HB 2523 Summary

• Establishes regulatory framework for developing, financing, and constructing high-voltage undersea electric transmission cable systems connecting Hawaiian islands, enabling renewable energy resource sharing and improved grid stability.

• Creates "certified cable company" designation subject to Public Utilities Commission regulation, requiring certificate of public convenience and necessity and selection through competitive request for proposals process.

• Allows electric utility companies to recover costs for acquiring cable systems and constructing on-island transmission infrastructure through automatic rate adjustment clauses and cable surcharges collected on customer bills.

• Exempts cable surcharge amounts collected by electric utilities on behalf of certified cable companies from gross income calculations for state income tax, public utility fee, and general excise tax purposes.

• Supports Hawaii's renewable portfolio standard goals (25% by 2020, 40% by 2030) by facilitating interconnection of island utilities to enable greater renewable energy utilization and energy independence from imported fossil fuels.