LEGISLATURE 2006
Gas cap talks go down to wire after rejection
Lawmakers have until midnight to work out a compromise on the state's unique gas cap law after House members rejected a main part of the latest Senate proposal.
House members do not want to adopt a provision that would have the Public Utilities Commission continue to post hypothetical weekly price caps under a new formula as a way to provide consumers with a benchmark for comparison.
Under that revised formula, price caps for this week would be about 23 cents a gallon cheaper, while limits for next week would be about 18 cents lower, according to Star-Bulletin calculations.
With gas prices expected to be a campaign issue in the fall, gas cap opponents could be embarrassed if actual prices remain high while hypothetical caps indicate consumers could be saving.
House negotiators, led by Energy Chairwoman Hermina Morita (D, Hanalei-Kapaa), contend the new formula has not been adequately studied and would result in hypothetical caps being consistently below actual wholesale prices, giving consumers unrealistic expectations.
Morita offered a new House proposal that would have the Public Utilities Commission establish a new formula after collecting and studying data provided by the oil industry under new requirements that would force them to make more information public. The commission would post hypothetical caps based on this formula and then have to determine a standard for what is considered an unfair pricing practice.
The proposal also seeks to clarify the governor's authority for bringing back the caps.
Senate Consumer Protection Chairman Ron Menor, chief supporter of the law who already made major concessions this week to try to reach a compromise, said he would discuss the House's latest offer with colleagues.
Menor (D, Mililani) backed off his previous stance to keep the caps alive in a form that would have them reinstated two weeks at a time if prices remained high for an excessive time period. He instead offered a proposal to suspend the caps immediately and give the governor authority to bring them back if she determines that high prices are adversely affecting the public.
The concession was made after House members refused to budge from their position to have the law repealed immediately.
"We think it's still important for Hawaii consumers to make comparisons -- comparing actual prices to what prices would've been under a modified pricing ceiling and then determine for themselves whether they are being price-gouged," said Menor.
The conference committee on the gas cap is scheduled to reconvene this afternoon. If no compromise is reached by midnight, the current law will remain in place.