STAND. COM. REP. NO.  655-16

 

Honolulu, Hawaii

                , 2016

 

RE:   H.B. No. 2566

      H.D. 1

 

 

 

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

 

Sir:

 

     Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 2566 entitled:

 

"A BILL FOR AN ACT RELATING TO ELECTRICITY,"

 

begs leave to report as follows:

 

     The purpose of this measure is to protect the public interest by providing the Public Utilities Commission (PUC) with additional guidelines to consider when making critical fossil fuel and renewable energy ratemaking decisions, including specifying a methodology that explicitly takes into account the objective of reducing the risks of the State's exposure to fossil fuels.

 

     Ulupono Initiative, Hawaii Solar Energy Association, Blue Planet Foundation, and an individual testified in support of this measure.  Hawaiian Electric Company, Maui Electric Company, and Hawaii Electric Light Company opposed this measure.  The Department of Commerce and Consumer Affairs Division of Consumer Advocacy commented on this measure.

 

     Your Committee has amended this measure by specifying that the methodology used by the PUC, in determining a just and reasonable rate payable by the public utility to a producer for nonfossil fuel generated electricity supplied to the public utility, shall consider the objective of reducing the risks of the State's exposure to fossil fuels in the context of all other potential ratemaking criteria.  Technical, nonsubstantive amendments were also made for clarity, consistency, and style.

 

     As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2566, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2566, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

 

 

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

 

 

 

 

____________________________

CHRIS LEE, Chair