Bill Text: HI SCR28 | 2013 | Regular Session | Introduced
Bill Title: Photovoltaic Systems; Net Energy Metering; Interconnection Requirements; Work Group
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Engrossed - Dead) 2013-04-23 - Report adopted; referred to the committee(s) on CPC with none voting aye with reservations; none voting no (0) and Ward excused (1). [SCR28 Detail]
Download: Hawaii-2013-SCR28-Introduced.html
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THE SENATE |
S.C.R. NO. |
28 |
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TWENTY-SEVENTH LEGISLATURE, 2013 |
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STATE OF HAWAII |
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SENATE CONCURRENT
RESOLUTION
requesting the consumer advocate to establish a work group to examine Hawaiian Electric utilities' tariff Rule No. 14H to develop methods and procedures to facilitate the increase in photovoltaic systems and net energy metering in the State.
WHEREAS, in October 2008, the Governor, Department of Business, Economic Development, and Tourism, Division of Consumer Advocacy of the Department of Commerce and Consumer Protection, Hawaiian Electric Company, Hawaii Electric Light Company, and Maui Electric Company signed the Hawaii Clean Energy Agreement; and
WHEREAS, the energy agreement stated that the future of Hawaii requires the State to move decisively and irreversibly away from imported fossil fuel for electricity and transportation and toward locally produced renewable energy and an ethic of energy efficiency; and
WHEREAS, in order to reduce the demand for electricity and increase energy efficiency, a system of utility regulation is necessary to assure that Hawaii preserves a stable electric grid and a financially sound electric utility; and
WHEREAS, the energy agreement parties agreed that utility regulation must include that there should be no system-wide caps on net energy metering at any of the Hawaiian Electric utilities; and
WHEREAS, net energy metering is one way to lessen Hawaii's dependence on imported oil by encouraging greater use of eligible renewable energy sources like solar (photovoltaic), wind, biomass, or hydroelectric power for electrical generation by residential and commercial customers; and
WHEREAS, photovoltaic energy systems are renewable energy sources that capture sunlight through solar panels mounted on roof tops and convert the sun's energy into electricity; and
WHEREAS, all residential and commercial utility customers who own and operate an eligible renewable energy generation system, like a photovoltaic system, and intend to connect to a utility electric grid must register their systems with the utility by executing a net energy metering or standard interconnection agreement; and
WHEREAS, the net energy metering agreement allows customers to connect their photovoltaic systems to the utility electric grid to export surplus electricity and provide customers credits that can be used to offset electricity purchases over a twelve-month period; and
WHEREAS, the net energy metering agreement is necessary for safety reasons and in some cases, the electric utility company may require a technical review in order to ensure that installation of the photovoltaic system meets all safety requirements and that the system will not adversely impact the utility company's electric distribution system; and
WHEREAS, under the energy agreement, the parties agreed that distributed generation interconnection will be limited on a per-circuit basis where generation, including photovoltaic energy generation, feeding into the circuit be limited to no more than fifteen percent of peak circuit demand for all distribution-level circuits of twelve kilovolts or lower; and
WHEREAS, furthermore, for those circuits where interconnection requests, particularly for photovoltaic systems, approach or exceed the fifteen percent threshold, the electric utility will perform and complete an interconnection supplemental review to determine whether the threshold can be increased; and
WHEREAS, in response to the energy agreement, the Hawaiian Electric utilities each filed an application with the Public Utilities Commission for approval to modify their respective company's Tariff Rule No. 14H – Interconnection of Distributed Generating Facilities Operating In Parallel With The Company's Electric System; and
WHEREAS, one of the amendments proposed increasing the percentage of peak annual kilovolt-ampere load into the electric grid from ten to fifteen percent; and
WHEREAS, this fifteen percent distributed generation penetration threshold would trigger an interconnection supplemental review; and
WHEREAS, additionally, this proposed amendment was consistent with the energy industry rule-of-thumb used to determine whether a proposed distributed generation will have any impact associated with the interconnection; and
WHEREAS, lastly, the proposed amendment would raise the penetration threshold and thereby allow the Hawaiian Electric utilities to accept more distributed renewable generation into a circuit before additional studies are required and in turn, encourage more renewable generation interconnections, like photovoltaic systems; and
WHEREAS, in May 2010, the Public Utilities Commission issued a Decision and Order approving the increase in the peak distributed generation penetration threshold to fifteen percent along with other amendments to Tariff Rule No. 14H; and
WHEREAS, in November 2011, the Public Utilities Commission issued a second Decision and Order approving additional amendments to Tariff Rule No. 14H, including streamlining the interconnection supplemental review process for utility customers who exceed the fifteen percent distributed generation penetration threshold, setting timeframes for the interconnection process, and establishing requirements for a interconnection requirements study if a project fails to meet initial technical screening criteria, such as the fifteen percent distributed generation penetration threshold; and
WHEREAS, the interest in and demand for household photovoltaic systems is growing in Hawaii, especially as oil prices and electricity rates have steadily increased in the past couple of years; and
WHEREAS, however, despite efforts by the State and the Hawaiian Electric utilities to facilitate more distributed renewable generation into the circuit as well as more renewable generation interconnections, interested customers in Hawaii are unable to install photovoltaic panels because their homes are located in areas that exceed the fifteen percent distributed generation penetration threshold; and
WHEREAS, the fifteen percent distributed generation penetration threshold is criticized as being too conservative and an obstacle to producing renewable energy in order to decrease the State's dependence on imported fossil fuel for electricity; and
WHEREAS, furthermore, interconnection supplemental reviews as a result of exceeding the fifteen percent penetration threshold are often time-consuming and expensive because the customer is responsible for paying for these reviews; and
WHEREAS, thus, these reviews frequently create a situation in which the proposed net energy metering application for the installation of a photovoltaic system is withdrawn by the customer; and
WHEREAS, in light of the State and the Hawaiian Electric utilities agreeing that there should be no system-wide caps on net energy metering in the energy agreement and the State's efforts pursuant to section 196-41, Hawaii Revised Statutes, in achieving its renewable portfolio standards under section 269‑92, Hawaii Revised Statutes, it is imperative that mechanisms are in place and processes are streamlined to enable the State to meet and maintain its renewable energy demands and portfolio standards while ensuring safety of the electric grid and fiscal responsibility; now, therefore,
BE IT RESOLVED by the Senate of the Twenty-seventh Legislature of the State of Hawaii, Regular Session of 2013, the House of Representatives concurring, that the Consumer Advocate is requested to establish a work group to examine Hawaiian Electric utilities' Tariff Rule No. 14H to develop methods and procedures to facilitate the increase in photovoltaic systems and net energy metering in the State; and
BE IT FURTHER RESOLVED that the work group shall consist of the following individuals:
(1) Consumer Advocate or the Consumer Advocate's designee;
(2) Director of Business, Economic Development, and Tourism, or the Director's designee;
(3) President and Chief Executive Officer of Hawaiian Electric Company, Inc., or the President and Chief Executive Officer's designee;
(4) President of Hawaiian Electric Light Company, Inc., or the President's designee;
(5) President of Maui Electric Company, Inc., or the President's designee;
(6) Representative from the Hawaii PV Coalition;
(7) Director and President of Hawaii Renewable Energy Alliance or the Director and President's designee; and
(8) President of the Hawaii Solar Energy Association or the President's designee; and
BE IT FURTHER RESOLVED that the work group is requested to examine the following:
(1) Identify and evaluate various factors that impact renewable distributed generation by photovoltaic systems in Hawaii, including but not limited to state and federal renewable energy laws and regulations, renewable energy industry standards and practices, renewable energy distributed generation supply and demand, renewable energy demographics and geographical data, electric grid safety, and fiscal implications;
(2) Determine the feasibility of raising the distributed generation penetration threshold to a higher percentage in order to facilitate an increase in the installation of photovoltaic systems on homes;
(3) Study other state jurisdictions to gain an understanding of the other initial screening processes and procedures in place for photovoltaic system installations and evaluate the impact these processes and procedures have on the electric utilities and homeowners with photovoltaic systems;
(4) Study other applicable renewable distributed generation interconnection studies by the United States Department of Energy and other renewable energy industries to gain an understanding and evaluate the feasibility of raising the distributed generation penetration threshold to a higher percentage;
(5) Engage in discussions and allow input from photovoltaic system retailers and consumers to identify issues regarding photovoltaic systems interconnections;
(6) Determine the feasibility of establishing an exemption process and procedure for homeowners, as opposed to commercial businesses, who reside in saturated areas with a peak load distributed generation over fifteen percent;
(7) Collaborate with the Hawaii Clean Energy Initiative to develop potential solutions to transform the existing regulatory environment to facilitate a renewable energy environment in the State; and
(8) Identify and discuss any other pertinent issues that impact photovoltaic systems interconnection; and
BE IT FURTHER RESOLVED that the work group is requested to submit a written report of their findings and recommendations, including any proposed legislation, to the Governor, the Chairperson of the Public Utilities Commission, and the Legislature no later than twenty days prior to the convening of the Regular Session of 2014; and
BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Consumer Advocate; Director of Business, Economic Development, and Tourism; Chairperson of the Public Utilities Commission; Hawaiian Electric Company, Inc.; Hawaiian Electric Light Company, Inc.; Maui Electric Company, Ltd.; Hawaii PV Coalition; Hawaii Renewable Energy; and Hawaii Solar Energy Association.
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OFFERED BY: |
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Photovoltaic Systems; Net Energy Metering; Interconnection Requirements; Work Group;
