STAND. COM. REP. NO. 3484

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.C.R. No. 179
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred
S.C.R. No. 179, S.D. 1, entitled:

     "SENATE CONCURRENT RESOLUTION REQUESTING THE PUBLIC
     UTILITIES COMMISSION TO RESOLVE AVOIDED COST ISSUES,"

begs leave to report as follows:

     The purpose of this concurrent resolution is to request  the
Public Utilities Commission to complete Docket No. 7310,
short-run avoided energy costs for as-available resources and
issue a decision and order.

     The concurrent resolution also requests the Public Utilities
Commission to implement a plan to calculate avoided cost within
one hundred twenty days from the filing of a petition by a
qualifying facility.

     Your Committee finds that one of the barriers to the use of
renewable energy is unresolved avoided cost issues.  Unresolved
avoided cost issues are a factor in protracted contract
negotiations for power purchase agreements between electric
utilities and qualifying facilities.  Moreover, these unresolved
issues increase the cost of doing business and cost of living in
Hawaii and contribute to Hawaii's negative image as a place to do
business.


 
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                                   STAND. COM. REP. NO. 3484
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     Your Committee further finds that this concurrent resolution
will encourage the implementation of procedures that will
facilitate and expedite the ability of all parties concerned to
arrive at reasonably determined avoided cost estimates for the
purpose of determining fair estimates of generating capacity
costs.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee concurs with the intent and purpose of S.C.R. No. 179,
S.D. 1, and recommends its adoption.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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