THE SENATE

S.B. NO.

1048

TWENTY-NINTH LEGISLATURE, 2017

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO the HAWAII WATER CARRIER ACT.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  Section 271G-10, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

     "(e)  The commission shall not make a finding of public convenience and necessity or issue an authorization, whether interim, permanent, or otherwise, to operate as a water carrier without the following specific findings supported by evidence in the record:

     (1)  Existing water carrier services are inadequate to presently service the public or meet demonstrated and quantifiable future demands for service;

     (2)  The proposed service is designed for and necessary to meet demonstrated and quantifiable unmet public needs for present water carrier service or demonstrated and quantifiable future demands for service;

     (3)  The proposed service will provide demonstrated and quantifiable benefits to the general public, business community, and the economy of all islands that are entitled to notice under section 271G-23.5, including demonstrated and quantifiable benefits with respect to reliability, affordability, and security of the service line;

     (4)  The specific, identified benefits of the proposed service outweigh its detrimental impact to the public's interest in maintaining services, including:

         (A)  Economies of scale and scope of current water carriers;

         (B)  Future capital costs of existing water carriers;

         (C)  Ability of existing water carriers to make necessary capital and resource investments;

         (D)  The financial health, stability, and revenue stream of existing water carriers; and

         (E)  The likelihood that existing levels of service will be maintained after the enactment of the proposed service; and

     (5)  If the commission's finding of public convenience and necessity differs from the recommendation of the consumer advocate, specific findings to address each ground for objection articulated by the consumer advocate.

The commission [shall not] may make a finding of public convenience and necessity [nor] and may issue a certificate [if] regardless of whether the evidence in the record indicates that the issuance of the certificate would diminish an existing water carrier's ability to realize its allowed rate of return or if the certificate would allow an applicant to serve only high-margin or high-profit ports or lines of service that are currently served by an existing carrier."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 2018.

 

INTRODUCED BY:

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Report Title:

PUC; Certificate of Public Convenience and Necessity; Water Carriers

 

Description:

Clarifies that the public utilities commission may make a finding of public convenience and necessity and may issue a certificate regardless of whether the evidence in the record indicates that the issuance of the certificate would diminish an existing water carrier's ability to realize its allowed rate of return or if the certificate would allow an applicant to serve only high-margin or high-profit ports or lines of service that are currently served by an existing carrier.  Effective 7/1/18.

 

 

 

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