Email Erin Miller at emiller@westhawaiitoday.com. By Erin Miller ADVERTISING Stephens Media Hawaii Electric Co., and its subsidiaries on Maui and the Big Island, would no longer be allowed to generate electricity if they wished to sell it under a proposed
By Erin Miller
Stephens Media
Hawaii Electric Co., and its subsidiaries on Maui and the Big Island, would no longer be allowed to generate electricity if they wished to sell it under a proposed bill from Rep. Denny Coffman.
House Bill 2400 would also require the Public Utilities Commission to approve a statewide electricity rate for any two or more electric utility companies owned by the same financial holding company, effectively creating a statewide electricity rate.
The bill is pending introduction but is now available on the state Legislature’s website.
Coffman, D-Honokohau, Kailua-Kona, Keauhou, said at a meeting earlier this month he wanted to see Hawaii Electric Co., Hawaii Electric Light Co. and Maui Electric Co. focus on transmission and distribution of electricity.
He noted several examples on Oahu of companies generating and selling electricity to HECO, including a coal plant and H-Power burning trash to create electricity.
“If we’re going to deregulate and having a market-driven electric rate, we can’t have the utility generating power,” Coffman told attendees at a Jan. 10 meeting in Kailua-Kona.
A message left for Coffman seeking additional information Tuesday was not immediately returned.
The PUC would be required to set electricity rates based on a fixed monthly connection service charge, a variable monthly electricity transmission and distribution rate, a variable monthly electricity consumption rate and other fees, taxes and charges the commission approved.
The bill goes on to instruct the PUC to place a priority on developing geothermal-based electricity to replace fossil fuel plants.
It also requires the PUC to direct public utilities “to acquire the lowest cost, electrical grid-safe electricity generated from nonfossil fuel sources … prior to acquiring electricity generated from fossil fuel sources.”
Email Erin Miller at emiller@westhawaiitoday.com.
