STAND. COM. REP. NO.  367

Honolulu, Hawaii

                , 2017

RE:   H.B. No. 152

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 152 entitled:

"A BILL FOR AN ACT RELATING TO WHEELING,"

begs leave to report as follows:

The purpose of this measure is to increase competition within Hawaii's electrical markets, expand customer choice, provide incentives for the production of renewable energy, and diversify Hawaii's energy base by requiring the Public Utilities Commission to:

     (1)  Establish policies and rules to implement retail wheeling; and

     (2)  Explore the feasibility of implementing retail wheeling.

Paniolo Power Company, LLC and Parker Ranch, Inc. supported this measure.  The Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs supported the intent of this measure.  Hawaiian Electric Company and its subsidiary utilities Maui Electric Company and Hawai‘i Electric Light Company opposed this measure.  The Public Utilities Commission provided comments.

     Your Committee has amended this measure by:

     (1)  Removing the provisions requiring the Public Utilities Commission to establish policies and rules for the implementation of retail wheeling; and

     (2)  Requiring the Public Utilities Commission to explore the steps to be taken to implement retail wheeling, if the implementation of retail wheeling is found to be beneficial.

     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. 152, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 152, 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