Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Housing, to which was referred S.B. No. 3184 entitled:

begs leave to report as follows:

The purpose of this measure is to adopt policies and reforms to support the Public Utilities Commission and the Division of Consumer Advocacy in their progressive and aggressive efforts to protect ratepayers and the public and implement the State's energy strategy.

Your Committee received testimony in support of this measure from the Public Utilities Commission, Division of Consumer Advocacy, Hawaii Energy Policy Forum, Hawaii Renewable Energy Alliance, Rocky Mountain Institute, Young Brothers, Limited, Hawaiian Electric Company, The Gas Company, Hawaii Transportation Association, and two individuals.

Your Committee finds that Public Utilities Commission needs the resources to timely and fairly address regulatory issues regarding technological advances and operational efficiencies that encourage balanced growth and investment and ensure system reliability. The Public Utilities Commission and the Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs serve indispensable functions that are necessary to implement sound energy policies for the State of Hawaii.

Your Committee has amended this measure by reverting from $3,000,000 to $1,000,000 as the amount to be retained in the Public Utilities Commission special fund, with any excess balance to be refunded to the credit of the public utilities paying into the fund.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3184, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3184, S.D. 1, and be referred to the Committee on Ways and Means.