Requires each electric utility company to establish an energy efficiency portfolio standard that acquires additional energy efficiency equivalent to a designated percentage of the electric utility company's annual growth in demand.

A BILL FOR AN ACT

SECTION 1. Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§269-   Energy efficiency portfolio standards. (a) Each electric utility company that sells electricity for consumption in the State shall establish an energy efficiency portfolio standard that acquires additional cost-effective energy efficiency equivalent to at least ten per cent of the electric utility company's annual growth in demand by January 1, 2008.

(b) Any electric utility company failing to timely meet the energy efficiency portfolio standard shall report to the public utilities commission within ninety days following the goal date established in subsection (a). The report shall explain why the standard was not met.

(c) The public utilities commission shall determine if an electric utility company is unable to meet the energy efficiency portfolio standard in a cost-effective manner, or as a result of circumstances beyond its control that could not have been reasonably anticipated or ameliorated. The commission may grant a waiver from the standard or an extension for meeting the standard for good cause shown.

(d) The public utilities commission may provide incentives to encourage electric utility companies to exceed their energy efficiency portfolio standard and meet the standard ahead of time."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.