Caucus Applauds Recent FERC Brief
FERC Attorneys Fault Producers for Unfair Tariffs

Juneau – Members of the Senate Republican Caucus are drawing attention to a brief  released recently by attorneys for the Federal Energy Regulatory Commission that could have significant ramifications to the State.

“This preliminary FERC staff brief touches on a number of very important issues under discussion in the Capitol that may have a long-term fiscal impact on our State treasury,” said Senate Minority Leader Gene Therriault. “The 111-page document provides invaluable information for anyone trying to understand the important details involved in the natural gas line debate, and I strongly encourage a thorough review by my legislative colleagues.”

The February 16, 2007 initial brief, which was submitted by FERC trial staff to an administrative law judge, addresses on-going challenges to the tariff methodology used for setting rates on the Trans Alaska Pipeline System in response to a challenge filed by Anadarko and Tesoro in 2004.

“We are concerned that the issues raised and positions taken by some of the parties, most notably the TAPS Carriers, are not only directly contrary to the orders which approved the TAPS settlement over twenty years ago, but contrary to some of the most basic notions of calculating just and reasonable rates, as well,” note commission staff in the brief.

In another section the brief states, “In Part I above, we demonstrated that the Carriers are required to prove, for the first time in this proceeding, whether the TSM (TAPS Settlement Methodology) produces just and reasonable rates. The answer, quite simply, is no.”

“The brief on the Anadarko suit that FERC staff completed basically confirms the point that the North Slope producers have no incentive to keep tariffs low,” said Sen. Tom Wagoner, R-Kenai.

The brief could indicate that FERC may be poised to take a view favorable to the State. The administrative law judge is scheduled to make an initial decision and recommendation on the case May 18. This decision must then be reviewed by the full energy regulatory commission.

“This report seems to confirm the earlier findings of the Regulatory Commission of Alaska that the tariffs being charged on the trans-Alaska pipeline are too high. That’s important to the State of Alaska because it impacts the well head value of our oil resource,” Therriault said.

“This issue is also timely because although an oil pipeline uses a different system for shipping commitments, the way the TAPS pipeline is operated does call into question the advisability of having the major producers control a future gas pipeline and whether we can count on just and reasonable rates being set,” Therriault said.

“This recent FERC brief provides another example of how critical it is for legislators to travel back to Washington D.C. for Energy Council as chairman Joseph T. Kelliher will be one of the presenters at The Energy Council March 9, 2007, in Washington, D.C.,” Therriault said.  “Although we won’t be able to discuss the details of the case, we can ask about the mechanics of the FERC system and determine how quickly a final decision is likely to be reached.”

The Senate Minority’s Oil and Gas Team – Sens. Wagoner, Therriault and Fred Dyson, R-Eagle River – is  scheduled to participate in a House Resources Committee overview of the FERC brief to bring other legislators up to speed on its ramifications prior to The Energy Council meeting March 8, 2007.

A sound actuality by Sen. Tom Wagoner can be downloaded from the following link:
http://www.aksenateminority.com/media/25/wagoner2007030101a.mp3

A sound actuality by Sen. Gene Therriault can be downloaded from the following link:
http://www.aksenateminority.com/media/25/therriault2007030102a.mp3

Therriault Proposes Capitol Security Camera Policy
Rules Would Restrict Use of Footage

Juneau – Senate Minority Leader Gene Therriault announced today he will ask the Legislative Council to approve a security camera policy that would prohibit the use of video footage for anything other than security, law enforcement, or enforcement of Capitol building policies.

The policy states that the “purpose of video monitoring is to deter and prevent theft or destruction of equipment, other criminal activity, and unauthorized entries. Information obtained through video monitoring may only be used for security or law enforcement purposes.”

“When my constituents come to Juneau to visit with me, they shouldn’t have to be concerned that someone is tracking their every movement,” Therriault said. “Likewise, my legislative colleagues should feel free to come and go to discuss policies under consideration during the session.”

The policy would require the destruction of video monitoring footage after 30 days unless retention is ordered by the Legislative Council because the material is part of an investigation, relevant to a criminal investigation, or relevant to a court proceeding.

“The need for the policy stems from concerns that arose during the heated oil tax debate last year about the possible misuse of video footage to monitor traffic in and out of offices,” Therriault said.