State lawmakers have scheduled a hearing today on a bill aimed at putting pressure on Hawaiian Electric Co. to be more responsive to its customers’ demanding lower electricity prices.
The measure, HB 1999, would empower the Legislature to review the franchise granted by the state that allows the HECO companies to operate as a regulated monopoly on all major islands except Kauai.
Part of the impetus behind the bill is the frustration of some HECO customers who are not able to install solar photovoltaic systems, or activate ones that had been installed, because many of the utility’s distribution circuits are saturated with solar-generated power.
The bill is scheduled to be heard at 11 a.m. by the House Committee on Energy and Environmental Protection.
"It’s time to re-evaluate whether a 100-year-old business model best serves local families, or if more competition will lead to lower electric prices," said Rep. Chris Lee, chairman of the committee.
"I think everyone’s frustrated that there hasn’t been a more proactive approach to transitioning their business model, especially when we all knew this has been coming for more than a decade," Lee said.
The bill would create a task force to evaluate the performance of HECO. The Kauai Island Utility Cooperative, which is owned by its members, would not be covered by the bill.
The task force would be required to submit a report no later than 20 days before the start of the 2015 legislative session.
The bill’s preamble states, "Hawaii’s ratepayers are highly frustrated with sustained high rates of electricity, limited options to manage their utility bills, and a perceived lack of urgency by the utilities in addressing their needs."
Lee said the task force will compel HECO to answer all the questions the utility has avoided answering in the past.
"It’s not confidence-inspiring when we ask how they are going to deal with a changing market and there is no answer. What happens when more people start leaving the grid?" Lee asked. "If the utility doesn’t have a realistic plan to deal with changing times, we have to find one that does so local families aren’t left footing the bill."
Hermina Morita, chairwoman of the Public Utilities Commission, testified last week on an earlier version of the bill that such a review of HECO was warranted given changes in Hawaii’s energy landscape.
"The Commission respectfully suggests that the Legislature can pursue a legislative-level investigation on whether changes to the franchise are necessary given the rapidly evolving electricity market," Morita testified.