14
THE SENATE                           S.C.R. NO.            S.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                    SENATE  CONCURRENT
                        RESOLUTION

  REQUESTING THE PUBLIC UTILITIES COMMISSION TO SUBMIT A STATUS
    REPORT ON DOCKET NO. 96-0493 RELATING TO THE FEASIBILITY
    OF INCREASING COMPETITION IN THE STATE'S ELECTRIC UTILITY
    INDUSTRY.


 1        WHEREAS, it is the policy of the State to ensure the
 2   provision of adequate, reasonably priced, and dependable energy
 3   services to accommodate demand; and
 4   
 5        WHEREAS, it is in the public interest to encourage further
 6   development of the State's energy services as a means of
 7   meeting the following objectives:
 8   
 9        (1)  Dependable, efficient, and economical statewide
10             energy systems capable of supporting the needs of the
11             people;
12   
13        (2)  Increased energy self-sufficiency where the ratio of
14             indigenous to imported energy use is increased; and
15   
16        (3)  Greater energy security in the face of threats to
17             Hawaii's energy supplies and systems;
18   
19   and
20   
21        WHEREAS, within Hawaii's energy system, Hawaii's current
22   electric utility industry is a regulated monopoly; and
23   
24        WHEREAS, Hawaii's average electricity rates are the
25   highest in the United States; and
26   
27        WHEREAS, independent power producers in Hawaii are able to
28   produce power under contract to Hawaii's utilities at prices
29   lower than the utilities' costs; and
30   
31        WHEREAS, competition in the electric utility industry has
32   advantages over regulated monopoly and free markets can drive
33   down costs and prices by reducing inefficiencies; and
34   
35        WHEREAS, competition can be expected to reduce the cost of

 
Page 2                                                     14
                                  S.C.R. NO.            S.D. 1
                                                        
                                                        

 
 1   electricity to Hawaii's citizens, releasing purchasing power
 2   for other uses within the economy; thus, also decreasing the
 3   price of doing business in Hawaii; and
 4   
 5        WHEREAS, competition is also more likely to spur
 6   innovations with new technologies; and
 7   
 8        WHEREAS, competition can be structured to increase use of
 9   indigenous energy resources, energy efficiency measures, and
10   diversify energy supply in accordance with state energy policy;
11   and
12   
13        WHEREAS, the Public Utilities Commission (PUC) has opened
14   Docket No. 96-0493 instituting a proceeding on competition for
15   providing electricity, including an investigation of the
16   electric utility infrastructure in the State of Hawaii; and
17   
18        WHEREAS, position statements filed by the parties in
19   Docket No. 96-0493 in October, 1998, indicate that many
20   differences remain between the parties on the issues, and the
21   PUC plans to hold further proceedings in order to develop a
22   mutually acceptable plan to foster competition in the electric
23   utility industry; and
24   
25        WHEREAS, while the PUC intends to move the docket forward
26   on an expedited basis, the additional proceedings may not be
27   completed by December 31, 1999; and
28   
29        WHEREAS, until the docket is completed, the PUC will be
30   unable to provide the Legislature with proposed legislation to
31   foster competition in the State's electric utility industry;
32   now, therefore,
33   
34        BE IT RESOLVED by the Senate of the Twentieth Legislature
35   of the State of Hawaii, Regular Session of 1999, the House of
36   Representatives concurring, that the Public Utilities
37   Commission is requested to submit to the Legislature by
38   December 31, 1999, a status report on Docket No. 96-0493
39   relating to the feasibility of competition in the electric
40   utility industry; and
41   
42        BE IT FURTHER RESOLVED that certified copies of this
43   Concurrent Resolution be transmitted to the Governor of the
44   State of Hawaii and the Chairperson of the Public Utilities
45   Commission.