Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 2909, S.D. 1, H.D. 1, entitled:

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to streamline and expedite the rate filings of public utilities with annual gross revenues of less than $2,000,000.

This measure requires public utilities with annual gross revenues of less than $2,000,000 to utilize a standard rate adjustment application that, when complete, would contain sufficient information to permit analysis by the Consumer Advocate, to submit financial information in conformance with a standard chart of accounts, and to file annual financial statements and an updated chart of accounts with the Public Utilities Commission (PUC) and Consumer Advocate within ninety days from the end of each calendar year. Additionally, this measure requires the PUC to hold a public hearing on the rate increase request and to make every effort to issue a decision and order within six months of the application filing.

Your Committee on Conference finds that the revised filing procedures established in this measure will provide an incentive for smaller public utilities to submit their rate filings on a more timely or regular basis in order to avoid imposing deferred, but large and financially burdensome, rate increases on utility customers. Additionally, these procedures will enable the PUC and the Consumer Advocate to utilize their resources more efficiently.

Your Committee on Conference has amended this measure by replacing its contents with the language of S.B. 2909, S.D. 1. As amended, this measure takes effect upon its approval, and is technically, but not substantively, different from the measure, as received.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 2909, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2909, S.D. 1, H.D. 1, C.D. 1.