Report Title:

Electric Utilities; Fuel Mix Disclosure

 

Description:

Requires retail suppliers of electricity to annually disclose information on the fuel mix of the electricity services they sell to customers. (HB740 HD1)

 

HOUSE OF REPRESENTATIVES

H.B. NO.

740

TWENTY-FIRST LEGISLATURE, 2001

H.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to public utilities.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that there is a need to increase consumer awareness of retail electric services and the fuel choices made by the electric utilities operating in Hawaii. Pursuant to chapter 196D, Hawaii Revised Statutes, the department of business, economic development, and tourism annually issues reports on the fuel mix of Hawaii's electricity generation system in the "Energy Resource Coordinator's Annual Report". The legislature finds that Hawaii's utilities and other energy providers have been cooperative in providing detailed information on their fuel mix to the department.

The legislature finds that although this information is available through public documents, there is a need to more widely disseminate this information to the State's electricity consumers. Consumer disclosure ensures that retail electric consumers purchasing electric energy receive basic information about the characteristics associated with their electric service in a form that facilitates consumer understanding of retail electric energy service and the development of new services responsive to consumer preferences.

Accordingly, the purpose of this Act is to require retail suppliers in Hawaii to annually disclose information on the fuel mix of the electricity services they sell. This disclosure requirement is not intended to increase costs to utilities or rate payers.

SECTION 2. Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§269- Annual fuel mix disclosure. (a) Beginning June 1, 2003, and every June 1 thereafter, each retail supplier of electricity shall disclose fuel mix information by generation category to its existing and new retail electric customers. This information may be derived as necessary from fuel mix information that is annually provided by retail suppliers to the department of business, economic development, and tourism pursuant to chapter 196.

(b) The disclosure required under subsection (a) shall state the price of electricity expressed in a format that makes it possible for residential and small commercial customers to compare similar electricity products and services on a standard basis.

(c) The disclosure required by this section shall be:

(1) Printed either on the customer's bill or as a bill insert; provided that this disclosure requirement shall not:

(A) Require electric utilities to pay additional costs associated with mailing or postage; or

(B) Result in increased costs to rate payers; and

(2) Posted and updated on the supplier's internet website, if any.

(d) As used in this section, the term "fuel mix" means the actual or imputed sources of electricity sold to retail electric customers, expressed in terms of percentage contribution by resource category. The total fuel mix included in each disclosure shall total one hundred per cent."

SECTION 3. Work group. The public utilities commission shall:

(1) Convene a work group of interested parties, prior to the date of the first annual fuel mix reporting by retail suppliers, to suggest modifications, if any, to the disclosure requirements required in section 2 of this Act to:

(A) Ensure proper implementation and minimize implementation costs by improving information content, readability, uniformity, and consumer understanding, including establishing guidelines regarding how the fuel mix information will be calculated and reported by each retailer; and

(B) Ensure that no new costs for postage or any other areas are required for utilities to comply with the fuel mix disclosure requirements imposed by this Act;

(2) Invite interested parties, including the attorney general's office, representatives from utilities, consumer advocacy groups, and the environmental community, to participate in the activities of the work group;

(3) Coordinate the activities of the work group in developing the disclosure process to expedite the implementation of this program. The commission shall consult with the department of business, economic development, and tourism and the consumer advocate as may be necessary for the purposes of this Act; and

(4) Submit its findings and recommendations, including any proposed legislation containing suggested modifications, if any, to the disclosure requirements in section 2 of this Act and any other matters necessary to provide for the efficient implementation of this Act, to the legislature no later than December 1, 2002.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:

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