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HOUSE OF REPRESENTATIVES |
H.R. NO. |
231 |
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TWENTY-FIFTH LEGISLATURE, 2009 |
H.D. 1 |
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STATE OF HAWAII |
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HOUSE RESOLUTION
REQUESTING THE PUBLIC UTILITIES COMMISSION TO GRANT A WAIVER ALLOWING HAWAII ELECTRIC AND LIGHT COMPANY TO CONTINUE ITS NEGOTIATIONS WITH KAHUA RANCH AND NA MAKANI MOA E KU, LLC, ON THE KAHUA FAST-RESPONSE HYDRO PROJECT.
WHEREAS, one of the foremost obstacles to the development and implementation of many renewable energy generating sources is the intermittent nature of these sources, such as a lack of sunshine or wind; and
WHEREAS, an electrical public utility such as Hawaii Electric and Light Company (HELCO) must ensure that its customers receive reliable and continuous service; and
WHEREAS, Na Makani Moa e Ku has been identified as a possible project in the energy agreement signed on October 20, 2008, between the State of Hawaii, the Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs, and the Hawaiian Electric Companies, where all parties to the agreement are "committed to the rapid development of as much renewable energy as possible," with a goal of having this project on line by 2015; and
WHEREAS, Kahua Ranch (Kahua) and Na Makani Moa e Ku, LLC (Na Makani), have developed the Kahua Fast-Response Hydro Project that uses wind energy as a renewable energy source, but also as a part of a pumped hydro electric system that uses renewable energy during non-peak hours to pump water up to a storage reservoir, which serves as a fast-response source of "stored" energy that is available to accommodate any sudden drop of energy from the renewable wind energy source; and
WHEREAS, Kahua and Na Makani have been negotiating with HELCO since 2006 on grid integration and the implementation of the Kahua Fast-Response Hydro Project as a pilot project that may eventually be used in other locations in the state to back up intermittent renewable energy sources; and
WHEREAS, in January 2009, the Public Utilities Commission (PUC) ordered HELCO to terminate its negotiations with Kahua and Na Makani on the Kahua Fast-Response Hydro Project pilot project, presumably due to its desire to institute competitive bidding for renewable energy and to decouple renewable energy from fossil fuels based on "avoided costs" as mandated by federal law and regulation; and
WHEREAS, PUC has stated that the competitive bidding process does not preclude HELCO from reinstituting negotiations on the Kahua Fast-Response Hydro Project as a pilot project, and a waiver can be granted where competitive bidding would impede a project or create a disincentive for the achievement of the State's renewable portfolio standards or similar state objectives; and
WHEREAS, competitive bidding would not be applicable in the case of the Kahua Fast-Response Hydro Project because it is a pilot project located on a unique site that will demonstrate the feasibility of pump hydro as a new technology in grid integration and energy storage technology that will lead to open markets for competitive bidding by renewable energy projects in the future; now, therefore,
BE IT RESOLVED by the House of Representatives of the Twenty-fifth Legislature of the State of Hawaii, Regular Session of 2009, that the Public Utilities Commission is requested to grant a waiver allowing the Hawaii Electric and Light Company to continue negotiations with Kahua Ranch and Na Makani Moe e Ku, LLC, to implement the Kahua Fast-Response Hydro Project as a pilot project to prove the efficacy of using pumped hydro as a reliable method of energy storage; and
BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Chairperson of the Public Utilities Commission, Kahua Ranch, Na Makani Moa e Ku, LLC, and Hawaii Electric Light Company.
Renewable Energy; Public Utilities Commission