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. 1386 entitled:

begs leave to report as follows:

The purpose of this bill is to require the Public Utilities Commission (PUC) to adopt uniform interconnection standards and practices to create a streamlined procedure for interconnection that maintains the safety and reliability of the electric grid.

The Energy Coordinators of the County of Maui and the County of Hawaii, Apollo Energy Corporation, Vertical Wind Turbine Technologies, LLC, The Hydrogen Renewable Energy Enterprise, LLC, The Hawaii Renewable Energy Alliance and one individual testified in strong support of the bill.

The Department of Business, Economic Development, and Tourism supported the intent of the bill but deferred to the Public Utilities Commission (PUC) on the regulation of utilities. The Consumer Advocate supported the intent of the bill and recommended that a House Resolution may be more appropriate to achieve the desired goals of this bill. The Gas Company also supported the intent of the bill but asked that the standards include recommendations based on the Institute for Electrical and Electronics Engineers' (IEEE) standards, which should be finalized by the end of the year.

PUC raised concerns regarding its six-month deadline to develop these standards and practices.

The Hawaiian Electric Company and its subsidiaries, Maui Electric Company and Hawaiian Electric Light Company, asked that the measure be held.

Your Committee recognizes that IEEE, a respected professional engineering organization, plans to finalize a standard for interconnecting distributed generation facilities with existing electrical grids by the end of the year. However, a model package based on the work of states that have succeeded in adopting interconnection standards or whose proceedings are nearing resolution, developed by the Distributed Power Coalition of America, which this bill is based on, already exists.

Your Committee has amended this bill by:

Your Committee respectfully requests that your Committee on Consumer Protection and Commerce address PUC's concerns regarding the timetable set forth in this bill.

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. 1386, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1386, H.D. 1, and be referred to the Committee on Consumer Protection and Commerce.