STAND. COM. REP. NO. 1353

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.C.R. No. 148
                                        S.D. 1




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

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred S.C.R. No. 148 entitled:

     "SENATE CONCURRENT RESOLUTION REQUESTING THE PUBLIC
     UTILITIES COMMISSION TO OPEN A DOCKET FOR THE PURPOSE OF
     CONDUCTING A THOROUGH EVALUATION OF THE ALLEGED NEED FOR THE
     HAWAIIAN ELECTRIC COMPANY'S PROPOSED KAMOKU-PUKELE 138,000
     VOLT ELECTRIC TRANSMISSION LINE PROJECT IN HONOLULU,"

begs leave to report as follows:

     The purpose of this measure is to request the Public
Utilities Commission (PUC) to open a separate docket to consider
whether a need exists for the construction of the proposed
Kamoku-Pukele 138,000 volt transmission line before all other
issues raised by this project are considered.

     Na Leo Pohai, Life of the Land and several individuals
presented testimony in support of the measure.  The State Public
Utilities Commission, the Division of Consumer Advocacy and
Hawaiian Electric Company presented testimony in opposition to
the measure.  Although not present at the hearing, sixteen
individuals submitted written testimony in support of the
measure.

     Your Committee finds that the proposed Kamoku-Pukele 138,000
volt transmission line project was first proposed in 1971 to
include overhead lines along Palolo Avenue.  It was challenged in
the courts by a group of Palolo Valley residents.  The lawsuit
was settled in 1980 when it was agreed the Palolo Avenue line

 
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would be placed underground.  However the Palolo line was never
constructed.  In 1992 and 1995, the project was proposed again.
Under that proposal, now in its Final Environmental Impact
Statement stage, the transmission line would run through a
Conservation District and State Recreation Area on Wa'ahila
Ridge.  This proposal has raised grave concerns among the several
affected communities.

     Your Committee believes that the issue of need for the
proposed project has never been adequately addressed or expressly
evaluated by the PUC, and should be clearly defined before the
PUC addresses any formal application for the construction of the
proposed Kamoku-Pukele line.

     Your Committee has amended this measure to: 

     (1)  Request the PUC bifurcate the Kamoku-Pukele docket, if
          it is opened, so that the issue of need for the project
          is first resolved prior to consideration of other
          issues;

     (2)  Request the PUC to recess the docket for ninety days,
          if it determines that a need exists for the proposed
          project;

     (3)  Amend the title to conform to the above amendments; and

     (3)  Make technical, non-substantive amendments.

     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to
this report, your Committee concurs with the intent and purpose
of S.C.R. No. 148, as amended herein, and recommends that it be
referred to the Committee on Ways and Means, in the form attached
hereto as S.C.R. No. 148, S.D. 1.


 
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                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Commerce and
                                   Consumer Protection,



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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