Lawmakers seek panel
to study gas prices

The bipartisan group would
use recently released data
to probe high costs in the state

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By B.J. Reyes
Associated Press

Three Senate committees are to decide this week on setting up a joint House-Senate committee to study the state's high gasoline prices.

A joint hearing yesterday recommended that the investigative committee not be given broad subpoena powers to get more information, as was called for under the original resolution.

It would study and review information about gas prices that have come to light during the state's recently settled four-year price-fixing lawsuit against oil companies.

"Now that the courts have unsealed many of the court documents and pleadings ... the intent is for the legislative committee to carefully review and analyze all of this data, documentation and information," said Sen. Ron Menor, chairman of the Senate Consumer Protection Committee. "If the information is sufficient enough for us to be able to develop legislation or solutions to high gasoline prices then the committee would be prepared to make a recommendation."

He said the special committee would only review information and not have the same broad authority as the Felix special education investigative committee.

"We're not going to be starting up a completely new investigation," said Menor (D, Waipahu-Crestview-Mililani). "The Legislature has never had a really complete and full opportunity to be able to analyze all this data to carefully look at it and then draw conclusions"

Gov. Ben Cayetano last week criticized the proposed committee, calling it a waste of money.

"What they need to do is ask the attorney general for the documents that we have uncovered and ask the attorney general for a briefing on the theory that we had in that case and some of the conclusions that we reached," Cayetano said.

Menor said he agreed that it appears much of the information lawmakers need already is available.

He said the special committee is needed during the interim to study the voluminous amount of data and discuss it with experts to come up with recommendations for next session.

"We're dealing with very complex economic issues," he said.

The committee would require about $100,000 this year, although Menor said he did not yet know if it would still consist of six House members and six Senators as proposed.

He said the committee also would have to study the overall affects of any laws intended to regulate gas prices, such as a measure already passed by the House that sets a cap on gasoline prices in Hawaii.

Menor cited testimony from Richard S. Miller, a professor of law, emeritus, at the University of Hawaii, who said a price cap could have other unforeseen effects such as driving up prices of other fuels.

Miller helped write the Senate resolution introduced by Menor. "I am not against going forward with caps on wholesale prices providing we know what economic effects the bill will have and provided the (attorney general) can predict that it will be upheld by the courts," Miller said.

Hawaii has the highest gasoline prices in the country.

As of yesterday, the average price for regular unleaded gasoline in Hawaii was $1.63 a gallon, according to AAA. The national average was $1.35.

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