Hawaii-2010-SB2555-Introduced

SECTION 1. The legislature finds that governments face both rising energy costs and budget shortfalls that limit services to the citizens of Hawaii. However, the State has abundant natural energy resources, many of which are cost effective when compared to energy generated in electric power plants fueled with imported oil. The government is the steward of taxpayers' money, and should avail itself of less expensive renewable energy sources in order to offset increased energy costs and to show leadership in the development of a robust renewable energy marketplace.

The legislature further finds that there is an emerging renewable energy industry in Hawaii that can design, construct, and operate cost effective methods to capture renewable energy resources. The State needs to take bold action to address financial shortfalls by taking advantage of these cost effective, renewable energy resources to offset purchases from electric power plants fueled with imported oil. One proven strategy for government agencies to control their electricity costs is to combine their electricity consumption across various facilities, buildings, and agencies into blocks of bulk electricity purchases; this practice is known as "aggregation". Aggregation of government electricity purchases will create "buy-side" entities that can effectively use renewable energy resources in bulk amounts, and thus promote a robust competitive market for renewable energy producers.

The purpose of this Act is to:

(1) Require the public utilities commission to adopt rules that will enable government entities to purchase electricity in bulk electrical loads; and

(2) Authorize government entities that purchase electricity in bulk electrical loads to contract with renewable energy producers.

SECTION 2. Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§269- Government aggregators of electricity requirements. (a) The public utilities commission, by rule or order, shall adopt and enforce requirements for the provision of electricity by the aggregator. These requirements shall include, but not be limited to, the following:

(1) Any aggregator may elect to purchase electricity in bulk electrical loads. Any electric utility company providing electricity to an aggregator shall, at the election of the aggregator, combine the billing of the purchase into a single bill reflecting the peak demands and the combined energy consumption;

(2) Any aggregator may elect to install a renewable energy generating facility. Any electric utility company providing electricity to an aggregator that installs a renewable energy generating facility shall use net energy metering, as defined in section 269-101;

(3) Any aggregator may elect to contract with a renewable energy producer to purchase electricity from facilities for renewable energy on government-owned property or other property. Any electricity purchased pursuant to this contract shall be considered produced by an eligible customer-generator, for the purposes of part VI; provided that for any electricity purchased from a renewable energy producer located on property other than the point of consumption, the electric utility company may adjust the net energy metering to reflect:

(A) Energy losses between the renewable energy producer and the aggregator's point of consumption;

(B) Use of the electric utility company's service to transport the electricity to the point of consumption; and

(4) The electric utility company shall provide the aggregator access to metering data at no cost; provided that the aggregator shall be responsible for any equipment required to access the metering data multiple times per day.

(b) For the purposes of this section, "aggregator" means any government entity that is not an electric utility company, that, in the ordinary course of its business, uses electricity by purchasing electricity in bulk electrical loads.

(c) Nothing in this section shall require any government entity to act as an aggregator or to purchase electricity from any renewable energy producer. Nothing in this section shall be construed as a waiver of competitive procurement obligations."

SECTION 3. Section 269-102, Hawaii Revised Statutes, is amended to read as follows:

"§269-102 Standard contract or tariff; rate structure. (a) Every electric utility shall develop a standard contract or tariff providing for net energy metering and shall make this contract available to eligible customer-generators, upon request, on a first-come-first-served basis until the time that the total rated generating capacity produced by eligible customer-generators equals .5 per cent of the electric utility's system peak demand; provided that the public utilities commission may modify, by rule or order, the total rated generating capacity produced by eligible customer-generators; provided further that the public utilities commission shall ensure that a percentage of the total rated generating capacity produced by eligible customer-generators shall be reserved for electricity produced by eligible residential or small commercial customer-generators. The public utilities commission may define, by rule or order, the maximum capacity for eligible residential or small commercial customer-generators. Notwithstanding the generating capacity requirements of this subsection, the public utilities commission may evaluate, on an island-by-island basis, the applicability of the generating capacity requirements of this subsection and, in its discretion, may exempt an island or a utility grid system from the generating capacity requirements.

(b) Each net energy metering contract or tariff shall be identical, with respect to rate structure, to the contract or tariff to which the same customer would be assigned if the customer was not an eligible customer-generator. The charges for all retail rate components for eligible customer-generators shall be based exclusively on the eligible customer-generator's net kilowatt-hour consumption over a monthly billing period. Any new or additional demand charge, standby charge, customer charge, minimum monthly charge, interconnection charge, or other charge that would increase an eligible customer-generator's costs beyond those of other customers in the rate class to which the eligible customer-generator would otherwise be assigned are contrary to the intent of this section, and shall not form a part of net energy metering contracts or tariffs.

(d) This section shall not apply to government aggregators, as described in section 269- ."

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2010.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2555
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII