STAND. COM. REP. NO. 1777

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.C.R. No. 22
                                        H.D. 2




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred H.C.R. No. 22, H.D. 2, entitled: 

     "HOUSE CONCURRENT RESOLUTION REQUESTING THE PUBLIC UTILITIES
     COMMISSION TO SUBMIT A STATUS REPORT ON DOCKET NO. 96-0493,
     INSTITUTING A PROCEEDING ON ELECTRIC COMPETITION, INCLUDING
     AN INVESTIGATION OF THE ELECTRIC UTILITY INFRASTRUCTURE IN
     THE STATE,"

begs leave to report as follows:

     The purpose of this measure is to request the Public
Utilities Commission (PUC) to submit a status report on its
pending proceeding relating to electricity competition in the
State.

     The Department of Commerce and Consumer Affairs, Hawaiian
Electric Company, Inc., and Kauai Electric presented testimony in
support of the measure.  The PUC and Department of Business,
Economic Development, and Tourism, while not present, submitted
testimony in support of the measure.
 
     Your Committee finds that the Legislature has an interest in
the issue of electricity competition in the State since Hawaii's
high electricity rates affect the economic well-being and quality
of life of its residents, and legislative action may be necessary
to facilitate the establishment of competition within the State's
electric utility industry.
 

 
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                                   STAND. COM. REP. NO. 1777
                                   Page 2


     The PUC has instituted a proceeding, Docket No. 96-0493, on
electricity competition in Hawaii that includes an investigation
into the State's electric utility infrastructure, and the
findings of this proceeding may determine the need for future
legislative action.  Accordingly, the Legislature has an interest
in the timely completion of the docket and its findings.  This
measure would request that the PUC provide the Legislature with a
status report on the docket that includes any determinations made
the PUC and a timetable for the docket's completion.    

     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to
this report, your Committee concurs with the intent and purpose
of H.C.R. No. 22, H.D. 2, and recommends its adoption.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Commerce and
                                   Consumer Protection,



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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