STAND. COM. REP. NO.  1343

Honolulu, Hawaii

                , 2007

RE:   S.B. No. 1717

      S.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committees on Economic Development & Business Concerns and Energy & Environmental Protection, to which was referred S.B. No. 1717, S.D. 1, entitled:

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

beg leave to report as follows:

The purpose of this bill is to reduce the cost of electric utility capital improvement projects by authorizing the issuance of special purpose revenue bonds, not to exceed $400,000,000, for capital improvement projects of Hawaiian Electric Company, Inc.; Maui Electric Company, Limited; and Hawaii Electric Light Company, Inc.

     Hawaiian Electric Company, Inc., Maui Electric Company, Limited, and Hawaii Electric Light Company, Inc., supported the bill.

Your Committees heard testimony that the overall savings over the 30-year life of the special purpose revenue bonds would be $25,000,000, which will result in lowered rates for consumers.  Your Committees respectfully refer to the Committee on Finance, a question that was raised as to whether there is any ceiling on the total amount of bonds of this type that may be issued.

     As affirmed by the records of votes of the members of your Committees on Economic Development & Business Concerns and Energy & Environmental Protection that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1717, S.D. 1, and recommend that it pass Second Reading and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Economic Development & Business Concerns and Energy & Environmental Protection,

____________________________ HERMINA MORITA, Chair

____________________________ KYLE T. YAMASHITA, Chair