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Home My WebLink AboutCOM 0778.001 2010-2012DOMINIC YAGONG Council Chairperson Council District 1 Date: July 18, 2012 Hawai`i County Council County of Hawai`i 25 Aupuni Street Hilo, Hawai`i 96720 To: Members of Hawai`i County Coun Fro : ' ominic Yagong, Chairperson (/'yvuj .i Re: Pr .osed Amendment to Resolution No. 277 -12; A Re• • uti. ID • aging the State of Hawaii Public Utilities Commission to Raise Hawaii Electric Lig Company's Renewable Feeder Penetration Threshold from 15 Percent of Peak Load to 50 Percent of Minimum Load. Email: dyagong @co.hawaii.hi.us Phone: (808) 961 -8264 Fax: (808) 961 -8912 For your consideration, please find proposed amendments to Resolution No. 277 -12. The proposed amendments, illustrated via Ramseyer format with respect to contents of Resolution No. 277 -12, read as follows: 1. The title is amended to read as follows: "A RESOLUTION ENCOURAGING THE STATE OF HAWAI`I'S PUBLIC UTILITIES COMMISSION TO RAISE HAWAII ELECTRIC LIGHT COMPANY'S RENEWABLE FEEDER PENETRATION THRESHOLD FROM 15 PERCENT OF PEAK LOAD TO [50] 100 PERCENT OF MINIMUM LOAD." 2. Amending the final Whereas clause and adding a Whereas clause to read as follows: "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,] and WHEREAS, it is important for the residents of Hawai`i County to have an opportunity discuss this issue with the Public Utilities Commission in an open forum and now, therefore," 3. Amending the enacting clause to read as follows: "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 the current 15 percent of peak load to [50] 100 percent of minimum load. Comm. No. 778 Ref. To:, P/ A in%ESC Ref. Date JUL 1 8 2012 4. Adding a BE IT FURTHER RESOLVED clause to read as follows: "BE IT FURTHER RESOLVED that the Public Utilities Commission schedule at least two hearings to be held in Kailua Kona and Hilo, to discuss the subject matter." A draft copy of Resolution No. 277 -12, Draft 2, is attached incorporating these amendments. DY /bc Att. 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 100 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; and WHEREAS, it is important for the residents of Hawai`i County to have an opportunity discuss this issue with the Public Utilities Commission in an open forum and; 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 100 percent of minimum load. BE IT FURTHER RESOLVED that the Public Utilities Commission schedule at least two hearings to be held in Kailua Kona and Hilo, to discuss the subject matter. 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.