§269-19 Merger and consolidation of public utilities.

476 words·~2 min read·/hi/chapter-269/269-19

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)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, unless:

(1)The sale, lease, assignment, mortgage, disposition, encumbrance, merger, or consolidation is done in accordance with subsection (b);

(2)The public utility is disposing a fully depreciated asset or property with a zero net book value; provided that the disposal:

(A)Is made to an unaffiliated entity; and

(B)Results in a zero or net reduction to the public utility's rate base; or

(3)The public utility is donating a fully depreciated asset or property with zero net book value to a charitable or nonprofit organization.

Every sale, lease, assignment, mortgage, disposition, encumbrance, merger, or consolidation that requires authorization from the public utilities commission under this subsection and is 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 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 unless otherwise approved by the public utilities commission for good cause shown.

For purposes of this subsection, "property" does not include real property. [L 1933, c 169, pt of §4; RL 1935, §7957; RL 1945, §4718; RL 1955, §104-18; HRS §269-19; am L 2008, c 7, §2; am L 2023, c 178, §1]

Case Notes

Section applies to lease of air space above land used by a public utility, and approval of commission must be obtained. 54 H. 402, 507 P.2d 755 (1973).

PUC did not fail to protect public interest with regard to HECO's contract for purchase of land in Heeia Kea. 64 H. 289, 639 P.2d 1103 (1982).

Unsecured obligation to make payments in future is not an encumbrance. 64 H. 289, 639 P.2d 1103 (1982).