STAND. COM. REP. NO.  210-14

Honolulu, Hawaii

                , 2014

RE:   H.B. No. 1999

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 1999 entitled:

"A BILL FOR AN ACT RELATING TO ELECTRIC UTILITIES,"

begs leave to report as follows:

The purpose of this measure is to ensure that the public good is given priority in the operation of an electric utility by requiring the utility to be licensed by the Public Utilities Commission

The Sierra Club of Hawaii testified in support of this measure.  Hawaiian Electric Company, Inc. testified in opposition to this measure.  The Division of Consumer Advocacy, Department of Commerce and Consumer Affairs and the Public Utilities Commission commented on this measure.

     For the purpose of a public hearing on this measure, your Committee circulated Proposed H.B. 1999, H.D. 1 and notified the public that it would be accepting testimony on the proposed draft, which:

     (1)  Establishes a Legislative Utility Oversight Task Force, commencing in 2014, to review franchises held by investor-owned electric utilities to ensure adequate provision of services to the public; and

     (2)  Requires the Task Force to report its findings and recommendations to the Legislature every five years commencing no later than twenty days prior to the convening of the 2015 Regular Session.

     Your Committee received testimony from various organizations and individuals on Proposed H.B. 1999, H.D. 1.

     The Sierra Club of Hawaii and a few individuals testified in support of the Proposed Draft.  Hawaiian Electric Company, Inc., and an individual testified in opposition of the Proposed Draft.  The Public Utilities Commission and Division of Consumer Advocacy, Department of Commerce and Consumer Affairs commented on the Proposed Draft.

     Your Committee considered the merits of both H.B. No. 1999, as received by your Committee, and Proposed H.B. 1999, H.D. 1, and upon careful consideration of the concerns raised by the Public Utilities Commission regarding the Legislative Task Force having a focused plan, adopted the Proposed Draft with the following amendments:

     (1)  Changing the effective date to July 4, 2014; and

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

     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 H.B. No. 1999, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1999, H.D. 1, and be referred to the Committee on Consumer Protection & Commerce.

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

____________________________

CHRIS LEE, Chair