STAND. COM. REP. NO.  410

Honolulu, Hawaii

                , 2015

RE:   H.B. No. 992

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Sir:

     Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 992 entitled:

"A BILL FOR AN ACT RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS TO ASSIST HAWAIIAN ELECTRIC COMPANY, INC., MAUI ELECTRIC COMPANY, LIMITED, AND HAWAII ELECTRIC LIGHT COMPANY, INC,"

begs leave to report as follows:

The purpose of this measure is to authorize the issuance of special purpose revenue bonds to assist local energy companies in the continuation of multi-project capital improvement programs.

Your Committee received testimony in support of this measure from Hawaiian Electric Company, Inc., Maui Electric Company, Limited, Hawaii Electric Light Company, Inc., and one individual.  Your Committee received testimony in opposition of this measure from five individuals.  Your Committee received comments on this measure from the Department of Budget and Finance.

     Your Committee finds that Hawaiian Electric Company, Inc., Maui Electric Company, Limited, and Hawaii Electric Light Company, Inc. provide most of the State's electric energy.  Your Committee believes that providing financial assistance to these companies to continue multi-project capital improvement programs that benefit the State is in the public interest and for the public health, safety, and general welfare.  Your Committee further finds that all projects to be financed by the proceeds from special purpose revenue bonds in this measure must first be approved by the Public Utilities Commission.

     Your Committee has amended this measure by replacing all amounts of authorized special purpose revenue bonds with unspecified amounts to facilitate further discussion.

Should the Committee on Finance decide to hear this measure, your Committee respectfully requests that it consider authorizing the issuance of up to $800,000,000 in special purpose revenue bonds for the purposes of this measure.  More specifically, your Committee requests that if special purpose revenue bonds are authorized for issuance, that the bonds are distributed as follows:

(1)  $700,000,000 for Hawaiian Electric Company, Inc.;

(2)  $75,000,000 for Maui Electric Company, Limited; and

(3)  $25,000,000 for Hawaii Electric Light Company, Inc.

     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. 992, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 992, H.D. 1, and be referred to the Committee on Finance.

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

____________________________

CHRIS LEE, Chair