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. 953 entitled:

begs leave to report as follows:

The purpose of this bill is to ensure that the Public Utilities Commission (PUC) is equipped to handle the challenges of the 21st century. This bill requests the Auditor to conduct a management audit of PUC, and submit a report of findings and recommendations to the Legislature and Governor before the convening of the regular session of 2002.

Testimonies in support of this measure were received from the Hawaii Renewable Energy Alliance and Life of the Land. Testimony in support of the intent of this bill was submitted by the Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs. The PUC declined to take a position on the bill.

Your Committee finds that previous management audits in 1975 and 1989 found serious deficiencies in the regulatory functions of PUC. Your Committee further finds that PUC is currently faced with many new challenges in meeting the needs of Hawaii's residents in a changing global economy, and that a reexamination of its role would assist PUC in addressing new technological advances.

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. 953 and recommends that it pass Second Reading and be referred to the Committee on Legislative Management.