislative Management Committee reauthorize the subcommittee for the 1998 interim.
3. Electric Deregulation and Customer Choice Report _ Sen. Blackham presented to the committee the "1997 Interim Report of the Electric Deregulation and Customer Choice Task
Force." He reported that the task force met 14 times, primarily heard testimony from interest
groups, adopted specific legislative recommendations, and anticipates further action in the 1998
interim as part of its two year authorization. He then gave an overview of the industry including:
electric power systems, types of utilities, types of customers, and governmental entities. Sen.
Blackham explained that electricity is a unique commodity in that it cannot be stored, consumer
demand varies by time of day and season, and electricity's flow over a particular path cannot be
controlled to match contracts.
Sen. Blackham identified the critical issues studied by the task force as: (1) stranded costs,
which result from introducing competition into a previously regulated environment; (2)
market power
, which is the ability to raise prices above normal competitive levels resulting in a higher than average rate of return
; (3) municipal power providers
, and (4) rural electrical cooperatives. Other issues introduced to the task force included: aggregation; universal service; obligation to
serve or connect; taxation; customer protection and education; and safety and reliability.
Sen. Blackham reported that in its November 13, 1997 meeting, the task force passed a
motion to prepare a Joint Resolution of the Legislature for introduction in the 1998 General
Session. The resolution is to include: (1) the rate freeze created by H.B. 313 should expire and a
full rate hearing on PacifiCorp should proceed; (2) the Legislature supports electric industry
restructuring in Utah; (3) the Legislature supports the free enterprise system and electric industry
restructuring would be to the long term benefit to the citizens of Utah; (4) the task force is
directed to prepare legislation for a restructuring plan to be introduced in the 1999 General
Session; and (5) the task force should follow a specific study plan for the 1998 interim.
Sen. Blackham asked for comments from other members of the task force. Rep. Fox
commented that
by removing the rate freeze and proceeding with the rate case before the Public Service Commission, the state is losing its ability to be a part of the determination of stranded
costs. Rep. Garn stated that because of the complexity of the issues, another year of study will
result in a better finished product.
Sen. Dmitrich agreed that the task force needs another year to study the impact on consumers and communities.
MOTION: Sen. Howell moved the Legislative Management Committee adopt the Electric Deregulation and Customer Choice Task Force Report. The motion passed with all members
present voting in favor except Rep. Fox who voted "no." Sen. Peterson and Rep. Barth were
absent for the vote.
Chairman Brown expressed appreciation to the members of the task force and to staff for
their very hard work on this difficult issue.
4. Health and Human Services Interim Committee Study Request _ Mr. Strong reviewed the request from the Health and Human Services Interim Committee to consider legislation that
would give the State Medical Examiner jurisdiction over highway fatalities. Mr. Strong noted
that the committee would like to add this item to their November meeting agenda.
MOTION: Rep. Valentine moved to approve this request. The motion passed unanimously. Sens. Howell and Peterson and Rep. Barth were absent for the vote.
5. Law Enforcement and Criminal Justice Study Requests (2) _ Mr. Strong reviewed a request that the Law Enforcement and Criminal Justice Interim Committee be designated by the
Legislative Management Committee to hear the report of the Law Enforcement Training
Committee at the November interim meeting as set forth in H.B. 1, Item 28, 1997 General
Session. The Law Enforcement and Criminal Justice Interim Committee
also requested approval to study and learn about the current responses to criminal behavior and their effects on
the efficient use of correctional facilities and the reduction of recidivism during the 1997 interim.
MOTION: Sen. Hillyard moved to approve these two requests of the Law Enforcement and Criminal Justice Interim Committee.
The motion passed unanimously. Sen. Peterson and Rep. Barth were absent for the vote.
6. Transportation Interim Committee Study Request _ Mr. Strong reviewed a letter from the Transportation Interim Committee requesting that "Highway Jurisdictional Transfers and
Financing" be added to the study list for that committee. Mr. Strong noted that the Political
Subdivisions Interim Committee had already been authorized to have this study.
MOTION: Rep. Valentine moved to approve the request that "Highway Jurisdictional Transfers and Financing"
be added to the Transportation Interim Committee
's study list.
SUBSTITUTE MOTION: Sen. Blackham moved to approve the request that
"Highway Jurisdictional Transfers and Financing"
be added to the
Transportation Interim Committee
's study list, and recommend to the committee that it hear the report but take no action on that item,
because any action may be duplicated or in conflict with action taken by the Political
Subdivisions Interim Committee. The motion passed unanimously. Sen. Peterson and Rep.
Barth were absent for the vote.
7. Administrative Rules Review Meetings Request _ Mr. Strong referred to a letter from the Administrative Rules Review Committee requesting permission to meet in December and
January. Mr. Strong explained that the committee reviews proposed rules that are published year
round and that the committee also monitors and verifies whether agencies have made the rule
changes they promised to make prior to the start of a legislative session.
Chairman Brown reminded the committee of the policy it had adopted to hold no legislative
meetings in December and January to allow staff to prepare legislation. He credited the
Administrative Rules Review Committee with making a formal request to meet rather than hold
unauthorized meetings. Rep. Fox spoke in favor of the policy that committees not meet in
December and January. Sen. Howell asked about funding for additional meetings. Mark
Bleazard, Office of the Legislative Fiscal Analyst, said that unless approved by the Legislative
Management Committee, additional meetings are not funded.
MOTION: Sen. Dmitrich moved to authorize the Administrative Rules Review Committee
to hold one more meeting prior to the session. The motion passed unanimously. Sen. Peterson
and Rep. Barth were absent for the vote.
MOTION: Rep. Valentine moved that the Legislative Management Committee notify all other committees that because there was no formal request made for authorization of December
and January meetings, any meetings held will not be compensated and will not be staffed by
legislative staff. The motion passed unanimously. Sen. Peterson and Rep. Barth were absent for
the vote.
MOTION: Sen. Dmitrich moved that the Legislative Management Committee recommend to the Administrative Rules Review Committee that it consider legislation providing that no rules
may be promulgated by the Executive Branch during December, January, or February. The
motion passed unanimously. Sen. Peterson and Rep. Barth were absent for the vote.
8. Other Business _ Sen. Blackham announced that the College of Science from the University of Utah had invited the committee to attend a function in Room 403 following the meeting.
President Beattie encouraged all of the committee members to work together in the
preparation of items for the session as well as during the session.
9. Adjournment -
MOTION: Sen. Howell moved to adjourn the meeting at 5:00 p.m. The motion passed unanimously. Sen. Peterson and Rep. Barth were absent for the vote.