HI HB1505

Prohibits the Public Utilities Commission from approving power purchase agreements that ban the sale of renewable energy to third parties or require utility consent for such sales, when the energy will be converted to other forms (chemical, thermal) or stored for later use.

Requires independent power producers to pay fair compensation to electric utilities when curtailed renewable energy is sold to third parties on the electrical grid.

Defines "curtailed renewable energy" as renewable energy produced by an independent power producer but not accepted by the utility onto the electrical grid.

Allows electric utilities to recover all approved power purchase agreement costs from customers through adjustable surcharges, unless the commission determines costs were incurred in bad faith, waste, abuse of discretion, or violation of law.

Effective date: July 1, 2112.