STAND. COM. REP. NO. 1258

Honolulu, Hawaii

RE:    H.B. No. 1405

       H.D. 2

       S.D. 2

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Madam:

     Your Committee on Commerce and Consumer Protection, to which was referred H.B. No. 1405, 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 is to:

     (1)  Require the Public Utilities Commission to include a summary of the power purchase agreements in effect during the fiscal year in its annual report to the Governor; and

     (2)  Clarify the use of the public benefits fee under section 269-121, Hawaii Revised Statutes, to support clean energy technology, demand response technology, and energy use reduction, and demand-side management infrastructure.

     Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Public Utilities Commission; and Blue Planet Foundation.  Your Committee received comments on this measure from the Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs.

     Your Committee finds that transparency in the process of purchasing renewable electricity generated from nonfossil fuel sources serves the interests of independent power producers who compete to sell energy to the energy utilities and the rate-paying public by creating an opportunity for review and oversight of the Public Utilities Commission's decision-making process.  This measure brings consistency to the reporting and formatting of information by the Public Utilities Commission and will provide an easier way for the general public to locate and access power purchase contract information.

Your Committee further finds that this measure clarifies and expands the use of the public benefits fee, thus supporting clean energy technology, demand response technology, and energy use reduction, and demand-side management infrastructure.

     Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1405, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1405, H.D. 2, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,

____________________________

ROSALYN H. BAKER, Chair