WHEREAS, Hawaii's unique isolation, growing electric demands, and significant dependence on imported oil requires strategic use of existing infrastructure and resources to more effectively meet energy needs; and

WHEREAS, utilization of all energy resources includes not only the accelerated development of Hawaii's diverse renewable energy resources, continued energy conservation, and prudent additions of traditional generation and transmission when necessary, but it also includes making maximum use of Hawaii's existing power generation, transmission, and distribution infrastructure; and

WHEREAS, energy storage load shifting is a proven technology that can free up additional on-peak power, decrease fossil fuel use, improve renewable energy utilization, and reduce energy costs by fully utilizing existing power generation, transmission, and distribution facilities during off-peak periods; and

WHEREAS, it is in the public interest to encourage maximum use of Hawaii's existing electrical infrastructure by providing incentives, through electric tariffs and other means, that are sufficient to promote electric usage during off-peak periods and ensure the continued use and development of energy storage systems in Hawaii; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-third Legislature of the State of Hawaii, Regular Session of 2006, that the Public Utilities Commission is requested to:

BE IT FURTHER RESOLVED that the Public Utilities Commission is requested to design the incentives to protect customers who install energy storage equipment from being charged electric fees and penalties in excess of what would be paid by other customers with similar loads at similar times under non-incentive rates; and

BE IT FURTHER RESOLVED that the Public Utilities Commission is urged to seriously consider the incentives prior to the approval of any new utility peaking generation; and

BE IT FURTHER RESOLVED that the Public Utilities Commission is requested to report:

to the Legislature not later than twenty days prior to the convening of the Regular Session of 2007; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Chair of the Public Utilities Commission; the Director of Commerce and Consumer Affairs; the Presidents of Hawaiian Electric Company Incorporated, Maui Electric Company Limited, and Hawaii Electric Light Company Incorporated; and the Chief Executive Officer and Chair of the Board of the Kauai Island Utility Cooperative.

Report Title:

PUC; Energy Storage Systems