HOUSE OF REPRESENTATIVES	H.R. NO.	254
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII

HOUSE RESOLUTION

urging the public utilities commission to rule that all schedule Q contracts should receive the full avoided cost pricing as written in the existing schedule Q electricity rate schedule for each utility.

     WHEREAS, schedule Q is an electricity rate schedule, currently offered by various electric utilities, that allows small renewable energy systems producing less than 100 kilowatts to sell electricity back to the electric utilities; and

     WHEREAS, schedule Q was created to advance state objectives to reduce dependency on fossil fuel for electricity generation, support high technology industry, and create local jobs in the high technology industry sector; and

     WHEREAS, the price in schedule Q contracts is the average price that the electric utility pays for fuel for all of its electricity generation, also known as "avoided cost"; and

     WHEREAS, the provision of "avoided cost" pricing in schedule Q contracts for private and public renewable energy projects keeps energy dollars in the local economy and provides financial security for sustainable industries such as agriculture, which needs to be expanded to guarantee food security; and

     WHEREAS, the provision of "avoided costs" pricing in schedule Q contracts provides financial security by establishing the "certainty" needed for public and private sectors to invest in the energy infrastructure and equipment needed to produce clean renewable energy in the State; and

     WHEREAS, numerous private and public renewable energy projects have been started with the intention of using schedule Q to sell electricity back to the utilities; and

     WHEREAS, however, new schedule Q contracts are being delayed because of the Public Utilities Commission's uncertainty regarding a recent law that requires the "de‑linking" of the price of oil from future power purchase agreements for renewable energy; and

     WHEREAS, the de‑linking law was enacted to encourage competitive bidding for new, large power purchase agreements for renewable energy; and

     WHEREAS, the new law is serving its purpose because competitive bidding for new, large electricity generation systems is now in effect; and

     WHEREAS, however, schedule Q contracts were always intended to apply to small, distributive renewable energy systems, which should not be delayed by the de‑linking law; and

     WHEREAS, all schedule Q contracts should receive the full avoided cost pricing as written in the existing schedule Q electricity rate schedule for each electric utility; now, therefore,

     BE IT RESOLVED by the House of Representatives of the Twenty-fourth Legislature of the State of Hawaii, Regular Session of 2008, that the Public Utilities Commission is urged to rule that all schedule Q contracts should receive the full avoided cost pricing as written in the existing schedule Q electricity rate schedule for each electric utility; and

     BE IT FURTHER RESOLVED that a certified copy of this Resolution be transmitted to the Chair of the Public Utilities Commission.

OFFERED BY:

_____________________________

Report Title: 

Public Utilities Commission; Small Renewable Energy Systems