PUC Annual Report–Fiscal Year 2011-12 - Public Utilities Commission

Public Utilities Commission Annual Report 2011-12
State of Hawaii Page 95
House Concurrent Resolution No. 58, H.D. 1, S.D. 1
This concurrent resolution requests the Commission to direct electric utilities to
examine a number of specific strategies and resource options during each utility’s IRP,
as well as requesting the Commission to perform additional review of some of its own
internal processes. Two IRP strategies are identified for consideration: (1) the
replacement of existing fossil fuel power plants with renewable energy resources, and
(2) the development of firm or intermittent electricity to be transmitted between islands
by an undersea electric cable or other means. H.C.R. No. 58 also identifies a few
specific IRP resource options to be examined, including (1) energy from geothermal
resources, (2) hydrogen and other types of energy storage, and (3) waste-to-energy
resources. This resolution is a general request for IRP examinations, so the various
parties involved in the ongoing consolidated IRP for the Hawaiian Electric Companies
have been apprised of the resolution and it is being considered during that proceeding
under Commission Docket No. 2012-0036.
Finally, this measure requests the Commission to examine internal practices and
issues, including (1) the PUC’s avoided cost calculation methodology, (2) methods for
maximizing distributed generation, (3) the increased use of energy efficiency generation
programs and technology to meet the State’s energy efficiency portfolio standards,
(4) methods to minimize curtailment of renewable energy resources, and (5) ways to
modernize Hawaii’s grids. The Commission will need to perform these examinations
and report its progress in its 2013 and 2014 Annual Reports for the Legislature.
Other 2012 Legislative Measures Relating to Utilities
Act 18, Relating to Condominiums [H.B. No. 1746, H.D. 1]
Act 18 extends the state law requiring the installation of individual utility
(electricity, gas, water, etc.) meters for condominium units to all condominium buildings
in the State, and not just to those projects having commenced construction during 1978
or later. The amended law also allows for the use of a system of separate unit
calculations for utility usage in lieu of installing separate utility meters. Installation costs
must be paid for by each condominium association choosing to install individual meters.
In short, all condominium projects – even those built prior to 1978 – must now either
install individual utility meters or provide for the calculation of utility usage of individual
units in a manner that is “fair and equitable.”
Act 70, Relating to Procurement [S.B. No. 2872, H.D. 1]
Act 70 allows any utility owners whose facility occupies a state highway
right-of-way to provide their share of costs up front to the affected state agency for the
encumbrance of funds in related contracts by employing the use of an agreement to
pay.
Act 188, Relating to Taxation [H.B. No. 2740, H.D. 1, S.D. 1, C.D. 1]
Act 188 extends for an additional three years to December 31, 2015, the sunset
date for the current favorable state fuel tax rate for naphtha fuel used for power
generating facilities. Naphtha-fuel-using power facilities on the islands of Kauai and