State of Alaska
Fiscal Note
Bill Version: SB 224
2024 Legislative Session
Fiscal Note Number: 1
(S) Publish Date: 2/12/2024
Identifier: LL0516-DCCED-RCA-01-25-24 Department: Department of Commerce, Community and
Title: PUBLIC UTILITY REGULATORY COST CHARGE Economic Development
Sponsor: RLS BY REQUEST OF THE GOVERNOR Appropriation: Regulatory Commission of Alaska
Requester: GOVERNOR Allocation: Regulatory Commission of Alaska
OMB Component Number: 2417
Expenditures/Revenues
Note: Amounts do not include inflation unless otherwise noted below. (Thousands of Dollars)
Included in
FY2025 Governor's
Appropriation FY2025 Out-Year Cost Estimates
Requested Request
OPERATING EXPENDITURES FY 2025 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
Personal Services
Travel
Services
Commodities
Capital Outlay
Grants & Benefits
Miscellaneous
Total Operating 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Fund Source (Operating Only)
None
Total 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Positions
Full-time
Part-time
Temporary
Change in Revenues
1141 RCA Rcpts (DGF) 98.0 775.0 775.0 775.0 775.0 775.0
Total 98.0 0.0 775.0 775.0 775.0 775.0 775.0
Estimated SUPPLEMENTAL (FY2024) cost: 0.0 (separate supplemental appropriation required)
Estimated CAPITAL (FY2025) cost: 0.0 (separate capital appropriation required)
Does the bill create or modify a new fund or account? No
(Supplemental/Capital/New Fund - discuss reasons and fund source(s) in analysis section)
ASSOCIATED REGULATIONS
Does the bill direct, or will the bill result in, regulation changes adopted by your agency? No
If yes, by what date are the regulations to be adopted, amended or repealed? N/A
Why this fiscal note differs from previous version/comments:
Not applicable, initial version.
Prepared By: Robert A. Doyle, Chairman Phone: (907)276-6222
Division: Regulatory Commission of Alaska Date: 01/25/2024 11:00 AM
Approved By: Hannah Lager, Administrative Services Director Date: 02/07/24
Agency: Commerce, Community, and Economic Development
Printed 2/12/2024 Page 1 of 2 Control Code: mwPMy
 SB 224 - Fiscal Note 1
FISCAL NOTE ANALYSIS
STATE OF ALASKA BILL NO. LL0516
2024 LEGISLATIVE SESSION
Analysis
The budgets of the Regulatory Commission of Alaska (RCA) and the Department of Law’s Regulatory Affairs and Public
Advocacy Section (RAPA) are funded by the Regulatory Cost Charge (RCC), a statutorily capped assessment on utility
revenues that covers the annual operational costs of the RCA and RAPA. This legislation increases the RCC statutory cap
from 0.7 to 0.98 percent for the RCA and from 0.17 to 0.22 percent for RAPA. The RCCs were last increased in 2004, at
which time the RCCs were capped at 0.8 percent to fund the operations of both the RCA and RAPA.
Annual RCC collections vary based on utility consumption and revenues. The RCC rate is recalculated each fiscal year
following a statutory formula that considers the RCA and RAPA's activity that can be attributed to each regulated sector;
the annual appropriated budgets of the RCA and RAPA; and the amount of unspent prior‐year collections that are carried
forward to the following year.
The current RCC cap is insufficient to support the appropriated budget for RAPA as of FY2023. In FY2025 and future years,
an additional $98.0 in revenue collections is required to meet the projected baseline budget for RAPA with no change in
operations.
It is projected that the current statutory RCC cap will be insufficient to support the baseline RCA budget as soon as FY2026.
For purposes of this fiscal note, $677.0 change in revenues is projected beginning in FY2026. This calculation is based on a
five‐year average of benefit, health insurance, and salary changes for the Commission's staff and an average two percent
growth in gross operating revenues of Alaska utilities.
This change in revenues is not related to operational growth in the RCA or RAPA. The Regulatory Commission of Alaska
does not anticipate additional costs associated with this bill.
(Revised 10/31/2023 OMB/LFD) Page 2 of 2
LL0516-DCCED-RCA-01-25-24 Page 2 of 2 Control Code: mwPMy


Statutes affected:
SB0224A, AM SB 224, introduced 02/12/2024: 42.05.254, 42.04.070, 44.23.020, 42.06.286