STAND. COM. REP. NO. 1256-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.R. No. 154
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committees on Energy and Environmental Protection and
Consumer Protection and Commerce, to which was referred H.R. No.
154 entitled: 

     "HOUSE RESOLUTION REQUESTING THE PUBLIC UTILITIES COMMISSION
     TO OPEN A NEW DOCKET ON DEMAND SIDE MANAGEMENT,"

beg leave to report as follows:

     The purpose of this resolution is to reduce electricity
costs to consumers by requesting the Public Utilities Commission
(PUC) to open a new docket on demand side management (DSM).

     DSM programs seek to defer or delay the need for additional
power plant construction by reducing the customers' consumption
of electricity.  One example of DSM is rebates offered by
electric companies to encourage the installation of solar water
heaters by residential customers.  These practices will reduce
the demand for electricity, thereby prolonging the reliance on
existing power plants.

     The Hawaii Renewable Energy Alliance, Life of the Land, Na
Leo Pohai, Malama o Manoa, and an individual testified in support
of this resolution.  The PUC and the Division of Consumer
Advocacy supported the intent of this measure.  Kauai Electric
offered comments.  The Hawaii Solar Energy Association and
Hawaiian Electric Company (HECO) and its subsidiary utilities,
Hawaii Electric Light Company and Maui Electric Company, opposed
passage of this measure.

 
 
 
                                 STAND. COM. REP. NO. 1256-00
                                 Page 2

 
     Your Committees find that HECO does not plan to cut its DSM
program in April 2000.  On the contrary, HECO plans to extend its
residential, commercial, and industrial DSM programs for a second
five-year period.  Your Committees further find that if PUC fails
to extend HECO's DSM programs by October, 2000, PUC will allow
HECO to continue these programs for one additional year to:

     (1)  Preclude any disruption to the delivery of energy
          efficient services currently being provided through the
          DSM programs; and

     (2)  Provide the PUC with the necessary time to issue its
          final decision to extend HECO's DSM programs.

     Your Committees further find that instead of opening a new
docket, it will be more advantageous to address DSM issues in
related and pending PUC dockets.

     Accordingly, your Committees have amended this resolution
by:

     (1)  Deleting provisions:

          (a)  Stating that HECO will cut its DSM program in
               April 2000;

          (b)  Requesting that the PUC open a new docket on DSM;
               and

          (c)  Stating that the current docket prevents
               individuals and organizations from effectively
               participating;

     (2)  Requesting the PUC to instead address and consider DSM
          issues, including the modification of financial
          incentives in related, pending, or new PUC dockets;

     (3)  Changing the title to read: "REQUESTING THE PUBLIC
          UTILITIES COMMISSION TO ADDRESS AND CONSIDER ADDITIONAL
          DEMAND SIDE MANAGEMENT ISSUES IN RELATED, PENDING, OR
          NEW COMMISSION DOCKETS";

     (4)  Adding provisions regarding HECO's plan to extend its
          residential, commercial, and industrial DSM programs
          for a second five-year period;

     (5)  Clarifying that increasing the number of DSM programs
          has the potential to, rather than will, lead to
          enormous savings to residents; and

 
                                 STAND. COM. REP. NO. 1256-00
                                 Page 3

 
     (6)  Making technical, nonsubstantive amendments for
          purposes of consistency and clarity.

     As affirmed by the records of votes of the members of your
Committees on Energy and Environmental Protection and Consumer
Protection and Commerce that are attached to this report, your
Committees concur with the intent and purpose of H.R. No. 154, as
amended herein, and recommend that it be referred to the
Committee on Finance, in the form attached hereto as H.R. No.
154, H.D. 1.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Energy and
                                   Environmental Protection and
                                   Consumer Protection and
                                   Commerce,

                                   
                                   
                                   
                                   
______________________________     ______________________________
RON MENOR, Chair                   HERMINA M. MORITA, Chair