STAND. COM. REP. NO.  1548

Honolulu, Hawaii

                , 2013

RE:   S.B. No. 120

      S.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 120, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to authorize the Public Utilities Commission to implement economic incentives and cost recovery methods to:

     (1)  Support electric utilities' cost reduction efforts;

     (2)  Encourage greater utilization of renewable energy;

     (3)  Accelerate the retirement of fossil fuel-powered electricity generation facilities; and

     (4)  Increase investments to modernize the State's electric grid.

Testimony in support of this measure was submitted by the Department of Business, Economic Development, and Tourism, Public Utilities Commission, Blue Planet Foundation, and one concerned individual.

     Comments on this measure were submitted by the Division of Consumer Advocacy, Department of Commerce and Consumer Affairs.

     Your Committee finds that authorizing the Public Utilities Commission to establish policies and implement economic incentives and cost recovery regulatory mechanisms will encourage and support electric utilities to transition to a cleaner, more sustainable electricity production and distribution system.

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 120, S.D. 1, and recommends that it pass Third Reading.

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

____________________________

ANGUS L.K. McKELVEY, Chair