STAND. COM. REP. NO. 2844

Honolulu, Hawaii

RE: S.B. No. 2648

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2648, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to increase the efficiency and effectiveness of the Public Utilities Commission.

Specifically, this measure:

(1) Establishes guiding principles for the Commission;

(2) Establishes docket review and decision-making processes;

(3) Permits teleconference and videoconference abilities;

(4) Specifies which senior staff members must file public financial disclosures;

(5) Increases the number of Commissioners from three to five and updates the composition of the Commission;

(6) Specifies training requirements for Commissioners;

(7) Clarifies each Commissioner's ability to appoint and employ staff;

(8) Clarifies the roles of the executive officer and chief counsel;

(9) Permits neighbor island members to receive per diem compensation and compensation for travel expenses; and

(10) Requires the Commission to report to the Legislature regarding certain staff duties.

Your Committee received written comments in support of this measure from the Ulupono Initiative and one individual.

Your Committee received written comments in opposition to this measure from the Public Utilities Commission and one individual.

Your Committee received written comments on this measure from the Division of Consumer Advocacy, Department of Commerce and Consumer Affairs; Hawaii State Ethics Commission; and Hawaii Energy Policy Forum.

Your Committee finds that due to the Public Utilities Commission's increasing responsibilities and the evolution of the regulatory landscape, it is essential that the structure and operations of the Commission be updated to enable the Commission to operate more efficiently and effectively, consistent with best practices.

Your Committee has amended this measure by making technical nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2648, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2648, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair