Bill > HB974

This bill addresses the development of clean energy resources in Hawaii by establishing a mechanism to ensure reliable payment to independent power producers, particularly in light of the financial challenges faced by an investor-owned electric utility following the 2023 Maui wildfires. The legislation requires the Department of Budget and Finance to enter into "step-in agreements" that will guarantee payment to power producers if the electric utility defaults on its contractual obligations. A new Power Purchase Costs Trust Fund will be created, funded by on-bill charges and reserve fees, which will be held in trust and used to make payments to independent power producers. The bill empowers the electric utility to serve as a billing and collection agent for these payments and allows for a utility-wide surcharge to establish a reserve account. The step-in agreements are designed to provide financial assurances that will help maintain Hawaii's progress toward its goals of 100% renewable electricity by 2045 and a zero-emissions economy, while protecting electric utility customers from potential disruptions in energy supply and potential price increases resulting from perceived credit risks.

Agriculture and Natural Resources, Budget and Finance, Government Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=974&year=2026