STAND. COM. REP. NO. 1871

Honolulu, Hawaii

, 2023

RE: S.B. No. 477

S.D. 1

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 477, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE PUBLIC UTILITIES COMMISSION,"

begs leave to report as follows:

The purpose of this measure is to require the Public Utilities Commission to complete its review and issue a decision on an application seeking approval for a merger, consolidation, acquisition, or other change of control:

(1) Within nine months from the date that a public utility, other than an investor-owned electric utility company, files its completed application; and

(2) Within twelve months from the date that an investor-owned electric utility company files its completed application.

Your Committee received testimony in support of this measure from Hawaiian Telcom. Your Committee received testimony in opposition to this measure from Blue Planet Foundation. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs and Public Utilities Commission.

Your Committee finds that under existing law, proposed mergers, consolidations, acquisitions, and other changes of control of a public utility must be approved by the Public Utilities Commission. This measure expedites the review process for these transactions.

Your Committee has amended this measure by:

(1) Specifying that the nine-month period or twelve-month period, as applicable, begins only after a completed application has been filed with the Public Utilities Commission;

(2) Requiring the Public Utilities Commission to establish standards for when an application may be deemed complete and specifying the process for objections and amendments to submitted applications;

(3) Allowing for the waiver or extension of the nine-month period or twelve-month period, as applicable;

(4) Changing the effective date to June 30, 3000, to encourage further discussion; and

(5) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

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 S.B. No. 477, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 477, S.D. 1, H.D. 1, and be placed on the calendar for Third Reading.

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

____________________________

MARK M. NAKASHIMA, Chair