§269-19  Merger and consolidation of public
utilities.  (a)  Except as provided in subsection (b), 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.  Every
such sale, lease, assignment, mortgage, disposition, encumbrance, merger, or
consolidation, 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]



 



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.



  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.



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



  Cited:  178 F. Supp. 637, 640.