THE SENATE

S.C.R. NO.

98

TWENTY-FIRST LEGISLATURE, 2002

 

STATE OF HAWAII

 
   


SENATE CONCURRENT

RESOLUTION

 

REQUESTING THE PUBLIC UTILITIES COMMISSION TO OPEN A NEW DOCKET CONCERNING STANDBY CHARGES APPLICABLE TO NON-UTILITY DISTRIBUTED ENERGY RESOURCES AND CUSTOMER RETENTION DISCOUNTS OFFERED BY PUBLIC UTILITIES.

 

WHEREAS, the Legislature finds that the increased use of non-utility distributed energy resources can provide electricity with greater reliability, lower cost, improved power quality, and greater energy efficiency than utility generation and should be encouraged in Hawaii and is consistent with federal law requiring development of alternate energy sources; and

WHEREAS, distributed energy resources systems can use renewable and indigenous energy providing economic, environmental, and fuel diversity benefits that will help reduce Hawaii's dependence on imported oil, which is subject to sudden and sharp price spikes that threaten Hawaii's economic stability; and

WHEREAS, the Legislature finds that distributed energy resources, operating in coordination with Hawaii's public electric utilities, could serve a peak saving function and back up intermittent renewables and reduce costly reserve capacity requirements; and

WHEREAS, the Legislature finds that distributed energy resources can enhance Hawaii's energy system security in the face of natural disasters or other emergencies; and

WHEREAS, the Legislature finds that distributed energy resources offer important benefits to Hawaii's people, energy, and economic security, as well as an opportunity for economic development and diversity by becoming a leader in distributed energy resources systems; and

WHEREAS, the Legislature finds that the distributed energy resources technology of co-generation encourages the efficient use of fossil fuels because it utilizes the thermal heat component; and

WHEREAS, the Legislature finds that the Public Utility Regulatory Policies Act of 1978 (PURPA) encourages the use of co-generation; and

WHEREAS, the Legislature finds that a standby charge by Hawaii's public electric utilities is a disincentive to non-utility distributed energy resources, and that such charges may not consider potential benefits of the non-utility generator to the utility system; and

WHEREAS, the Legislature finds that customer retention discounts offered by Hawaii's public electric utilities are disincentives to customers to utilize non-utility distributed energy resources and are ultimately paid by other rate payers; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-first Legislature of the State of Hawaii, Regular Session of 2002, the House of Representatives concurring, that the Public Utilities Commission is requested to open a new docket to examine and revise as appropriate:

(1) Any public utility rule, standard, rate, and guideline that establishes a standby charge applicable to a non-utility distributed energy resource; and

(2) Any customer retention discounts offered by a public utility;

and

BE IT FURTHER RESOLVED that the Public Utilities Commission is requested to invite all distributed energy resources companies and public electric utilities in Hawaii and the Consumer Advocate to be parties in the Docket; and

BE IT FURTHER RESOLVED that the Chairperson of the Public Utilities Commission is requested to submit a report of the Commission's findings to the Legislature at least twenty days before the convening of the Regular Session of 2003; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Director of Commerce and Consumer Affairs, and the Chairperson of the Public Utilities Commission, who in turn is requested to transmit copies to the chief executive officers of each electric utility company in the State.

 

 

 

OFFERED BY:

_____________________________

Report Title:

PUC; New Docket Study