Bill > HB339

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.

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

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=339&year=2025