STAND. COM. REP. NO.985-02
RE: H.C.R. No. 108
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Your Committee on Energy and Environmental Protection, to which was referred H.C.R. No. 108 entitled:
"HOUSE CONCURRENT RESOLUTION REQUESTING THE PUBLIC UTILITIES COMMISSION TO OPEN A NEW DOCKET CONCERNING STANDBY CHARGES APPLICABLE TO NON-UTILITY DISTRIBUTED ENERGY RESOURCES AND CUSTOMER RETENTION DISCOUNTS OFFERED BY PUBLIC UTILITIES,"
begs leave to report as follows:
The purpose of this concurrent resolution is increase the use of non-utility distributed energy resources (DRE) by requesting the Public Utilities Commission (PUC) to discontinue the electric utility practice of standby charges and customer retention discounts.
Hess Microgen LLC, Life of the Land, and two concerned individuals supported this measure. The Consumer Advocate, The Gas Company, Kauai Electric, and Verizon Hawaii commented on this measure. The PUC opposed this measure.
Your Committee finds that the promotion of certain energy goals of the State are hampered by certain actions of the PUC, including permitting electric utilities to negotiate customer retention discounts and to charge standby fees. Permitting standby fees and customer retention discounts may be only one of many counter-productive actions taken by the PUC. These electric utility practices discourage DRE. Thus, your Committee believes that a management audit of the PUC is necessary to determine if it is equipped to handle the challenges of the 21st century.
Your Committee has amended this measure by deleting its substance and inserting provisions:
(1) Requesting the Auditor to conduct a management audit of the PUC to assess:
(A) The adequacy of the present utility regulatory process in dealing with issues, problems, and developments in complex and changing areas, such as telecommunications, energy deregulation, and intergovernmental relations; and
(B) The role of the management of the PUC and the Division of the Consumer Advocate in terms of providing technical and analytical staff support in case management and enforcement of the PUC's rules;
(2) Changing the title of this measure to read: "REQUESTING THE AUDITOR TO CONDUCT A MANAGEMENT AUDIT OF THE PUBLIC UTILITIES COMMISSION".
As affirmed by the record of votes of the members of your Committee on Energy and Environmental Protection that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 108, as amended herein, and recommends that it be referred to the Committee on Consumer Protection and Commerce in the form attached hereto as H.C.R. No. 108, H.D. 1.
Respectfully submitted on behalf of the members of the Committee on Energy and Environmental Protection,
HERMINA M. MORITA, Chair