RES 277 Draft 01 2010-2012 - Laserfiche WebLink

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WHEREAS, according to HELCO's Rule 14H, when the 15 percent threshold is exceeded in an individual distribution feeder, a Supplemental Review of the customer's application is required. The required supplemental review will most likely result in a Interconnection Requirements Study; and WHEREAS,the cost of the Interconnection Requirements Study is borne by the customer, with a cost range of$2,000 to more than$100,000, depending on the size of the Net Energy Metering system. The study would determine if the installation of any additional equipment or additional grid improvements are required before connection to the grid. The customer is responsible for the cost of any additional equipment or additional grid improvements. This is an additional cost and a deterrent for those wanting to utilize alternative energy power by installing Net Energy Metering systems; and WHEREAS, the 15%threshold, Interconnection Requirements Study, and possible grid improvements are time consuming and expensive additional costs which deter customers from installing alternative energy equipment for on-site power generation, thereby limiting the expansion of renewable energy resources in the State of Hawai`i; and WHEREAS, HELCO has stated that it is a"for profit" company and as such implied it must protect its profit margin, which would be decreased by the capital costs of upgrading its grid and individual distribution feeder circuits to allow for a threshold that is higher than 15 percent; and WHEREAS, increasing the minimum threshold would provide an opportunity for HELCO to work with companies such as National Energy Partners LLC, who would in turn negotiate the financing of general upgrades and improvements to the electrical utility grid as an alternative substitute for requiring Interconnection Requirements Studies; and WHEREAS, increasing the minimum threshold and committing to invest in upgrades and improvements as an alternative to costly Interconnection Requirements Studies would expedite the expansion of Hawai`i County's solar renewable portfolio; and WHEREAS, the Reliability Standards Working Group, Hawai`i Solar Energy Association, Hawai`i Renewable Energy Alliance, Hawai`i Energy Policy Forum and the Hawai`i PV Coalition are entities that have recognized the importance of raising the minimum threshold and are currently working toward that goal; and WHEREAS, the Public Utilities Commission regulates the charges and fees and issues guidelines concerning the general management of Hawai`i Electric Company and its subsidiary HELCO, and therefore has the authority to require HELCO to change its renewable energy threshold; now, therefore, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII, that it encourages the Public Utilities Commission to raise Hawai`i Electric Light Company's renewable feeder penetration threshold from 15 percent of peak load to 50 percent of minimum load. 2