STAND. COM. REP. NO. 2425

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 2438

       S.D. 1

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

 

Sir:

 

     Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 2438 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 submission of an economic impact analysis with any application to the Public Utilities Commission that has a fiscal impact, and to require the Public Utilities Commission to provide a final analysis with any decision and order.

 

     Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism.  Your Committee received testimony in opposition to this measure from the Public Utilities Commission, Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs, and Hawaiian Electric Company, Inc.

 

     Your Committee finds that economic impact analyses can provide a clear picture of the advantages and disadvantages of any given proposal.  However, concerns were raised that the mandatory economic impact analysis proposed by this measure may have unintended negative consequences for small businesses and would have significant budgetary impacts on the Public Utilities Commission, delaying the regulatory process.

 

     Your Committee notes there is merit to formalizing some economic impact analysis, but understands that these concerns are important to take into account.  Your Committee finds that the Public Utilities Commission considers economic impact when appropriate, and therefore concludes that a mandatory economic impact analysis is not required.

 

     Your Committee has amended this measure by:

 

     (1)  Deleting its contents and replacing it with language that permits the Public Utilities Commission, in making its final determination on renewable energy projects, to take into consideration the economic impact of these projects; provided that the Department of Business, Economic Development, and Tourism first provides the Public Utilities Commission with the appropriate analysis for consideration; and

 

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

 

     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. 2438, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2438, 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,

 

 

 

____________________________

ROSALYN H. BAKER, Chair