STAND. COM. REP. NO. 2720

Honolulu, Hawaii

RE:    S.B. No. 2656

       S.D. 2

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 2656, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE MODERNIZATION OF THE HAWAII ELECTRIC SYSTEM,"

begs leave to report as follows:

     The purpose and intent of this measure is to require, and appropriate funds for, the Public Utilities Commission to conduct a proceeding to address various issues associated with modernizing Hawaii's electrical grid and to report to the Legislature.

This measure also appropriates funds for the Consumer Advocate to represent the interests of all consumers in the proceeding before the Commission.

     Your Committee received written comments in support of this measure from the Public Utilities Commission, Inter-Island Solar Supply, Hawaii Solar Energy Association, Renewable Energy Action Coalition of Hawaii, Sunrun, Blue Planet Foundation; RevoluSun, Hawaii PV Coalition, Hawaii Farmers Union United Kona Chapter, Hawaiian Electric Company, SolarCity, Haiku Aina Permaculture Initiative, Kalani Educational Retreat, Sierra Club of Hawaii, and forty-five individuals.  Written comments in opposition were received from one individual.  The Department of Business, Economic Development, and Tourism and eleven individuals submitted written comments on the measure.

     Your Committee finds that requiring the Public Utilities Commission to commence a proceeding and report its findings and recommendations to the Legislature will help to establish procedures for implementation of a modern electrical grid that will enable electric utilities to maintain a stable power supply while allowing more residents to install photovoltaic solar systems.

     Your Committee has amended this measure by:

(1)  Deleting the requirement for the Public Utilities Commission to ensure access and rates under this measure through applicable rules, orders, and tariffs;

(2)  Changing the appropriations:

(A)  From general funds to Public Utility Commission special fund moneys; and

(B)  To unspecified amounts to facilitate further discussion; and

(3)  Making technical nonsubstantive amendments for the purposes of style, clarity, and consistency.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2656, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2656, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair