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HOUSE OF REPRESENTATIVES             H.R. NO.              H.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                     HOUSE RESOLUTION
REQUESTING THE PUBLIC UTILITIES COMMISSION TO ADDRESS AND
   CONSIDER ADDITIONAL DEMAND SIDE MANAGEMENT ISSUES IN
   RELATED, PENDING, OR NEW COMMISSION DOCKETS.



 1       WHEREAS, demand side management (DSM) is clearly in the
 2   public interest; and
 3   
 4       WHEREAS, the Office of the Consumer Advocate web page
 5   states:
 6   
 7          "In most instances, it will be less expensive to
 8       implement DSM programs to defer or delay generation
 9       additions.  An example of DSM is rebates offered by
10       electric companies to encourage the installation of
11       solar water heating by residential customers.  By
12       reducing the customers' consumption of electricity
13       generated by the electric utility company, the need for
14       the next generating unit will be deferred";
15   
16   and
17   
18       WHEREAS, the Department of Business, Economic Development,
19   and Tourism web page states:
20   
21          "DSM programs offer clear benefits to
22       stakeholders...  These benefits include reduction of
23       costs to customers, supplying electric services without
24       regulatory risks, pushing new generation capacity
25       further into the future, avoiding the risks of new
26       power plant construction, and reducing environmental
27       impacts";
28   
29   and
30   
31       WHEREAS, increasing the number of DSM programs has the
32   potential to lead to enormous savings to the residents of
33   Hawaii; and
34       WHEREAS, competitive bidding for DSM proposals has the
35   potential to lower the cost to implement such programs; and
36   
37       WHEREAS, the Public Utilities Commission (PUC) is reviewing
38   ways competition can be utilized to reduce costs to consumers;
39   and

 
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                                  H.R. NO.              H.D. 1
                                                        
                                                        

 
 1       WHEREAS, the initial five-year program implementation
 2   period for Hawaiian Electric Company's (HECO) two residential
 3   and three commercial and industrial DSM programs ends December
 4   31, 2000; and 
 5   
 6       WHEREAS, HECO plans to file with the PUC in the near future
 7   applications to extend its residential, commercial, and
 8   industrial DSM programs for a second five-year period, and
 9   included in the applications will be HECO's proposal on
10   competitive bidding for DSM resources; and
11   
12       WHEREAS, if PUC's final decision to extend HECO's DSM
13   programs is not issued by October 2000, the PUC will allow HECO
14   to continue its DSM programs for one additional year to:
15   
16       (1)  Preclude any disruption to the delivery of energy
17            efficient services currently being provided through
18            the DSM programs; and
19   
20       (2)  Provide the necessary time for the PUC to issue its
21            final decision in the proceedings to extend HECO's DSM
22            programs;
23   and 
24   
25       WHEREAS, currently, concerned parties for the continuation
26   of HECO's DSM programs are encouraged to intervene or
27   participate in the proceedings to extend HECO's DSM programs;
28   and
29   
30       WHEREAS, HECO wants to continue with its DSM programs to
31   increase the penetration of cost-effective DSM resources
32   leading to the more efficient use of electricity by its
33   customers; now, therefore,
34   
35       BE IT RESOLVED by the House of Representatives of the
36   Twentieth Legislature of the State of Hawaii, Regular Session
37   of 2000, that the PUC is requested to expeditiously address and
38   consider DSM issues including, but not limited to, the
39   modification of financial incentives in related, pending, or
40   new commission dockets; and
41   
42       BE IT FURTHER RESOLVED that the PUC is requested to submit
43   a report on the status of this request on DSM programs and any
44   findings and recommendations to the Legislature no later than
45   20 calendar days prior to the convening of the Regular Session
46   of 2001; and

 
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                                  H.R. NO.              H.D. 1
                                                        
                                                        

 
 1       BE IT FURTHER RESOLVED that certified copies of this
 2   Resolution be transmitted to the PUC, the Consumer Advocate,
 3   HECO, Kauai Electric, Hawaii Solar Energy Association, Hawaii
 4   Renewable Energy Alliance, Life of the Land, and the Sierra
 5   Club, Hawaii Chapter.