HCR93 HD1 HSCR982-02

STAND. COM. REP. NO.982-02

Honolulu, Hawaii

, 2002

RE: H.C.R. No. 93

H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Energy and Environmental Protection, to which was referred H.C.R. No. 93 entitled:

"HOUSE CONCURRENT RESOLUTION REQUESTING THE FORMATION OF THE POWER QUALITY TASK FORCE TO STUDY ISSUES RELATING TO RESPONSIBILITY OVER POWER QUALITY IN HAWAII,"

begs leave to report as follows:

The purpose of this concurrent resolution is to address the quality of electric power in Hawaii by requesting the Public Utilities Commission (PUC) to establish a Power Quality Task Force (Task Force) to examine electric power quality issues.

Hawaiian Electric Company, Hawaii Electric Light Company, Maui Electric Company, Hawaii Renewable Energy Alliance, Life of the Land, and a concerned individual supported this measure. Kauai Electric supported the intent of this measure. PUC and the Consumer Advocate commented.

Your Committee notes that standards and requirements regarding power quality as it relates to service reliability are currently within PUC rules, i.e., General Order No. 7, Standards for Electric Utility Services in the State of Hawaii. General Order No. 7 is currently in the process of being converted to administrative rules.

Your Committee believes that the role of the PUC should be incorporated with the provision of quality, safety, and reliability of electric utility services. This should address concerns relating to the composition of the Task Force. Accordingly, your Committee has amended this measure by:

(1) Providing that the PUC either initiate a docket (Docket) or convene a task force on power quality (TFPQ) to develop and implement a plan to improve power quality to meet the needs of modern commerce;

(2) Requesting PUC to invite or consult with representatives from:

(A) The Department of Business, Economic Development, and Tourism;

(B) Consumer Advocate;

(D) Hawaii Chamber of Commerce;

(E) Independent power producers;

(F) Hawaiian Electric Company;

(G) Kauai Electric;

(H) Citizen-consumer advocate organizations; and

(I) Renewable energy advocate groups;

(3) Including in the scope of the Docket or TFPQ:

(A) An examination of the present status of power quality in Hawaii;

(B) The root causes of poor power quality;

(D) Current grievances by customers relating to poor power quality and its reporting, response, and resolution procedures, and, if necessary, plans to improve poor power quality;

(E) Measurements to determine the power quality characteristics of all utility and non-utility generators with access to the distribution and transmission system;

(F) Whether equipment should be added to the electric grid to strengthen power quality;

(G) Whether interconnection nodes should have monitoring devices to obtain power quality measurements; and

(H) Whether legislation is required to address power quality issues;

(4) Requesting PUC to report its findings and recommendations to the Legislature 20 days prior to the convening of the Regular Session of 2003;

(5) Changing the title to read: "REQUESTING THE PUBLIC UTILITIES COMMISSION TO INITIATE A DOCKET OR CONVENE A TASK FORCE ON POWER QUALITY TO MEET THE NEEDS OF MODERN COMMERCE"; and

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

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 concurs with the intent and purpose of H.C.R. No. 93, as amended herein, and recommends that it be referred to the Committee on Consumer Protection and Commerce in the form attached hereto as H.C.R. No. 93, H.D. 1.

Respectfully submitted on behalf of the members of the Committee on Energy and Environmental Protection,

____________________________

HERMINA M. MORITA, Chair