STAND. COM. REP. NO. 63

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1287
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Energy and Environmental Protection, to
which was referred H.B. No. 1287 entitled: 

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

begs leave to report as follows:


     The purpose of this bill is to reduce the gas rates for the
general public by authorizing the issuance of special purpose
revenue bonds for The Gas Company, a division of Citizens
Utilities Company.

     According to The Gas Company, the bonds will be used to
finance capital improvements to its underground transmission and
distribution pipeline system, including repair and maintenance
and expansion to capture new business.

     The Gas Company and the Consumer Advocate of the Department
of Commerce and Consumer Affairs testified in support of this
measure.

     As affirmed by the record of votes of the members of your
Committee on Energy and Environmental Protection that is attached
to this report, your Committee is in accord with the intent and
purpose of H.B. No. 1287 and recommends that it pass Second
Reading and be referred to the Committee on Consumer Protection
and Commerce.

 
 
                                 STAND. COM. REP. NO. 63
                                 Page 2

 
                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Energy and
                                   Environmental Protection,



                                   ______________________________
                                   HERMINA M. MORITA, Chair