Report Title:
Electric Utilities; Fuel Mix Disclosure
Description:
Requires retail suppliers of electricity to annually disclose information on the fuel mix of the electricity services they sell to DBEDT. Requires the PUC to convene a work group to suggest modifications to the fuel mix disclosure requirements. (HB10 HD1)
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
10 |
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TWENTY-SECOND LEGISLATURE, 2003 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to public utilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that there is a need to increase consumer awareness of retail electricity services and the fuel choices made by the electric utilities operating in Hawaii. Pursuant to chapter 196, Hawaii Revised Statutes, the department of business, economic development, and tourism annually issues reports on the fuel mix of Hawaii's electricity generation system in the "Energy Resource Coordinator's Annual Report." The legislature finds that Hawaii's utilities and other energy providers have been cooperative in providing detailed information on their fuel mix to the department.
The legislature finds that although this information is available through public documents, there is a need to more widely disseminate this information to the State's electricity consumers. Consumer disclosure ensures that retail electricity consumers purchasing electric energy receive basic information about the characteristics associated with their electricity service in a form that facilitates consumer understanding of retail electricity services and the development of new services responsive to consumer preferences. This disclosure requirement is not intended to increase costs to utilities or ratepayers.
Accordingly, the purpose of this Act is to:
(1) Require retail suppliers of electricity in Hawaii to annually disclose information on the fuel mix of the electricity services they sell; and
(2) Require the public utilities commission to convene a working group of persons interested in suggesting modifications to the fuel mix disclosure requirements.
SECTION 2. Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§269- Annual fuel mix disclosure. (a) Beginning June 1, 2004, and every June 1 thereafter, each retail supplier of electricity shall disclose fuel mix information by generation category to its existing and new retail electricity customers. This fuel mix information shall also be provided annually by retail suppliers of electricity to the department of business, economic development, and tourism.
(b) The disclosure required under subsection (a) shall state the price of electricity expressed in a format that makes it possible for residential and small commercial customers to compare similar electricity products and services on a standard basis.
(c) The disclosure required by this section shall be:
(1) Printed either on the customer's bill or as a bill insert; provided that this disclosure requirement shall not:
(A) Require electric utilities to pay additional costs associated with mailing or postage; or
(B) Result in increased costs to ratepayers;
and
(2) Posted and updated on the supplier's Internet website, if any.
(d) As used in this section, the term "fuel mix" means the actual or imputed sources of electricity sold to retail electricity customers, expressed in terms of percentage contribution by resource category. The total fuel mix included in each disclosure shall total one hundred per cent."
SECTION 3. Work group. The public utilities commission shall:
(1) Convene a work group of interested parties, prior to the date of the first annual fuel mix reporting by retail suppliers of electricity, to suggest modifications, if any, to the disclosure requirements in section 2 of this Act to:
(A) Ensure proper implementation and minimize implementation costs by improving information content, readability, uniformity, and consumer understanding, including the establishment of guidelines for retailer calculation and reporting of fuel mix information; and
(B) Ensure that no new costs for postage or any other new costs are imposed on utilities by the fuel mix disclosure requirements of this Act;
(2) Invite interested parties, including the attorney general's office, representatives from utilities, consumer advocacy groups, and the environmental community, to participate in the activities of the work group;
(3) Coordinate the activities of the work group developing the disclosure process to expedite implementation of this program. The commission shall consult with the department of business, economic development, and tourism and the consumer advocate as may be necessary for the purposes of this Act; and
(4) Submit its findings and recommendations, including proposed legislation containing suggested modifications, if any, to the disclosure requirements of section 2 of this Act, and any other matters necessary to provide for the efficient implementation of this Act, to the legislature no later than December 1, 2003.
SECTION 4. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval.