STAND. COM. REP. NO.  66-12

Honolulu, Hawaii

                , 2012

RE:   H.B. No. 2490

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 2490 entitled:

"A BILL FOR AN ACT RELATING TO ELECTRIC UTILITIES,"

begs leave to report as follows:

The purpose of this measure is to provide electric utilities within the State with a method for mitigating imputed debt associated with long-term power purchase agreements.

The Hawaii Renewable Energy Alliance and the Blue Planet Foundation testified in support of this measure.  The Public Utilities Commission and Hawaiian Electric Company and its subsidiaries Hawaii Electric Light Company and Maui Electric Company testified in support of this measure with amendments.  Friends of Lanai and four individuals testified in opposition to this measure.  Life of the Land provided comments on this measure.

     Your Committee has amended this measure by clarifying that an electric utility company may recover costs that are binding obligations incurred from power purchase agreements that have been approved by the Public Utilities Commission through one or more adjustable surcharges established by the Commission.

     Technical, nonsubstantive amendments have also been made for the purposes of clarity, consistency, and style.

     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. 2490, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2490, H.D. 1, and be referred to the Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,

____________________________

DENNY COFFMAN, Chair