STAND. COM. REP. NO. 1237-18

Honolulu, Hawaii

, 2018

RE: S.B. No. 2939

S.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Energy & Environmental Protection, to which was referred S.B. No. 2939, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO ENERGY,"

begs leave to report as follows:

The purpose of this measure is to change the regulatory compact for electric utilities to promote decisions and strategies that maximize public benefit, reduce ratepayer risks, and meet Hawaii's energy goals by requiring the Public Utilities Commission to establish performance incentives and penalty mechanisms that directly tie an electric utility's revenues to the utility's achievement on performance metrics and break the direct link between allowed revenues and investment levels.

The Oahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i, Organizing for Action, Sierra Club of Hawai‘i, Blue Planet Foundation, Healthy Climate Communities, Hawaii Solar Energy Association, and several concerned individuals supported this measure. The Hawaiian Electric Company, Inc., Maui Electric Company, Ltd., and Hawaii Electric Light Company, Inc. opposed this measure. The Department of Commerce and Consumer Affairs, Public Utilities Commission, and Life of the Land submitted 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 is in accord with the intent and purpose of S.B. No. 2939, S.D. 2, and recommends that it pass Second Reading and be referred to your Committee on Finance.

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

____________________________

CHRIS LEE, Chair