STAND. COM. REP. NO. 2154

Honolulu, Hawaii

RE:    S.B. No. 2924

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 2924 entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to increase the balance that may be retained in the public utilities commission special fund at the end of each fiscal year.

     Your Committee received testimony in support of this measure from the Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs, Public Utilities Commission, Hawaii Energy Policy Forum, Hawaii Renewable Energy Alliance, Blue Planet Foundation, Friends of Lana‘i, and one individual.

     Your Committee finds that the public utilities commission special fund is the primary source of funding for the operations of the Public Utilities Commission and the Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs.  Since fiscal year 2009, the amount of transfers from the public utilities commission special fund to the State's general fund has averaged approximately $11,200,000 per year.  Your Committee recognizes the benefits these transfers provide to the State but notes that the funds collected under the public utility fee are derived from public utility company revenues and are paid directly by ratepayers for the purpose of providing regulatory oversight.

     Your Committee further finds that dedicating a higher portion of the public utilities commission special fund to support the operations of the Public Utilities Commission and the Division of Consumer Advocacy would be advantageous for the State, especially in light of the increasing complexity and size of the Public Utilities Commission's workload.  Your Committee also finds that raising the public utilities commission special fund carryover balance will also help with encumbering of contracts, which both agencies must rely on in an era of increasingly technical electricity regulation.  This measure therefore enables the Public Utilities Commission and the Division of Consumer Advocacy to fulfill their respective statutory duties.

     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 S.B. No. 2924 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.

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

____________________________

ROSALYN H. BAKER, Chair