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GM 1380

Informing the Legislature that on July 2, 2025, the Governor signed the following bill into law: SB1500 SD2 HD1 CD1 (ACT 277).

2025 Regular Session

Act 277 empowers Hawaii's Public Utilities Commission to appoint a receiver for failing electric utilities, ensuring reliable service and protecting public welfare.

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Bill Summary · GM 1380

Summary of Bill GM 1380: Informing the Legislature of Act 277

Overview

Bill GM 1380 serves as a proclamation to inform the Hawaii State Legislature that on July 2, 2025, Governor Josh Green signed into law Senate Bill 1500, which is now known as Act 277. This legislation addresses critical issues related to electric utilities in Hawaii, particularly concerning the authority of the Public Utilities Commission (PUC) in managing failing utilities.

Purpose and Intent

The primary intent of Act 277 is to enhance the regulatory framework governing investor-owned electric utilities in Hawaii. The legislation aims to ensure that the PUC has the necessary authority to intervene when an electric utility is failing to provide adequate service, thereby protecting the health, safety, and welfare of the public.

Key Provisions

  • Authority to Appoint a Receiver: The Act amends Section 269-14.5 of the Hawaii Revised Statutes to grant the PUC the authority to appoint a receiver for a failing electric utility. This receiver can take temporary actions to ensure continued service and compliance with regulatory standards.

  • Conditions for Appointment: The PUC can appoint a receiver if it finds that:

    • The utility is failing or there is an imminent threat of failure to provide adequate service.
    • Such failure poses a serious threat to public health, safety, and welfare.

  • Receiver's Responsibilities: The appointed receiver will have the authority to:

    • Access utility assets and records.
    • Manage the utility's operations to restore acceptable service levels.
    • Expend existing utility revenues for necessary labor and materials.
    • Maintain existing collective bargaining agreements during the receivership.

  • Control and Oversight: Control of the utility will remain with the receiver until the utility can be returned to its original owners, transferred to new owners, or liquidated, as determined to be in the public interest by the PUC.

Impact

  • Public Welfare: The legislation is designed to protect residents' access to reliable and reasonably priced electric utility services, particularly in light of recent financial challenges faced by investor-owned utilities in Hawaii.

  • Utility Management: By empowering the PUC to appoint a receiver, the Act aims to ensure that utilities can be effectively managed during periods of financial distress, thereby minimizing disruptions in service.

Procedural Aspects

  • Legislative Process: Act 277 was passed by both the Senate and House of Representatives of the Thirty-Third Legislature of Hawaii on April 30, 2025, before being signed into law by the Governor on July 2, 2025.

  • Effective Date: The Act takes effect immediately upon approval.

Conclusion

Act 277 represents a significant step in enhancing the regulatory capabilities of the PUC in Hawaii, ensuring that electric utilities can be held accountable and that residents continue to receive essential services without interruption. This legislative change reflects a proactive approach to managing the challenges faced by the state's electric utilities.

Compiled from official sources — confirm details with the bill’s official record.

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