Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Energy and Environmental Protection, to which was referred H.B. No. 447 entitled:

begs leave to report as follows:

The purpose of this bill is to authorize the Public Utilities Commission (PUC), in ratemaking proceedings, to consider factors that:

(1) An adequate supply of energy;

(2) Encourage energy conservation; or

(3) Encourage renewable energy development;

provided that, if PUC considers factors that encourage renewable energy development, the PUC shall make findings on the utilities ability to recover its capital and operating costs.

Ka Makani O Kohala Ohana, Inc. and several individuals testified in support of the bill. The Department of Business, Economic Development, and Tourism, Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs, PUC, Hawaii Renewable Energy Alliance, and Hawaiian Electric Company and its subsidiaries, Hawaii Electric Light Company and Maui Electric Company, Ltd. submitted comments.

After careful consideration, your Committee has amended this measure by:

As affirmed by the record of votes of the members of your Committee on Energy and Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 447, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 447, H.D. 1, and be referred to the Committee on Consumer Protection and Commerce.