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THE SENATE                           S.C.R. NO.            S.D. 2
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                    SENATE  CONCURRENT
                        RESOLUTION
  REQUESTING THE PUBLIC UTILITIES COMMISSION TO CREATE AND
    IMPLEMENT A STANDARDIZED INTERCONNECTION AGREEMENT FOR
    SMALLER INDEPENDENT PRODUCERS OF ENERGY.



 1        WHEREAS, in the new economy, technology is rapidly
 2   changing the way the world works, including how energy is
 3   generated; and
 4   
 5        WHEREAS, venture capital is looking to invest in new
 6   enterprises and Hawaii is uniquely attractive as a testing area
 7   for renewable energy; and
 8   
 9        WHEREAS, as fuel cells and photovoltaics become
10   commercially available, residents of Hawaii may desire to
11   utilize these emerging technologies; and
12   
13        WHEREAS, currently, different military installations
14   generate their own power; and
15   
16        WHEREAS, in the event of a natural disaster, each of these
17   generators could assist in providing electricity to other
18   consumers; and
19   
20        WHEREAS, maintaining the reliability of our electric grid
21   is of importance, so that any entity that wishes to provide
22   power to the electric grid must satisfy certain interconnection
23   requirements; and
24   
25        WHEREAS, currently, it may take up to five years per
26   agreement to resolve these issues; and
27   
28        WHEREAS, having a standardized interconnection agreement,
29   publicly available on the Internet, would result in all
30   potential power generators knowing in advance the requirements
31   to connect to the electric grid; and
32   
33        WHEREAS, this knowledge could lead to increased
34   competition in the area of electric generation, lowering costs
35   of electricity for consumers; and
36   

 
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 1        WHEREAS, the community at large would benefit by lower
 2   costs and greater security in time of disaster; and
 3   
 4        WHEREAS, other municipalities and states, such as
 5   Sacramento and Vermont, have instituted standardized
 6   interconnection agreements facilitating the development of a
 7   competitive environment involving utilities and independent
 8   power producers; and
 9   
10        WHEREAS, municipalities and states have found that
11   standardized interconnection agreements strengthen the local
12   economy; now, therefore,
13   
14        BE IT RESOLVED by the Senate of the Twentieth Legislature
15   of the State of Hawaii, Regular Session of 2000, the House of
16   Representatives concurring, that the Public Utilities
17   Commission is requested to create and implement a standardized
18   interconnection agreement for independent power producers whose
19   production capacity is less than one thousand kilowatts; and
20   
21        BE IT FURTHER RESOLVED that in conducting this review, the
22   Public Utilities Commission is requested to consult with other
23   appropriate authorities and experts, including representatives
24   of the states of New York and Texas, the Sacramento Municipal
25   Utility District, the Vermont Public Service Board, and any
26   other areas having standardized interconnection agreements; and
27   
28        BE IT FURTHER RESOLVED that the Public Utilities
29   Commission is requested to submit a report concerning the
30   status of this request and any findings and recommendations to
31   the Legislature not later than twenty days prior to the
32   convening of the Regular Session of 2001; and
33   
34        BE IT FURTHER RESOLVED that certified copies of this
35   Concurrent Resolution be transmitted to the Chairperson of the
36   Public Utilities Commission and the Consumer Advocate, who in
37   turn is requested to transmit copies to the Hawaiian Electric
38   Company, Kauai Electric, all independent power producers in the
39   State, Hawaii Renewable Energy Alliance, Life of the Land and
40   the Sierra Club, Hawaii Chapter.