HI SB2785

Establishes regulatory framework for high-voltage electric transmission cable systems connecting two or more Hawaiian islands, with the Public Utilities Commission overseeing certification and operation of certified cable companies.

Requires cable companies to be selected through competitive request for proposals process developed by electric utility companies and the state energy resources coordinator, with the commission approving all applications within 180 days.

Permits certified cable companies to use commercially reasonable non-recourse project financing and allows the commission to approve ratemaking principles that establish authorized rates of return based on risks assumed by the cable company.

Requires electric utility companies to recover costs for on-island transmission infrastructure through automatic rate adjustment clauses, including capital costs, depreciation, and taxes from the date infrastructure is available for service.

Prohibits cable systems from connecting to islands with populations under 50,000 and mandates public hearings on each affected island before commission approval of certification applications.