Bill Text: HI HB1566 | 2017 | Regular Session | Amended
Bill Title: Relating To The Public Utilities Commission.
Spectrum: Partisan Bill (Democrat 8-0)
Status: (Engrossed - Dead) 2017-03-09 - Referred to CPH, WAM. [HB1566 Detail]
Download: Hawaii-2017-HB1566-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1566 |
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TWENTY-NINTH LEGISLATURE, 2017 |
H.D. 2 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO THE PUBLIC UTILITIES COMMISSION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The public utilities commission has recently opined that: "Since HRS §269-19 does not contain specific criteria or standards for the commission to consider in the transfer or assignment of a franchise, the commission historically, in its review of applications for the sale of public utility assets and the transfers of certificates of public convenience and necessity (CPCN) and franchises, pursuant to HRS §269-19, has utilized the same standards of review found at HRS §269-7.5 for guidance, to wit, that the applicant is "fit, willing, and able properly to 'perform the service proposed.'""
However, the consumer advocate noted that other mergers of major utilities have reached settlement agreements stipulating that a "substantial net benefit" exists for the merger. The legislature finds that there is a need to implement public policy guidelines regarding the "substantial net benefit" standard that are flexible enough to address the unique character of each merger transaction.
The legislature finds that rather than review the NextEra proceedings and begin with a proposal for takeover under a status quo "no net harm" standard, future merger proceedings should begin under a commission defined standard of substantial net benefit and as such may help prospective utilities produce a viable deal better in line with consumer interests and save significant time and cost, and will ensure the interests of the people are made a priority.
The purpose of this Act is to adopt "substantial net benefit" as the standard for a merger involving an electric public utility and allow the public utilities commission to establish reasonable criteria to determine whether a "substantial net benefit" exists in any proposed merger involving an electric public utility.
SECTION 2. Section 269-19, Hawaii Revised Statutes, is amended to read as follows:
"§269-19 Merger and consolidation of
public utilities. (a) Except as provided in subsection (b), no public
utility shall sell, lease, assign, mortgage, or otherwise dispose of or
encumber the whole or any part of its road, line, plant, system, or other
property necessary or useful in the performance of its duties to the public, or
any franchise or permit, or any right thereunder, nor by any means, directly or
indirectly, merge or consolidate with any other public utility without first
having secured from the public utilities commission an order authorizing it so
to do. Every [such] sale, lease, assignment, mortgage, disposition,
encumbrance, merger, or consolidation[,] made other than in accordance
with the order of the commission shall be void.
(b) A public utility, under circumstances that it deems exigent and in its judgment require a response that rapidly restores one of its customers to normal, or near normal, operating status in order to prevent serious disruption of essential public services, or to avoid serious risk to public safety, or to mitigate severe economic losses to that customer, may transfer, assign, or otherwise dispose of its property without prior approval from the public utilities commission as required in subsection (a); provided that in so doing:
(1) The public utility does not unduly hinder or degrade the public utility's operation with respect to its services or other customers;
(2) The public utility is duly compensated for its property; and
(3) The public utility reports in detail to the
public utilities commission within thirty days of any [such action] transfer,
assignment, or other disposal of property, unless otherwise approved by the
public utilities commission for good cause shown.
For purposes of this subsection, "property" does not include real property.
(c) The specific standard for the public utilities commission to consider in any merger involving an electric public utility shall be substantial net benefit. The public utilities commission may establish reasonable criteria to determine whether a substantial net benefit exists for any merger involving an electric public utility."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on January 28, 2081.
Report Title:
Public Utilities Commission; Merger
Description:
Establishes "substantial net benefit" as the public utilities commission's standard for a merger involving an electric public utility and allows the commission to establish reasonable criteria to determine whether a "substantial net benefit" exists in a proposed merger involving an electric public utility. (HB1566 HD2)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
