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Bill > HB339


HI HB339

Relating To Electric Utilities.


summary

Introduced
01/17/2025
In Committee
02/14/2025
Crossed Over
Passed
Dead

Introduced Session

2025 Regular Session

Bill Summary

Part I: Requires the Public Utilities Commission to impose certain conditions of approval on any order approving, in whole or in part, an application for the proposed acquisition, merger, or consolidation of an electric utility company by an acquiring entity. Establishes a process to ensure that when an electric utility is subject to an application for a proposed acquisition, merger, or consolidation by a potential acquiring entity that is an investor-owned utility and seeks approval of the application from the Public Utilities Commission, it must demonstrate that it solicited bids from potential acquiring entities that operate under a non-investor-owned utility ownership model. Requires the electric utility to submit those acceptable bids concurrently with an application by a potential acquiring entity that is an investor-owned utility. Part II: Authorizes the issuance of reimbursable GO bonds for acquiring Hawaiian Electric Industries and converting it to a publicly owned utility. Authorizes the establishment of a non-bypassable electric utility conversion charge, to be deposited into the new Electric Utility Conversion Special Fund. Appropriates Funds. Effective 7/1/3000. (HD2)

AI Summary

This bill addresses the regulation of electric utility acquisitions, mergers, and consolidations in Hawaii, with two primary objectives. First, it establishes new requirements for the Public Utilities Commission (PUC) when reviewing potential electric utility acquisitions, mandating that any acquiring entity must preserve existing power purchase agreements with independent power producers, maintain current collective bargaining agreements, and retain employees without causing undue workforce reductions. Second, the bill proposes a significant transformation by authorizing the state to issue $1 billion in general obligation bonds to acquire Hawaiian Electric Industries and convert it from an investor-owned utility to a publicly owned utility. The legislation requires electric utilities to solicit and consider bids from non-investor-owned entities (such as cooperatives or non-profit organizations) when an acquisition is proposed, ensuring that alternative ownership models are evaluated. The bill reflects legislative concerns that investor-owned utilities prioritize shareholder profits over long-term infrastructure investment and customer affordability, and aims to align the utility's operations more closely with Hawaii's renewable energy goals and community interests. To fund this potential acquisition, the bill creates an electric utility conversion special fund and authorizes a nonbypassable charge that would be used to reimburse the state for the bonds, with the ultimate goal of transitioning to a publicly owned utility model that potentially offers lower rates, greater reliability, and stronger local control over energy policy.

Committee Categories

Agriculture and Natural Resources, Budget and Finance, Business and Industry

Sponsors (1)

Last Action

Report adopted; referred to the committee(s) on FIN as amended in HD 2 with Representative(s) Amato, Pierick voting aye with reservations; none voting no (0) and Representative(s) Cochran, Matayoshi, Poepoe, Ward excused (4). (on 02/14/2025)

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