State Reaches Settlement with Hawaiian Electric Company

Posted on January 28, 2013 by Damon

As island families and businesses continue to face high energy prices, Gov. Neil Abercrombie today announced a settlement between the State of Hawaii and the Hawaiian Electric Company, Inc. (HECO) that will result in the withdrawal of a rate increase request for Hawaii Island and a significant reduction in taxpayer dollars requested to cover project costs.

abercrombieheader

Subject to approval by the Public Utilities Commission (PUC), the formal settlement filed with the PUC on Jan. 28 outlines an agreement between the state Department of Commerce and Consumer Affairs’Division of Consumer Advocacy (DCA) and HECO, including its subsidiaries, Maui Electric Co., Ltd. (MECO) and Hawaii Electric Light Company, Inc. (HELCO), which serve Maui County and Hawaii Island, respectively.

“With high oil prices driving up electricity and other costs throughout our economy, we have to take action to help Hawaii’s families and businesses who are struggling to make ends meet,” Gov. Neil Abercrombie said. “While this settlement will help in the short-term, we remain committed to pursuing long-term solutions toward clean energy alternatives.”

As part of the settlement, HELCO will withdraw its request for a 4.2 percent or $19.8 million rate increase in 2013.

HECO and its subsidiaries will also reduce by $40 million the amount being sought for improvements to two major projects –the 110-megawatt biofuel generating station at Campbell Industrial Park and a new customer information system.

In addition, HECO will also delay filing a 2014 rate case that was originally scheduled to be filed this year under the current regulatory framework for reviewing its rates.

DCA Executive Director Jeffrey Ono said: “This settlement will benefit consumers and help reduce the ever-increasing cost of electricity.”

UPDATE:

HAWAIIAN ELECTRIC COMPANIES’ STATEMENT REGARDING SETTLEMENT WITH HAWAII CONSUMER ADVOCATE

We believe the rate case settlement agreement we reached with the Consumer Advocate is fair and recognizes how difficult times are for our customers. High fuel prices are continuing to affect our customers and hurt our state’s economy.

If this settlement is approved by the Hawaii Public Utilities Commission, it would allow all of the parties involved to focus their resources on increasing the use of local, renewable energy and other options that can help reduce our state’s dependence on oil and decrease energy costs for our customers.

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Governor Abercrombie Announces Appointments Relating To Energy, Human Resources, Health

Posted on September 15, 2011 by Damon

Governor Neil Abercrombie today announced the following appointments:

  • Michael Champley as commissioner to the Public Utilities Commission (PUC)
  • Barbara Krieg as Director of the Department of Human Resources and Development (DHRD)
  • David Sakamoto as Deputy Director of Health of the Department of Health (DOH)
Michael Champley begins serving on the PUC on an interim basis immediately. His appointment is subject to Senate confirmation.
Mr. Champley has over 40 years of experience analyzing, integrating and managing complex economic, public policy and technical issues confronting an evolving regulated energy utility industry.  Mr. Champley, 63, is currently a Maui-based senior energy consultant focused on clean energy resource integration in Hawai’i supporting clients including the Blue Planet Foundation.  Prior to re-locating to Hawai’i, Mr. Champley was a senior executive with DTE Energy, a major electric and gas energy company where he held various executive positions including Senior Vice President-Regulatory Affairs and Senior Vice President-Power Supply.  Mr. Champley holds a BS in Electrical Engineering from the University of Dayton and a MBA from Indiana University with emphasis in Finance and Public Utility Economics and Regulation.
Barbara Krieg will serve as Interim Director of the Department of Human Resources and Development (DHRD) effective September 16, 2011.  She replaces DHRD Director Sunshine Topping. Ms. Krieg, 53, is currently DHRD’s Deputy Director.  Her appointment to Director is subject to Senate confirmation.
David Sakamoto, M.D. will start as Deputy Director of Health on October 10th. Dr. Sakamoto, 61, was recently a co-researcher on the Hawai’i Physician Workforce Assessment project at the John A. Burns School of Medicine; and administrator for the State Health Planning & Development Agency. Other positions previously held include Vice President of Quality Management at St. Francis Medical Center – West and Risk Manager at Wahiawa General Hospital.  Dr. Sakamoto received his medical degree from the University of Illinois, Abraham Lincoln School of Medicine.  He holds a BS in Chemistry from the University of Illinois, Urbana and a MBA from the University of Hawai’i.
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Hawaii’s New $7 Million Federal Grants Aim to Increase Solar and Renewable Energy Integration Into Electric Grids

Posted on September 13, 2011 by Damon

The State of Hawai’i was awarded more than $7 million in federal grants for renewable energy projects that include increasing solar energy and electric vehicles in Hawai’i, Governor Neil Abercrombie announced at today’s opening of the 2011 Asia Pacific Clean Energy Summit and Expo.

The U.S. Department of Energy recently announced the following grants:
  • $6.1 million to the University of Hawai’i (UH) to work with industry partners to allow the electric grid to take on more solar energy by developing and demonstrating state of the art photovoltaic (PV) inverters
  • $750,000 to state Department of Business, Economic Development, and Tourism (DBEDT) to provide technical assistance to the Public Utilities Commission and ultimately help remove barriers to allow for more renewable energy on the electric grid
  • $300,000 to the UH Maui College in partnership with DBEDT and private industry to accelerate the adoption of electric vehicles in Hawai’i
“To move beyond just talking about energy independence in Hawai’i, many people are now doing the intricate and necessary technical work behind the scenes,” Governor Abercrombie said. “The partnerships we are building among government agencies, utilities and private companies are advancing our plans to grow a sustainable economy here in the islands. And our strong alignment with President Obama’s clean energy initiatives opens up new opportunities for Hawai’i agencies, companies, and entrepreneurs.”
The number of PV systems, which generate electricity from sunlight, has doubled in each of the last three years, making Hawai’i second in the nation in photovoltaic per capita use. The two federal grants received by DBEDT and UH will help improve the reliability of the electricity delivery system as we continue to expand our use of renewable energy sources. Right now, electricity is generated when the sun is shining or the wind is blowing. The projects will address both technical and regulatory changes to address the variability of solar power and other renewable energy.
“The technology developed through these grants has the potential to facilitate a broader adoption of PV systems at lower costs,” said Dr. Rick Rocheleau, Director of UH’s Hawai’i Natural Energy Institute (HNEI).
“These grants are important investments in Hawai’i’s efforts to move toward energy independence,” said Estrella Seese, Acting Energy Program Administrator of DBEDT’s State Energy Office. “With the many strategic partnerships between state agencies including UH, the USDOE and energy industry, Hawai’i is poised to reduce its dependence on imported fuels within two decades.”
The Asia Pacific Clean Energy Summit and Expo, hosted by DBEDT at the Hawai’i Convention Center, is a meeting place for international leaders and energy experts. Over the next three days, the State of Hawai’i and its partners will host a roster of world-renown speakers who will share diverse insights into the implications of advanced renewable energy technologies along with cutting-edge projects, while offering their perspectives on policy issues, and investment and financing opportunities.
This morning’s speakers also included R. James Woolsey, former Central Intelligence Director, and Dr. George Ka’iliwai, U.S. Pacific Command, Director of Resources and Assessment.
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Lt. Governor Schatz – “Our Energy Future Is Now”

Posted on September 12, 2011 by Damon

Aloha everyone,

Your administration is working hard to build a sustainable economy, and the key to that is clean energy.  While we’ve just begun, I’m happy to report that we’re making exciting progress.

We are moving fast on electric vehicles.  Through a federal grant, our Department of Business Economic Development and Tourism (DBEDT) is partnering with private companies, and by the end of 2012, Hawai‘i will have more electric vehicle charging stations per capita than any other state.  We are the ideal place for electric cars because of our high gas prices and short driving distances.

We are building international partnerships on energy.  This week Hawai‘i is hosting the Asia Pacific Clean Energy Summit, where we expect more than 1,200 local and international clean energy leaders in the government and private sectors to attend along with delegations from more than a dozen countries.  The Governor and I are speaking at this summit to welcome our guests and advance partnerships with key government players and investors in China, Korea, Okinawa, Japan and other countries.

These partnerships are critical to attracting the kind of investment that will be necessary to develop renewable energy opportunities for our state and a sustainable economy.  Any type of investment in Hawai‘i is significant in that it strengthens our economy and provides additional job opportunities for Hawai‘i’s workforce.  This particular kind of investment goes further in that it will enable us to get off of oil that much sooner.  The less oil we consume, the less we all spend each month on gas and electricity and the more money we have in our pockets for other needs.  Hawai‘i’s energy program powers Hawai‘i’s economic growth by attracting the inflow of investment as well as reducing the outflow of dollars from our economy.

We are focusing on Megawatts.  What does that mean? It means that all of this exciting talk is just that – talk – unless we get projects approved, financed, and delivered to customers.  So we are working with all state departments, especially the Public Utilities Commission, to make sure that private clean energy producers can succeed in moving Hawai‘i off of oil. Through DBEDT’s Energy Office, we are also working to facilitate the siting and permitting of clean energy projects to ensure the timely and expeditious completion of these projects.  That means that companies that want to deliver clean energy to your home or business will be doing it, not just talking about it.

There’s a lot more to do, but I am energized by the progress made in our first nine months in office.  The Governor and I are determined to build on this solid foundation going forward.  If you want to know more about the administration’s efforts in energy independence, visit http://energy.hawaii.gov.

Aloha,

Brian Schatz
Lieutenant Governor
ltgov@hawaii.gov

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