Bill > SB996

This bill addresses challenges in renewable energy project financing by modifying Hawaii's utility regulations. The legislature recognizes that an investor-owned electric utility's recent downgrade to sub-investment-grade status is threatening renewable energy projects, particularly those by independent power producers and community-based renewable energy (CBRE) projects. Because these projects were originally bid with financing costs based on the utility's previous strong financial standing, the new higher interest rates (referred to as "high-yield credit") could make projects financially unviable. To address this, the bill authorizes the Public Utilities Commission (PUC) to approve incremental rate adjustments that account for these premium interest rates when determining electricity rates for non-fossil fuel generated electricity. Specifically, the bill amends existing law to explicitly allow the PUC to include "adjustments linked to premium interest rates for high yield credit" when establishing what constitutes a just and reasonable rate for renewable energy. This change aims to help renewable energy producers maintain project feasibility by potentially offsetting increased financing costs, thereby supporting Hawaii's goals of achieving 100% renewable energy portfolio standards, energy resilience, decarbonization, and energy equity. The bill will take effect immediately upon approval.

Business and Industry, Government Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=996&year=2025