HB 1384 Summary

• Requires the Public Utilities Commission to consider whether leasing unused or temporarily available utility infrastructure (fiber optic cables, conduit, and other assets) is in the public interest as a cost recovery and revenue-generating mechanism.

• Adds infrastructure leasing as a fifth economic incentive mechanism to Hawaii Revised Statutes Section 269-6(d), alongside existing mechanisms for energy cost savings, renewable energy curtailment mitigation, stranded cost recovery, and differentiated rates of return.

• Mandates the Public Utilities Commission to include a summary of economic incentives and cost recovery mechanisms considered, and their fiscal impacts where implemented, in its annual report to the governor.

• Cites examples from California where Southern California Edison's dark fiber leases generated substantial revenues ($674,280 to $2.4 million per lease) that benefitted ratepayers without operational risk.

• Aims to provide relief to electric and utility ratepayers by enabling utilities to generate revenue from existing infrastructure while promoting broadband expansion through shared fiber networks.