Hawaii HB974 establishes step-in agreements to ensure payment for power purchase costs in case of default by an electric utility.

Hawaii HB974 creates step-in agreements to guarantee payments for power purchase costs in the event an electric utility defaults. The Department of Budget and Finance will enter into these agreements with independent power producers to ensure prompt and full payments. The bill establishes a trust fund within the state treasury to hold revenues from power purchase charges. It also authorizes an electric utility to act as an agent for the department to manage and pay out moneys for covered power purchase agreements.

Hawaii HB974 establishes step-in agreements to ensure payment for power purchase costs in case of default by an electric utility.

Hawaii HB974 creates step-in agreements to guarantee payments for power purchase costs in the event an electric utility defaults. The Department of Budget and Finance will enter into these agreements with independent power producers to ensure prompt and full payments. The bill establishes a trust fund within the state treasury to hold revenues from power purchase charges. It also authorizes an electric utility to act as an agent for the department to manage and pay out moneys for covered power purchase agreements.