Bill Text: HI HB813 | 2013 | Regular Session | Amended

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Bill Title: Power Purchase Agreements; Task Force; Hawaii State Energy Office; Department of Business, Economic Development, and Tourism

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2013-03-22 - Report adopted; Passed Second Reading, as amended (SD 1) and referred to CPN. [HB813 Detail]

Download: Hawaii-2013-HB813-Amended.html

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STAND. COM. REP. NO. 1030

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 813

       H.D. 1

       S.D. 1

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

 

Madam:

 

     Your Committee on Energy and Environment, to which was referred H.B. No. 813, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO ELECTRICITY PRODUCERS,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to authorize the Public Utilities Commission and the Division of Consumer Advocacy to examine all documents and other information and data deemed necessary for the review of power purchase agreements submitted for review to the Public Utilities Commission and Division of Consumer Advocacy.

 

     Your Committee received testimony in support of this measure from the Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs; Public Utilities Commission; Hawaiian Electric Company, Inc.; and Friends of Lana‘i.  Your Committee received testimony in opposition to this measure from Solar Power Systems International, LLC; Bright Plain Renewable Energy, LLC; AES Solar Power; and First Wind.  Your Committee received comments on this measure from the Department of Business, Economic Development, and Tourism.

 

     Your Committee finds that in recent years, the cost to produce solar photovoltaic panels and wind turbines has significantly decreased.  On the mainland, power purchase agreement prices for solar and wind projects have declined as production costs decreased and efficiencies increased.  However, Hawaii has not seen a similar decrease in power purchase agreement prices for solar and wind projects.

 

     Your Committee further finds that this measure is intended to enable the Public Utilities Commission and Division of Consumer Advocacy to make the best possible decisions on power purchase agreements.  However, your Committee has heard the concerns that the language in this measure is too broad and may result in adverse, unintended consequences.  Your Committee concludes that an alternative approach to achieve the intent of this measure is recommended.

 

     Accordingly, your Committee has amended this measure by:

 

     (1)  Removing language that would have authorized the Public Utilities Commission and the Division of Consumer Advocacy to examine all documents and other information and data deemed necessary for the review of power purchase agreements submitted for review to the Public Utilities Commission and Division of Consumer Advocacy;

 

     (2)  Inserting language to require the Department of Business, Economic Development, and Tourism to convene the temporary Power Purchase Agreement Task Force to recommend methods to ensure that power purchase agreements, whether bilaterally negotiated or through competitive bid, reflect the fairest possible price for ratepayers;

 

     (3)  Requiring the Power Purchase Agreement Task Force to report to the Legislature no later than twenty days prior to the convening of the Regular Session of 2014;

 

     (4)  Amending the purpose section for clarity;

 

     (5)  Inserting an effective date of upon approval; and

 

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

 

     As affirmed by the record of votes of the members of your Committee on Energy and Environment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 813, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 813, H.D. 1, S.D. 1, and be referred to the Committee on Commerce and Consumer Protection.

 

Respectfully submitted on behalf of the members of the Committee on Energy and Environment,

 

		____________________________ MIKE GABBARD, Chair