SCR 96

THE SENATE
S.C.R. NO.
96
THIRTY-THIRD LEGISLATURE, 2026
S.D. 1
STATE OF HAWAII
SENATE CONCURRENT
RESOLUTION
requesting the public utilities commission to provide a report
to the legislature on the progress 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 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,
underscoring the importance of efficient interconnection processes and
reliability oversight; 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 generation 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 Senate of the Thirty-third Legislature of the State of Hawaii,
Regular Session of 2026, the House of Representatives concurring, that the
Public Utilities Commission is requested to provide a report to the Legislature
no later than twenty days prior to the convening of the Regular Session of 2027
regarding the progress the Hawaii Electric Reliability Administrator has made
delivering on the following:
���� (1)� The scope of work contemplated by Act 201,
including resource adequacy;
���� (2)� Reliability standards and the interconnection
workplan; and
���� (3)� The status of the competitive procurement
process with regard to the Commission's contracting of qualified and
experienced consultants to perform the duties and tasks of the Administrator;
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