Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Electric Utilities topic
No spam. Unsubscribe anytime.
Committee amends HB 339 HD1 on electric utilities, removes constitutionally problematic language and authorizes bond framework
Summary
HB 339 HD1 was passed with amendments after the committee removed subsections the chair described as raising constitutional free-speech concerns and added language authorizing up to $1 billion in general obligation bonds and an electric utility conversion special fund and charge.
The House Committee on Consumer Protection & Commerce on Feb. 13 passed HB 339 HD1 with amendments that delete subsections the chair described as raising constitutional concerns and add provisions to establish financing and a fund for a potential electric utility conversion.
The committee removed subsections (b) and (c) beginning on page 4, which Chair Matayoshi summarized as presenting constitutional free-speech issues. Members also approved committee language that would authorize up to $1,000,000,000 in general-obligation bonds for acquiring ownership at Hawaiian Electric (HECO), create an electric utility conversion special fund, and establish an electric utility conversion charge to support expenditures related to that fund.
Why it matters: The bill addresses extraordinary, structural changes to the state’s electric utility sector and contemplates a financing mechanism for transferring or converting utility ownership. The committee’s deletions and additions respond to constitutional and financial concerns raised during testimony.
Testimony and debate: The committee heard from the Public Utilities Commission, the Division of Consumer Advocacy, Hawaiian Electric and other stakeholders. Some witnesses and members discussed procedural questions about when alternative bids or interveners should be able to enter a utility sale or merger process — whether that should happen before a PUC proceeding or via an intervenor process at the PUC. A speaker identified as Mr. Curtis noted the practical difficulty of public intervention under nondisclosure agreements (NDAs), saying: "I don't think this has been tried anywhere. I know, for example, Jira is in talks with HEI about making an investment, but neither side can talk about it because there's an NDA."
Committee action and vote: The committee adopted the chair’s recommendation and passed HB 339 HD1 with amendments. The record notes the excused absence of Representative Pierrick and a reservation from Representative Iwamoto. The chair’s recommendation to pass with amendments was adopted in the roll call.
Ending: With constitutional concerns addressed by deletion and a new funding mechanism added, HB 339 HD1 advances with a fiscal framework for potential utility conversion; further litigation or constitutional review could follow if downstream processes move forward.
