Hawaiian Electric Co. (HECO), a utility company, proposed to add a fee of up to 5% on customers’ bills to finance a wildfire mitigation program. However, a Senator blocked this plan, causing potential problems for the utility. Governor Josh Green has intervened to keep the issue alive, emphasizing the importance of the bill for the state’s energy future. The proposed bill, Senate Bill 2922, aimed to support HECO’s wildfire mitigation efforts through securitization. Despite receiving significant public criticism, HECO sought authorization to issue bonds and impose the fee to raise funds for wildfire mitigation work.
Senate Commerce and Consumer Protection Committee Chair, Jarrett Keohokalole, deferred the bill indefinitely, leading to uncertainties about its future. Governor Green urged Keohokalole to continue working on the issue, highlighting the impact on the state’s energy stability and utility reliability. Stakeholders, including grassroots organizations, raised concerns about burdening ratepayers with the utility’s mismanagement consequences.
Keohokalole’s decision was based on the need for further evaluation and consultation before committing customers to financial obligations for an undeveloped wildfire mitigation plan. He emphasized that the Public Utilities Commission already had the authority to support HECO’s efforts. While facing opposition, HECO emphasized the urgent need to mitigate wildfire risks and lower costs for customers through securitization. Despite HECO’s disappointment with the bill’s deferral, they continued engaging with legislative leaders to explore alternative solutions.
The bill proposed that bond proceeds be used for wildfire prevention and costs related to the 2023 wildfires, subject to PUC approval. HECO executives highlighted their significant investments in wildfire prevention and federal grant funding pursuit. Separately, HECO sought approval for a wildfire relief fund to cover future catastrophic wildfire damages, with stalled progress on related bills.
Civil Beat reporter Stewart Yerton provided insights into the legislature’s discussions, emphasizing the urgency of addressing climate change-related issues and natural disaster risks. Governor Green expressed concerns about potential energy cost increases without immediate action. Overall, the situation highlighted the complex nature of utility financing and wildfire protection issues and called for collaborative efforts to address community needs effectively.
