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RESOLUTION NO. 2:77 12
A RESOLUTION ENCOURAGING THE STATE OF HAWAII PUBLIC UTILITIES
COMMISSION TO RAISE HAWAII ELECTRIC LIGHT COMPANY'S RENEWABLE
FEEDER PENETRATION THRESHOLD FROM 15 PERCENT OF PEAK LOAD TO 50
PERCENT OF MINIMUM LOAD.
WHEREAS, in 2011 Hawai`i spent a record $4.5 billion on imported oil. Reducing that
amount by 25 percent could significantly improve the State's economy. The Hawai`i State
Energy Office states that Hawai`i's most important economic enterprise is developing a clean
energy economy; and
WHEREAS, Hawai`i Clean Energy Initiative was enacted into law by the Hawai`i State
Legislature in 2009 and strives to supply 40 percent of electricity needs and 70 percent of overall
energy needs using clean sources by 2030; and
WHEREAS, according to its website, Hawai`i Electric Light Company (HELCO)
pledges to increase the use of local, renewable energy; and
WHEREAS, in order for HELCO to honor its pledge, HELCO should make every effort
to encourage costumers to take advantage of cost-saving renewable/alternative energy to reduce
home energy costs and increase the use of local renewable energy; and
WHEREAS, net energy metering is a system whereby customers who generate
electricity primarily for their own consumption using solar, wind turbine, biomass or
hydroelectric facilities sell excess electricity to the electric utility company; and
WHEREAS, net energy metering is one way to lessen the State's dependence on
imported oil by encouraging greater use of renewable energy sources; and
WHEREAS, according to HELCO, there is a limited amount of Net Energy Metering
systems that can be interconnected to HELCO's grid on each individual distribution feeder
before significant impacts may occur to the reliability of electrical service provided to customers;
and
WHEREAS, the State of Hawai`i Public Utilities Commission set a 15 percent threshold
for the amount of excess electricity that may be delivered by Net Energy Metering systems to
each individual distribution feeder; and
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.
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BE IT FINALLY RESOLVED that the Clerk shall transmit a copy of this resolution to
the Honorable Mayor, William P. Kenoi; Jay Ignacio, President, Hawai`i Electric Light
Company; the Reliability Standards Working Group; Hawai`i Solar Energy Association; Hawai`i
Renewable Energy Alliance; Hawai`i Energy Policy Forum; Hawai`i PV Coalition; and Hermina
Morita, Chair, Public Utilities Commission.
Dated at , Hawai`i, this day of , 2012
INTRODUCED BY:
COUNCIL MEMBE , C TY OF HAWAII
COUNTY COUNCIL ROLL CALL VOTE
County of Hawai'i AYES NOES ABS EX
Hilo, Hawai'i BLAS
FORD
I hereby certify that the foregoing RESOLUTION was by HOFFMANN
the vote indicated to the right hereof adopted by the COUNCIL of the IKEDA
County of Hawai'i on
ONISHI
PILAGO
ATTEST: SMART
YAGONG
YOSHIMOTO
Reference: C-778/AWESC-
COUNTY CLERK CHAIRPERSON&PRESIDING OFFICER RESOLUTION NO. 277 12
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