Consultants find flaws
in gas price cap law

No consultant, no expert and no government agency has ever found that there is anything to be fixed in Hawaii's petroleum refining or distribution businesses, and none of them, including ICF, a Washington, D.C.-based consulting firm, has said that gas price controls would result in lower prices for consumers. In fact, the assumption that Hawaii's gas prices are too high is flawed.

Sen. Ron Menor, the dogged proponent of this legislation, made the following comment: "The report shows that a workable and enforceable price cap can be achieved." He did not say "beneficial," "not harmful" or "fair." The PUC hired ICF to recommend formula numbers and a process to implement the law, the task assigned to it by the Legislature. In his circular logic, Menor would like you to believe that the ICF report is an endorsement of the law's vague intent. ICF consultants simply did their job and recommended how the PUC can carry out its instructions. They were not asked to opine on whether the law is a good idea.

Nonetheless, the ICF report is broadly cautionary about the impact of the law. While accomplishing its assigned technical goals, the consultants make the following important points: