HOUSE OF REPRESENTATIVES

H.B. NO.

1730

TWENTY-EIGHTH LEGISLATURE, 2016

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to energy tariffs.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The legislature finds that time-of-use rates are a beneficial tool for both providing customers with opportunities to save on their utility bills and for incentivizing electric use patterns that maximize the consumption of renewable energy during low-demand daytime hours. Peak hours of energy consumption are typically in the evenings, when renewable resources are lowest, and fossil fuels are used to generate power.  Customers who have grid-tied systems with battery backup at their homes can provide renewable power back to the grid during peak hours, if the amount of energy that they have stored is greater than the amount that they consume during those hours.  These systems provide a benefit to all ratepayers. The legislature further finds that when customers have extra stored renewable energy during peak hours that can be exported, a time-of-use tariff should include a credit for any net export of energy during peak hours.  This will ensure fair compensation to the customer and also create an incentive for more investment in storage for distributed energy, which will move Hawaii closer to achieving its clean energy goals.

     The purpose of this Act is to require electric utilities that use a time-of-use feature in its rate structure to include a credit to the eligible customer-generator for any net electricity produced during peak hours of usage.

     SECTION 2.  Section 269-102, Hawaii Revised Statutes, is amended to read as follows:

     "§269-102  Standard contract or tariff; rate structure.  (a)  Every electric utility shall develop a standard contract or tariff providing for net energy metering and shall make this contract available to eligible customer-generators, upon request, on a first-come-first-served basis until the time that the total rated generating capacity produced by eligible customer-generators equals .5 per cent of the electric utility's system peak demand; provided that the public utilities commission may modify, by rule or order, the total rated generating capacity produced by eligible customer-generators; provided further that the public utilities commission shall ensure that a percentage of the total rated generating capacity produced by eligible customer-generators shall be reserved for electricity produced by eligible residential or small commercial customer-generators.  The public utilities commission may define, by rule or order, the maximum capacity for eligible residential or small commercial customer-generators.  Notwithstanding the generating capacity requirements of this subsection, the public utilities commission may evaluate, on an island-by-island basis, the applicability of the generating capacity requirements of this subsection and, in its discretion, may exempt an island or a utility grid system from the generating capacity requirements.

     (b)  Each net energy metering contract or tariff shall be identical, with respect to rate structure, to the contract or tariff to which the same customer would be assigned if the customer was not an eligible customer-generator.  The charges for all retail rate components for eligible customer-generators shall be based exclusively on the eligible customer-generator's net kilowatt-hour consumption over a monthly billing period.  Any new or additional demand charge, standby charge, customer charge, minimum monthly charge, interconnection charge, or other charge that would increase an eligible customer-generator's costs beyond those of other customers in the rate class to which the eligible customer-generator would otherwise be assigned are contrary to the intent of this section, and shall not form a part of net energy metering contracts or tariffs.

     (c)  If any electric utility uses a time-of-use feature in its rate structure, then that rate structure shall include a credit to the eligible customer-generator for any net electricity produced during peak hours of usage.

     [(c)] (d)  The public utilities commission may amend the rate structure or standard contract or tariff by rule or order."

     SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

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Report Title:

Electric Utilities; Time-of-Use Features; Net Electricity

 

Description:

Requires electric utilities that use a time-of-use feature in its rate structure to include a credit to the eligible customer-generator for any net electricity produced during peak hours of usage.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.