Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.C.R. No. 108, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this House Concurrent Resolution, as amended by the Committee on Energy and Environmental Protection, is to request the Auditor to conduct a management audit of the Public Utilities Commission (PUC) to assess:

Testimony in support of this concurrent resolution was received from the Public Utilities Commission. The Division of Consumer Advocacy supported the intent of the resolution, with the provision that the audit focus only on management matters. Life of the Land, the Hawaii Renewable Energy, Alliance,and an individual testified in strong support of this resolution.

Your Committee finds that previous audits of the PUC have found serious organizational, procedural, and staffing deficiencies in its management. Your Committee further finds that recent technological advances in such areas as telecommunications and electrical restructuring increase PUC's complexities of regulatory management, thus requiring a reexamination of the role of its regulatory activities in better meeting the challenges of technological changes in an ever-changing global economy.

This Concurrent Resolution proposes that the Auditor conduct a management audit of the PUC to determine 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. The PUC management audit shall also include the role of the PUC and the Division of Consumer Advocacy in providing technical and analytical staff support in case management and enforcement of PUC's rules.

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 concurs with the intent and purpose of H.C.R. No. 108, H.D. 1, and recommends its adoption.