HOUSE OF REPRESENTATIVES

H.B. NO.

1943

TWENTY-SEVENTH LEGISLATURE, 2014

H.D. 2

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO THE MODERNIZATION OF THE HAWAII ELECTRIC SYSTEM.

 

 

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

 


SECTION 1. Section 269-145.5, Hawaii Revised Statutes, is amended to read as follows:

"[[]269-145.5[]] Advanced grid modernization technology; principles. (a) The commission, in carrying out its responsibilities under this chapter, shall consider the value of improving electrical generation, transmission, and distribution systems and infrastructure within the State through the use of advanced grid modernization technology in order to improve the overall reliability and operational efficiency of the Hawaii electric system.

(b) The commission shall address technical, policy, and economic issues associated with modernization of the electric grid, based on the following principles:

(1) Enable a diverse portfolio of renewable energy resources that adheres to customers' preferences;

(2) Expand options for customers to manage their energy use;

(3) Maximize distributed generation interconnections in non-discriminatory terms and at just and reasonable rates, while maintaining reliability of the grid, through applicable rules, orders, and tariffs;

(4) Provide fair payment for grid services provided to customers and fairly compensate customers for valuable services provided to the grid by distributed generation; and

(5) Incorporate customers' current and forecasted preferences into the utility distribution system and integrated resource planning."

SECTION 2. (a) By July 1, 2014, the public utilities commission shall commence a proceeding to address the technical, policy, and economic issues associated with the modernization of the electric grid in the State, based on the principles in section 269-145.5(b), Hawaii Revised Statutes.

The scope of the commission proceeding shall include:

(1) Identifying and implementing technical solutions to enable customer access to distributed generation and avoid interconnection delays;

(2) Developing a framework for modernizing the grid to maximize customer options to manage their energy use, and to allocate the costs of grid upgrades based on a comprehensive view of costs and benefits to customers, the electric utility grid, and the public interest; and

(3) Developing a framework for modernizing utility rates related to customer options such as distributed generation based on a comprehensive view of costs and benefits to customers, the electric utility grid, and the public interest using best practices for modeling.

(b) The commission proceeding under this section shall encompass one or more procedural timelines, as determined by the public utilities commission, to expedite the implementation of short-term solutions and minimize delays on customer access to distributed generation.

(c) While the commission proceeding required under this section is pending, the public utilities commission shall require a public utility to file with the commission a detailed report on each customer request to interconnect distributed generation that the utility has denied or has delayed for at least thirty days beyond any applicable deadline in the utility's interconnection procedures.
The report shall include:

(1) The precise technical reasons that the interconnection request has not been approved;

(2) The specific technical solutions the utility is pursuing, including customer-sited and grid-sited alternatives; and

(3) The specific timeframe for implementing each potential solution.

The utility shall also file quarterly and annual reports with the public utilities commission. The reports shall be open to the public and shall summarize the aggregate information in the detailed reports specified in this section.

The public utilities commission shall submit a final report of its findings and recommendations to the legislature no later than twenty days prior to the convening of the regular session of 2016, and shall submit quarterly interim progress reports to the legislature on the implementation of short-term solutions.

(d) The public utilities commission and the division of consumer advocacy of the department of commerce and consumer affairs shall be exempt from section 103D-304, Hawaii Revised Statutes, in its procurement of any professional services needed to conduct the commission proceeding.

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $         or so much thereof as may be necessary for fiscal year 2014-2015 for the public utilities commission to conduct the proceeding required pursuant to section 2 of this Act; provided that the public utilities commission shall provide intervener parties access to professional services procured by the commission as necessary and appropriate to enable full and fair stakeholder participation in the proceeding.

The sum appropriated shall be expended by the public utilities commission for the purposes of this Act.

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $         or so much thereof as may be necessary for fiscal year 2014-2015 for the division of consumer advocacy of the department of commerce and consumer affairs to represent the interests of consumers in accordance with section 269-51, Hawaii Revised Statutes, in the course of the proceeding required pursuant to section 2 of this Act.

The sum appropriated shall be expended by the department of commerce and consumer affairs for the purposes of this Act.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2050.


 


 

Report Title:

Grid Modernization; Hawaii Electric System; Public Utilities Commission; Appropriation

 

Description:

Amends the public utilities commission principles regarding the modernization of the electric grid. Requires the commission to initiate a proceeding no later than July 1, 2014, to discuss upgrades to the Hawaii electric system for anticipated growth of customer generation. Appropriates funds to cover costs of the proceeding. Effective July 1, 2050. (HB1943 HD2)

 

 

 

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