STAND. COM. REP. NO.  1010-16

Honolulu, Hawaii

                , 2016

RE:   H.B. No. 2566

      H.D. 2

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 2566, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ELECTRICITY,"

begs leave to report as follows:

The purpose of this measure is to protect the public interest by providing the Public Utilities Commission (PUC) with additional guidelines to consider when making critical fossil fuel and renewable energy ratemaking decisions, including specifying a methodology that, among other potential criteria, takes into account the objective of reducing the risks of the State's exposure to fossil fuels.

Ulupono Initiative and Blue Planet Foundation testified in support of this measure.  The Department of Business, Economic Development, and Tourism; Hawaii Energy Policy Forum; Hawaiian Electric Company and its subsidiary utilities Maui Electric Company and Hawai‘i Electric Light Company; Department of Commerce and Consumer Affairs; and Hawaii Solar Energy Association provided comments on this measure.

     Your Committee has amended this measure by:

(1)  Changing its effective date to July 1, 2050, to encourage further discussion; and

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

     Your Committee notes that the guidelines enumerated in this measure will not necessarily take priority over other potential criteria that the PUC may be considering in establishing fossil fuel and renewable energy ratemaking decisions.

     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 H.B. No. 2566, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2566, H.D. 2.

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

____________________________

ANGUS L.K. McKELVEY, Chair