STAND. COM. REP. NO. 209

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1065

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Madam:

 

     Your Committees on Energy and Environment and Economic Development and Technology, to which was referred S.B. No. 1065 entitled:

 

"A BILL FOR AN ACT RELATING TO THE NATURAL ENERGY LABORATORY OF HAWAII AUTHORITY,"

 

beg leave to report as follows:

 

     The purpose of this measure is to exempt the Natural Energy Laboratory of Hawaii Authority ("NELHA") from regulation by the Public Utilities Commission if sales of energy are made to users located on adjacent property that is leased from the State.

 

     Testimony in support of this measure was submitted by NELHA.  Comments were submitted by the Department of Commerce and Consumer Affairs, Division of Consumer Advocacy (the "Consumer Advocate").  Copies of written testimony are available for review on the Legislature's website.

 

     The Consumer Advocate indicated that while it may be reasonable to exclude NELHA from rate setting, commitment of funds, and other sections applicable to regulating an investor-owned utility, NELHA should be required to meet performance and safety standards required for transmission and distribution of energy if NELHA intends to transmit energy using the utility's grid.

 

     Your Committees find that this measure would make it possible for NELHA to transmit power to adjoining state agencies, reducing their cost of conducting the business of the State.  Your Committees find that it would not be appropriate, however, for NELHA to be wholly excluded from regulation.

 

     Your Committees have amended this measure to adopt the Consumer Advocate's recommendations, and by requiring NELHA to meet performance and safety standards required for transmission and distribution of energy if NELHA intends to transmit energy to adjacent users using the utility's grid.

 

     As affirmed by the records of votes of the members of your Committees on Energy and Environment and Economic Development and Technology that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1065, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1065, S.D. 1, and be referred to the Committee on Commerce and Consumer Protection.

 

Respectfully submitted on behalf of the members of the Committees on Energy and Environment and Economic Development and Technology,

 

____________________________

CAROL FUKUNAGA, Chair

 

____________________________

MIKE GABBARD, Chair