HOUSE OF REPRESENTATIVES

H.B. NO.

1504

TWENTY-EIGHTH LEGISLATURE, 2015

H.D. 2

STATE OF HAWAII

S.D. 1

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO ENERGY.

 

 

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

 


     SECTION 1.  The legislature finds that Hawaii's economy is dangerously dependent on the volatile prices of imported fossil fuels.  In order to provide security and stability for our local economy, we must end our reliance on imported fuels and decrease energy costs in the long-term.

     The legislature further finds that while Hawaii's energy sector is changing rapidly, energy utilities need to make more progress toward ensuring the long-term public benefit of these changes and must be prepared to adapt to changing technology and a decentralized energy market.  While for-profit energy utilities divert significant amounts of money from ratepayers to shareholders and tend to resist change that could reduce their customer base, publicly or cooperatively owned energy utilities are tasked only with representing the interests of the ratepayers they serve.

     The purpose of this Act is to require and fund a study to assess and compare Hawaii's for-profit energy utilities with specific publicly or cooperatively owned energy utilities in the United States.

     SECTION 2.  (a)  The legislative reference bureau shall conduct a study examining the energy utilities in Kauai, Hawaii; Boulder, Colorado; Sacramento, California; Long Island, New York; and any other energy utility the bureau deems appropriate, to:

     (1)  Compare the different organizational models of publicly-owned energy utilities with that of the electric utilities of Hawaiian Electric Industries, Inc., with respect to elements that include but are not limited to: ownership structure, relation to ratepayers, operating and rate costs to taxpayers or ratepayers, energy generation sources, and incentives to achieve renewable energy goals; and

     (2)  Review the process by which any of these foregoing energy utilities converted to a municipally-owned or cooperative organizational structure and to the extent possible, assess the benefits and problems associated with the conversion, including an analysis of related procedural and legal issues.

     (b)  The legislative reference bureau may contract with another entity for services that may be required pursuant to this Act.  Any contract for services executed pursuant to this Act shall be exempt from chapter 103D, Hawaii Revised Statutes.

     (c)  The legislative reference bureau shall submit a report of its findings to the legislature no later than twenty days prior to the convening of the regular session of 2016.

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2015-2016 to perform an energy utility study pursuant to section 2 of this Act.

     The sum appropriated shall be expended by the legislative reference bureau for the purposes of this Act.

     SECTION 4.  This Act shall take effect upon its approval; provided that section 3 shall take effect on July 1, 2015.



 

Report Title:

Electric Utilities; Legislative Reference Bureau; Study; Appropriation

 

Description:

Requires the Legislative Reference Bureau to study electric utilities, including organizational models and the conversion process.  (SD1)

 

 

 

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