HCR 203: REQUESTING THE PUBLIC UTILITIES COMMISSION TO PROVIDE A WRITTEN STATUS UPDATE ON THE IMPLEMENTATION OF THE HAWAII ELECTRIC RELIABILITY ADMINISTRATOR.

HOUSE OF REPRESENTATIVES	H.C.R. NO.	203
THIRTY-THIRD LEGISLATURE, 2026		H.D. 1
STATE OF HAWAII

HOUSE CONCURRENT

RESOLUTION

 

 

REQUESTING THE PUBLIC UTILITIES COMMISSION TO PROVIDE A WRITTEN STATUS UPDATE ON THE IMPLEMENTATION OF THE HAWAII ELECTRIC RELIABILITY ADMINISTRATOR.

 

 

 

     WHEREAS, the Hawaii Electric Reliability Administrator was established in statute in 2012, authorizing the Public Utilities Commission (Commission) to implement an independent reliability administrator for the State's electric system, including the development and oversight of reliability standards and interconnection-related functions; and

 

     WHEREAS, efficient, timely, and cost-effective interconnection processes are widely recognized as critical to maintaining electric system reliability, accelerating the delivery of renewable energy resources to the grid, and reducing costs to ratepayers; and

 

     WHEREAS, during the Regular Session of 2022, concerns were raised regarding delays associated with the interconnection of renewable energy projects, as reflected in the findings and purpose section of S.B. No. 2474 (2022) and in testimony provided by the Commission to the Legislature; and

 

     WHEREAS, the Commission has stated in legislative testimony its commitment to creating a regulatory environment that improves the interconnection process while mitigating risks to ratepayers and facilitating achievement of the State's clean energy and reliability goals; and

 

     WHEREAS, Act 201, Session Laws of Hawaii 2022 (Act 201), required the Commission to contract with a qualified consultant to conduct a comprehensive study on the accessibility of the State's electric system and procedures for interconnection, including the timeliness and costs of interconnection for renewable energy projects and submit a report prior to the convening of the Regular Session of 2023, and appropriated funds for that purpose; and

 

     WHEREAS, Act 201 further required that the study include, among other things:

 

     (1)  Reliability standards to be established by the Commission;

 

     (2)  Interconnection requirements and procedures;

 

     (3)  Documentation of delays in the interconnection process;

 

     (4)  Evaluation of interconnection costs and methodologies;

 

     (5)  An assessment of the Commission's progress in implementing the Hawaii Electric Reliability Administrator; and

 

     (6)  Any recommendations for statutory amendments related to the Hawaii Electric Reliability Administrator; and

 

     WHEREAS, while the Commission issued a report to the Legislature in late 2023 pursuant to Act 201, the report did not reflect full implementation of the Hawaii Electric Reliability Administrator as contemplated by Act 201; and

 

     WHEREAS, information presented in January 2026 by the Hawaii Natural Energy Institute to the Hawaii Energy Policy Forum documented that over fifty percent of renewable energy projects have been canceled before achieving commercial operations, underscoring persistent challenges related to interconnection, system access, and project execution that directly affect electric system reliability, resource adequacy, and the State's renewable energy goals; and

 

     WHEREAS, the Commission has addressed aspects of electric system reliability in various proceedings, including Docket No. 2021-0024, which established working groups related to reliability functions; and

 

     WHEREAS, the Commission has indicated that approval of power purchase agreements may be deferred until completion of interconnection studies, leading to financing and construction delays and increased costs due to the repeal of federal clean energy tax incentives, risking the potential termination of projects, and underscoring the importance of efficient interconnection processes and reliability oversight; and

 

     WHEREAS, as of March 2026, the Hawaii Electric Reliability Administrator has not been fully implemented to address reliability standards and interconnection; and

 

     WHEREAS, recent Hawaiian Electric Companies' Adequacy of Supply Reports identify projected capacity shortfalls in 2028 on the islands of Maui and Hawaii, potentially affecting reliability and grid failures, and describe reliability contingency measures that include the continued operation, conversion, repowering, or life-extension of existing fossil fuel generating at additional costs, as well as reliance on temporary fossil fuel generation resources; and

 

     WHEREAS, in March 2026, the Hawaiian Electric Companies filed an application with the Commission seeking approval of an increase in rate adjustments affecting multiple islands over the next two years, which the utility represents includes $45,000,000 of accelerated depreciation for certain power generation units scheduled for retirement over the next decade, raising concerns regarding the near-term ratepayer impacts associated with continued reliance on aging fossil-fuel infrastructure; now, therefore,

 

     BE IT RESOLVED by the House of Representatives of the Thirty-third Legislature of the State of Hawaii, Regular Session of 2026, the Senate concurring, that the Public Utilities Commission is requested to provide a written status update on the implementation of the Hawaii Electric Reliability Administrator, to include but not be limited to:

 

     (1)  A description of the specific Hawaii Electric Reliability Administrator functions the Commission committed to implementing following the enactment of Act 201;

 

     (2)  The current status of each such function, including whether implementation efforts include or are limited to reliability standards and interconnection related roles;

 

     (3)  The reasons for any delays in implementing the Hawaii Electric Reliability Administrator as contemplated by statute and legislative intent; and

 

     (4)  A forecast timeline for full implementation of the Hawaii Electric Reliability Administrator; and

 

     BE IT FURTHER RESOLVED that the Commission is requested to submit a report to the Legislature no later than twenty days prior to the convening of the Regular Session of 2027 regarding progress toward implementation of the Hawaii Electric Reliability Administrator, until fully implemented; and

 

     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Governor; Chairperson of the Public Utilities Commission; Director of Commerce and Consumer Affairs; Director of Business, Economic Development, and Tourism; Chief Energy Officer; and Executive Director of the Office of Consumer Protection of the Department of Commerce and Consumer Affairs.

Report Title: 

HERA; PUC; Electric Grid; Reports; Energy

HOUSE OF REPRESENTATIVES	H.C.R. NO.	203
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII

HOUSE CONCURRENT

RESOLUTION

 

 

requesting the public utilities commission to provide a written status update on the implementation of the Hawaii Electric Reliability Administrator.

 

 

     WHEREAS, the Hawaii Electric Reliability Administrator was established in statute in 2012, which authorizes the Public Utilities Commission (Commission) to implement an independent reliability administrator for the State's electric system, including the development and oversight of reliability standards and interconnection-related functions; and

 

     WHEREAS, efficient, timely, and cost-effective interconnection processes are widely recognized as critical to maintaining electric system reliability, accelerating the delivery of renewable energy resources to the grid, and reducing costs to ratepayers; and

 

     WHEREAS, during the Regular Session of 2022, concerns were raised regarding delays associated with the interconnection of renewable energy projects, as reflected in the findings and purpose section of S.B. No. 2474 (2022) and in testimony provided by the Commission to the Legislature; and

 

     WHEREAS, the Commission has stated in legislative testimony its commitment to creating a regulatory environment that improves the interconnection process while mitigating risks to ratepayers and facilitating achievement of the State's clean energy and reliability goals; and

 

     WHEREAS, Act 201, Session Laws of Hawaii 2022 (Act 201), required the Commission to contract with a qualified consultant to conduct a comprehensive study on the accessibility of the State's electric system and procedures for interconnection, including the timeliness and costs of interconnection for renewable energy projects and submit a report prior to convening of the Regular Session of 2023, and appropriated funds for that purpose; and

 

     WHEREAS, Act 201 further required that the study include, among other things:

 

     (1)  Reliability standards to be established by the Commission;

 

     (2)  Interconnection requirements and procedures;

 

     (3)  Documentation of delays in the interconnection process;

 

     (4)  Evaluation of interconnection costs and methodologies;

 

     (5)  An assessment of the Commission's progress in implementing the Hawaii Electric Reliability Administrator; and

 

     (6)  Any recommendations for statutory amendments related to the Hawaii Electric Reliability Administrator; and

 

     WHEREAS, while the Commission issued a report to the Legislature in late 2023 pursuant to Act 201, the report did not reflect full implementation of the Hawaii Electric Reliability Administrator as contemplated by Act 201; and

 

     WHEREAS, information presented in January 2026 by the Hawaii Natural Energy Institute to the Hawaii Energy Policy Forum documented that over fifty percent of renewable energy projects have been canceled before achieving commercial operations, underscoring persistent challenges related to interconnection, system access, and project execution that directly affect electric system reliability, resource adequacy, and the State's renewable energy goals; and

 

     WHEREAS, the Commission has addressed aspects of electric system reliability in various proceedings, including Docket No. 2021-0024, which established working groups related to reliability functions; and

 

     WHEREAS, the Commission has indicated that approval of power purchase agreements may be deferred until completion of interconnection studies, leading to financing and construction delays and increased costs due to the repeal of federal clean energy tax incentives, risking the potential termination of projects, underscoring the importance of efficient interconnection processes and reliability oversight; and

 

     WHEREAS, as of March 2026, the Hawaii Electric Reliability Administrator has not been fully implemented to address reliability standards and interconnection; and

 

     WHEREAS, recent Hawaiian Electric Companies' Adequacy of Supply Reports identify projected capacity shortfalls in 2028 on the islands of Maui and Hawaii, potentially affecting reliability and grid failures, and describe reliability contingency measures that include the continued operation, conversion, repowering, or life-extension of existing fossil fuel generating at additional costs, as well as reliance on temporary fossil fuel generation resources; and

 

     WHEREAS, in March 2026, the Hawaiian Electric Companies filed an application with the Commission seeking approval of an increase in rate adjustments affecting multiple islands over the next two years, which the utility represents includes $45 million of accelerated depreciation for certain power generation units scheduled for retirement over the next decade, raising concerns regarding the near-term ratepayer impacts associated with continued reliance on aging fossil-fuel infrastructure; now, therefore,

 

     BE IT RESOLVED by the House of Representatives of the Thirty-third Legislature of the State of Hawaii, Regular Session of 2026, the Senate concurring, that the Public Utilities Commission is requested to provide a written status update on the implementation of the Hawaii Electric Reliability Administrator, to include but not be limited to:

 

     (1)  A description of the specific Hawaii Electric Reliability Administrator functions the Commission committed to implementing following the enactment of Act 201;

 

     (2)  The current status of each such function, including whether implementation efforts include or are limited to reliability standards and interconnection related roles;

 

     (3)  The reasons for any delays in implementing the Hawaii Electric Reliability Administrator as contemplated by statute and legislative intent; and

 

     (4)  A forecasted timeline for full implementation of the Hawaii Electric Reliability Administrator; and

 

     BE IT FURTHER RESOLVED that the Commission is requested to submit an annual report to the Legislature no later than twenty days prior to the convening of each regular session regarding the progress towards implementation of the Hawaii Electric Reliability Administrator, until fully implemented; and

 

     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Governor; Chairperson of the Public Utilities Commission; Director of Commerce and Consumer Affairs; Director of Business, Economic Development, and Tourism; Chief Energy Officer; and Executive Director of the Office of Consumer Protection of the Department of Commerce and Consumer Affairs.

 

 

 

	OFFERED BY:	_____________________________

 

 

 

Report Title: 

HERA; PUC; Electric Grid; Reports; Energy