Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Energy and Environmental Protection, to which was referred H.B. No. 1385 entitled:

begs leave to report as follows:

The purpose of this measure is to establish the procedures and requirements for net energy metering using a single meter capable of registering the flow of electricity in two directions.

Testimony in support of this measure was received from five members of the Maui County Council; Maui Recycling Group; Vertical Wind Turbine Technologies, LLC; The Hydrogen Renewable Energy Enterprise; LLC; Inter-Island Solar Supply; Hawaii Renewable Energy Alliance; Sierra Club; Life of the Land; and one individual.

Hawaiian Electric Company and its subsidiary utilities, Maui Electric Company and Hawaiian Electric Light Company supported the intent of the bill, with recommended changes.

The Department of Business, Economic Development, and Tourism and the Public Utilities Commission submitted comments. The Consumer Advocate opposed the measure, stating that it may result in unintended and undesirable consequences for the ratepayers, however, qualified his opposition.

Kauai Electric also opposed the bill due to cost concerns, suggested tax incentives instead to promote renewable energy, and requested that the bill be held.

Upon further questioning, your Committee found that the cost impacts of this measure may not be unduly high; however, more information needs to be obtained to gain a better understanding on the impact to the ratepayer and an acceptable percentage of the electrical utilities aggregate customer peak demand.

Your Committee has amended this bill by:

As affirmed by the record of votes of the members of your Committee on Energy and Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1385, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1385, H.D. 1, and be referred to the Committee on Consumer Protection and Commerce.