Hawaiian Electric plays hard ball instead of doing what’s right for Hawaiʻi’s clean energy future
READ: Hawaiian Electric Says It Might Pull The Plug On Giant Battery, Civil Beat, May 5, 2021
The Hawaiʻi Public Utilities commission approved a docket for HECO’s lonestar project to replace the coal plant’s energy production. It’s a battery, a huge one, that will be located in Kapolei.
But with approval came an epic list of conditions that HECO must adhere to, and in doing so they have opened a pathway for a truly decentralized energy system.
The PUC’s order is a marker and gut check for HECO to start adequately delivering not only on its commitment to our state’s renewable energy goals but its customers. For too long, we have been at the whims of profit-driven decision making by a corporate investor-owned utility. Project delays have kept us reliant on imported fossil fuels at a high price tag.
This is a big deal.
Here is a breakdown of the conditions:
Access- HECO must release gridlock restraints allowing for accelerated adoption of rooftop solar that could be used to charge the battery. This will also give apartment and condo dwellers opportunities to subscribe to remote “Community Based Renewable Energy” projects.
Transparency- Monthly reporting requirements—such as percentage of the energy stored in the project generated by fossil fuels v. renewables—that will let the public and regulators more closely track Hawaiian Electric’s progress toward the state’s renewable energy goals. It also included annual reports and missed project milestone reports.
Fossil Fuel Retirement- Mandating that customers won’t pay a penny for fossil power produced after set financial retirement dates for Waiau and Kahe oil generated power plants beginning in 2023 to 2028.
Return to Ratepayers- To the extent that daily damages are paid to HECO prior to the Energy Storage Power Purchase Agreement’s lump sum payments, HECO shall credit the amount of Daily Damages received to its ratepayers.
Financial Accountability- Considering the circumstances by which the Commission was essentially forced to approve this project—delays and negligence in preparing for the retirement of the AES coal plant—the Commission finds that financially rewarding HECO through a performance incentive mechanism, is “directly at odds” with its original intent.
End of Life Plan- HECO must work with developer, Kapolei Energy Storage, to create a decommission plan for the project’s infrastructure.
But Hawaiian Electric is playing hard ball. HECO is pushing back and offering threats that they may have to withdraw the project. First it was rolling blackouts which forced the hands of the PUC to approve a fossil fuel filled battery and now Hawaiian Electric is saying, “while technically an approval, the order imposes such unprecedented conditions that the company and the developer may be prevented from moving forward with this innovative and cost-effective project.”
Hawaiian Electric has been pointing the finger and placing blame everywhere—developers, the PUC, permitting, and red tape that slows construction. But nowhere have we seen action behind taking responsibility for their negligence to be on track and all our patience is waying. The PUC is pulling the reins in on HECO through this order.
For far too long, we have been at the whims of profit-driven decision making by a corporate investor-owned utility that have resulted in extreme fossil fuel reliance and the most expensive electricity in the nation.
The urgency of this situation is a byproduct of HECO’s reluctance to transform itself to be an adequate 21st century energy provider. If they are not capable of implementing these conditions, then we need to rethink whether they are competent enough to continue to be our energy provider.