§269-95  Renewable portfolio standardsstudy.  The public utilities commission shall:

(1)  By December 31, 2007, develop and implement autility ratemaking structure, which may include performance-based ratemaking,to provide incentives that encourage Hawaii's electric utility companies to usecost-effective renewable energy resources found in Hawaii to meet the renewableportfolio standards established in section 269-92, while allowing for deviationfrom the standards in the event that the standards cannot be met in acost-effective manner or as a result of events or circumstances, such asdescribed in section 269-92(d), beyond the control of the utility that couldnot have been reasonably anticipated or ameliorated;

(2)  Gather, review, and analyze empirical data to:

(A)  Determine the extent to which any proposedutility ratemaking structure would impact electric utility companies' profitmargins; and

(B)  Ensure that the electric utilitycompanies' opportunity to earn a fair rate of return is not diminished;

(3)  Use funds from the public utilities special fundto contract with the Hawaii natural energy institute of the University ofHawaii to conduct independent studies to be reviewed by a panel of experts fromentities such as the United States Department of Energy, National RenewableEnergy Laboratory, Electric Power Research Institute, Hawaii electric utilitycompanies, environmental groups, and other similar institutions with therequired expertise.  These studies shall include findings and recommendationsregarding:

(A)  The capability of Hawaii's electricutility companies to achieve renewable portfolio standards in a cost-effectivemanner and shall assess factors such as:

(i)  The impact on consumer rates;

(ii)  Utility system reliability and stability;

(iii)  Costs and availability of appropriaterenewable energy resources and technologies;

(iv)  Permitting approvals;

(v)  Effects on the economy;

(vi)  Balance of trade, culture, community,environment, land, and water;

(vii)  Climate change policies;

(viii)  Demographics; and

(ix)  Other factors deemed appropriate by thecommission; and

(B)  Projected renewable portfolio standards tobe set five and ten years beyond the then current standards;

(4)  Evaluate the renewable portfolio standards everyfive years, beginning in 2013, and may revise the standards based on the bestinformation available at the time to determine if the standards established bysection 269-92 remain effective and achievable; and

(5)  Report its findings and revisions to therenewable portfolio standards, based on its own studies and other informationto the legislature no later than twenty days before the convening of theregular session of 2014, and every five years thereafter. [L 2004, c 95, pt of§2; am L 2006, c 162, §6; am L 2009, c 155, §4]

 

Cross References

 

  State support for achieving renewable portfolio standards,see §196-41.