Report Title:

Public Utilities Commission

 

Description:

Requires PUC to establish a tariff for intergovernmental wheeling of indigenous electric energy between governmental agencies.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

42

TWENTY-FOURTH LEGISLATURE, 2007

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

relating to the public utilities commission.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The legislature finds that Hawaii relies on imported oil to meet over ninety per cent of the State's energy needs, leaving the State critically vulnerable to supply interruptions and oil price volatility.  Bold action is needed to chart a progressive energy strategy for the State that should include the integration of Hawaii's indigenous renewable energy resources in electricity production to promote economic stability, enhance energy security, and demonstrate environmental stewardship.

     The legislature further finds that a number of significant strategies can be undertaken to maximize economic prosperity while minimizing direct, secondary, and tertiary impacts to society.  One of these is renting existing, ratepayer-paid-for transmission lines to ship renewable energy generated electricity from a renewable energy generation site to a governmental facility needing electricity.  This is a win-win situation:  money remains in the State supporting indigenous energy sources, while ratepayer-financed capital expenditures for new central station oil and coal fired power plants and transmission lines are no longer needed.

     For this reason, the legislature passed Senate Concurrent Resolution No. 180 during the Regular Session of 2004, requesting the public utilities commission to explore how to implement the concept of intragovernmental wheeling to facilitate government wheeling of electricity.  The concurrent resolution was supported by the department of business, economic development, and tourism; the department of commerce and consumer affairs' division of consumer advocacy; the county of Kauai office of economic development and tourism; the county of Maui department of management; and the public utilities commission.

     The purpose of this Act is to require the public utilities commission to establish a wheeling tariff for intragovernmental wheeling of indigenous electricity.

     SECTION 2.  Section 269-1, Hawaii Revised Statutes, is amended by adding five new definitions to be appropriately inserted and to read as follows:

     ""Indigenous electricity" means electricity generated from local, non-imported resources.

     "Intragovernmental wheeling" means the retail wheeling where the buyer and seller are agencies or departments of the federal, state, or any county government.

     "Wheeler" means an individual, corporation, partnership, or other entity that subcontracts from a governmental agency to construct, operate, manage, or oversee one or more aspects of the generation and the retail sale or purchase of indigenous electricity used in an intragovernmental wheeling program.

     "Wheeling" means the process of transmitting electric power from a seller's point of generation across a third party owned transmission, subtransmission, and distribution system to the seller's retail customer.

     "Wheeling tariff" means a commission approved tariff for a governmental agency to use existing utility transmission, subtransmission, and distribution lines."

     SECTION 3.  Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§269-    Wheeling tariff.  The commission shall establish a wheeling tariff for intragovernmental wheeling of indigenous electricity.  The tariff may vary for the type of line used, time of use, and for the geographic location, that is, to serve loads near utility generators or to serve loads distant from utility generators.  The commission shall adopt rules, pursuant to chapter 91, guaranteeing that an agency or wheeler may utilize existing utility lines for the purpose of intragovernmental wheeling."

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

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