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Home My WebLink AboutCOM 0090.001 2010-2012HAWAII ISLAND ENERGY OVERVIEW March 2011 Hawaii Electric Light Company, Inc. Jay M. Ignacio, President Comm. No. 910.1 Is Hawaii Electric Light Company, Inc. Ref. To:�}/vC.3� 'af. Date MAR 017 t ENERGY OVERVIEW • Hawaii Electric Light Company • Regulated Public Utility • Island Utility Challenges • Electric System Overview • Leading the Way with Renewable Energy • Q&A t► Hawaii Electric Light Company, Inc. HAWAII ELECTRIC LIGHT COMPANY • HELCO is a local, investor-owned electric utility servicing the Big Island of Hawaii • 80,000 customers • 357 employees 240 IBEW union members 117 merit (non-union) • 191000 resident shareholders (statewide) • Over $1 billion in utility assets Is Hawaii Electric Light Company, Inc. HEI Charitable Foun (non-profit founda Hawaiian Electric Co (Oahu) LuiElectric Company, Ltd.. (Maui County) Hawaii Electric Light Company, Inc. TE STRUCTURE Hawaiian Elec ric Industrie klIL;1WIlg LU[Il dllyj tion) mpany American Savings Bank (statewide) Hawaii Electric Light Company, Inc. (Big Island) REGULATED PUBLIC UTILITY • Regulatory compact Franchise (distribution company) Obligation to serve all customers • Public Utilities Commission Rates set by PUC, with input from Consumer Advocate Fair opportunity to earn fair return Allowable earnings that are not "guaranteed" Is Hawaii Electric Light Company, Inc. J REGULATED PUBLIC UTILITY • Comnlliancp with nthpr agpncipc alcn required County agencies State Department of Business, Economic Development &Tourism State Departments: Health, Land &Natural Resources, Transportation U.S. Environmental Protection Agency AS Hawaii Electric Light Company, Inc. ISLAND CHALLENGES • Keep electricity costs economical • Reduce dependence on oil • Maintain reliability • Manage community and environmental impact Is Hawaii Electric Light Company, Inc. 7 HAWAII'S RELIABILITY AND DELIVERY CHALLENGES ARE UNIQUE One utility grid per island; no interconnections. D1I A►`= I DMA ►l M LVA 11►`f►'1 MILI gel DkA 10 1 � ND VS. H II ENERGY IX ElectricPower Net Generation, 2008 .: MECO Net Generation, 2008 Non -Hydro Non -Hydro Renewables Hydroelectric Renewables 8% Coal Conventional—, 3% % 6%150/10 Coal Hydroelectric i 48% Conventional - Less than 1% Nuclear 20% i t i 1 i Natural Gas i 21% Petroleum i 2% Petroleum j i 77% Is Hawaii Electric Light Company, Inc. W' HELC ENERGY Net Generation, 2010 Hydro _ W 2.9 Geothermal Mind 17.4% moo, Naphtha Fuel 0 22.3% Diesel Fuel Oil 22.2% A y f Hawaii Electric Light Company, Inc. IX 32.6% renewable energy 11 INVEST IN PROJECTS THAT REDUCE FUEL COST Not to scale Is Hawaii Electric Light Company, Inc. bac FUTURE -0 150 -- + 120 50 ----- - - -- IIIIIIIII Energy Cost Adjustment Surcharge 45 -Base Energy-and-PMn-Energy£ttarges- - -- L Crude Oil Prices (Monthly Average) 40 — ---- O = 35 30 O Y 25 G� 20 CL N 15 ._ �j 10 5i 0 i Not to scale Is Hawaii Electric Light Company, Inc. bac FUTURE -0 150 -- + 120 COST ER DENSI AFFECTS COST OF SERVICE Lower Customer Density = Higher Costs of Service !9 Hawaii Electric Light Company, Inc. RECO Oahu = 500 per sq. mi. MECO Maui = 80 per sq. mi. Molokai = 12 per sq. mi. Lanai = 11 per sq. mi, HELCO Big Island = 20 per sq. mi. 13 L ELECTRIC Transmission 11. Generation Plant ... ('ii�ft�mPr� i Hawaii Electric Light Company, Inc. Primary electrical Secondary electrical Telephone and cable TV - 1 (Most street & traffic lights owned & operated by state or counties) BIG ISLAND POWER SUPPLY FIRM POWER PLANTS • Shipman, Kanoelehua, Puna, Waimea, Keahole • Independent Power Producers: Puna Geothermal Venture, Hamakua Energy Partners NON-FIRM POWER PLANTS • Puueo Hydro, Waiau Hydro • Independent Power Producers: Wailuku River Hydro, Tawhiri Wind, Hawi Renewable Development Wind Generation: 68% in East HI Generation: 32% in West HI HAWI RENEWABLE , DEVELOPMENT HEP i 1 WAILUKU RIVER HYDRO SHIPMAN PLANT 1 BEE ELI 1 ®®' `' HILL PLANT 1 WAIAU & PUUEo fi 1 t • `� PUNA PLANT 1 HYDROS I 1 1 PGV Load: 50 % in West HII TAWHIRI WIND FARM 16 H GENERATES OUR ELECTRICI (By island, percent of total produced) z Oahu Maui County Hawaii Island ® HECO 58% MECO 85% ® HELCO 45% OIPP 42% O IPP 15% OIPP 55% Reference: 2009 Production Statistics and Purchase Power Report Isy f Hawaii Electric Light Company, Inc. FIR (Total: 285 MW) ER Steam Units -61 MW Combined Cycle Units —118 MW Geothermal — 30 MW Combustion Turbines — 45 MW Diesel Generators — 31 MW ► Hawaii Electric Light Company, Inc. 18 AS -AVAILABLE POWER (Total: 46.7 MW) • Tawhiri Wind Farm (20.5 MW) • HRD Wind Farm (10.65 MW) • Wailuku River Hydro (11.5 MW) • Puueo and Waiau Hydro (4 MW) &41 fnffi, Puueo Hydro #1 m E 12 Percentage of Peak Load 10 Peaking Units: One to four hours per week day, during peak demand 80 60 Cycling Units: Start or shut down, depending on demand for electricity 40 20 Baseload Units: Runs 24 hrslday midnight 6 a.m. noon n► Hawaii Electric Light Company, Inc. 6 p.m. midnight 20 ENERGY Net Generation, 2010 32.6 Hawaii Electric Light Company, Inc. 21 RENE URCES BY IS Limited Options Population - 907, 574' Population Census estimate for 2009 RKING T GETHER FOR A CLEAN ENERGY FUTURE Hawaii Clean Energy Initiative 70% renewable energy by 2030 (40% electricity, 30% energy efficiency) Renewable Portfolio Standard 25% by 2020 and 40% by 2030 Is Hawaii Electric Light Company, Inc. HELCO IS LEADING THE WAY WITH RENEWABLE ENERGY Renewable Portfolio Standard = 39.5% geothermal, hydro, wind, PV, solar water heating, energy efficiency exceeds the current (2010) 10% target set by the State Renewable Energy Generated = 33.7% less solar water heating and energy efficiency is Hawaii Electric Light Company, Inc. Source: 2009 Corporate Sustainability Report 24 RENEWABLE ENERGY PROJECTS IN ACTION Firm Renewable Energy Puna Geothermal Venture (8MW PPA signed) Hu Honua (N 22MW term sheet signed) Distributed Renewable Energy Net Energy Metering Feed -In Tariff Local Sustainable Biofuels Aina Koa Pono i► Hawaii Electric Light Company, Inc. 25 Opportunities for Geothermal in Hawaii Geothermal resource areas with significant potential for electrical generation: ■ East Rift Zone of Kilauea volcano ■ Kilauea Southwest Rift Zone ■ Mauna Loa Southwest Rift Zone ■ Mauna Loa Northeast Rift Zone ■ Hualalai Source: 'Assessment of Energy Reserves and Costs of Geothermal Resources in Hawaii" report prepared by GeothermEx, Inc. (September 2005) Is Hawaii Electric Light Company, Inc. Kawaiha r1ala; HAWAII Ems'r 136 Southwest Rift Zone LEGEND HIph IempareWre " Rift -zone eels \ \ resource area ••'; Infensd rsWere Amassment ere. for % boundary Mw ceo.celes PA CI -FIC OCEAN launo Loa • ease. Northeast Rift Zone I , •WunWfn View Southwest Rift Zone PA CIFIC naueo East Rift Zone O CEAM 0 10 WtES 0 t0 ix OIIEIp4 Figure 1.2: Geothemial resource areas of Hawaii County ieothermEx. Inc. 26 HELCO SOLAR (PV) INSTALLATIONS . w y, Hawaii Electric Light Company, Inc. 27 Renewable Energy SUSTAINABLE BIOFUELS &'�)MNAKOAPONO • Historic first agreement signed with local company Aina Koa Pono (AKP) on January 6, 2011 • Utility will buy significant quantity of local biofuels for generating units • Initially will supply biofuel to HELCO's Keahole Power Plant • Increases projected renewable energy generation from 34% to 50% • Create renewable fuel supply for firm power that can be used anywhere in Hawaii We are committed to using local fuels and signing contracts that create a workable business model for agricultural energy crops to emerge in Hawaii. �. y M Hawaii Electric Light Company, Inc. 28 FUEL BENEFIT = STABILIZED ENERGY PRICES f Hawaii Electric Light Company, Inc. 29 OUR RENEWABLE ENERGY FUTURE Hydro 3% 2015 Projection (example - to show 16% increase in renewable energy) Geothermal Wind Naphtha Fuel Oil 21% Residual Fuel Oil 23% Diesel Fuel Oil 4% Is Hawaii Electric Light Company, Inc. 30 CRUDE OIL IS REFINED FOR MANY USES ■ Of Hawaii's imported oil, transportation consumes 62%; electricity generation 33%; other commercial/ industrial 5% ■ 95% of Hawaii's total energy needs comes from imported fossil fuel (oil 90% coal 5%) Is Hawaii Electric Light Company, Inc. LPG 3% 27% 11% 18% 12% 28% Asphalt 1 % 31 Percentage of Peak Load 12 1 4 20 Peaking Units: One to four hours per weekday, during peak demand/-, Cycling Units: Start or shut down, depending on demand for electricity Baseload Units: Runs 24 hrs/day J- __C-1 r—t r--1 r—, r—, r,—i i--&r---i1 midnight 6 a.m. noon 6 p.m. midnight Is Hawaii Electric Light Company, Inc. 32 CUSTO 4� RTUNITIES NET ENERGY METERING (NEM) Opportunity for customers to export excess electricity produced by their renewable energy system to the HELCO grid FEED -IN TARIFF (FIT) Offers pre -established rates and standardized contract terms ELECTRIC VEHICLE (EV) PILOT RATES Option for customers to re -charge their road -worthy electric vehicles during off-peak utility hours at a significant discount to their regular electric rate TIME -OF -USE RATES (TOU) • Encourage customers to shift their energy usage to off-peak periods when generation reserves are greater. Is Hawaii Electric Light Company, Inc. 33 HIGH TECHN • HNEI/HELCO battery energy storage project for renewable energy smoothing ONR grant to HNEI • Wind NET project — wind forecasting using SODAR and advanced phase monitoring units Stimulus grant • High Penetration Solar PV study— using synchrophasors and other instrumentation CPUC funding with SMUD • DBEDT/HELCO battery energy storage project to evaluate impact on high penetration PV circuit Stimulus grant to DBEDT • Evaluation of PHEV trucks for utility operations Stimulus grant to Southcoast Air Management, managed by EPRI Isy f Hawaii Electric Light Company, Inc. 34 New High -Technology Projects HNEImHELCO Battery Project • Objective: Study the effectiveness of a battery energy storage system to provide measurable renewable energy smoothing resulting in manageable frequency regulation of an electric grid. L y Hawaii Electric Light Company, Inc. 0 High -Technology Projects WindNET applications L `► ► Hawaii Electric Light Company, Inc. 36 Other R&D Projects • NREL (Resource characterization) High resolution solar resource monitoring/ characterization & PV array modeling (CPUC) High resolution wind resource modeling (ARRA) Single circuit PV analysis & modeling (CPUC) • PNNL (PMU/synchro-phasor data & analysis) & EPRI PMU/synchro-phasor program (CPUC) • SNL (Intermittency Management Strategy & Model Validation) • LLNL/INL (Critical assets & interdependencies) • DBEDT Battery project for high PV penetration • DOE/EPRI PHEV evaluation 37 THERE IS STRENGTH IN DIVERSITY ■ Our island leads the State and Nation in renewable energy use. ■ A diverse mix of renewable resources provides for energy reliability and security. WIND.- SOLAR, IND,SOLAR, BIOMASS HYDRO OTHER BIOFUELS BIODIESEL ■ We cannot rely on just one solution. - - ► Hawaii Electric Light Company, Inc. For illustration only. GEOTHERMAL E moka 2 1111 wi • oil 0 ALI 0 C' - Iv �4aWaii Electric Light Company in Our COMMunity 'yam y O 00 1� r 40A .� RELAY FOR LIFE MAHALO.1 Is Hawaii Eiectric Light Company, Inc. 42