STAND. COM. REP. NO.984-02
RE: H.C.R. No. 177
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Your Committee on Energy and Environmental Protection, to which was referred H.C.R. No. 177 entitled:
"HOUSE CONCURRENT RESOLUTION REQUESTING THE PUBLIC UTILITIES COMMISSION TO PROHIBIT STANDBY CHARGES AND CUSTOMER RETENTION DISCOUNT PRACTICES WITH RESPECT TO RENEWABLE ENERGY OR NET-METERED SYSTEMS AND TO CONSIDER SPECIFIC ISSUES IN PROCEEDINGS REGARDING DISTRIBUTED ENERGY RESOURCES,"
begs leave to report as follows:
The purpose of this concurrent resolution is to encourage the development of renewable energy or net-metered systems by requesting the Public Utilities Commission (PUC) to:
(1) Prohibit the public electric utility practice (Prohibited Practice) of standby charges and customer retention discounts with respect to net-metered and renewable energy systems;
(2) With respect to fossil-fueled on-site generation facilities and standby charges, consider establishing ratemaking design and ratemaking policies (Policies) based on certain specified criteria;
(3) Consider certain specified elements (Elements) to ensure compliance with the Policies when considering standby charges in any proceeding; and
(4) Report to the Legislature if the PUC does not consider the Elements, as to its actions and how its decision is in the public interest.
Hawaiian Electric Company, Inc. (HELCO), Hawaii Electric Light Company, Maui Electric Company, Hess Microgen LLC, Hawaii Renewable Energy Alliance, Life of the Land, and a concerned individual supported this measure. The Department of Business, Economic Development, and Tourism supported the intent of this measure. The PUC, Kauai Electric, and the Consumer Advocate commented on this measure.
Your Committee regards PUC Docket No. 99-0207, In the Matter of the Application of HELCO, which deals with the approval of rate increases and revised rate schedules with regard to the issue of HELCO's standby service rider, also known as Rider A (Docket No. 99-0207), as the focal point of its concerns relating to the standby charge and customer retention discount issue. Your Committee also recognizes that PUC approval of standby charges and customer retention discounts is a complex process, but may be an expeditious means of addressing your Committee's concerns.
Your Committee has amended this measure by:
(1) Requesting the PUC to reopen Docket No. 99-0207 and re-examine its decision in light of specified Policies, Elements, and Prohibited Practices;
(2) Amending the title to read: "requesting the public utilities commission to REOPEN DOCKET NO. 99-0207, which deals with the APPLICATION OF HAWAII ELECTRIC LIGHT COMPANY, INC., FOR APPROVAL OF RATE INCREASES AND REVISED RATE SCHEDULES with regard to its standby service rider; CONSIDER specific issues in proceedings regarding distributed energy resources; AND CONSIDER SPECIFIC ISSUES IN ALL FUTURE PROCEEDINGs REGARDING DISTRIBUTED ENERGY RESOURCES"; and
(3) Making technical, nonsubstantive amendments for clarity, consistency, and style.
As affirmed by the record of votes of the members of your Committee on Energy and Environmental Protection that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 177, as amended herein, and recommends that it be referred to the Committee on Consumer Protection and Commerce in the form attached hereto as H.C.R. No. 177, H.D. 1.
Respectfully submitted on behalf of the members of the Committee on Energy and Environmental Protection,
HERMINA M. MORITA, Chair