STAND. COM. REP. NO.  185

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1005

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committees on Consumer Protection & Commerce and Energy & Environmental Protection, to which was referred H.B. No. 1005 entitled:

"A BILL FOR AN ACT RELATING TO THE PUBLIC UTILITIES COMMISSION,"

beg leave to report as follows:

     The purpose of this measure is to restructure the Public Utilities Commission to improve its operations and appropriate funds for restructuring costs.

     Your Committee finds that the restructuring provisions in this measure will enable the Public Utilities Commission to efficiently and effectively carry out its duties and, as a result, will greatly benefit the public interest.  Furthermore, your Committee notes that these provisions, contained in section 4 of the House Draft 1, are in no measure intended to diminish the existing authority of the Public Utilities Commission to make changes to its structure and organization without legislative approval or statutory amendments.

     The Department of Commerce and Consumer Affairs, Public Utilities Commission, Hawaii Energy Policy Forum, Sierra Club, Life of the Land, Hawaii Solar Energy Association, Honolulu Seawater Air Conditioning, LLC, Hawaiian Electric Company, Inc., and The Gas Company submitted testimony in support of this measure.

     Your Committees have amended the bill by:

     (1)  Including the positions of the chief of policy and research, chief of administrative support, chief of consumer affairs and compliance, and utility analysts as exempt from chapter 76, Hawaii Revised Statutes (civil service law);

     (2)  Adding a new section that allows the commission to consider renewable energy use in exercising its authority; and

     (3)  Making technical nonsubstantive amendments for purposes of style, clarity, and consistency.

As affirmed by the records of votes of the members of your Committees on Consumer Protection & Commerce and Energy & Environmental Protection that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1005, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1005, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Consumer Protection & Commerce and Energy & Environmental Protection,

____________________________ HERMINA MORITA, Chair

____________________________ ROBERT N. HERKES, Chair