Abercrombie pushes for bill establishing undersea cable framework

Gov. Neil Abercrombie pressed his case Friday for an interisland undersea power transmission cable, testifying in favor of a bill that would establish a regulatory framework and financing system for such a project if one is built.

The bill is an updated version of a measure that failed last session after it came under criticism from opponents who saw it as vehicle to promote the development of wind power on Molokai and Lanai.

However, the current bill (HB 2523) makes no mention of any particular island or type of renewable energy technology. Language added to the preamble of this year’s bill contends that connecting the state via an undersea cable would "provide the islands with increased energy security and system efficiencies and enable the islands to provide each other with backup power."

The bill was approved during a joint hearing held by the House committees on Energy & Environmental Protection and Water, Land & Ocean Resources.

Abercrombie testified that the bill does not "ensure" that there will be an interisland cable. "This measure will establish a framework for any future cable proposals to be developed, financed and constructed," Abercrombie said.

"By establishing a process, uncertainties will be eliminated. Ultimately, this will lower the cost of any cable project that may be approved in the future to the benefit of everyone in Hawaii," Abercrombie said.

When last year’s bill was being debated, the focus of renewable energy development in the state was on proposed wind projects on Lanai and Molokai that would transmit energy to Oahu via an undersea cable. Since then the company that was seeking to develop 200 megawatts of wind power on Molokai was ruled ineligible by the Public Utilities Commission. The commission ordered Hawaiian Electric to seek new bids from developers for a minimum of 200 megawatts of power using any type of renewable energy on any island.

About a dozen government officials, companies, labor unions and individuals submitted testimony supporting the bill. Opposing the bill were several environmental groups and about 40 individuals, mostly residents of Molokai and Lanai.

Hermina Morita, chairwoman of the PUC, told lawmakers that the commission wants to "encourage the use of renewable energy with no preconceived notions. All potential renewable sources should be considered on the neighbor islands and Oahu."

Voting against the bill were state Reps. Cynthia Thielen (R, Kailua-Kaneohe) and Gil Riviere (R, Schofield-Kahuku).

Thielen said if a cable were to eventually be built, it would drive already-high electrical rates even higher. She questioned the testimony in support of the bill by state Consumer Advocate Jeffrey Ono.

"Aren’t you the consumer advocate? Aren’t you trying to keep utility rates down?" Thielen asked.