§269-27.2  Utilization of electricity
generated from nonfossil fuels.  (a)  The public utilities commission shall
investigate and determine the extent to which electricity generated from
nonfossil fuel sources is available to public utilities that supply electricity
to the public, which electricity is in excess of that utilized or otherwise
needed by the producers for their internal uses and which the producers are
willing to make available to the electric public utilities.



(b)  The public utilities commission may direct
public utilities that supply electricity to the public to arrange for the
acquisition of and to acquire electricity generated from nonfossil fuel sources
as is available from and the producers are willing and able to make available
to the public utilities, and to employ and dispatch the nonfossil fuel
generated electricity in a manner consistent with the availability thereof to
maximize the reduction in consumption of fossil fuels in the generation of
electricity to be provided to the public.  To assist the energy resources
coordinator in effectuating the purposes of chapter 201N, the public utilities
commission may develop reasonable guidelines and timetables for the creation
and implementation of power purchase agreements.



(c)  The rate payable by the public utility to
the producer for the nonfossil fuel generated electricity supplied to the
public utility shall be as agreed between the public utility and the supplier
and as approved by the public utilities commission; provided that in the event
the public utility and the supplier fail to reach an agreement for a rate, the
rate shall be as prescribed by the public utilities commission according to the
powers and procedures provided in this chapter.



The commission's determination of the just and
reasonable rate shall be accomplished by establishing a methodology that
removes or significantly reduces any linkage between the price of fossil fuels
and the rate for the nonfossil fuel generated electricity to potentially enable
utility customers to share in the benefits of fuel cost savings resulting from
the use of nonfossil fuel generated electricity.  As the commission deems
appropriate, the just and reasonable rate for nonfossil fuel generated
electricity supplied to the public utility by the producer may include
mechanisms for reasonable and appropriate incremental adjustments, such as
adjustments linked to consumer price indices for inflation or other acceptable
adjustment mechanisms.



(d)  Upon application of a public utility that
supplies electricity to the public, and notification of its customers, the
commission, after an evidentiary hearing, may allow payments made by the public
utility to nonfossil fuel producers for firm capacity and related revenue taxes
to be recovered by the public utility through an interim increase in rates
until the effective date of the rate change approved by the commission's final
decision in the public utility's next general rate proceeding under section
269-16, notwithstanding any requirements to the contrary of any other provision
in this chapter or in the commission's rules or practices; provided the amount
recovered by the utility and the amount of increase in rates due to the
payments for firm capacity and related revenue taxes to be charged to the
consumers of the electricity are found by the commission to be:



(1)  Just and reasonable;



(2)  Not unduly prejudicial to the customers of the
public utility;



(3)  Promotional of Hawaii's long-term objective of
energy self-sufficiency;



(4)  Encouraging to the maintenance or development of
nonfossil fueled sources of electrical energy; and



(5)  In the overall best interest of the general
public.



The evidentiary hearing provided for in this
subsection shall be conducted expeditiously and shall be limited to evidence related
to the above findings.  Notwithstanding section 269-16, no public hearing shall
be required, except as the commission in its discretion may require. [L 1977, c
102, §3; am L 1982, c 266, §2; am L 1983, c 243, §1; am L 1988, c 246, §2; am L
2004, c 95, §3; am L 2006, c 162, §3; am L 2008, c 207, §4; am L 2009, c 50, §2]