Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1535, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to authorize the issuance of special purpose revenue bonds to assist electric companies in financing multi-project capital improvement programs. Specifically, this bill proposes to authorize the issuance of $160,000,000 in special purpose revenue bonds, as follows:

(1) $100,000,000 for Hawaiian Electric Company, Inc. (HECO);

(2) $20,000,000 for Maui Electric Company, Ltd. (MECO); and

Testimony in support of this bill was received from the Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs, HECO, MECO, and HELCO.

Your Committee finds that issuing tax-exempt revenue bonds to assist electric companies in financing their capital improvement programs will result in savings for the companies that can be passed on to consumers in the form of lower electric power rates.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1535, H.D. 1, and recommends that it be referred to the Committee on Finance.