STAR-BULLETIN FILE Utility poles, like these in Lanikai, would prove costly to vandals in case of damage.

Insurers, Verizon debate
bill on utility damages

The measure seeks to double
the repair costs for those who
harm lines or facilities

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By Bruce Dunford
Associated Press

Lobbyists for the insurance industry and the telephone company squared off at the Legislature on Wednesday over a measure to assess twice the amount of repair costs to anyone who recklessly damages utility lines or facilities.

The measure up for approval by the Senate Judiciary Committee on Monday originally called for treble (triple) damages from anyone who carelessly caused damage to a utility, above or below ground.

The Commerce and Consumer Protection Committee narrowed that to double the repair costs, exempted cases involving traffic accidents and limited an insurance company's liability to the basic repair costs.

Paul Oshiro of Verizon Hawaii said damages to utility lines can disrupt the lives of thousands of customers for hours if not days.

"By requiring the reimbursement of two times the cost of damages sustained to public facilities for willful, intentional or reckless actions this bill will encourage the exercise of greater care to protect against such damages," Oshiro said.

The bill would discourage contractors from "taking a chance that digging will miss underground facilities," he said.

Fewer damages that result in piecemeal replacements that shorten the efficiency and life of the network will result in lower costs to the consumer, Oshiro said.

Paul Ables of the Hawaii Insurers Council said the bill isn't fair because it creates a special class "entitled to recovery greater than actual losses."

Although the latest draft of the bill only requires insurance companies to cover the actual losses, if the individual causing the damage can't pay, the courts may mandate the insurance company to pay, he said.

"Court decisions in Hawaii have mandated extended coverage by property and casualty insurers where there was none, and when this happens these costs are eventually passed on to consumers," Ables said. "Large damage awards paid by insurers do little to deter the behavior of the person causing the damage."

Steven Golden of The Gas Company supported the measure, saying it would encourage contractors to work with utility firms through their Hawaii Call Before You Dig Committee created in 1998.

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