STAND. COM. REP. NO. 1217

 

Honolulu, Hawaii

                  

 

RE:    S.C.R. No. 132

       S.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

 

Sir:

 

     Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.C.R. No. 132 entitled:

 

"SENATE CONCURRENT RESOLUTION REQUESTING THE AUDITOR TO CONDUCT A COMPREHENSIVE MANAGEMENT AUDIT OF THE PUBLIC UTILITIES COMMISSION,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to request the Auditor to conduct a comprehensive management audit of the Public Utilities Commission.

 

     Your Committee received testimony in support of this measure from the Public Utilities Commission and Hawaii Government Employees Association, AFSCME, Local 152, AFL-CIO.  Your Committee received comments on this measure from the Office of the Auditor, Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs, and Life of the Land.

 

     Your Committee finds that the Public Utilities Commission is empowered and mandated to provide effective, proactive, and informed oversight of public utilities, including electric, telephone, and gas companies; sewer and water companies; interisland water carriers; and motor carriers, all of which provide services that are essential to the public interest of the State.  However, over the past forty years, the Auditor has conducted management audits of the Public Utilities Commission and has consistently found serious and pervasive problems with staffing, management, and planning.  Your Committee therefore finds that it is in the public interest to evaluate the efficiency and effectiveness of the Public Utilities Commission.  Accordingly, this measure requests the Auditor to conduct a comprehensive management audit of the Commission.

 

     Your Committee has heard the concerns raised by the Division of Consumer Advocacy that this measure, as written, could suggest that the role of the Consumer Advocate is one of the regulatory responsibilities under the jurisdiction of the Public Utilities Commission.  Your Committee notes that although the Commission and the Division of Consumer Advocacy are administratively attached to the same department, the Commission and the Division remain separate agencies with distinct, statutorily-designated powers, duties, and obligations.

 

     Your Committee has amended this measure by:

 

     (1)  Clarifying that the Public Utilities Commission and the Division of Consumer Advocacy are separate agencies with distinct, statutorily-designated powers, duties, and obligations and noting the Division's inclusion in the 2004 management audit of the Commission because the Division represented the interests of all utility consumers;

 

     (2)  Clarifying that the Auditor is requested to examine the role of the Division of Consumer Advocacy to represent, protect, and advance the interests of consumers in proceedings before the Public Utilities Commission; and

 

     (3)  Requesting the Auditor to seek input from the State Energy Office on policy matters associated with the management audit.

 

     As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 132, as amended herein, and recommends that it be referred to your Committee on Ways and Means, in the form attached hereto as S.C.R. No. 132, S.D. 1.

 

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

 

 

 

________________________________

ROSALYN H. BAKER, Chair