Net metering study

Establishes a net metering study under the public utilities
commission. (HB1884 HD1)

HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  New and improved technologies have made it
 2 possible for small-scale renewable energy systems to be put into
 3 use safely and reliably by customer-generators, such as
 4 homeowners and small businesses.  The legislature recognizes the
 5 advantages of net metering in furthering the use of renewable
 6 energy systems in the State, thereby enhancing economic growth in
 7 the State, offsetting Hawaii's reliance on imported fossil fuels,
 8 and encouraging private investment in renewable energy resources.
 9      Net metering allows consumers to offset the cost of
10 electricity they buy from a utility by selling renewable electric
11 power generated at their homes or businesses.  In essence, a
12 customer's electric meter can run both forward and backward in
13 the same metering period, and the customer is only charged for
14 the net amount of power used.
15      The legislature believes that the development and use of net
16 energy metering can also reap significant environmental benefits
17 to the State.
18      The legislature finds that a renewable energy demonstration
19 project has been established in the department of education.  As

Page 2                                                     1884
                                     H.B. NO.           H.D. 1

 1 part of this project, photovoltaic systems and energy storage
 2 devices will be installed in selected public schools.  In order
 3 to measure net electricity flow, the participating public schools
 4 may use single, reversible, non-time-differentiated meters.
 5      The legislature further finds that this demonstration
 6 project represents an ideal opportunity for the State to gather
 7 important data on the use of net metering.  Therefore, the
 8 purpose of this Act is to direct the public utilities commission
 9 to gather data for implementing a net metering program by
10 studying its use in the department of education's renewable
11 energy demonstration project.
12      SECTION 2.  The public utilities commission shall conduct a
13 study on the feasibility of implementing a net metering program
14 in this state.  As part of this study, the public utilities
15 commission shall gather data on the department of education's use
16 of net metering in its renewable energy demonstration project.
17      The data shall include:
18      (1)  Historical data for a one-year period, including real-
19           time electricity production and use, and net use and
20           consumption by the time of day;
21      (2)  Metering methods;
22      (3)  A rate structure, including the net change in
23           electricity rates for different classes of ratepayers;

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                                     H.B. NO.           H.D. 1

 1      (4)  Interconnection and safety issues;
 2      (5)  The impact of net metering on overall electric utility
 3           income and profitability;
 4      (6)  The advantages of net metering, including deferred
 5           capacity, value of energy, reduction of fossil fuel
 6           use, and power quality issues;
 7      (7)  A cost-benefit analysis;
 8      (8)  The disadvantages of net metering, including revenue
 9           losses for utilities;
10      (9)  Other technologies that are pertinent to the project;
11           and
12     (10)  Other state jurisdictions that are pertinent to
13           Hawaii's situation and that have adopted some type of
14           net metering provision, either through law or
15           administrative rule.
16     The department of education shall assist the public utilities
17 commission in its study by sharing its information on net
18 metering.
19     SECTION 3.  The public utilities commission shall submit the
20 following reports on the actions taken, status, and
21 recommendations with regard to its net metering study:
22     (1)   An interim report to the legislature no later than
23           twenty days before the convening of the regular session
24           of 2001; and

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 1     (2)   A final report to the legislature no later than twenty
 2           days before the convening of the regular session of
 3           2002.
 4      SECTION 4.  This Act shall take effect upon its approval and
 5 shall be repealed two years from its effective date.