Report Title:

Consumers

Description:

Amends the proposed maximum pre-tax wholesale price of regular unleaded gasoline by determining the baseline price according to the national spot price, as reported by the Oil Price Information Service; repeals the maximum pre-tax retail gasoline price; and establishes maximum pre-tax wholesale prices for mid-grade and premium gasoline and diesel fuel. (SD2)

THE SENATE

S.B. NO.

3193

TWENTY-SECOND LEGISLATURE, 2004

S.D. 2

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO CONSUMERS.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. In response to long-standing and serious concerns over the high price of gasoline in Hawaii, the legislature enacted Act 77, Session Laws of Hawaii 2002, which established maximum pre-tax wholesale and retail price limits on regular unleaded gasoline to be sold in the State, on a self-serve basis. The maximum price was to be determined on a weekly basis, based on the average of spot pipeline daily prices for regular unleaded gasoline for the markets of Los Angeles, San Francisco, and the Pacific Northwest. The limits were to become effective July 1, 2004.

The legislature finds that the spot pipeline prices for the markets of Los Angeles, San Francisco, and the Pacific Northwest may be too volatile and may not provide an appropriate basis for determining maximum gasoline prices for Hawaii. A more appropriate basis for determining maximum gasoline prices would be the national average spot price as reported by the Oil Price Information Service. The legislature also finds that it may be appropriate to set maximum pre-tax wholesale prices for mid-grade and premium gasoline and diesel fuel. Further, due to the small size and unusual characteristics of the fuel markets on the islands of Molokai and Lanai no price limits should be imposed at this time.

The legislature further finds that the problem of high gasoline prices is principally due to a lack of vigorous competition at the wholesale level among the members of the oligopoly that was acknowledged in the testimony and unsealed documents in Anzai v. Chevron et al. (the settled gasoline anti-trust lawsuit) and described in the study of fuel prices and legislative initiatives for the State of Hawaii, prepared by Stillwater Associates for the department of business, economic development, and tourism. For refiners, non-refiners, and jobbers at the wholesale level, gasoline is the primary source of profit. By contrast, there is far greater competition at the retail level where there are three hundred thirty-nine gasoline stations in Hawaii. Further, as stated on page 62 of the Stillwater Associates study, "Today, service stations in Hawaii derive revenues not just from the c-stores (convenience stores) that first replaced the service bays, but from multiple sources, ranging from car rentals to fast food, and discount stores to car washes." Many of these service stations will compete vigorously for gasoline sales by accepting lower margins on gasoline and diesel in order to bring in more customers for these other profitable products and services.

Accordingly, the legislature finds that it should be sufficient to limit the gasoline and diesel prices solely at the wholesale level in order to allow competition to flourish at the retail level.

The legislature further recognizes that the more remote gasoline and diesel retail markets on the islands of Kauai, Maui, and Hawaii are serviced by relatively small and middle sized jobbers. These jobbers lack the economies of scale that the refiners, non-refiners, and large jobbers enjoy. With a total statewide consumption of approximately five hundred million gallons of gasoline and diesel fuel annually, the legislature finds it appropriate that jobbers that service the smaller markets on Kauai, Maui, and Hawaii be given an added neighbor island wholesale adjustment factor.

The purposes of this Act are to:

(1) Change the baseline for determining maximum pre-tax wholesale gasoline prices by using the national average spot price reported by the Oil Price Information Service;

(2) Extend maximum pre-tax wholesale price limits to mid-grade and premium gasoline and to diesel fuel;

(3) Repeal the price limits on the sale of gasoline on the islands of Molokai and Lanai;

(4) Repeal the maximum pre-tax retail gasoline price; and

(5) Provide a neighbor island wholesale adjustment factor to qualified jobbers servicing the islands of Kauai, Maui, and Hawaii.

SECTION 2. Chapter 486H, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

"486H-A Maximum pre-tax wholesale price for the sale of diesel fuel; civil actions. (a) Notwithstanding any law to the contrary, no manufacturer, wholesaler, or jobber may sell diesel fuel to a dealer retail station, an independent retail station, or to another jobber or wholesaler on the islands of Oahu, Kauai, Maui, and Hawaii at a price above the maximum pre-tax wholesale prices established pursuant to subsection (b). The commission shall publish the maximum pre-tax wholesale prices by means that shall include the internet website for the State of Hawaii.

(b) On a weekly basis, the commission shall determine the maximum pre-tax wholesale price of diesel fuel for each island as follows:

(1) For the island of Oahu, the maximum pre-tax wholesale price of diesel fuel shall consist of the baseline price for diesel fuel, plus the location adjustment factor, and the marketing margin factor; and

(2) For the islands of Kauai, Maui, and Hawaii, the maximum pre-tax wholesale price of diesel fuel shall consist of the maximum pre-tax wholesale price of diesel fuel for Oahu, plus, for qualified jobbers the neighbor island wholesale adjustment factor.

(c) The baseline price for diesel fuel referred to in subsection (b) shall be determined on a weekly basis and shall be equal to the national average spot price of diesel fuel published by the Oil Price Information Service or other comparable service such as the Lundberg survey, as determined by the commission, for the five business days of the preceding week.

(d) The location adjustment factor referred to in subsection (b) shall be $.04 per gallon for the first year after July 1, 2004, and shall thereafter be subject to annual adjustment pursuant to section 486H-16(a).

(e) The marketing margin factor referred to in subsection (b) shall be $.18 per gallon for the first year after July 1, 2004, and shall thereafter be subject to annual adjustment pursuant to section 486H-16(a).

(f) The neighbor island wholesale adjustment factor for qualified jobbers shall be the sum of the neighbor island location adjustment factor, plus the neighbor island marketing factor.

(g) The neighbor island location adjustment factor shall be $.04 per gallon for the first year after July 1, 2004, and shall thereafter be subject to annual adjustment pursuant to section 486H-16(a).

(h) The neighbor island marketing factor shall be $.04 per gallon for the first year after July 1, 2004, and shall thereafter be subject to annual adjustment pursuant to section 486H-16(a).

(i) Any manufacturer, wholesaler, or jobber who knowingly violates any requirement imposed or rule adopted under this section shall be subject to a civil penalty, for each violation, equal to three times the amount of the overcharge or $250,000, whichever is greater, and shall be liable for the costs of the action and reasonable attorney's fees as determined by the court. Within two years from the date the commission obtains actual knowledge of the violation, the commission may institute a civil action in a court of competent jurisdiction to collect the civil penalty, the costs, and attorney's fees. In the case of ongoing violation, the two-year period shall start from the date of the last violation. The commission may refer any such action to the attorney general as it deems appropriate. As used in this subsection, "overcharge" means the number of gallons of diesel fuel sold, times the wholesale price at which the manufacturer or jobber sold diesel fuel to a dealer retail station, less taxes assessed, less the maximum pre-tax wholesale price established pursuant to subsection (b).

(j) The commission shall have the power to determine the extent to which a manufacturer, wholesaler, or jobber is complying with any requirement imposed or rule adopted under this section, including the power to compel a manufacturer, wholesaler, or jobber to submit documents, data, and information necessary and appropriate for the commission to determine that compliance. The commission may use data collected by the department of business, economic development, and tourism pursuant to chapter 486J, as well as obtain the assistance of that department in determining such compliance.

(k) Anything to the contrary notwithstanding, the maximum pre-tax wholesale price limit for diesel fuel shall not apply to biodiesel fuel that is refined in the State and is not primarily petroleum based.

(l) For purposes of this section, a "qualified jobber" shall be any jobber that:

(1) Is a non-refiner that participates in the distribution of gasoline and diesel fuel on the islands of Kauai, Maui, or Hawaii, sells gasoline and diesel fuel at the wholesale or retail level, and has a combined total gallonage sale of gasoline and diesel fuel of less than forty million gallons annually or a combined total gallonage sale of gasoline and diesel fuel that is less than eight per cent of the total gasoline and diesel fuel sold in the State annually; and

(2) Is certified as a qualified jobber by the commission, upon the submittal and approval of an application, the form, content, and filing deadline of which shall be determined by the commission, by December 31 of any year in which the jobber intends to qualify as a qualified jobber for the following year.

486H-B Provisions not to be used as a defense. No requirement or provision contained in this chapter may be used by any person, including any manufacturer, wholesaler, jobber, or retail dealer of petroleum products, as a defense in any action brought pursuant to this chapter or chapter 480."

SECTION 3. Section 486H-13, Hawaii Revised Statutes, is amended to read as follows:

"[[]486H-13[]] Maximum pre-tax wholesale price for the sale of gasoline; civil actions. (a) Notwithstanding any law to the contrary, no manufacturer, wholesaler, or jobber may sell regular unleaded, mid-grade, or premium gasoline to a dealer retail station, an independent retail station, or to another jobber or wholesaler on the islands of Oahu, Kauai, Maui, and Hawaii at a price above the maximum pre-tax wholesale prices established pursuant to subsection (b). The commission shall publish the maximum pre-tax wholesale prices by means that shall include the [Internet] internet website for the State of Hawaii.

(b) On a weekly basis, the commission shall determine the maximum pre-tax wholesale price of regular unleaded, mid-grade, and premium gasoline for each island as follows:

(1) For the island of Oahu, the maximum pre-tax wholesale price of regular unleaded gasoline shall consist of the baseline price for regular unleaded gasoline, plus the location adjustment factor[,] and the marketing margin factor[;], and for mid-grade and premium gasoline, the additional mid-grade and premium adjustment factor; and

(2) For the islands of Kauai, [Molokai, Lanai,] Maui, and Hawaii, the maximum pre-tax wholesale price of regular unleaded, mid-grade, and premium gasoline shall consist of the maximum pre-tax wholesale price of regular unleaded, mid-grade, and premium gasoline for Oahu, plus, for qualified jobbers, the neighbor island wholesale adjustment factor.

(c) The baseline price for regular unleaded gasoline [for Oahu] referred to in subsection (b) shall be determined on a weekly basis[,] and shall be equal to the national average [of:

(1) The spot pipeline daily price for regular unleaded gasoline for Los Angeles;

(2) The spot pipeline daily price for regular unleaded gasoline for San Francisco; and

(3) The spot daily price for the Pacific Northwest,]

spot price for regular unleaded gasoline as reported and published by the Oil Price Information Service or other comparable service such as the Lundberg survey, as determined by the commission, for the five business days of the preceding week.

(d) The location adjustment factor referred to in subsection (b) shall be $.04 per gallon for the first year after July 1, 2004, and shall thereafter be subject to annual adjustment pursuant to section 486H-16(a).

(e) The marketing margin factor referred to in subsection (b) shall be $.18 per gallon for the first year after July 1, 2004, and shall thereafter be subject to annual adjustment pursuant to section 486H-16(a).

(f) The neighbor island wholesale adjustment factor for qualified jobbers shall be the sum of the neighbor island location adjustment factor, plus the neighbor island marketing factor.

(g) The neighbor island location adjustment factor shall be $.04 per gallon for the first year after July 1, 2004, and shall thereafter be subject to annual adjustment pursuant to section 486H-16(a).

(h) The neighbor island marketing factor shall be $.04 per gallon for the first year after July 1, 2004, and shall thereafter be subject to annual adjustment pursuant to section 486H-16(a).

(i) The mid-grade adjustment factor shall be $.03 per gallon for the first year after July 1, 2004, and shall thereafter be subject to annual adjustments pursuant to section 486H-16(a).

(j) The premium adjustment factor shall be $.06 per gallon for the first year after July 1, 2004, and shall be thereafter be subject to annual adjustments pursuant to section 486H-16(a).

[(i)] (k) Any manufacturer, wholesaler, or jobber who knowingly violates any requirement imposed or rule adopted under this section shall be subject to a civil penalty, for each [such] violation, [which penalty shall be] equal to three times the amount of the overcharge[,] or $250,000, whichever is greater, and shall be liable for the costs of the action[,] and reasonable attorney's fees as determined by the court. Within two years from the date the commission obtains actual knowledge of the violation, the commission may institute a civil action in a court of competent jurisdiction to collect the civil penalty, the costs, and attorney's fees. In the case of ongoing violation, the two-year period shall start from the date of the last violation. The commission may refer any such action to the attorney general as it deems appropriate. As used in this subsection, "overcharge" means the number of gallons of gasoline sold, times the wholesale price at which the manufacturer or jobber sold regular unleaded, mid-grade, or premium gasoline to a dealer retail station, less taxes assessed, less the maximum pre-tax wholesale price established pursuant to subsection (b).

[(j)] (l) The commission shall have the power to determine the extent to which a manufacturer, wholesaler, or jobber is complying with any requirement imposed or rule adopted under this section, including the power to compel a manufacturer, [[]wholesaler,[]] or jobber to submit documents, data, and information necessary and appropriate for the commission to determine such compliance. The commission may use data collected by the department of business, economic development, and tourism pursuant to chapter 486J, as well as obtain the assistance of that department in determining such compliance.

[(k) The commission shall adopt rules pursuant to chapter 91 as may be necessary to implement this section.]

(m) For purposes of this section, a "qualified jobber" shall be any jobber that:

(1) Is a non-refiner that participates in the distribution of gasoline and diesel fuel on the islands of Kauai, Maui, or Hawaii, sells gasoline and diesel fuel at the wholesale or retail level, and has a combined total gallonage sale of gasoline and diesel fuel of less than forty million gallons annually or a combined total gallonage sale of gasoline and diesel fuel that is less that eight per cent of the total gasoline and diesel fuel sold in the State annually; and

(2) Is certified as a qualified jobber by the commission, upon the submittal and approval of an application, the form, content, and filing deadline of which shall be determined by the commission, by December 31 of any year in which the jobber intends to qualify as a qualified jobber for the following year."

SECTION 4. Section 486H-14, Hawaii Revised Statutes, is repealed.

["[486H-14] Maximum pre-tax retail price for gasoline sold on a self-serve basis; civil actions. (a) Notwithstanding any law to the contrary, no retail station may sell regular unleaded gasoline at retail, on a self-serve basis, at a price above the maximum pre-tax retail prices established pursuant to subsection (b). The commission shall publish the maximum pre-tax retail prices by means that shall include the Internet website for the State of Hawaii. The commission may also publish the retail prices inclusive of all taxes.

(b) On a weekly basis, the commission shall determine the maximum pre-tax retail price of gasoline. The maximum pre-tax retail price for regular unleaded gasoline shall consist of the maximum pre-tax wholesale price for regular unleaded gasoline established pursuant to section 486H-13(b), plus a retail marketing margin factor.

(c) The retail marketing margin factor shall be $.16 per gallon for the first year, and shall thereafter be subject to adjustment pursuant to section 486H-16(b).

(d) Any retail station that knowingly violates any requirement imposed or rule adopted under this section shall be subject to a civil penalty equal to three times the amount of the overcharge or $25,000, whichever is greater, and shall be liable for the costs of the action, and reasonable attorney's fees as determined by the court. Within two years from the date the commission obtains actual knowledge of the violation, the commission may institute a civil action in a court of competent jurisdiction to collect the civil penalty, the costs, and the attorney's fees. In the case of ongoing violation, the two-year period shall start from the date of the last violation. The commission may refer any such action to the attorney general as it deems appropriate. As used in this subsection, "overcharge" means the number of gallons of gasoline sold, times the retail price at which the retail station sold regular unleaded gasoline, less taxes assessed, less the maximum pre-tax retail price established pursuant to subsection (b).

(e) The commission shall have the power to determine the extent to which a retail station is complying with any requirement imposed or rule adopted under this section, including the power to compel a retail station to submit documents, data, and information necessary and appropriate for the commission to determine such compliance. The commission may use data collected by the department of business, economic development, and tourism pursuant to chapter 486J, as well as obtain the assistance of such department in determining such compliance.

(f) The commission shall adopt rules pursuant to chapter 91 as may be necessary to implement this section."]

SECTION 5. Section 486H-15, Hawaii Revised Statutes, is amended to read as follows:

"[[]486H-15[]] Governor's emergency powers. (a) Notwithstanding any law to the contrary, the governor may suspend in whole or in part[,] section 486H-A, section 486H-13, [section 486H-14,] or any rule adopted pursuant to those sections whenever the governor issues a written determination that strict compliance with any section or a rule will cause a major adverse impact on the economy, public order, or the health, welfare, or safety of the people of Hawaii. In the written determination, the governor shall state the specific section or rule that strict compliance with will cause a major adverse impact on the economy, public order, or the health, welfare, or safety of the people of the State, along with specific reasons for that determination. The governor shall publish this determination in accordance with section 1-28.5. The suspension shall take effect upon issuance of the written determination by the governor.

(b) Except as provided in subsection (c), the suspension under subsection (a) shall remain in effect until the earlier of:

(1) The adjournment of the next regular or special session of the legislature; or

(2) The effective date of any legislative enactment intended to address the major adverse impact;

provided that if the legislature has enacted legislation to address the major adverse impact, and the governor vetoes the legislation, the suspension shall terminate on the date of that veto, and the pre-tax maximum wholesale [price] gasoline prices or the pre-tax maximum [retail] wholesale diesel fuel price in effect immediately prior to the issuance of the written determination by the governor shall take effect on the day after the date of the veto; and provided further that if no action is taken by the legislature during the regular or special session to address the major adverse impact, then the pre-tax maximum wholesale [price] gasoline prices or the pre-tax maximum [retail] wholesale diesel fuel price in effect immediately prior to the issuance of the written determination by the governor shall take effect on the day after adjournment sine die of the regular or special session.

(c) If the written determination is issued while the legislature is in session, the suspension under subsection (a) shall remain in effect until the earlier of:

(1) The adjournment of that session of the legislature; or

(2) The effective date of any legislative enactment intended to address the major adverse impact;

provided that if the legislature has enacted legislation to address the major adverse impact, and the governor vetoes the legislation, the suspension shall terminate on the date of that veto, and the pre-tax maximum wholesale [price] gasoline prices or the pre-tax maximum [retail] wholesale diesel fuel price in effect immediately prior to the issuance of the written determination by the governor shall take effect on the day after the date of the veto; and provided further that if no action is taken by the legislature during the regular or special session to address the major adverse impact, then the pre-tax maximum wholesale [price] gasoline prices or the pre-tax maximum [retail] wholesale diesel fuel price in effect immediately prior to the issuance of the written determination by the governor shall take effect on the day after adjournment sine die of the regular or special session."

SECTION 6. Section 486H-16, Hawaii Revised Statutes, is amended to read as follows:

"[[]486H-16[]] Adjustments. (a) A manufacturer, wholesaler, or jobber may petition the commission to adjust the maximum pre-tax wholesale price of regular unleaded, mid-grade, or premium gasoline or the maximum pre-tax wholesale price of diesel fuel in the event of a change in the value of the baseline price for regular unleaded gasoline[,] or the baseline price for diesel fuel, the location adjustment factor, the marketing margin factor, [or] the neighbor island wholesale adjustment factor[.], the mid-grade adjustment factor, or the premium adjustment factor. The petitioner shall bear the burden of proof to establish by clear and convincing evidence the need for and the amount of any adjustment. The adjustments shall be determined as follows:

(1) The value of the baseline price for regular unleaded gasoline or the baseline price for diesel fuel shall be equal to the national average [of:

(A) The spot pipeline daily price for regular unleaded gasoline for Los Angeles;

(B) The spot pipeline daily price for regular unleaded gasoline for San Francisco; and

(C) The spot daily price for the Pacific Northwest,]

spot price for regular unleaded gasoline or the national average spot price for diesel fuel as reported and published by the Oil Price Information Service or other comparable service such as the Lundberg survey, as determined by the commission, for the five business days of the preceding week;

(2) The value of the location adjustment factor in effect at the time the petition is filed shall be adjusted to equal the average of the actual acquisition cost to non-refiner marketers to obtain gasoline or diesel fuel from refiners or importers for sale on the island of Oahu over the prior twelve-month period, which cost shall be taken from arm's length transactions between non-refiner marketers, and refiners or importers, such as exchange agreements, sales agreements, or other similar agreements; provided that the location adjustment factor shall not exceed the reasonable cost of importing gasoline or diesel fuel to the island of Oahu. As used in this paragraph, "actual acquisition cost" means the amount over the base price of regular unleaded gasoline or diesel fuel that a non-refiner marketer pays to a third party for delivery of [such] the gasoline or diesel fuel into a terminal located on the island of Oahu;

(3) The value of the marketing margin factor in effect at the time the petition is filed shall be adjusted by adding to such value the difference between:

(A) The average of the difference over the prior twelve-month period between:

(i) The dealer tank wagon price for sales for resale; and

(ii) The bulk price for sales for resale, for Petroleum Administration for Defense (PAD) District V,

as reported and published by the Energy Information Administration or its successor in Table 31 - "Motor Gasoline Prices by Grade, Sales Type, PAD District, and State" or other source containing the same information; less

(B) The average of the difference over the period from 1994 until the most current year between:

(i) The dealer tank wagon price for sales for resale; and

(ii) The bulk price for sales for resale, for Petroleum Administration for Defense (PAD) District V,

as reported and published by the Energy Information Administration or its successor in Table 31 - "Motor Gasoline Prices by Grade, Sales Type, PAD District, and State" or other source containing the same information;

(4) The value of the neighbor island location adjustment factor in effect at the time the petition is filed shall be adjusted to equal the actual acquisition cost to non-refiner marketers to obtain gasoline or diesel fuel from a refiner or importer for sale on the island of Kauai, [Molokai, Lanai,] Maui, or Hawaii, over the prior twelve-month period, which cost shall be taken from arm's length transactions between non-refiner marketers, and refiners or importers, such as exchange agreements, sales agreements, or other similar agreements; provided that the neighbor island location adjustment factor shall not exceed the reasonable cost of importing gasoline or diesel fuel to the island of Kauai, [Molokai, Lanai,] Maui, or Hawaii, from any port on the island of Oahu. As used in this subsection, "actual acquisition cost" means the amount over the base price of regular unleaded gasoline or diesel fuel that a non-refiner marketer [[]pays[]] to a third party for delivery of [such] the gasoline or diesel fuel into a terminal located on Kauai, [Molokai, Lanai,] Maui, or Hawaii; and

(5) The value of the neighbor island marketing factor in effect at the time the petition is filed shall be adjusted if there are material changes in the cost factors associated with marketing gasoline or diesel fuel on the island of Kauai, [Molokai, Lanai,] Maui, or Hawaii, such as terminaling, storage, or distribution costs.

(6) The value of the mid-grade and the premium adjustment factors in effect at the time the petition is filed shall be adjusted by any increase in the mid-grade and premium adjustment factors as published by the Means of Platt Singapore.

[(b) A retail station may petition the commission to adjust the maximum pre-tax retail price of gasoline in the event of a change in the maximum pre-tax wholesale price for regular unleaded gasoline, or the value of the retail marketing margin factor. The petitioner shall bear the burden of proof to establish by clear and convincing evidence the need for and the amount of any adjustment. The adjustment shall be determined as follows:

(1) The value of the retail marketing margin factor for regular unleaded gasoline established in section 486H-14(c) shall be adjusted upward only if such value is less than the average of the difference over the prior twelve-month period between:

(A) The "through retail outlets" price for sales to end users for regular unleaded gasoline; and

(B) The dealer tank wagon price, for sales for resale for regular unleaded gasoline, for Petroleum Administration for Defense (PAD) District V,

as reported and published by the Energy Information Administration or its successor in Table 31 - "Motor Gasoline Prices by Grade, Sales Type, PAD District, and State" or other source containing the same information.

(c)] (b) If the commission adjusts the maximum pre-tax wholesale [price] gasoline prices or the maximum pre-tax [retail price of regular unleaded gasoline,] wholesale diesel fuel price, the commission shall publish its findings and the adjusted prices by means that shall include the [Internet] internet website for the State of Hawaii.

[(d)] (c) In its discretion and without a petition having been filed, the commission may adjust the maximum pre-tax wholesale [price] gasoline prices or the maximum pre-tax [retail price of regular unleaded gasoline] wholesale diesel fuel price if an adjustment is necessary as a result of a change in the value of the baseline price for regular unleaded gasoline[,] or for diesel fuel, the location adjustment factor, the marketing margin factor, the neighbor island wholesale adjustment factor, [or the retail marketing margin factor.] the mid-grade adjustment factor, or premium adjustment factor.

[(e)] (d) Nothing in section 486H-A or section 486H-13 [or 486H-14] shall be construed to prohibit the filing of a petition during the first year after July 1, 2004."

SECTION 7. There is appropriated out of the general revenues of the State of Hawaii the sum of $       , or so much thereof as may be necessary for fiscal year 2004-2005, to carry out the purposes of this Act, including the hiring of necessary staff. The sum appropriated shall be expended by the public utilities commission.

SECTION 8. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 10. This Act shall take effect on July 1, 2004.