STAND. COM. REP. NO. 2755

Honolulu, Hawaii

RE: S.B. No. 2511

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 2511 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 require the Public Utilities Commission to consider the immediate and long-term creation of jobs in its review of electric utility performance.

Your Committee received testimony in support of this measure from the International Brotherhood of Electrical Workers Local Union 1260.

Your Committee received comments on this measure from the Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs and Public Utilities Commission.

Your Committee finds that the Public Utilities Commission is required to establish certain performance incentives and penalty mechanisms that directly tie an electric utility's revenues to that utility's achievement on certain performance metrics. In developing these performance incentives and penalty mechanisms, the Public Utilities Commission's review of an electric utility's performance must consider, among other things, the electric utility's service reliability, customer engagement and satisfaction, and the volatility and affordability of its electric rates and customer electric bills. Your Committee finds that the Public Utilities Commission should also be required to consider the creation of jobs as part of its review, as job creation is a strong indicator of a utility's operating stability and reflects the utility's long-term investment in the local community. Therefore, this measure supports the energy sector's contribution to economic growth and employment in the State.

Your Committee has amended this measure by:

(1) Inserting language clarifying that the Public Utilities Commission shall consider the short-term and long-term retention and creation of local jobs in its review of electric utility performance; and

(2) Inserting an effective date of July 1, 2040, to encourage further discussion.

As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2511, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2511, S.D. 1, and be placed on the calendar for Third Reading.

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

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JARRETT KEOHOKALOLE, Chair