STAND. COM. REP. NO. 3176

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.C.R. No. 180
                                        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. 180 entitled:

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

begs leave to report as follows:

     The purpose of this measure is to facilitate the development
of renewable energy resources in the State.

     Testimony on the measure was received from the Public
Utilities Commission (PUC), Consumer Advocate, Kauai Electric, Na
Leo Pohai, Malama o Manoa, Hawaiian Electric Company, Inc.,
Hawaii Renewable Energy Alliance, Life of the Land, and several
individuals. 

     In its Renewable Energy Resource Investigation Report,
Docket No. 94-0266, the PUC identified protracted power purchase
agreement negotiations as one of the barriers to renewable
resource development in Hawaii.  One of the strategies identified
to overcome this barrier was the development of a standard offer
contract for renewable energy sales to utilities.  In furtherance
of this goal, this measure requests that the PUC create and
implement standardized power purchase agreements between the
utilities and independent power producers (IPPs).

     Upon consideration of the testimony, your Committee finds
that it is inappropriate and beyond the PUC's regulatory function

 
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                                   STAND. COM. REP. NO. 3176
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to be directly involved in the negotiation of contracts between
the utilities and IPPs.  Your Committee further finds that
variations in technologies and in the size of facilities require
the development of different types of contracts.  Therefore, your
Committee has amended this measure to:

     (1)  Request that the PUC initiate a collaborative process
          to facilitate the creation and implementation of
          standardized power purchase agreements, rather than
          directly create and implement contracts between the
          utilities and independent power producers;

     (2)  Request that the collaborative process involve the
          development of different agreements specific to
          different types of technologies or applications; and 
     
     (3)  Change the title to reflect the amended purpose.

Your Committee has also made technical, nonsubstantive amendments
for purposes of style. 

     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. 180, 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. 180, S.D. 1.

                                   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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