Report Title:

Public Utilities; Electric; Progressive Block Rates

 

Description:

Requires electric utilities to apply a progressive block rate structure for residential consumers that charges a higher rate to consumers with a monthly consumption of over 500 kWh than to consumers with a monthly consumption of 500 kWh or less.

 

HOUSE OF REPRESENTATIVES

H.B. NO.

634

TWENTY-FOURTH LEGISLATURE, 2007

 

STATE OF HAWAII

 

 

 

 

 

 

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 the average Hawaii residence uses approximately six hundred to seven hundred kilowatt hours per month.  The legislature also finds that the single rate structure for residential customers does not offer any incentives for energy conservation or efficiency.  As larger, energy-intensive resort type homes are being built in Hawaii's communities, the increased demand for electricity places a disproportionate burden on Hawaii's residents who can find few ways to reduce their electricity needs.  The purpose of this Act is to direct the public utilities commission to investigate the concepts of progressive block, life-line, or tiered rate structures for residential customers.

SECTION 2.  When an electric utility files an application for rate increase with the public utilities commission, the public utilities commission shall investigate the implementation of a tiered rate structure.  For the purposes of this section, a tiered rate is a rate design that divides residential customer use into different tiers or blocks with a progressively higher rate for increased usage.  The investigation may consider the appropriate lowest tier usage threshold to assure that electricity to meet the basic needs of low-income customers is affordable. 

     SECTION 3.  The public utilities commission shall submit its findings and recommendations to the legislature no later than twenty days prior to the convening of the regular session of 2008.

     SECTION 4.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

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