STAND. COM. REP. NO. 557

Honolulu, Hawaii

, 2025

RE: H.B. No. 978

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 978, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ELECTRIC UTILITIES,"

begs leave to report as follows:

The purpose of this measure is to allow the Public Utilities Commission to appoint a receiver to take temporary action necessary to assure continued service or to bring the service up to appropriate regulatory standards when a regulated investor-owned electric utility is failing, or there is an imminent threat of the utility failing.

Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs. Your Committee received comments on this measure from the Public Utilities Commission and Hawaiʻi Gas.

Your Committee finds that electric service is critical for daily life for every person in the State. The permanent loss of electricity, such as in the event of a complete company collapse, could endanger everything from public safety infrastructure to personal health equipment.

Your Committee further finds that utility receivership is a critical tool for protecting utility customers in only the most extreme circumstances, such as a complete company collapse. Under a receivership, an appointed person is authorized to take temporary action necessary to assure continued adequate utility services. However, under existing law, the Public Utilities Commission is only authorized to appoint a receiver for a water or sewer utility, not an electric utility. This measure authorizes the Public Utilities Commission to appoint a receiver for electric utilities in the most extreme circumstances.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 978, H.D. 1, and recommends that it be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

SCOT Z. MATAYOSHI, Chair