Bill Text: HI SB2505 | 2024 | Regular Session | Amended

---

Bill Title: Relating To The Public Utilities Commission.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Engrossed) 2024-04-22 - Received notice of Senate conferees (Sen. Com. No. 729). [SB2505 Detail]

Download: Hawaii-2024-SB2505-Amended.html

---

THE SENATE	S.B. NO.	2505
THIRTY-SECOND LEGISLATURE, 2024		S.D. 2
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO THE PUBLIC UTILITIES COMMISSION.

 

 

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

 

     SECTION 1.  The legislature finds that it is important for the State to strike a careful balance between transitioning to renewable energy and maintaining the reliability of the Hawaii electric system.  Meeting the State's renewable energy goals and reducing its greenhouse gas emissions requires public utilities to implement new technologies and develop new operational practices.  Actions that help to improve the long-term resilience and environmental sustainability of the State's electric system may temporarily cause power outages and decreased system performance.  It is necessary for the State to continually monitor the electric system's reliability and to quickly resolve any issues or disruptions.

     The legislature believes that electric system resilience should also be a metric that the State monitors and considers.  Maintaining a resilient electric system is especially important in Hawaii, given the State's geographical isolation.  The 2023 wildfires on the island of Maui illustrated how vulnerable the State is to natural and human-caused disasters.  It is critical that the State continue to prioritize actions that ensure that the electric system can rapidly recover from severe disruptions.

     Accordingly, the purpose of this Act is to:

     (1)  Establish system resilience as a metric that is monitored and considered by the public utilities commission; and

     (2)  Allow the Hawaii electricity reliability surcharge to be transferred to the public utilities commission.

     SECTION 2.  Section 269-141, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

     ""Resilience" means the ability of the Hawaii electric system and any components thereof to adapt to changing conditions and to withstand and rapidly recover from severe disruptions."

     SECTION 3.  Section 269-142, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The commission may develop reliability standards and interconnection requirements as it determines necessary or upon recommendation from any entity, including an entity contracted by the commission to serve as the Hawaii electricity reliability administrator provided for under this part, for the continuing reliable design, resilience, and operation of the Hawaii electric system.  Any reliability standard or interconnection requirement developed by the commission shall be adopted by the commission in accordance with subsection (a) in order to be effective.  The commission shall not contract for the performance of the functions under this subsection to any other entity as provided under section 269‑147."

     SECTION 4.  Section 269-143, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  The commission shall have the authority to monitor the reliability, resilience, and operation of the Hawaii electric system using any data, files, maps, reports, or any other information concerning any electric utility, any user, owner, or operator of the Hawaii electric system, or any person, business, or entity connecting to the Hawaii electric system, considered by the commission to be necessary for ensuring the reliable operation of the Hawaii electric system.  The authority of the commission to monitor information in this section shall include the authority to request, acquire, or otherwise accumulate real-time data on any matter the commission deems necessary to monitor the reliable design and operation of the Hawaii electric system."

     SECTION 5.  Section 269-145.5, Hawaii Revised Statutes, is amended to read as follows:

     "§269-145.5  Advanced grid modernization technology; principles.  (a)  The commission, in carrying out its responsibilities under this chapter, shall consider the value of improving electrical generation, transmission, and distribution systems and infrastructure within the State through the use of advanced grid modernization technology in order to improve the overall reliability, resilience, and operational efficiency of the Hawaii electric system.

     (b)  In advancing the public interest, the commission shall balance technical, economic, environmental, and cultural considerations associated with modernization of the electric grid, based on principles that include but are not limited to:

     (1)  Enabling a diverse portfolio of renewable energy resources;

     (2)  Expanding options for customers to manage their energy use;

     (3)  Maximizing interconnection of distributed generation to the State's electric grids on a cost-effective basis at non-discriminatory terms and at just and reasonable rates, while maintaining the reliability of the State's electric grids, and allowing [such] access and rates through applicable rules, orders, and tariffs as reviewed and approved by the commission;

     (4)  Determining fair compensation for electric grid services and other benefits provided to customers and for electric grid services and other benefits provided by distributed generation customers and other non‑utility service providers; and

     (5)  Maintaining or enhancing grid reliability, resilience, and safety through modernization of the State's electric grids."

     SECTION 6.  Section 269-146, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows:

     "(b)  Amounts collected through the Hawaii electricity reliability surcharge shall be transferred in whole or in part to [any]:

     (1)  Any entity contracted by the public utilities commission to act as the Hawaii electricity reliability administrator provided for under this part[.]; and

     (2)  The public utilities commission to satisfy the public utilities commission's duties under sections 269-142, 269-143, and 269-144.

     (c)  The Hawaii electricity reliability surcharge shall be used for the purposes of ensuring the reliable operation and resilience of the Hawaii electric system and overseeing grid access on the Hawaii electric system through the activities of the Hawaii electricity reliability administrator contracted under section 269-147; provided that amounts collected under the Hawaii electricity reliability surcharge shall not be available to meet any current or past general obligations of the State."

     SECTION 7.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 8.  This Act shall take effect on July 1, 2040.

 

 

Report Title:

PUC; Reliability Standards; Hawaii Electricity Reliability Administrator; Surcharge

 

Description:

Establishes system resilience as a metric that is monitored and considered by the Public Utilities Commission.  Allows the Hawaii electricity reliability surcharge to be transferred to the Commission.  Takes effect 7/1/2040.  (SD2)

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.