STAND. COM. REP. NO. 935-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2200
                                     S.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 S.B. No. 2200, S.D. 1, entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to increase the amount of
resources that are potentially available to the Public Utilities
Commission (PUC) each year, to carry out its statutory duties.
This bill:

     (1)  Amends the law that allows the PUC to retain up to
          $1,000,000 in the PUC Special Fund (Special Fund) each
          June 30 when the balance lapses to the general fund.
          Under this measure, the PUC may, each June 30, retain
          the greater of $1,000,000 or two-thirds of the moneys
          in the Special Fund;

     (2)  Requires the PUC to account for and justify
          expenditures of the additional funding in the PUC
          annual report to the Legislature; and

     (3)  Provides for repeal of the law on July 1, 2005.

     The PUC, Hawaiian Electric Company, Inc., Hawaii Electric
Light Company, Inc., Maui Electric Company, Ltd., Kauai Electric,
The Gas Company, and the Hawaii Transportation Association
testified in support of this measure.

 
 
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     Your Committee finds that this measure will benefit the
public and regulated industry by providing the additional
resources needed to:

     (1)  Maintain PUC regulation of the increasing number of
          public utilities;

     (2)  Avoid delays in the provision of utility and other
          regulated services to consumers; and

     (3)  Stay abreast of, and facilitate the development of the
          rapidly changing communication technology industry in
          this State.

     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 S.B. No. 2200, S.D. 1, and recommends that it pass
Second Reading and be referred to the Committee on Finance.

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



                                   ______________________________
                                   RON MENOR, Chair