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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2112 |
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TWENTY-NINTH LEGISLATURE, 2018 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to the public utilities commission.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. This Act shall be known as the Hawaii Ratepayer Protection Act.
SECTION 2. Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:
"§269- Electric
utility rate decreases; refunds.
(a) The public utilities commission,
after public hearing and upon its own motion, shall order a decrease in the rates,
fares, and charges that the commission previously approved for an electric utility's
rate filings under section 269-16 if, subsequent to the commission's most
recent approval of the electric utility's rate filings, a decrease in the rate
of a federal tax applicable to the electric utility is enacted that can
reasonably be expected to produce a rate of return to the electric utility that
is in excess of per cent of the rate of return on the electric
utility's rate base found to be reasonable by the commission.
(b) The commission shall ensure that the decreased
rates, fares, and charges are no greater than the rate of return on the electric
utility's rate base found to be reasonable by the commission.
(c) The commission shall order the electric utility
to provide refunds to its customers on billings made during the time period between
the effective date of the federal tax rate decrease and the effective date of
the commission's order under subsection (a); provided that the refunds shall be
of an amount sufficient to cause the resulting rate of return to the electric
utility for that time period to be no greater than the electric utility's rate
base found to be reasonable by the commission.
(d) The commission shall choose an appropriate
method for the electric utility to make the refunds required under subsection
(c), including a lump sum payment or its equivalent amount of offsets in monthly
billings; provided that the period allowed for offsets in monthly billings shall
not exceed months.
(e) To the extent possible, the commission's deliberations
and decision making under this section shall follow the procedures and
nine-month period described under section 269‑16(d); provided that the
nine-month period in this section shall begin with the commission's motion
under subsection (a), rather than the electric utility's filing of an
application; provided further that an interim decision may be made within one
month after the expiration of the nine-month period which shall require a
decrease, rather than an increase, in rates, fares, and charges.
(f) As used in this section:
"Decrease in the rate
of a federal tax applicable to the electric utility" or "federal tax
rate decrease" includes the corporate tax rate amendments in the federal
Tax Cuts and Jobs Act of 2017, Public Law No. 115-97, effective for taxable
years beginning after December 31, 2017.
"Rate base found to be reasonable by the commission" shall have the same meaning as the term is used in section 269-16(c) and (d)."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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Report Title:
PUC; Electric Utility; Rate Decreases; Refunds
Description:
Requires the Public Utilities Commission to order decreases in electric utility rates when certain federal tax rate decreases are enacted that apply to electric utilities. Requires the Commission to order customer refunds for the excess profits generated between the effective date of the federal tax rate change and the effective date of the Commission's order to decrease rates.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.