Energy - Joint

Okay guys if if that if about take your six we're gonna get started we got some members are becoming in. Our. All right we're gonna get started of with this the mall I'm a call center quorum the. We're going to start this meeting all right so the first. All presented by showing up and. We're gonna try to keep this quick today a. I've I've heard you guys concerns about having the right around lunch I will try to keep is as quick as we can and I without a. Disclosure you. Okay I appreciate that okay I deal with the person they were going to here's a House resolution ten thirty six representative right you're recognized. All The Amendment. Okay the passenger amendment one. Okay I've got amendment first. The and the amendment just adds co sponsors. That's fine you're okay I just going to start well. A motion to adopt the amendment. Second is second all those in favor say aye. Posed. Hi okay thank you Mr chairman members of the committee I'll be very brief and and if I feel Grammy pleasure passing this resolution out all explain it more thoroughly on the house floor but this is just two X. express the sense of the house that we support the keystone pipeline project this is has been in the news for about ten years so I think everyone's thoroughly familiar with the issue but this is just to encourage our congressional delegation whose all who's who's already doing it has always done a terrific job on this issue to continue fighting for this project and and with that I'll be happy to take any questions if there is any. Or if there are any we have a couple questions represented by. Not the other states are doing this. yes I believe that that several states are doing resolutions similar to this so yes thank you. Senator Mark Johnson you're recognized. Thank you Mr chairman representative for a a I'm a little upset that this is only a House resolution on the consent needs to put our weight behind it to I don't know what the procedure would be to I make it a concurrent resolution but I thank you for bringing this is this is this is right even if we didn't have a whole lot of Arkansas jobs on the line here this is good for the whole country so I really appreciate you bringing this well thank you for that Senator Johnson out I thought about making it a concurrent resolution but I didn't know when we were going to gavel out here so I just want to make sure I got it filed and got it done okay thank you thank you Mr. Are there any other questions. Seeing none. Of. I have a motion to adopt. The second motion do pass as amended. The motion do pass as amended us is second President Ladyman. Reclamation second. Thank you Lorillard's thank you all right all those in favor say aye. He opposed. Congratulations your resolution has arrived thank you Committee. Next. On the agenda we're gonna. Okay we're gonna be passing out amend for this to this is Senate bill six eighty nine. Once everyone settled time to read the amendment all. Motion to adopt that do I have a second. I have a second. Senator Ballinger recognized to present your bill yeah thank you have the deducted that motion to adopt carry. Yes I'm sorry okay. So in the amendment basically is just a it might it puts everyone of the safeguards we have in here it made it just basically better language after this and with the public service commission that's all the member does but it doesn't change substance of the bill essentially this is this the same system basically or or at least provide the same opportunity for review this phone utilities that we provided for other utilities through the previous bill that we carried more than one we spend so much time well it's action when when we spend so much time. Amending but as we ran at the same time but anyway it is so basically if there is a if they have extraordinarily need extraordinary costs for the purchase of the of the energy then they'll have the ability to finance that through through a bond they have a separate code section that provides that for other storm system so that's why this is in a different different area different code section then the previous version and and that is also because they're not regulated by the public service commission one of the things that that I had concerns about and I'll go ahead address it to you because I would guess you are the same concerns is without the oversight of the public service commission then are they going to do everything they can possible to try to recoup some of the expenses before they actually go out and just to just finance you know so what we what we done it in the answer from visiting with the them they're in the process now of trying to do that you know obviously they're accountable through elected representatives and and if the rates go up. Those elected representatives look bad they look bad that one try to everything they can to keep it minimal but what we do is we worked in here provisions that require them to go and try to mitigate the costs as much as possible so if they have a contract and the other side bridge contract by by refusing to sell them energy at a lower price because the price spike that they and and they do have any provisions in the law to go back in and recoup their them will give them the opportunity to do that first I'm happy to answer any questions on it if there are any. Are there any questions. Before we proceed I want to back up just one step I never called for a vote on the on the amendment okay I'll all those in favor of adopting this amendment I had a lot of. A motion and a second on that please say aye thank you both. The amendment is adopted thank you Mr. Are there any girl representative Gonzalez. There Mr is there anything in here that requires this money if if they do finances that it be spent on the electric cost. Yes my fear is that they would get this money and then it may be spent on some other costs for the for the despite yes so it exactly it so what it does is there or other costs that they can that they can spend it on than just the increased fuel costs the reason why weren't we need the code is because increased fuel costs but it has to be on the increase fuel fuel costs capital costs increased power costs cost of fighting storm recovery there is so there are specific things that they have that is that Mears basically the the other bill that we had so it's got to be a associated with the extraordinary that. Go ahead. It was a process for finding out if they did spend appropriately is or are they subject to audit over this. It's so the answer yes just like any other municipality they be subject to audit my guess is that by the time the audit caught something it's going to be long gone and probably not the most effective way to do it I'd say you know citizens who are going to be faced with having the rates increased because the fact that their financing this for energy and IT were used inappropriately they need to be engaged and paying attention I think that the political costs associated with doing is is so extraordinary I would would expect that they would do that not not to mention the legal aspects of high hopes yeah well you know. We get surprised especially not it sometimes. Our representative Ladyman you're recognized you Mr cheer Senator Ballinger hope this is your question I think it is but but on the Page three there but line five where it says it talks about. What they can use this for and it says cost to fund storm recover reserves or to replace any shortfall in the reserves. Is there any limit or control I mean if they had half a million in reserves and because of this they said anyway we need to raise that to a million is there any. restrictions on what they can do their. Well one of the things that they're that probably the biggest limitations that they have in this is the the person who is issuing the bond they're bound by by the law and so if it isn't directly tied to the energy event then I think that the the people who are actually or purchasing the bonds are going to be really hesitant to do something in the funds not be applied so I think proper probably their the the best gatekeepers in this I don't think there's anything that would would if they if they've spent out the reserves in order to get the distant energy all that there'd be nothing for them to prohibit them from using the money to replenish it now they will be paid interest on the bonds so they have to wear a you know whether the additional interest is worth the additional security of replenishing these these funds but in the end if there is going to have to the bondholders are going to be pretty diligent to make sure it it meets the requirements of the law or they're not going to purchase the bonds in the my something because they're gonna have actual skin in the game all right thank you. Represent Watson. The pressure button again on. Okay thank you don't just make a comment just real quick I have met several times with one of the small towns in the House District on this everything Senator I hope and pray that this will give them some reprieve right now one of the options that which is informally thrown around was potentially bankruptcy if they can't figure out of the amount to be paid back to the for providers so anyway Again I hope this is some. I hope this isn't real meaningful legislation that may help them I have met with a couple of senators before on their and the president of the code for a corporation at Ohio so this is really highly concerned for me the so anyway I appreciate it looking forward to a hopefully we can help him out. I don't think this is probably the answer right just one more tool in a tool chest to try to help reduce bird maybe it's that the money is not gonna be free so so they're gonna have to be I mean it's not a bail out because they're going to have to pay this back eventually and I honestly what we also be concerned about is are we gonna see this type of event any time soon correct and if we do then all the sudden this amount of debt is going to make a whatever they whatever they get in debt here is going to be essentially what's not available in the future so I think having anybody utilizing this tool I think it's good that they should be very careful correct over the table saw not a hand saw appreciate thank you. I see no more questions from the committee Is there anyone in Arkansas like to speak for against the bill. I was signed up for that Ballinger recognized because we will I I'm I'm close in there there is somebody here from the municipal utilities to answer questions if the committee has but if you guys are the bill like you're you're comfortable than I'm comfortable and I'll I'll make a motion to pass I have a motion to pass as amended. As amended have. I have a motion the second all right. All those in favor say aye hi. Those. Is had thank. Well. Seeing no other. This is before the committee without Mr someone once is has something to say. Seeing none we are Jr.