HR 173 Summary

• Requests the Public Utilities Commission to encourage electric utilities to maximize renewable energy generation and achieve Hawaii's 40% renewable energy mandate by 2030.

• Directs the PUC to establish higher returns on equity for transmission and distribution investments while lowering returns on fossil fuel generation to incentivize the shift away from fossil fuels.

• Authorizes utilities to recover stranded costs from early retirement of fossil fuel generators and to buy out existing fossil fuel power purchase agreements prior to contract expiration.

• Encourages utilities to switch existing fossil fuel generators from low sulfur fuel oil or diesel to less expensive alternative fuels and to penalize utilities that fail to convert eligible generation units.

• Requires the PUC to report annually on actions taken to fulfill these objectives and to identify any necessary statutory changes to implement the resolution's purposes.