STAND. COM. REP. NO. 3177

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.C.R. No. 181
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred S.C.R. No. 181 entitled:

     "SENATE CONCURRENT RESOLUTION REQUESTING THE PUBLIC
     UTILITIES COMMISSION TO CREATE AND IMPLEMENT A STANDARDIZED
     INTERCONNECTION AGREEMENT,"

begs leave to report as follows:

     The purpose of this measure is to request that the Public
Utilities Commission create and implement a standardized
interconnection agreement for independent producers of power.

     The measure also requests that the Public Utilities
Commission review how other jurisdictions have established such
standardized interconnection agreements and to consult with
appropriate authorities and experts, including representatives of
the Sacramento Municipal Utility District, the Vermont Public
Service Board, and any other areas having standardized
interconnection agreements.

     Your Committee received testimony on the measure from the
Public Utilities Commission, the Department of Commerce and
Consumer Affairs' Division of Consumer Advocacy, the Gas Company,
Malama o Manoa, the Hawaii Renewable Energy Alliance, Kauai
Electric, Life of the Land, Hawaiian Electric Company, and two
private citizens.

     Your Committee finds that as fuel cells and photovoltaics
become commercially available, residents of Hawaii may desire to

 
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utilize these emerging technologies to not only produce energy
for themselves, but to sell excess energy as well.  In the event
of a natural disaster, each of these generators could assist in
providing electricity to other consumers.

     Having a standardized interconnection agreement publicly
available on the Internet would result in all potential power
generators knowing in advance the requirements to connect to the
electric grid and could lead to increased competition in the area
of electric generation, lowering costs of electricity for
consumers.

     Your Committee also finds that other municipalities and
states, such as Sacramento and Vermont, have instituted
standardized interconnection agreements facilitating the
development of a competitive environment involving utilities and
independent power producers and that standardized interconnection
agreements strengthen the local economy.

     Your Committee has amended the title and text of the measure
to limit the scope of implementing such standardized
interconnection agreements to independent producers whose
capacity to generate electricity is less than one hundred
kilowatts.  Your Committee has also amended the measure to
include the states of New York and Texas in the list of
jurisdictions the Public Utilities Commission is requested to
consult with since these two states have recently established
standardized interconnection agreements.

     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to
this report, your Committee concurs with the intent and purpose
of S.C.R. No. 181, as amended herein, and recommends that it be
referred to the Committee on Ways and Means, in the form attached
hereto as S.C.R. No. 181, S.D. 1.


 
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                                   STAND. COM. REP. NO. 3177
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                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Commerce and
                                   Consumer Protection,



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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