STAND

STAND. COM. REP. NO.1359-02

Honolulu, Hawaii

, 2002

RE: S.C.R. No. 169

S.D. 1

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 S.C.R. No. 169, S.D. 1, entitled:

"SENATE 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 request the Public Utilities Commission (PUC) to establish the Power Quality Task Force study issues relating to power quality in Hawaii.

Life of the Land submitted testimony in support of this measure. Kauai Electric submitted testimony in support of the intent of this measure. The Consumer Advocate, PUC, Hawaiian Electric Company, Inc., Maui Electric Company, and Hawaii Electric Light Company submitted comments on this measure.

Your Committee notes that power quality is of extreme importance as many sectors of the economy rely heavily on computers and other sensitive electrical equipment. Poor power quality can lead to financial losses and disrupt services provided by many businesses.

Upon further consideration, your Committee has amended this measure by deleting its contents and inserting the provisions of H.C.R. No. 93, H.D. 1. As amended, this measure:

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

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

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

(B) The Division of Consumer Advocacy, Department of Commerce and Consumer Affairs;

(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) Includes in the scope of the Docket or Task Force:

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

(5) Changes 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".

Other technical, nonsubstantive amendments were made for purposes of style and clarity.

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 S.C.R. No. 169, S.D. 1, as amended herein, and recommends that it be referred to the Committee on Finance in the form attached hereto as S.C.R. No. 169, S.D. 1, H.D. 1.

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

		____________________________ HERMINA M. MORITA, Chair