HOUSE OF REPRESENTATIVES             H.C.R. NO.22          
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                     HOUSE  CONCURRENT
                        RESOLUTION

  REQUESTING THE PUBLIC UTILITIES COMMISSION TO SUBMIT
    LEGISLATION TO PROMOTE COMPETITION FOR PROVIDING
    ELECTRICITY IN THE STATE.



 1        WHEREAS, it is the policy of the State to ensure the
 2   provision of adequate, reasonably priced, and dependable energy
 3   services to accommodate demand; and
 4   
 5        WHEREAS, it is in the public interest to encourage further
 6   development of the State's energy services as a means of
 7   meeting the following objectives:
 8   
 9        (1)  Dependable, efficient, and economical statewide
10             energy systems capable of supporting the needs of the
11             people;
12   
13        (2)  Increased energy self-sufficiency where the ratio of
14             indigenous to imported energy use is increased; and
15   
16        (3)  Greater energy security in the face of threats to
17             Hawaii's energy supplies and systems;
18   and
19   
20        WHEREAS, within Hawaii's energy system, Hawaii's current
21   electric industry is a regulated monopoly; and
22   
23        WHEREAS, Hawaii's average electricity rates are the
24   highest in the United States; and
25   
26        WHEREAS, independent power producers in Hawaii are able to
27   produce power under contract to Hawaii's utilities at prices
28   lower than the utilities' costs; and
29   
30        WHEREAS, competition in the electric industry has
31   advantages over regulated monopoly and free markets can drive
32   down costs and prices by reducing inefficiencies; and
33   
34        WHEREAS, competition can be expected to reduce the cost of
35   electricity to Hawaii's citizens, releasing purchasing power

 
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 1   for other uses within the economy; thus, also decreasing the
 2   price of doing business in Hawaii; and
 3   
 4        WHEREAS, competition is also more likely to spur
 5   innovations with new technologies; and
 6   
 7        WHEREAS, competition can be structured to increase use of
 8   indigenous energy resources, energy efficiency measures, and
 9   diversify energy supply in accordance with state energy policy;
10   and
11   
12        WHEREAS, the Public Utilities Commission has opened Docket
13   No. 96-0493 instituting a proceeding on competition for
14   providing electricity, including an investigation of the
15   electric utility infrastructure in the State of Hawaii; and
16   
17        WHEREAS, it appears to be advantageous to Hawaii's
18   citizens to initiate competition for providing electricity as
19   soon as possible; now, therefore,
20   
21        BE IT RESOLVED by the House of Representatives of the
22   Twentieth Legislature of the State of Hawaii, Regular Session
23   of 1999, the Senate concurring, that the Public Utilities
24   Commission is requested to provide by December 31, 1999,
25   specific recommendations to the Legislature for legislation to
26   implement economical competition for providing electricity in
27   the State of Hawaii; and
28   
29        BE IT FURTHER RESOLVED that certified copies of this
30   Concurrent Resolution be transmitted to the Governor of the
31   State of Hawaii and the Chairperson of the Public Utilities
32   Commission.
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36                         OFFERED BY:  ____________________________