Exemption sought
for seawater cooling

Lawmakers advanced a measure that would ease the way for a technology that uses cold water piped from the depths of the Pacific Ocean to cool Hawaii's tropical heat.

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Known as seawater air conditioning, the method of cooling could reduce the state's dependancy on fossil fuels by bringing down electricity needs, according to the state Department of Commerce and Consumer Affairs, which supports the bill.

Members of the House Committee on Economic Development and Business Concerns voted yesterday to pass the measure, which would exempt seawater air-conditioning projects from public utility regulation.

Because the companies would not be the only providers of a service essential to public health and welfare, they do not need oversight from the public utilities commission, John Cole, executive director of the Division of Consumer Advocacy, said in written testimony to the committee.

"Rather, participants in such district cooling projects are likely to be a limited number of sophisticated building owners and operators, and long-term contracts will be negotiated to identify their rights and obligations," Cole said.

The Public Utilities Commission's responsibilities include regulating rates and fees charged by utilities and issuing guidelines for management of the businesses.

The state already exempts plants or facilities that provide energy derived entirely from non-fossil fuels to a public utility from regulation by the PUC. The commission has said it would defer to the Legislature on the question of regulating seawater air conditioning projects.

Regulatory requirements would make it harder to find financing. The cost is also a concern.