Hawaii HR 193: REQUESTING THE PUBLIC UTILITIES COMMISSION TO PROVIDE A WRITTEN STATUS UPDATE ON THE IMPLEMENTATION OF THE HAWAII ELECTRIC RELIABILITY ADMINISTRATOR.

Bill Text

HOUSE OF REPRESENTATIVES
THIRTY-THIRD LEGISLATURE, 2026 H.R. N ~
STATE OF HAWAII
HOUSE RESOLUTION
REQUESTING THE PUBLIC UTILITIES COMMISSION TO PROVIDE A WRITTEN
STATUS UPDATE ON THE IMPLEMENTATION OF THE HAWAII ELECTRIC
RELIABILITY ADMINISTRATOR.
I WHEREAS, the Hawaii Electric Reliability Administrator was
2 established in statute in 2012, which authorizes the Public
3 Utilities Commission (Commission) to implement an independent
4 reliability administrator for the State’s electric system,
5 including the development and oversight of reliability standards
6 and interconnection-related functions; and
7
8 WHEREAS, efficient, timely, and cost—effective
9 interconnection processes are widely recognized as critical to
10 maintaining electric system reliability, accelerating the
11 delivery of renewable energy resources to the grid, and reducing
12 costs to ratepayers; and
13
14 WHEREAS, during the Regular Session of 2022, concerns were
15 raised regarding delays associated with the interconnection of
16 renewable energy projects, as reflected in the findings and
17 purpose section of S.B. No. 2474 (2022) and in testimony
18 provided by the Commission to the Legislature; and
19
20 WHEREAS, the Commission has stated in legislative testimony
21 its commitment to creating a regulatory environment that
22 improves the interconnection process while mitigating risks to
23 ratepayers and facilitating achievement of the State’s clean
24 energy and reliability goals; and
25
26 WHEREAS, Act 201, Session Laws of Hawaii 2022 (Act 201),
27 required the Commission to contract with a qualified consultant
28 to conduct a comprehensive study on the accessibility of the
29 State’s electric system and procedures for interconnection,
30 including the timeliness and costs of interconnection for
31 renewable energy projects and submit a report prior to convening
32 of the Regular Session of 2023, and appropriated funds for that
33 purpose; and
34
2.026-1628 HR SMA.docx

Page2 HR. NO.,.i~3
1 WHEREAS, Act 201 further required that the study include,
2 among other things:
3
4 (1) Reliability standards to be established by the
5 Commission;
6
7 (2) Interconnection requirements and procedures;
8
9 (3) Documentation of delays in the interconnection
10 process;
11
12 (4) Evaluation of interconnection costs and methodologies;
13
14 (5) An assessment of the Commission’s progress in
15 implementing the Hawaii Electric Reliability
16 Administrator; and
17
18 (6) Any recommendations for statutory amendments related
19 to the Hawaii Electric Reliability Administrator; and
20
21 WHEREAS, while the Commission issued a report to the
22 Legislature in late 2023 pursuant to Act 201, the report did not
23 reflect full implementation of the Hawaii Electric Reliability
24 Administrator as contemplated by Act 201; and
25
26 WHEREAS, information presented in January 2026 by the
27 Hawaii Natural Energy Institute to the Hawaii Energy Policy
28 Forum documented that over fifty percent of renewable energy
29 projects have been canceled before achieving commercial
30 operations, underscoring persistent challenges related to
31 interconnection, system access, and project execution that
32 directly affect electric system reliability, resource adequacy,
33 and the State’s renewable energy goals; and
34
35 WHEREAS, the Commission has addressed aspects of electric
36 system reliability in various proceedings, including Docket No.
37 2021—0024, which established working groups related to
38 reliability functions; and
39
40 WHEREAS, the Commission has indicated that approval of
41 power purchase agreements may be deferred until completion of
42 interconnection studies, leading to financing and construction
2026-1628 HR SMA.docx 2

Page3 HR. NO.t93
1 delays and increased costs due to the repeal of federal clean
2 energy tax incentives, risking the potential termination of
3 projects, underscoring the importance of efficient
4 interconnection processes and reliability oversight; and
5
6 WHEREAS, as of March 2026, the Hawaii Electric Reliability
7 Administrator has not been fully implemented to address
8 reliability standards and interconnection; and
9
10 WHEREAS, recent Hawaiian Electric Companies’ Adequacy of
11 Supply Reports identify projected capacity shortfalls in 2028 on
12 the islands of Maui and Hawaii, potentially affecting
13 reliability and grid failures, and describe reliability
14 contingency measures that include the continued operation,
15 conversion, repowering, or life-extension of existing fossil
16 fuel generating at additional costs, as well as reliance on
17 temporary fossil fuel generation resources; and
18
19 WHEREAS, in March 2026, the Hawaiian Electric Companies
20 filed an application with the Commission seeking approval of an
21 increase in rate adjustments affecting multiple islands over the
22 next two years, which the utility represents includes $45
23 million of accelerated depreciation for certain power generation
24 units scheduled for