Hawaiian Electric Co. could be in the political crosshairs this legislative session when it comes to energy policy.
The embattled utility that provides electricity to Oahu, the Big Island and Maui County has been at the forefront of the state’s transition to renewable energy. But it’s weathered a host of criticism this past year on its handling of Big Wind, “caps” on the amount of solar energy it permits on its electric grids and what some argue is foot dragging when it comes to moving the state off imported oil.
Tensions have been heightened by electricity rates that have remained at record highs for months, stoking public distrust and skepticism toward one of the state’s largest publicly traded companies.
How this will play out in the legislative arena is not entirely clear. But lawmakers are working to transfer control over energy policy from HECO to state regulators.
HECO “can choose what, when and how they want to do things,” said Rep. Denny Coffman, chairman of the House Committee on Energy and Environmental Protection. “And I view this as a problem.”
Hawaii’s Public Utilities Commission already has oversight of HECO’s operations — approving, or rejecting, such things as rate increases and energy contracts. But its power may be increased.
One bill would create a new position at the PUC called the Hawaiian Electric Reliability Administrator. The administrator would oversee what renewable energy projects are integrated into HECO’s electric grids.
“Right now HECO decides whether renewable energy projects are hooked up to the grid. This would take it out of their hands,” said Sen. Mike Gabbard, chair of the Senate’s Committee on Energy and the Environment, who struck a more conciliatory tone toward HECO than Coffman.
The legislation is still in the early stages.
Other energy bills to watch are holdovers from last session.
- Senate Bill 367, the undersea cable bill: It relates to plans for connecting all the islands via undersea cables to create a single statewide electric grid capable of transferring energy between islands.
The legislation creates a regulatory structure for cable developers that ensures that their project costs will be recouped and they will earn a return on their investment. Its backers say it’s a critical step to ensure that developers can obtain project financing.
The bill fell short of passage last year in part because of the controversial Big Wind project, which would build wind farms on Molokai and Lanai and transfer the energy to Oahu.
Gabbard stressed that the bill does not relate to any specific island or technology, and is important to larger state goals of connecting the Big Island and Maui — where there has been a renewed push to develop geothermal energy — with Oahu.
- Senate Bill 722, the barrel tax: Honolulu-based Blue Planet Foundation, a nonprofit that aims to eliminate fossil fuel use, will be pushing again this year to increase the barrel tax as well as the percentage of the tax that goes to fund energy programs. Currently, about 60 percent of the tax is diverted into the general fund.
Specific details about how much to increase the $1.05 tax on a barrel of oil weren’t spelled out. Blue Planet is arguing for a minimum $5 tax per barrel.
- Solar industry tax credits: Solar companies have recently been criticized for abusing the credits and oversizing photovoltaic systems for monetary gain — meaning that the the annual battle to preserve the credits could be that much harder this session. Senate Bill 756 and House Bill 566 are the ones to watch.
Other legislative proposals are still being shaped.
Coffman said he was pushing to consolidate HECO’s Maui, Oahu and Big Island subsidiaries into a single company and levelize electricity rates. Currently, all of the islands pay different rates — Oahu’s are historically cheaper.
It’s not a new proposal, but just might gain some traction this session.
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