STAND. COM. REP. NO. 3485

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.C.R. No. 181
                                        S.D. 2




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred
S.C.R. No. 181, S.D. 1, entitled:

     "SENATE CONCURRENT RESOLUTION REQUESTING THE PUBLIC
     UTILITIES COMMISSION TO CREATE AND IMPLEMENT A STANDARDIZED
     INTERCONNECTION AGREEMENT FOR SMALLER INDEPENDENT PRODUCERS
     OF ENERGY,"

begs leave to report as follows:

     The purpose of this concurrent resolution is to request the
Public Utilities Commission to create and implement a
standardized interconnection agreement for independent power
producers whose production capacity is less than one hundred
kilowatts.

     The concurrent resolution further requests that in
conducting this review, the Public Utilities Commission is
requested to consult with other appropriate authorities and
experts, including representatives of the states of New York and
Texas, the Sacramento Municipal Utility District, the Vermont
Public Service Board, and any other areas having standardized
interconnection agreements.

     Your Committee finds that as renewable energy becomes more
attractive for venture capital investment in Hawaii, and as fuel
cells and photovoltaics become commercially available, Hawaii's
residents may seek to use these emerging technologies.  In the

 
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event of a natural disaster, various customer-generators,
including military installations that generate their own power,
could assist in providing electricity to other consumers.

     Your Committee further finds that entities that seek to
provide power to the electric grid must satisfy certain
interconnection requirements in order to maintain the grid's
reliability.  Currently, however, it may take up to five years
per agreement to resolve these issues.  Your Committee finds that
having a standardized interconnection agreement that is publicly
available on the Internet would result in all potential power
generators knowing in advance the requirements to connect to the
electric grid.  This knowledge could strengthen Hawaii's economy
by leading to increased competition in the area of electric
generation, lowering the costs of electricity for consumers, and
providing greater security in times of disaster.

     Your Committee has amended this concurrent resolution by
changing the minimum capacity of electricity produced by
independent power producers from one hundred to one thousand
kilowatts.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee concurs with the intent and purpose of S.C.R. No. 181,
S.D. 1, as amended herein, and recommends its adoption in the
form attached hereto as S.C.R. No. 181, S.D. 2.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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