SB2854

Report Title:

Electric Utilities, Lobbying, Funding

 

Description:

Requires funding for lobbying activities, political contributions, and any disseminating of information to legislative bodies by electric utilities to be paid for by the utility's shareholders, not the ratepayers.

THE SENATE	S.B. NO.	2854
TWENTY-FIRST LEGISLATURE, 2002
STATE OF HAWAII

A BILL FOR AN ACT

 

RELATING TO ELECTRIC UTILITIES.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Hawaii residents' electricity rates are among the highest in the nation, approximately double the national average. Virtually all power-producing fuel in Hawaii must be imported, costing almost $2,000,000,000 a year, which goes out of state to pay for oil and coal. About ninety-three per cent of our electricity is generated by imported fossil fuels, and our need is growing. Hawaii's electricity usage grew twice as fast as the State's population between 1990 and 1999.

Ratepayers should not be asked to shoulder additional costs. The intent of this Act is to require the ratepayers to be spared from the costs of legislative activities by the electric utilities, including lobbying and political campaign contributions. The legislature does not feel that it is appropriate for electric utilities that have monopolies in the areas they serve to pass on the costs of their lobbying and other legislative activities to ratepayers.

There is no intent by these provisions to inhibit, much less prohibit, the electric utilities from expressing their views, petitioning legislative bodies, or otherwise legitimately seeking to influence these bodies. The sole intent of this Act is to prohibit these costs from being borne by the ratepayers.

SECTION 2. Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§269- Electric utilities; restriction on passing lobbying and related expenses on to ratepayers. (a) No electric utility shall include in its rate filings to the public utilities commission, and the commission shall not include in any approved rate, any cost incurred by the utility for any:

(1) Lobbying activities;

(2) Political campaign contributions;

(3) Dissemination of information to; or

(4) Monitoring of the proceedings of,

the state legislature, the council of any of the counties, or the United States Congress. A utility that includes these costs in its rate filings shall be subject to sanctions by the commission.

As used in this section, "lobbying" shall have the same meaning as in section 97-1.

(b) The intent of the legislature in enacting this section is solely to prevent any of the costs in subsection (a) from being subsidized by ratepayers. Nothing in this section is intended to prohibit or inhibit an electric utility from carrying out any legitimate legislative business.

(c) The commission may adopt rules pursuant to chapter 91 to implement this section, including further specification of activities to which this section applies."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________