THE SENATE

THE TWENTY-THIRD LEGISLATURE

REGULAR SESSION OF 2005

A G E N D A

The purpose of this briefing is to receive a report from ICF Consulting, the organization selected by the state Public Utilities Commission (PUC) to make recommendations on (1) the formula for establishing maximum wholesale gasoline prices and (2) its implementation, as required by HRS Chapter 486H (aka "The Gasoline Price Cap Law). This chapter, which is scheduled to take effect on September 1, 2005, establishes maximum pre-tax wholesale prices of regular unleaded gasoline, as well as mid-grade and premium gasoline.

The Legislature authorized the PUC to hire an industry consultant to evaluate the formula provided in Chapter 486H to achieve fairer prices in the Hawaii gasoline market, which in the absence of real competition, has been found to be systemically non-competitive, resulting in Hawaii consumers paying the highest gasoline prices in the nation for sustained periods for no discernable reason, other than to maximize the profit margins of Hawaii’s gasoline wholesalers.

The CPH Committee will be briefed by Carlito P. Caliboso, Chairman, Hawaii Public Utilities Commission,
Jeanne Townsend, Senior Vice President, ICF Consulting, and Thomas O'Connor, Project Manager, ICF Consulting.

If you require special assistance or auxiliary aids or services to participate in the public hearing process (i.e., sign language interpreter, wheelchair accessibility, or parking designated for the disabled) please contact the committee clerk 24 hours prior to the hearing so arrangements can be made.

FOR FURTHER INFORMATION, PLEASE CALL THE COMMITTEE CLERK AT 586-6740.

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Senator Ron Menor

Chair