STAND. COM. REP. NO. 3254

Honolulu, Hawaii

RE:    H.B. No. 2644

       H.D. 2

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B. No. 2644, H.D. 2, S.D. 1, entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure are to provide statutory guidance on the objectives of the Public Utilities Commission.

     Specifically, the measure:

(1)  Requires the Public Utilities Commission to implement utility and regulatory best practices in its activities;

(2)  Appropriates funds to enable the Public Utilities Commission to determine and implement utility and regulatory best practices, including hiring consultants; and

(2)  Provides the Public Utilities Commission with the authority to authorize preferential water carrier service rates by tariff for ratepayers engaged in agricultural activities.

     Your Committee received written comments in support of this measure from the Public Utilities Commission.

     Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs.

     Your Committee finds that requiring the Public Utilities Commission to implement utility and regulatory best practices will increase transparency and efficiency of commission activities and help to ensure that the Commission effectively guides the State in matters involving utilities.

     Your Committee also finds that allowing the Public Utilities Commission to authorize preferential water carrier service rates for ratepayers engaged in agricultural activities will help to ensure that Hawaii's farmers remain competitive and self-sustaining.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2644, H.D. 2, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair