HomeMy WebLinkAboutCOM 0767.002 2022-2024Mitchell D. Roth
Mayor
Douglass S. Adams
Director
Frecia Cevallos
Deputy Director
County of Hawail
DEPARTMENT OF RESEARCH AND DEVELOPMENT
25 Aupuni Street, Room 1301 • Hilo, Hawai'i 96720-4252
(808) 961-8366 • Fax (808) 935-1205
E-mail: chresdev@co.hawaii.hi.us
r J
MEMORANDUM
TO: Heather Kimball, Chair
And Members of the Hawaii County Council
FROM: Douglass Adams, Director
County of Hawai'i Department of Research and Deve hent
DATE: March 18, 2024
SUBJECT: Resolution 452-24: AUTHORIZES THE MAYOR TO ENTER
INTO AN AGREEMENT WITH ARIZONA STATE UNIVERSITY
The County of Hawaii Department of Research and Development is pleased
to transmit the attached presentation for the above -referenced matter.
Please distribute this for the meeting of the Government Operations and
External Affairs Committee on March 19, 2024.
Hawaii County is an Equal Opportunity Provider and Employer
Comri5 c `� CI 2,
Ref. To: I ; ' .' V--
Ref. Date
County Contract with Arizona State University
2019-2020
In 2019-2020, County and Arizona State University (ASU) continued their partnership in
addressing energy -related dockets before the Hawaii Public Utilities Commission. ASU has
assisted County in preparing documents, testimony, written comments, conducting modeling and
participating in both in person and virtual workshops at the HPUC. During the past year,
County's work before the HPUC in the Helco rate case resulted in millions of dollars in savings
for County residents, and County's work to ensure that consumers are the primary focus of the
Performance Based Regulation docket will ultimately benefit the entire state. ASU has also
assisted County in monitoring and participating in the Electrification of Transportation and
Integrated Grid Planning dockets at the HPUC.
The ASU team consists of ASU Professors Kns Mayes and Nate Johnson; Energy Policy
Innovation Council (EPIC) staff member Kat Hofland; and EPIC consultant Andy McCoy.
HELCO APPLICATION FOR APPROVAL OF A GENERAL RATE INCREASE AND
REVISED RATE SCHEDULES AND RULES (2018-0368)
County of Hawai`i's testimony was cited in the HPUC's decision to reject HELCO's $1.7
million dollar requested increase in Operation and Maintenance funding, resulting in cost savings
for customers. ASU estimates that the decision in the case, which adhered to County's
arguments on the need to reject the proposed O&M increase, will result in $8.74 per County of
Hawai'i resident and $20.19 per HELCO customer PER YEAR (at least until the next rate case).
Overall, it is likely at least 3 years of those savings will be implemented, or about $5.25
million total. County has steadfastly sought to protect the interests of County residents in
all dockets, but most particularly in rate cases when we believe increases may be
unwarranted or unjustified.
County and ASU submitted information requests, answered information requests from other
parties, submitted written testimony and rebuttal testimony, as part of the Helco rate case.
ASU professors Kris Mayes and Nate Johnson provided written testimony on County's
behalf.
PERFORMANCE -BASED REGULATION PROCEEDING (2018-0088)
COH and ASU have participated in multiple working groups in the Commission's collaborative
process aimed at developing Hawaii's Performance Based Regulation (PBR).PBR would
represent a new method for funding the state's utilities, moving there way from rate of return,
cap -ex dependent ratemaking and toward performance on metrics that are important to the state.
On County's behalf, ASU has worked with the RIST model provided to all PBR participants to
develop metrics, Performance Incentive Mechanisms (PIMs) and general guidance in ensuring
that the implementation of this new way of ratemaking provides safe, reliable, and affordable
electricity. County and ASU have been focused on stabilizing customer bills, incentivizing long-
term utility cost containment efforts, accelerating deployment of utility -scale renewable
generation and lowering market barriers to distributed energy resource (DER) adoption.
COH and ASU have provided multiple proposals and have given several presentations to the
Companies, the Commission, and to other stakeholders.
With ASU's assistance, COH submitted its Initial Comprehensive Proposal in August of 2019,
its First Updated Proposal in January of 2020, a Second Updated Proposal in May of 2020, and a
final Statement of Position in June of 2020. County then participated in the Information Request
process, where all stakeholders were invited to ask technical questions of the other parties'
Statements of Position. In August of 2020 COH submitted our Reply Statement of Position along
with the other parties. We are now awaiting the hearing, which is to take place the week of
September 21". County will present its expert witness (ASU's Andy McCoy) and participate in
the hearing process as well.
PROCEEDING RELATED TO THE HAWAIIAN ELECTRIC COMPANIES'
ELECTRIFICATION OF TRANSPORTATION STRATEGIC ROADMAP (2018-0135)
The Electrification of Transportation (EOT) Docket has been less active this year, though the
proceeding is beginning to move forward again as the HECO companies snake filings on the
implementation of pilot projects. The Companies submitted their EOT workplan in October of
2019. The Commission responded to this filing in June of 2020, requesting a delay in two
deadlines - the Rate Design filing, and the Commercial Make Ready filing. The Commission
approved this change in schedule, and we can expect the Rate Design filing by the end of Quarter
3 and the Commercial Make Ready filing by the end of Quarter 4. The Companies did not
request a move to their eBus filing because they intend to continue to use the eBus J/P rate in the
proposed program.
In addition, the Commission requested that the Companies develop an irmovative pilot projects
program framework to establish new technologies, programs, and business models related to the
Companies' EOT. The deadline for this proposal is Aug 31, 2020. County will respond to this
and future filings where invited and warranted.
PROCEEDING TO INVESTIGATE INTEGRATED GRID PLANNING (2018-0165)
County and ASU are currently waiting on an update filing from HECO so that the Commission
can assess/guide the next steps in this important and newly created integrated process for
planning the bulk and distributed grid, as well as energy resources. Over the past year, County
and ASU have participated in a series of IGP-related workshops and update calls, and we
continue to monitor this docket to ensure that COH's interests are represented.
J511'ENERGY POLICY
INNOVATION COUNCIL
January 26, 2021
Mr. Riley Saito
Energy Specialist
County of Hawaii
25 Aupuni Street, Suite 1301, Hilo, HI 96720
Dear Mr. Saito,
It has been an honor for Arizona State University to work for the County of Hawaii on
energy policy issues, in particular related to the County's participation and intervention
before the Hawaii Public Utilities Commission. ASU was proud in 2020 to assist County
in its very successful interventions in the PUC's Performance Based Regulation and
Helco rate case dockets, among others.
ASU is very much interested in continuing to act as a consultant to County on energy
policy matters. In 2021, at a minimum, we would anticipate assisting County in the
following dockets as County continues its work as an effective proponent for Hawaii
ratepayers and for the realization of the state's ambitions clean energy goals:
2018-0088 (Performance Based Regulation)
Order issued this month; working groups are now meeting to hammer out tariff language
on the ARA, RBA and PIM tariffs, including the LMI Energy Efficiency PIM. HECO has
asked for reconsideration and clarification of the final D&O on several issues, including
whether the Commission meant to significantly increase O&M savings.
2018-0368 (HELCO Rate Case)
On 10/26/2020 Order 37395 Approved HELCO's proposed Final and PIM Tariffs, which
went into effect on November 1, 2020. The Commission also approved HELCO's ECRC
Tariffs, which went into effect January 1, 2020.
2081-0165 (IGP)
On 11/05/2020 Order 37419 stating that Hawaiian Electric staff who work on IGP must
communicate with every other part of Hawaiian Electric in a timely manner, must ensure
that all of Hawaiian Electric's other dockets are operating in aligmnent with IGP, revise
their workgroup timelines, increase coordination between workgroups, provide all
updated resource plan that consistent across IGP and PBR dockets, and Increase
stakeholder feedback.
ENERGY POLICY
INNOVATION COUNCIL
2018-0135 (Electrification of Transportation)
HECO is in the process of developing pilot programs and tariffs in consultation with local
communities, and Order No. 37373 transferred some future EoT proceedings to the PBR
docket.
Were the County to again retain ASU, the team would again consist of Professors Kris
Mayes (law and policy) and Nate Jolu►soti (engineering) and EPIC'S prograin coordinator
Kat Hofland.
Again, thank you for allowing us to assist County and we would look forward to a
continued successful partnership in service of County's objectives.
Sincerely,
Kris Mayes
Director, Energy Policy Innovation Council and Utility of the Future Center
Arizona State University
3 V 'ENERGY POLICY
c^r J•INNOVATION COUNCIL
January 18, 2022
Mr. Riley Saito
Energy Specialist
County of Hawaii
25 Aupuni Street, Suite 1301, Hilo, HI 96720
Dear Mr. Saito,
It has been an honor for Arizona State University to work for the County of Hawaii
(County) on energy policy issues, in particular related to the County's participation and
intervention before the Hawaii Public Utilities Commission (HPUC). ASU was proud in
2021 to assist County in its very successful interventions in the HPUC's multi -year
Performance Based Regulation (PBR), Integrated Grid Planning (IGP), and HECO rate
case dockets, among others.
ASU is very much interested in continuing to act as a consultant to County on energy
policy matters. In 2022, at a minimum, we would anticipate assisting County in the
following dockets as County continues its work as an effective proponent for Hawaii
ratepayers and for the realization of the state's ambitions clean energy goals:
2018-0088 (Performance Based Regulation) — County is an Intervenor
The PBR docket was very active in 2021, with ASU supporting County in working
groups on PBR metrics website development, Innovation Pilot Framework Workplan
(Workplan) development, and PIMS development. In 2022, work will continue as HECO
begins work under the Workplan, consults with stakeholders, and issues information
about the pilot projects the Companies intend to pursue. Similarly, the PIMS work is
ongoing. The County and ASU remain focused on stabilizing customer bills,
incentivizing long-term utility cost containment efforts, accelerating deployment of
utility -scale renewable generation, lowering market barriers to distributed energy
resource (DER) adoption, and encouraging Hawaiian Electric Company to communicate
more clearly about what its PBR scorecards, metrics, and forthcoming pilot projects mean
to its customers.
Of note: on October 16, 2020, the HPUC transferred the Electrification of Transportation
(EOT) Innovation Pilot Framework Strategic Roadmap into the PBR docket. ASU will
continue to monitor and participate in any EOT-related work as part of the PBR docket.
2018-0165 (Integrated Grid Planning) — County is an Intervenor
ENERGY
I -INNOVKHON COUNCIL,
Likewise, the IGP docket was active in 2021, with ASU supporting County in working
groups advising HECO on the development of an IGP Grid Needs Assessment
Methodology. This work will continue in 2022 as HECO finalizes its methodology and
begins work on the Grid Needs Assessment itself.
2018-0163 (Microgrid) — County is monitoring this docket
This docket has been quiet since October 2021; AST is continuing to monitor the docket
for any updates and opportunities where County might like to submit public comments.
2019-0333 (Puna Geothermal Venture) — County is monitoring this docket
this docket has been active in 2021; ASU is continuing to monitor the docket for any
updates and opportunities where County might like to submit public comments.
Were the County to again retain ASU, the team would again consist of Professors Kris
Mayes, J.D. (law and policy), Dr. Kit Batten (sustainability), and Dr. Nate Johnson
(engineering); ASU staff Mac Wodicker (electrical engineering) and EPIC'S program
coordinator Kat Hofland.
Again, thank you for allowing us to assist County and we would look forward to a
continued successful partnership in service of County's objectives.
Sincerely,
Kris Mayes
Director, Energy Policy Innovation Council and Utility of the Future Center
Arizona State University
LightWorks
Arizona State University
January 9, 2023
Mr. Riley Saito
Energy Specialist
County of Hawaii
25 Aupuni Street
Suite 1301
Hilo, HI 96720
Dear Mr. Saito,
Arizona State University (ASU)'s Just Energy Transition (JET) Center continues to feel honored by the
opportunity to work for the County of Hawaii (County) on energy policy issues, in particular related to the
County's participation and intervention before the Hawaii Public Utilities Commission (HPUC). ASU was
proud in 2022 to assist the County in its very successful interventions in the HPUC's multi -year Performance
Based Regulation (PBR), Integrated Grid Planning (IGP), and the Integrated Resource Planning (IRP) for the
Hawaii Gas Company. among others.
ASU's JET Center would very much appreciate the ability to continue to act as a consultant to the County on
energy policy matters. In 2023, at a minimum, we would anticipate assisting the County in the following
dockets as the County continues its work as an effective proponent for Hawaii ratepayers and for the realization
of the state's ambitions clean energy goals:
2018-0088 (Performance Based Regulation) — County is an Intervenor
The PBR docket was very active in 2022, with ASU supporting the County in working groups on further
developing Performance Incentive Mechanisms (PIMs), developing pilot projects that the Hawaii Electric
Companies (HECO) put forth, process issues related to the next stage of the docket, and monitoring for any
other relevant issues for the County. In 2023, work will continue as HECO begins work under the Workplan,
develops a new stage of working groups, consults with stakeholders, and issues information about the pilot
projects HECO intends to pursue. Similarly, the PIMs work is ongoing.
2018-0165 (Integrated Grid Planning) — County is an Intervenor
Likewise, the IGP docket was active in 2022, with ASU supporting the County in working groups advising
HECO on the process of approving HECO's continually evolving Grids Needs Assessment. This work will
continue in 2023 as HECO finalizes its methodology and puts the Grids Needs Assessment into action.
2022-0009 (Hawaii Gas Integrated Resource Planning) — County is monitoring this docket
The Hawaii Gas IRP docket was filed in 2022, and ASU began monitoring it shortly after it was opened at the
County's request. ASU has attended all advisory group meetings, participated in the development of the IRP,
and drafted comments and/or notes regarding the County's concerns. This work will continue well into 2023 as
the Draft Hawaii Gas IRP —action Plan (issued in December 2022) is finalized and set into motion.
FM LightWorks
Arizona State University
2018-0163 (Microgrid) — County is monitoring this docket
This docket has been less active, with a focus on Phase 2 of the Working Group and a Status Conference hosted
in July 2022. ASU is continuing to monitor the docket for any updates and opportunities where the County
might like to submit public comments.
2019-0333 (Power Purchase Agreement for Puna Geothermal Venture) — County is monitoring this
docket
This docket has been sparsely active during 2022. ASU has continued to monitor and provide reports and
insight when filings have been made in this docket. ASIJ anticipates further similar action in 2023.
Were the County to again retain ASU, the team would consist of JET Center Co -Director and Professor of
Practice Kit Batten, Ph.D. (sustainability), Assistant Professor Nate Johnson, Ph.D. (engineering); ASU staff
Mac Wodicker (electrical engineering); the JET Center's program coordinator Kat Hofland. Ph.D. student
Mokshda Kaul (sustainability); and undergraduate student Rachael Zhan (aerospace engineering).
Again. ASU's JET Center is grateful for the opportunity to continue to assist the County and we would look
forward to a continued successful partnership in service of County's objectives.
Sincerely,
Kit Batten, Ph.D.
Co -Director, ASU Just Energy Transition (JET) Center
Professor of Practice
Senior Global Futures Scientist
Julie Ann Wrigley Global Futures Laboratory
ASU College of Global Futures
LightWorks
Arizona State University
March 14, 2024
Mr. Riley Saito
Energy Specialist
County of Hawaii
25 Aupuni Street
Suite 1301
Hilo, HI 96720
Dear Mr. Saito,
ASU's Just Energy Transition (JET) Center was proud in 2023 to assist the County of Hawai'i in its successful
interventions in the Hawai'i Public Utility Commission (HPUC)'s multi -year Performance Based Regulation (PBR),
Iulegialed Grid Planning (IGP), and the Integrated Resource Planning (IRP) for the Hawaii Gas Company, among others.
ASU's JET Center would very much appreciate the ability to continue to act as a consultant to the County on energy
policy matters. In 2024, at a minimum, we would anticipate assisting the County in the dockets described below as the
County continues its work as an effective proponent for Hawaii ratepayers and for the realization of the state's ambitions
clean energy goals.
Docket # 2018-0088 (Performance Based Regulation) — County is an Intervenor
The PBR docket was very active in 2023, with ASU supporting the County in working groups on further developing
Performance Incentive Mechanisms (PIMs), developing pilot projects that the Hawaii Electric Companies (HECO) put
forth, process issues related to the next stage of the docket, and monitoring for any other relevant issues for the County. In
2024, this docket has been very active as HECO continues work under the Workplan, develops a new stage of working
groups, consults with stakeholders, and issues information about the pilot projects HECO intends to pursue. Similarly, the
PIMs work is ongoing, including recent action to assess the effectiveness of existing PIMs and identifying top issues for
consideration in the next phase of this docket.
Docket # 2018-0165 (Integrated Grid Planning) — County is an Intervenor
Likewise, the IGP docket was active in 2023, with ASU supporting the County in drafting briefs and comments for COH
in this docket, attending workshops and working groups where assigned, as well as providing expert testimony if needed.
This work is continuing in 2024 as HECO implements its workplan and seek public comments on the preliminary draft of
the IGP RFP for clean energy procurements.
Docket # 2022-0009 (Hawaii Gas Integrated Resource Planning) — County is an Intervenor
The Hawaii Gas IRP docket was filed in 2022, and ASU began monitoring it shortly after it was opened at the County's
request. ASU has attended all advisory group meetings, participated in the development of the IRP, and drafted comments
and/or notes regarding the County's concerns. In 2024, as the Action Plan is implemented, ASU anticipates continuing to
draft briefs and comments for COH in this docket, attending workshops and working groups where assigned, as well as
providing expert testimony if needed. There has been no action in this docket to date in 2024.
Docket # 2018-0163 (Microgrid) — County is monitoring this docket
This docket has been less active. ASU is continuing to monitor the docket for any updates and opportunities where the
County might like to submit public comments. There has been no action in this docket to date in 2024.
=LightWorks
Arizona State University
Docket # 2019-0333 (Power Purchase Agreement for Puna Geothermal Venture) — County is monitoring this
docket
This docket has been active during 2023 with progress on the environmental impact statement and the second amendment
to the Power Purchase Agreement (PPA). ASU has continued to monitor and provide reports and insight when filings
have been made in this docket. ASU anticipates further similar action in 2024. In early 2024, the Environmental Impact
Statement (EIS) for the PGV facility was completed, and ASU prepared a summary for the County on the EIS.
Docket # 2017-0352 (Competitive Bidding) — County is monitoring this docket
This docket has been moderately active in 2023, and ASU anticipates continuing to monitor this docket for COH in 2024,
although there has been no action to date.
Docket # 2015-0229 (For Approval to Construct an Overhead 69kV Transmission Line Extension Pursuant to URS
Sections 269-27.5 and 269.27.6(a), for Item H0003082, Ocean View Substation 69kV Line Extension; Status
Update) — County is monitoring this docket
COH first asked ASU to monitor this docket in late 2023. Only one filing was made under this docket in the latter part of
2023, indicating this docket was not impacted by the Maui wildfires. ASU anticipates continuing to monitor this docket
for COH in 2024, although there has been no action to date.
Were the County to again retain ASU, the team would consist of JET Center Co -Director and Professor of Practice Kit
Batten, Ph.D. (sustainability); Assistant Professor Nate Johnson, Ph.D. (engineering); ASU staff Mac Wodicker (electrical
engineering); the JET Center's program coordinator Karen Loschiavo; and Ph.D. student Mokshda Kaul (sustainability).
Again, ASU's JET Center is grateful for the opportunity to continue to assist the County and we would look forward to a
continued successful partnership in service of County's objectives.
Sincerely,
Kit Batten, Ph.D.
Senior Fellow, ASU Just Energy Transition (JET) Center
Professor of Practice
Senior Global Futures Scientist
Julie Ann Wrigley Global Futures Laboratory
ASU College of Global Futures