173
THE SENATE                           S.C.R. NO.            S.D. 1
TWENTIETH LEGISLATURE, 2000                                H.D. 1
STATE OF HAWAII                                            
                                                             
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                     SENATE CONCURRENT
                        RESOLUTION
REQUESTING THE PUBLIC UTILITIES COMMISSION TO ADDRESS AND
   CONSIDER ADDITIONAL DEMAND SIDE MANAGEMENT ISSUES IN
   RELATED, PENDING, OR NEW COMMISSION DOCKETS.



 1       WHEREAS, demand side management (DSM) is clearly in the
 2   public interest; and
 3   
 4       WHEREAS, the Office of the Consumer Advocate web page
 5   states:
 6   
 7          "In most instances, it will be less expensive to
 8       implement DSM programs to defer or delay generation
 9       additions.  An example of DSM is rebates offered by
10       electric companies to encourage the installation of
11       solar water heating by residential customers.  By
12       reducing the customers' consumption of electricity
13       generated by the electric utility company, the need for
14       the next generating unit will be deferred";
15   
16   and
17   
18       WHEREAS, the Department of Business, Economic Development,
19   and Tourism web page states:
20   
21          "DSM programs offer clear benefits to
22       stakeholders...  These benefits include reduction of
23       costs to customers, supplying electric services without
24       regulatory risks, pushing new generation capacity
25       further into the future, avoiding the risks of new
26       power plant construction, and reducing environmental
27       impacts";
28   
29   and
30   
31       WHEREAS, increasing the number of DSM programs has the
32   potential to lead to enormous savings to the residents of
33   Hawaii; and

 
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                                  S.C.R. NO.            S.D. 1
                                                        H.D. 1
                                                        

 
 1       WHEREAS, competitive bidding for DSM proposals has the
 2   potential to lower the cost to implement such programs; and
 3   
 4       WHEREAS, the Public Utilities Commission (PUC) is reviewing
 5   ways competition can be utilized to reduce costs to consumers;
 6   and
 7   
 8       WHEREAS, the initial five-year program implementation
 9   period for Hawaiian Electric Company's (HECO) two residential
10   and three commercial and industrial DSM programs ends December
11   31, 2000; and 
12   
13       WHEREAS, HECO plans to file with the PUC in the near future
14   applications to extend its residential, commercial, and
15   industrial DSM programs for a second five-year period, and
16   included in the applications will be HECO's proposal on
17   competitive bidding for DSM resources; and
18   
19       WHEREAS, if PUC's final decision to extend HECO's DSM
20   programs is not issued by October 2000, the PUC will allow HECO
21   to continue its DSM programs for one additional year to:
22   
23       (1)  Preclude any disruption to the delivery of energy
24            efficient services currently being provided through
25            the DSM programs; and
26   
27       (2)  Provide the necessary time for the PUC to issue its
28            final decision in the proceedings to extend HECO's DSM
29            programs;
30   and 
31   
32       WHEREAS, currently, concerned parties for the continuation
33   of HECO's DSM programs are encouraged to intervene or
34   participate in the proceedings to extend HECO's DSM programs;
35   and
36   
37       WHEREAS, HECO wants to continue with its DSM programs to
38   increase the penetration of cost-effective DSM resources
39   leading to the more efficient use of electricity by its
40   customers; now, therefore,
41   
42       BE IT RESOLVED by the Senate of the Twentieth Legislature
43   of the State of Hawaii, Regular Session of 2000, the House of
44   Representatives concurring, that the PUC is requested to
45   expeditiously address and consider DSM issues including, but
46   not limited to, the modification of financial incentives in
47   related, pending, or new commission dockets; and

 
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                                                        H.D. 1
                                                        

 
 1       BE IT FURTHER RESOLVED that the PUC is requested to submit
 2   a report on the status of this request on DSM programs and any
 3   findings and recommendations to the Legislature no later than
 4   20 calendar days prior to the convening of the Regular Session
 5   of 2001; and
 6   
 7       BE IT FURTHER RESOLVED that certified copies of this
 8   Concurrent Resolution be transmitted to the PUC, the Consumer
 9   Advocate, HECO, Kauai Electric, Hawaii Solar Energy
10   Association, Hawaii Renewable Energy Alliance, Life of the
11   Land, and the Sierra Club, Hawaii Chapter.