STAND. COM. REP. NO.  76-16

 

Honolulu, Hawaii

                , 2016

 

RE:   H.B. No. 2649

      H.D. 1

 

 

 

 

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

 

Sir:

 

     Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 2649 entitled:

 

"A BILL FOR AN ACT RELATING TO ENERGY,"

 

begs leave to report as follows:

 

     The purpose of this measure is to protect ratepayers from potentially unnecessary additional costs by requiring that electric utility rates are considered just and reasonable only if the rates are derived from an earnings impact mechanism developed by the public utilities commission.

 

     The Blue Planet Foundation, Distributed Energy Resources Council of Hawaii, The Alliance for Solar Choice, and several concerned individuals supported this measure.  Hawaiian Electric Company, Maui Electric Company, and Hawaii Electric Light Company opposed the measure.  The Public Utilities Commission submitted comments.

 

     Your Committee has amended this measure by:

 

     (1)  Deleting language that would have amended statutory requirements for ratemaking procedures by requiring derivation of rates from an earnings impact mechanism; and

 

     (2)  Adding a new statutory section requiring the Public Utilities Commission to establish on or before January 1, 2020, performance incentive mechanisms that directly tie electric utility revenues to the utility's achievement on performance metrics.

 

     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. 2649, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2649, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

 

 

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

 

 

 

 

____________________________

CHRIS LEE, Chair