STAND. COM. REP. NO. 87

Honolulu, Hawaii

, 2005

RE: H.B. No. 1535

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 1535 entitled:

"A BILL FOR AN ACT RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS TO ASSIST UTILITIES SERVING THE GENERAL PUBLIC,"

begs leave to report as follows:

The purpose of this bill is to provide for necessary upgrades to infrastructure involved in electricity production by authorizing the issuance of $160,000,000 in special purpose revenue bonds (SPRBs) to assist Hawaiian Electric Company, Inc. (HECI), Maui Electric Company, Limited (MECL), and Hawaii Electric Light Company, Inc. (HELCI), in continuing multi-project capital improvement programs.

The Department of Commerce and Consumer Affairs' Division of Consumer Advocacy, HECI, MECL, and HELCI supported this bill.

Your Committee notes that issuing tax-exempt SPRBs to assist HECI, MECL, and HELCI in financing their capital improvement programs will result in large savings, allowing HECI, MECL, and HELCI to pass on the savings to the consumer in the form of lower electric rates. However, your Committee recognizes the need to ensure adequate governmental oversight of the projects to be funded by the SPRBs.

In light of this concern, your Committee has amended this measure by requiring the approval of the Public Utilities Commission for any project financed by the issuance of SPRBs under this bill. In addition, your Committee has amended this measure by:

(1) Specifying the distribution of SPRB funds as follows:

(A) $100,000,000 to assist HECI;

(B) $20,000,000 to assist MECL; and

(C) $40,000,000 to assist HELCI;

(2) Changing the effective date to July 1, 2005; and

(3) Making technical, nonsubstantive amendments for style and clarity.

As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1535, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1535, H.D. 1, and be referred to the Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,

 

____________________________

HERMINA MORITA, Chair