STAND. COM. REP. 336
Honolulu, Hawaii
, 2003
RE: H.B. No. 1492
H.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Second State Legislature
Regular Session of 2003
State of Hawaii
Sir:
Your Committee on Energy and Environmental Protection, to which was referred H.B. No. 1492 entitled:
"A BILL FOR AN ACT RELATING TO NET ENERGY METERING,"
begs leave to report as follows:
The purpose of this bill is to expand the State's net metering program by:
(1) Removing the 10 kilowatt capacity restriction on eligible customer-generators;
(2) Removing the 0.5 percent cap on the generating capacity of eligible customer-generators signed up to take advantage of net energy metering; and
(3) Increasing the percentage cap on the total rated generating capacity produced by eligible customer-generators starting at 1.0 percent in 2004 and incrementally increasing the cap by 0.5 percent every two years until it reaches 5.0 percent in 2020.
The Sierra Club, Hawaii Chapter, Hawaii Renewable Energy Alliance, Powerlight, and Life of the Land testified in support of this bill. The Department of Business, Economic Development, and Tourism supported the intent of this bill. The Public Utilities Commission and the Department of Commerce and Consumer Affairs, Division of Consumer Advocacy, commented on this bill. Hawaiian Electric Company, Inc., Hawaii Electric Light Company, Inc., and Maui Electric Company, Ltd., opposed this bill.
When customers use net metering, they can qualify for credit from their utility at the retail rate for self-produced electricity using their own renewable energy generators. By receiving credit at the retail rate, some have argued that the customer is essentially receiving a subsidy from the remaining customers.
Your Committee has learned that at the peak of 5.0 percent integration in 2020, this "subsidy" could cost as much as $24 per year per residential customer. Of course, this figure may change due to other regulatory variables. Your Committee, however, feels that the benefits of using net metering as a way to encourage renewable energy outweighs any nominal subsidy that other customers may incur to promote energy self-sufficiency and security.
Your Committee has amended this bill by:
(1) Clarifying the definition of "eligible customer-generator" to include all metered customers of an electric utility; and
(2) Making technical, nonsubstantive amendments 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 is in accord with the intent and purpose of H.B. No. 1492, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1492, H.D. 1, and be referred to the Committee on Consumer Protection and Commerce.
Respectfully submitted on behalf of the members of the Committee on Energy and Environmental Protection,
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____________________________ HERMINA M. MORITA, Chair |
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