THE SENATE                           S.R. NO.              89
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                    SENATE  RESOLUTION

  REQUESTING THE PUBLIC UTILITIES COMMISSION TO CREATE AND
    IMPLEMENT A STANDARDIZED INTERCONNECTION AGREEMENT.



 1        WHEREAS, in the new economy, technology is rapidly
 2   changing the way the world works, including how energy is
 3   generated; and
 4   
 5        WHEREAS, venture capital is looking to invest in new
 6   enterprises and Hawaii is uniquely attractive as a testing area
 7   for renewable energy; and
 8   
 9        WHEREAS, as fuel cells and photovoltaics become
10   commercially available, residents of Hawaii may desire to
11   utilize these emerging technologies; and
12   
13        WHEREAS, currently, different military installations
14   generate their own power; and
15   
16        WHEREAS, in the event of a natural disaster, each of these
17   generators could assist in providing electricity to other
18   consumers; and
19   
20        WHEREAS, maintaining the reliability of our electric grid
21   is of importance, so that any entity that wishes to provide
22   power to the electric grid must satisfy certain interconnection
23   requirements; and
24   
25        WHEREAS, currently, it may take up to five years per
26   agreement to resolve these issues; and
27   
28        WHEREAS, having a standardized interconnection agreement,
29   publicly available on the Internet, would result in all
30   potential power generators knowing in advance the requirements
31   to connect to the electric grid; and
32   
33        WHEREAS, this knowledge could lead to increased
34   competition in the area of electric generation, lowering costs
35   of electricity for consumers; and

 
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                                  S.R. NO.              89
                                                        
                                                        

 
 1   
 2        WHEREAS, the community at large would benefit by lower
 3   costs and greater security in time of disaster; and
 4   
 5        WHEREAS, other municipalities and states, such as
 6   Sacramento and Vermont, have instituted standardized
 7   interconnection agreements facilitating the development of a
 8   competitive environment involving utilities and independent
 9   power producers; and
10   
11        WHEREAS, municipalities and states have found that
12   standardized interconnection agreements strengthen the local
13   economy; now, therefore,
14   
15        BE IT RESOLVED by the Senate of the Twentieth Legislature
16   of the State of Hawaii, Regular Session of 2000, that the
17   Public Utilities Commission is requested to create and
18   implement a standardized interconnection agreement; and
19   
20        BE IT FURTHER RESOLVED that in conducting this review, the
21   Public Utilities Commission is requested to consult with the
22   appropriate authorities and experts, including representatives
23   of the Sacramento Municipal Utility District and the Vermont
24   Public Service Board and any other areas having standardized
25   interconnection agreements; and
26   
27        BE IT FURTHER RESOLVED that the Public Utilities
28   Commission is requested to submit a report concerning the
29   status of this request and any findings and recommendations to
30   the Legislature not later than twenty days prior to the
31   convening of the Regular Session of 2001; and
32   
33        BE IT FURTHER RESOLVED that certified copies of this
34   Resolution be transmitted to the Chairperson of the Public
35   Utilities Commission and the Consumer Advocate, who in turn is
36   requested to transmit copies to the Hawaiian Electric Company,
37   Kauai Electric, all independent power producers in the State,
38   Hawaii Renewable Energy Alliance, Life of the Land and the
39   Sierra Club, Hawaii Chapter.
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44                         OFFERED BY:  ____________________________