§269-19  Merger and consolidation of publicutilities.  (a)  Except as provided in subsection (b), no public utilityshall sell, lease, assign, mortgage, or otherwise dispose of or encumber thewhole or any part of its road, line, plant, system, or other property necessaryor useful in the performance of its duties to the public, or any franchise orpermit, or any right thereunder, nor by any means, directly or indirectly,merge or consolidate with any other public utility without first having securedfrom the public utilities commission an order authorizing it so to do.  Everysuch sale, lease, assignment, mortgage, disposition, encumbrance, merger, orconsolidation, made other than in accordance with the order of the commissionshall be void.

(b)  A public utility, under circumstances thatit deems exigent and in its judgment require a response that rapidly restoresone of its customers to normal, or near normal, operating status in order toprevent serious disruption of essential public services, or avoid serious riskto public safety, or to mitigate severe economic losses to that customer, maytransfer, assign, or otherwise dispose of its property without prior approvalfrom the public utilities commission as required in subsection (a); providedthat in so doing:

(1)  The public utility does not unduly hinder ordegrade the public utility's operation with respect to its services or othercustomers;

(2)  The public utility is duly compensated for itsproperty; and

(3)  The public utility reports in detail to thepublic utilities commission within thirty days of any such action unlessotherwise 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 apublic utility, and approval of commission must be obtained.  54 H. 402, 507P.2d 755.

  PUC did not fail to protect public interest with regard toHECO'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 anencumbrance.  64 H. 289, 639 P.2d 1103.

  Cited:  178 F. Supp. 637, 640.