HI SB1197

Authorizes the Public Utilities Commission to establish a grid reliability management rate surcharge allowing electric utilities to recover operational costs under power purchase agreements that exclude provisions based on avoided costs and excessive renewable energy curtailment.

Permits the Public Utilities Commission to provide higher rates of return to electric utilities for capital investments in transmission, distribution, and grid reliability upgrades supporting the connection and integration of new renewable energy facilities.

Delays the effective date to July 1, 2030, to allow for further discussion on the measure.

Opposed by the Division of Consumer Advocacy and Hawaiian Electric Company and its subsidiaries; supported by the Public Utilities Commission and renewable energy advocacy groups.