Report Title:

Public Utilities Commission; Electricity Rates

Description:

Directs PUC to investigate the implementation of a tiered rate structure for electric rate-making based on consumption.

HOUSE OF REPRESENTATIVES	H.B. NO.	116
TWENTY-FIFTH LEGISLATURE, 2009
STATE OF HAWAII

A BILL FOR AN ACT

relating to public utilities commission.

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 ensure that electricity to meet the basic needs of low-income customers is affordable.

     SECTION 3.  The public utilities commission shall submit the findings of its investigation and any recommendations to the legislature no later than twenty days prior to the convening of the regular session of 2010.

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

INTRODUCED BY:

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