Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 2619 entitled:

begs leave to report as follows:

The purpose of this bill is to ensure that electric utility companies are afforded an opportunity to earn a fair rate of return under any proposed utility ratemaking structure, instead of guaranteeing that the utility companies' profit margin will not decrease.

The Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs, Public Utilities Commission, Hawaiian Electric Company, Inc., Hawaii Energy Policy Forum, Hawaii Renewable Energy Alliance, Rocky Mountain Institute, PowerLight Corporation, and Honolulu Seawater Air Conditioning, LLC, testified in support of the bill. The Department of Business, Economic Development, and Tourism and Economic Development Alliance of Hawaii supported the intent of the measure.

As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2619 and recommends that it pass Second Reading and be referred to the Committee on Consumer Protection & Commerce.