STAND. COM. REP. 728

Honolulu, Hawaii

, 2003

RE: H.B. No. 1492

H.D. 2

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 1492, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO NET ENERGY METERING,"

begs leave to report as follows:

The purpose of this bill is to expand the State's net metering program by:

(1) Removing the 10 kilowatt capacity restriction on eligible customer-generators; and

(2) Increasing the percentage of an electric utility's system peak demand that may be produced by eligible customer-generators from 0.5 percent under current law, to 1.0 percent in 2004, and increasing that percentage incrementally by 0.5 percent every two years, to a maximum of 5.0 percent in 2020.

Testimony in support of this bill was submitted by the Sierra Club, PowerLight Corporation, Hawaii Renewable Energy Alliance, Inter Island Solar Supply, and Hawaii Solar Energy Association. The Department of Business, Economic Development, and Tourism supported the intent of the bill. The Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs and the Public Utilities Commission offered comments. Hawaiian Electric Company, Inc., opposed this bill.

Your Committee finds that currently, customers are able to produce their own electricity by using renewable energy generators with a capacity of not more than 10 kilowatts. These customers may then use net metering to qualify for a retail rate credit from their utility. This credit functions as an incentive for customers to use renewable energy sources, and is thus consistent with Hawaii's energy policies.

Your Committee believes that continued efforts must be made to encourage the use of renewable resources in this State. This bill attempts to do so by removing customer-generator capacity restrictions that limit the advantages gained when using renewable energy generators in conjunction with the net metering program, and by increasing the proportion of an electric utility's peak demand that may be provided by customer-generators.

However, your Committee is also aware of concerns raised, regarding the bill's effect on customer rates, and whether the bill will result in an overall benefit to consumers. In an effort to continue discussion on these matters, your Committee has changed the effective date of this bill to July 1, 2050.

As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1492, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1492, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection and Commerce,

 

____________________________

KENNETH T. HIRAKI, Chair