Bill > SB897

This bill establishes a comprehensive framework for addressing wildfire-related costs and risks for electric utilities in Hawaii. It allows electric cooperatives to recover wildfire mitigation, repair, and restoration costs through rate adjustments and requires the Public Utilities Commission (PUC) to initiate a proceeding to establish rules determining a maximum liability limit for economic damages from catastrophic wildfires. The bill creates a detailed process for electric utilities to securitize infrastructure resilience costs, which means they can issue bonds to finance wildfire mitigation and infrastructure improvements. The PUC must conduct studies on the balance between utility interests and compensation for wildfire victims, including exploring the potential establishment of a wildfire recovery fund. The legislation provides specific guidelines for how the PUC should approach setting liability limits, considering factors such as utility credit ratings, customer electricity rates, insurance market impacts, and state policy goals for clean energy and climate. Additionally, the bill appropriates funds for consultant contracts and expenses related to utility dockets and Maui wildfire response, with the total appropriations amounting to $2.6 million. The provisions are designed to help electric utilities manage wildfire-related financial risks while protecting ratepayers and maintaining utility service quality, and the bill is set to take effect on July 1, 2025.

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

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=897&year=2025