SCR96 SD1

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

THE SENATE	S.C.R. NO.	96
THIRTY-THIRD LEGISLATURE, 2026		S.D. 1
STATE OF HAWAII