Gov. Josh Green quietly signed into law a major piece of legislation dealing with Hawaiian Electric's finances on Tuesday night.
Act 258 authorizes securitization, which allows the utility to issue ratepayer-backed bonds for certain costs.
Lawmakers first took up securitization last year to address HECO's precarious financial standing after the Maui wildfires.
State Sen. Jarrett Keohokalole tabled the measure towards the end of the 2024 legislative session and lawmakers would work to refine the measure during the interim.
This year, seven committees reviewed the bill ahead of the conference, and stakeholders submitted hundreds of pages of testimony.
The new law also limits the liability an electric utility will face for damages after a catastrophic wildfire event. The Public Utilities Commission has been tasked with determining the maximum amount utilities may have to pay following such an event.
It also establishes a streamlined process for electric utility cooperatives, namely the Kauaʻi Island Utility Cooperative, to recover costs for wildfire prevention work from ratepayers. KIUC is engaged in its own wildfire risk reduction efforts.
