STAND. COM. REP. NO. 586

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 813
                                        S.D. 2




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 813, S.D. 1, entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to authorize the issuance of
special purpose revenue bonds and refunding special purpose
revenue bonds to assist the gas utility in providing gas service
to the general public.

     Your Committee finds the authorization of special purpose
revenue bonds to assist The Gas Company, a division of Citizens
Utility Company, with necessary capital improvements will provide
a direct savings to consumers through lower interest costs to The
Gas Company.  Your Committee finds that authorizing not more than
$19,600,000 in special purpose revenue bonds will benefit the
State by providing financing for a qualified "energy project"
within the bounds of part VI, chapter 39A, Hawaii Revised
Statutes, that benefits the public interest.

     Your Committee has amended this bill by making technical,
nonsubstantive changes.


 
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                                   STAND. COM. REP. NO. 586
                                   Page 2


     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
813, S.D. 1, as amended herein, and recommends that it pass Third
Reading in the form attached hereto as S.B. No. 813, S.D. 2.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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