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HOUSE OF REPRESENTATIVES             H.C.R. NO.            H.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                     HOUSE 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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                                  H.C.R. NO.            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       WHEREAS, the initial five-year program implementation
 8   period for Hawaiian Electric Company's (HECO) two residential
 9   and three commercial and industrial DSM programs ends December
10   31, 2000; and 
11   
12       WHEREAS, HECO plans to file with the PUC in the near future
13   applications to extend its residential, commercial, and
14   industrial DSM programs for a second five-year period, and
15   included in the applications will be HECO's proposal on
16   competitive bidding for DSM resources; and
17   
18       WHEREAS, if PUC's final decision to extend HECO's DSM
19   programs is not issued by October 2000, the PUC will allow HECO
20   to continue its DSM programs for one additional year to:
21   
22       (1)  Preclude any disruption to the delivery of energy
23            efficient services currently being provided through
24            the DSM programs; and
25   
26       (2)  Provide the necessary time for the PUC to issue its
27            final decision in the proceedings to extend HECO's DSM
28            programs;
29   and 
30   
31       WHEREAS, currently, concerned parties for the continuation
32   of HECO's DSM programs are encouraged to intervene or
33   participate in the proceedings to extend HECO's DSM programs;
34   and
35   
36       WHEREAS, HECO wants to continue with its DSM programs to
37   increase the penetration of cost-effective DSM resources
38   leading to the more efficient use of electricity by its
39   customers; now, therefore,
40   
41       BE IT RESOLVED by the House of Representatives of the
42   Twentieth Legislature of the State of Hawaii, Regular Session
43   of 2000, the Senate concurring, that the PUC is requested to
44   expeditiously address and consider DSM issues including, but
45   not limited to, the modification of financial incentives in
46   related, pending, or new commission dockets; and

 
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                                  H.C.R. NO.            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.