HI HB974

Requires the Department of Budget and Finance to enter into "step-in agreements" with independent power producers, obligating the department to make payments for power purchase costs if an electric utility defaults on its payment obligations under approved power purchase agreements

Establishes the Power Purchase Costs Trust Fund outside the state treasury, funded by on-bill power purchase charges (in the event of default) and reserve fees, to fulfill payment obligations to independent power producers under covered agreements

Creates a reserve account funded by a nonbypassable utility surcharge capped at 15% of forecasted monthly power purchase costs, which can be used if power purchase charges are insufficient to cover payments

Limits the State's liability under step-in agreements solely to moneys on deposit in the trust fund, explicitly excluding the State's full faith and credit or any other state funds from being pledged

Step-in agreements automatically terminate when the electric utility achieves investment grade credit status (BBB- or higher from at least two major rating agencies), at which point reserve fees stop being collected and remaining funds are returned to customers through rate credits