STAND. COM. REP. NO.  1744

Honolulu, Hawaii

                , 2013

RE:   S.C.R. No. 37

      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 Energy & Environmental Protection, to which was referred S.C.R. No. 37, S.D. 1, entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING THE PUBLIC UTILITIES COMMISSION TO CONSIDER WHETHER STRANDED COSTS ARE A SIGNIFICANT FACTOR IN THE ELECTRIC UTILITIES' FAILURE TO RETIRE OLD, OIL-FIRED GENERATION PLANTS AND ANY APPROPRIATE MEASURES THAT WOULD ENCOURAGE ELECTRIC UTILITIES TO RETIRE OLD, OIL-FIRED GENERATION PLANTS AND THE POTENTIAL IMPACT THIS WOULD HAVE ON RATEPAYERS,"

begs leave to report as follows:

The purpose of this measure is to request the Public Utilities Commission to consider:

     (1)  Whether stranded costs are a significant factor in the electric utilities' failure to retire their old, oil-fired generation plants; and

     (2)  Any appropriate measures that would encourage the electric utilities to retire old, oil-fired generation plants and the potential impact this would have on ratepayers.

The Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs provided testimony in support of this measure.  The Public Utilities Commission provided comments on this measure.

     As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 37, S.D. 1, and recommends that it be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,

____________________________

CHRIS LEE, Chair