Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 739, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill, as received, is to allow the Public Utilities Commission (PUC) to regulate electric cooperatives.

The Hawaii Renewable Energy Alliance submitted testimony in support of the bill, but recommended revisions. Kauai Island Utility Co-op and two concerned citizens submitted testimony in support of the intent of the bill, with suggested amendments.

The Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs and Life of the Land submitted comments on the bill. The PUC opposed the bill.

Your Committee finds that an electric cooperative that generates, transmits, or distributes electricity exclusively to its stockholders or members at cost should not need to be regulated by the PUC. Your Committee further recognizes that once the electric cooperative generates, transmits, or distributes electricity to a person or entity other than its stockholders or members, it should be subject to PUC regulation.

Your Committee has amended this bill by:

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. 739, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 739, H.D. 2.