HI HB561

Requires the Public Utilities Commission (PUC) to consider the State's reliance on fossil fuels when determining the reasonableness of electric or gas utility capital improvements and operations, explicitly evaluating price volatility, export of funds for fuel imports, fuel supply reliability risk, and greenhouse gas emissions.

Limits the fossil fuel analysis requirement to proceedings involving water, wastewater, or telecommunications providers on an individual basis, determined by the PUC as necessary for each case.

Exempts routine system replacements (such as overhauls and line determinations) and determinations not pertaining to capital improvements or operations (including financing requests) from the fossil fuel impact analysis.

Allows the PUC to determine that short-term costs of renewable energy generation higher than fossil fuel alternatives are reasonable when considering fossil fuel impacts.

Updates the PUC's performance incentive review criteria for electric utilities to reference the economic incentives and cost-recovery mechanisms listed in the amended statute, including renewable energy curtailment mitigation and stranded cost recovery mechanisms.