CONFERENCE COMMITTEE REP. NO. 142-14

Honolulu, Hawaii

                 , 2014

RE:    H.B. No. 1943

       H.D. 2

       S.D. 2

       C.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir and Madam:

     Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 1943, H.D. 2, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE MODERNIZATION OF THE HAWAII ELECTRIC SYSTEM,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose of this measure is to eliminate technical and economic barriers that prevent customer-generators from interconnecting to the Hawaii electric grid in a timely manner by:

     (1)  Amending the Public Utilities Commission principles regarding the modernization of the electric grid;

     (2)  Requiring the Public Utilities Commission to initiate regulatory actions no later than July 1, 2014, to address upgrades to the Hawaii electric system for the anticipated growth of customer generation; and

     (3)  Appropriating funds to the Public Utilities Commission and the Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs for the costs of the regulatory actions initiated by the Commission.

     Your Committee on Conference has amended this measure by:

     (1)  Clarifying the principles associated with the modernization of the electric grid;

     (2)  Removing the provisions regarding the funding and commencement of a regulatory action by the Public Utilities Commission to address the technical, policy, and economic issues associated with the modernization of the electric grid;

     (3)  Changing the effective date to upon its approval; and

     (4)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 1943, H.D. 2, S.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 1943, H.D. 2, S.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________ MIKE GABBARD, Chair	____________________________ CHRIS LEE, Co-Chair
____________________________ ROSALYN H. BAKER, Co-Chair	____________________________ DEREK S.K. KAWAKAMI, Co-Chair
____________________________ DAVID Y. IGE, Co-Chair	____________________________ SCOTT Y. NISHIMOTO, Co-Chair