HI SB3326

Public Utilities Commission must study whether to separate ownership of electric generation services from transmission and distribution services in Hawaii, with preliminary findings due before the 2027 legislative session and a final report due before 2028.

Study must examine impacts on labor workforce, neighbor islands, ratepayer savings, rate stability, grid reliability, climate goals, and market competitiveness in the energy sector.

Following the study, PUC may adopt rules requiring separate ownership and control, opening electric generation to competition while keeping transmission and distribution as regulated monopoly services.

Implementation rules must ensure nondiscriminatory grid access, protect existing labor and collective bargaining agreements, preserve consumer protection programs, and provide for fair recovery of stranded asset costs.

Electric cooperatives are exempt from the separation requirements; the Act takes effect July 1, 2026.