REPORT TITLE:
Public Util; Consumer Advocate


DESCRIPTION:
Establishes a citizen advisory committee within the DCCA to
review the public utilities commission and advise the consumer
advocate to ensure public participation in decisions.  (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        656
THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO THE PUBLIC UTILITIES COMMISSION.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The legislature finds that the consumer advocate
 
 2 has been designated to represent, protect, and advance the
 
 3 interests of all consumers, including small businesses, of
 
 4 utility services.  This responsibility for advocating the
 
 5 interests of the consumer of utility services is separate and
 
 6 distinct from the responsibilities of the public utilities
 
 7 commission.
 
 8      In general, the consumer advocate has done an acceptable job
 
 9 of representing consumer interests.  However, the consumer
 
10 advocate has been hampered by a lack of an appropriate mechanism
 
11 to ensure public participation, or has been unable or unwilling
 
12 to solicit such public participation.  Establishing a citizen
 
13 advisory committee will provide the necessary public input.  The
 
14 consumer advocate has been further hampered by an inability or
 
15 unwillingness to consider important, non-direct, economic and
 
16 noneconomic factors in the consumer advocacy role.
 
17      The purpose of this Act is to strengthen and improve the
 
18 ability of the consumer advocate to "represent, protect, and
 
19 advance the interests of all consumers" by:
 

 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1      (1)  Establishing a citizen advisory committee to annually
 
 2           audit the activities of the public utilities commission
 
 3           and public utilities to ensure that regulated
 
 4           monopolies operate in accordance with public policy and
 
 5           according to the desires, and to the benefit, of their
 
 6           customers; and
 
 7      (2)  Mandating that the consumer advocate:
 
 8           (A)  Increase public participation in the decision
 
 9                making processes of the public utilities
 
10                commission, by various means including the use of
 
11                a citizens' review advisory commission; and
 
12           (B)  Ensuring that various non-direct cost and
 
13                noneconomic factors are adequately accounted for
 
14                in determining the relative costs and benefits of
 
15                various utility services.
 
16      SECTION 2.  Chapter 269, Hawaii Revised Statutes, is amended
 
17 by adding a new section to be appropriately designated and to
 
18 read as follows:
 
19      "§269-    Citizen advisory committee; established.  (a)  A
 
20 citizen advisory committee is established within the department
 
21 of commerce and consumer affairs.
 
22      (b)  The committee shall consist of not less than nine and
 
23 not more than thirteen members to be appointed by the director of
 

 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 commerce and consumer affairs, and shall be representatives of
 
 2 utility customer classes, consumer groups, environmental groups,
 
 3 and other interested members of the public.
 
 4      (c)  Members of the committee shall serve staggered two-year
 
 5 terms.  Membership terms shall start and end with the state
 
 6 fiscal year.
 
 7      (d)  The consumer advocate shall serve as the nonvoting
 
 8 chair of the committee.
 
 9      (e)  The consumer advocate and staff shall assist the
 
10 committee in organizing and conducting public forums and
 
11 information briefings, in soliciting other public comments, and
 
12 in the preparation and distribution of the annual report referred
 
13 to in subsection (i).
 
14      (f)  The committee shall meet not less than annually to:
 
15      (1)  Review and evaluate the activities of the commission
 
16           and public utilities to ensure that such regulated
 
17           monopolies operate in accordance with public policy and
 
18           according to the desires, and to the benefit, of their
 
19           customers; and
 
20      (2)  Study the operation of laws affecting all consumers,
 
21           including small business, of utilities services and
 
22           recommend to the governor and the legislature new laws
 
23           and amendments of laws in the consumers' interest in
 

 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1           the public utilities' field.
 
 2      (g)  The committee shall meet, as required, during a ninety-
 
 3 day period which will commence not earlier than one hundred
 
 4 twenty days prior to the commencement of the next succeeding
 
 5 legislative session.
 
 6      (h)  The committee shall conduct one or more public forums
 
 7 to solicit public comments on the performance of the commission
 
 8 and the public utilities.  Affected interest groups shall be
 
 9 adequately notified of these proceedings.  All public forums and
 
10 associated opportunities for public comment shall be completed
 
11 within forty-five days from the first meeting of the committee.
 
12      (i)  The committee shall prepare an annual report of its
 
13 activities and provide it to the governor and legislature not
 
14 less than twenty days prior to the next succeeding legislative
 
15 session.  The report shall include a summary of comments and
 
16 recommendations made by the committee, by participants in the
 
17 public forums, and those elicited through other associated public
 
18 comment opportunities.  Approval of the report shall be by a
 
19 simple majority of the committee, provided that the minority may
 
20 attach a minority report.
 
21      (j)  The members of the committee shall serve without
 
22 compensation, but shall be reimbursed for expenses, including
 
23 travel expenses, necessary for the performance of their duties;
 

 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 provided that all expenses incurred by the committee shall be
 
 2 provided through a portion of the funds allocated to the consumer
 
 3 advocate.
 
 4      (k)  The consumer advocate shall adopt rules pursuant to
 
 5 chapter 91 as may be necessary to effectuate the purposes of this
 
 6 section."
 
 7      SECTION 3.  Section 269-1, Hawaii Revised Statutes, is
 
 8 amended by adding two new definitions to be appropriately
 
 9 inserted and to read as follows:
 
10      ""Commission" means the public utilities commission.
 
11      "Committee" means the citizen advisory committee established
 
12 in section 269-   ."
 
13      SECTION 4.  Section 269-54, Hawaii Revised Statutes, is
 
14 amended by amending subsection (b) to read as follows:
 
15      "(b)  The consumer advocate [may:] shall:
 
16      (1)  Adopt rules pursuant to chapter 91 necessary to
 
17           effectuate the purposes of this part.
 
18      (2)  Conduct investigations to secure information useful in
 
19           lawful administration of any provision of this part.
 
20      (3)  Assist, advise, and cooperate with federal, state, and
 
21           local agencies and officials to protect and promote the
 
22           interests of the consumer in the public utilities
 
23           field.
 

 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1      (4)  Study the operation of laws affecting all consumers,
 
 2           including small businesses, of utility services and
 
 3           recommend to the governor and the legislature new laws
 
 4           and amendments of laws in the consumers' interest in
 
 5           the public utilities field.  This shall incorporate,
 
 6           but not be limited to, the annual findings and
 
 7           recommendations of the committee, as provided in
 
 8           section 269-   .
 
 9      (5)  Organize and hold conferences, forums, or public
 
10           information sessions, on problems affecting consumers
 
11           of utility services.  One or more of these conferences,
 
12           forums, or public information sessions shall be
 
13           conducted during the designated annual period of
 
14           operation of the committee established in section
 
15           269-   .
 
16      (6)  Perform such other acts as may be incidental to the
 
17           exercise of the functions, powers, and duties set forth
 
18           in this section.
 
19      (7)  Represent the interests of consumers of utility
 
20           services before any state or federal agency or
 
21           instrumentality having jurisdiction over matters which
 
22           affect those interests.
 
23      (8)  Consider and apply externalities costs, socioeconomic
 

 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1           costs, cultural and historical impacts, and public
 
 2           policy considerations on an equal basis with direct
 
 3           costs for the utility services provided in
 
 4           deliberations and decisionmaking processes.  The
 
 5           committee, established in section 269-   , shall assist
 
 6           the consumer advocate in developing the appropriate
 
 7           methodology to ensure compliance with this section."
 
 8      SECTION 5.  Statutory material to be repealed is bracketed.
 
 9 New statutory material is underscored.
 
10      SECTION 6.  This Act shall take effect upon its approval.