STAND. COM. REP. NO. 275-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 1882
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Consumer Protection and Commerce, to which
was referred H.B. No. 1882 entitled: 

     "A BILL FOR AN ACT RELATING TO THE PUBLIC UTILITIES
     COMMISSION,"

begs leave to report as follows:

     The purpose of this measure is to require the auditor to
conduct a management audit of the Public Utilities Commission
(PUC) to assess the adequacy of the present utility regulatory
process in dealing with issues, problems, and developments in
complex and changing areas, such as telecommunication, energy,
deregulation, and intergovernmental relations, and to report back
to the legislature and governor before the convening of the
regular session of 2001.

     Testimony in support of this measure was submitted by Hawaii
Renewable Energy Alliance, Na Leo Pohai, Life of the Land, and a
council member of the Maui County Council.  

     Testimony in support of this measure, with suggested
amendments, was provided by the PUC.  

     Your Committee finds that there is a need to conduct a
management audit of the public utilities commission to assess the
adequacy of the present utility regulatory process in dealing
with issues, problems, and developments in complex and changing
areas such as telecommunications, energy, deregulation, and
intergovernmental relations.

 
 
                                 STAND. COM. REP. NO. 275-00
                                 Page 2

 
     Your Committee finds that in 1998 the PUC experienced a
dramatic change in management consisting of a new chairman, two
new commissioners, and a new administrative director.  

     You Committee agrees with the recommendation of the PUC that
the audit should be consistent with the 1989 audit in terms of
objectives and scope.

     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 1882, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B. No.
1882, H.D. 1, and be referred to the Committees on Legislative
Management and Finance.

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



                                   ______________________________
                                   RON MENOR, Chair