Bill Text: HI SB1043 | 2013 | Regular Session | Amended

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Bill Title: Power Purchase Agreements; Third-party Electricity Producers; Independent Power Producers; Public Utilities Commission; Division of Consumer Advocacy; Records; Business Records

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2013-03-07 - Referred to EEP, CPC, referral sheet 30 [SB1043 Detail]

Download: Hawaii-2013-SB1043-Amended.html

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STAND. COM. REP. NO. 469

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1043

       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 Commerce and Consumer Protection, to which was referred S.B. No. 1043 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 to examine all information relating to power purchase agreements under review by the Commission, including the examination of power purchase agreement-relevant cost information of independent power producers.

 

     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.; Blue Planet Foundation; and nine individuals.  Your Committee received testimony in opposition to this measure from the Hawaii Renewable Energy Alliance.

 

     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 provides access to documentation that will facilitate the review of power purchase agreements and enable regulators to determine if power purchase agreement pricing for renewable energy products is just, reasonable, and in the consumers' best interest.  This measure also enables the Public Utilities Commission and the Division of Consumer Advocacy to determine what is causing the disparity in power purchase agreement prices for renewable energy projects in Hawaii, as compared to the mainland.

 

     Your Committee notes that this measure enables the Public Utilities Commission to make the best possible decisions on power purchase agreements.  This measure does not, nor is it intended to, take down or regulate independent power producers.

 

     Your Committee has amended this measure by:

 

     (1)  Specifying that the Public Utilities Commission and the Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs are authorized to examine all information relating to power purchase agreements under review by the Commission and the Division of Consumer Advocacy and making conforming amendments to the purpose section; and

 

     (2)  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 Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1043, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1043, S.D. 1, and be placed on the calendar for Third Reading.

 

Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,

 

		____________________________ ROSALYN H. BAKER, Chair