Monday, September 24, 2012

Lowering the Balance of Power? HELCO Wants to Renegotiate its Power Purchase Agreements with Renewable Energy Providers

HILO — Hawaii Electric Light Co. wants to renegotiate its power purchase agreements with renewable energy providers.

Earlier this week, the County Council approved by a 9-0 vote a resolution urging HELCO to renegotiate its contracts based on the price of energy production rather than “avoided cost,” which ties the cost of producing renewable energy to the price of oil on the market.

“We are in agreement with the resolution,” said HELCO President Jay Ignacio on Friday. He testified in favor of the renegotiated contracts when the resolution came before a County Council committee.

Councilman J Yoshimoto said the idea for the resolution came out of a discussion about general energy issues with HELCO officials earlier in the year.

Last December, the Public Utilities Commission approved an amended purchase power agreement between HELCO and PGV to purchase an additional 8 megawatts of power that would expand production to 38 megawatts and provide monthly savings of between $1.60 and $1.90 per customer through 2025.

Those savings struck a lot of people as not enough, given Hawaii Island’s reliance on imported fuel for energy.

“The savings that resulted out of the recent negotiations that HELCO had with PGV were minimal,” Yoshimoto said. That’s why he wrote the resolution to “ask both parties to go back to the negotiating table. That’s the bottom line.”

Ignacio was hopeful PGV was looking to renegotiate at least one of its contracts.

“They (PGV) have approached us and asked to renegotiate the part of the contract governing the first 25 megawatts, and they recognize the problem,” Ignacio said. “We have sent invitations to all the other power producers inviting them to come back and negotiate the energy contracts.”

As stated in the resolution, HELCO will provide the County Council an update on the status of its efforts at its meeting Oct. 17 at the West Hawaii Civic Center. This update will include whether PGV “was amenable to lowering the price rates for payers and the amount of the new negotiated price, if one has been agreed upon.”

Yoshimoto said he was hopeful the negotiations result in savings.

Ignacio, interviewed separately, agreed.

“I do hope so,” the HELCO president said. “From the electric utility’s perspective, we want to get lower cost contracts so we can pass the savings on to consumers.”

“The only assurance that we have is that they negotiate in good faith,” Yoshimoto said.

Hawaii County residents pay some of the highest costs per kilowatt in the nation.

While the Legislature has passed a law mandating that future energy contracts be decoupled from the price of oil, that doesn’t help the existing long-term contracts, some of which are for 20 or 30 years, that rely on the avoided-cost model.

HELCO also has purchase power agreements with two wind farm firms, Apollo Energy Corp./Tawhiri Power LLC and enXco/Hawi Renewable Development; and hydroelectric plant Wailuku Holding Co.

Source - Hawaii Tribune Herald

Sunday, September 23, 2012

Kenoi, Kim Outline Differences at Friendly Mayor's Race Forum

HILO, BIG ISLAND (HawaiiNewsNow) -
Billy Kenoi and Harry Kim have known each other for decades. Kim coached Kenoi when Kenoi was just eight years old. And Kenoi was Kim's executive assistant when Kim was mayor. So it was a friendly matchup when the two candidates for Hawaii County Mayor met Friday in a candidates forum at the University of Hawaii-Hilo.

One of the topics at the forum was what to do with the island's trash as the Hilo Landfill nears capacity. Mayor Kenoi pointed to Oahu's H-Power facility as something that Hawaii County can emulate.

"They (Oahu) have four times as much trash as we do, over a thousand tons. They generate over 50 megawatts of energy that powers over 40,000 homes, and they do it for a cost of 91 dollars per ton," said Kenoi.

"Whether waste to energy will be the solution here, I don't know," said former mayor Kim. "It may be something we'll pursue, but we will pursue alternatives besides a landfill."

Perhaps the most pointed disagreement between the two had to do with Community Development Planning on the Big Island, a program started by Kim when he was mayor.

"By law, government will work with the public to determine their lifestyle and the future of their land," said Kim. "I think it's very important that we do this, by ordinance, by law. I was not happy with this administration not fully embracing it."

Kenoi countered that his administration has started even more community development plans several Big Island districts. But, he added, "Community development plans are important because they give the community meaningful input. But they do not supersede community services that everybody expects every day."

Both candidates also came out in support of geothermal energy, but with close government oversight.

"I am here to support geothermal," said Kim. "I am here to tell you we must do it safely like California does it. We must enforce rules and regulations and not depend on the private industry to tell you what the situation is in regards to public safety."

"Currently we have 38 megawatts being produced," said Kenoi about Puna Geothermal Venture's plant. "A lot of fear and questions are going around that there will be a thousand megawatts and industrialization of Puna. And the politics of fear is the worst politics of all."

Copyright 2012 Hawaii News Now. All rights reserved.

Friday, September 21, 2012

Governor Urges Plan for Hawaii Public Land Agency

By Associated Press

HONOLULU (AP) - The governor is urging a newly formed Hawaii public land Agency to adopt a plan defining its priorities and scope in an effort to address public criticism.

Critics say the Public Land Development Corp. would favor development because of its broad exemption from zoning laws. The agency was created by the State Legislature to allow for private development on state land.

The Honolulu Star-Advertiser reported Friday Governor Neil Abercrombie wrote to the corporation's board that adopting a strategic plan would show they are listening to the public's concerns.

The plan would make it clear the corporation has to comply with the state's environmental review and other laws.

Corporation board Chairman Kalbert Young says the board wants to wait until next month's meeting before deciding how to proceed.

Wednesday, September 19, 2012

Geothermal Drilling Bill Heads to Council

By ERIN MILLER
Stephens Media

The sound of Puna Geothermal Venture’s turbines is akin to a train or jet engine running all the time, Pahoa resident Paul Kuykendall told a Hawaii County Council committee Tuesday morning.

“Even the coquis are preferable to the industrial sound coming from the plant,” he said, during testimony in front of the Agriculture, Water and Energy Sustainability Committee. And the drilling that took place earlier this year was even louder, Kuykendall said.

Council Chairman Dominic Yagong introduced Bill 292 to limit geothermal drilling to daytime hours, from 7 a.m.-7 p.m. The committee sent the bill to the full council with a positive recommendation.

Hilo Councilmen Donald Ikeda and Dennis Onishi provided the only dissenting votes.

PGV Manager Mike Kaleikini said the plant has been operating within its noise limits. He testified against the bill, noting that even if drilling were halted at night, some of the equipment would have to stay running, generating noise even if nothing was being drilled. “To limit drilling to daytime hours only, the drilling process itself could be prolonged as much as two to three times longer,” he added.

Kuykendall, who testified just after Kaleikini, said he would prefer a longer drilling period, if it meant quieter nights.

About 15 people testified in support of the bill.

South Kona Councilwoman Brenda Ford said the bill may be the result of Yagong’s experiences hearing the geothermal drilling at PGV, but the bill isn’t specific to that company.

“There’s going to be geothermal drilling in Kona,” Ford said. “Everything going on in Puna that’s a detriment to the community is going to go on in Kona around Hualalai. It is a generic policy issue that this council has the legal right and obligation to pass to protect the public.”

Ikeda questioned Deputy Corporation Counsel William Brilhante on whether the measure oversteps the county’s authority. Brilhante said PGV historically has complied with state and county limitations on noise levels. He was concerned about the council making changes to the county charter that conflict with PGV’s permitting conditions and requirements.

“This proposed bill is saying, ‘You know what? We don’t care what that permit does. We don’t care historically what has been done,’” he said. “’We’re going to make you comply with more requirements that are stricter than what was required under the original permit.’”

Planning Director Bobby Jean Leithead Todd submitted a letter Tuesday morning to the committee expressing similar concerns, North Kona Councilman Angel Pilago said.

Yoshimoto asked for a formal opinion from corporation counsel on the bill, but voted to advance the measure to the full council with a favorable recommendation.

More than a dozen people testified, their testimony expanding on the drilling noise issue to sound levels from daily plant operations.

Kaleikini said the plant can impose more mitigation measures to limit sounds.

Bob Ernst, testifying from Hilo, said he supported the bill because sound from the plant should not be intruding in nearby residents’ homes.

“Noise pollution is not pono,” Ernst said.

Email Erin Miller at emiller@westhawaiitoday.com.

Saturday, September 8, 2012

Geothermal Talk at Hawaii Volcanoes National Park Sept. 25

Harnessing geothermal energy from Kilauea will be the focus of a talk on September 25 at Hawaii Volcanoes National Park. Photo courtesy of Hawaii Volcanoes National Park.
by Denise Laitinen

“Developing Energy from an Active Volcano” will be the focus of a talk at the Hawaii Volcanoes National Park in the Kilauea Visitor Center Auditorium on Tuesday, September 25, at 7 p.m.

The lecture, which is part of the Park’s monthly After Dark in the Park program series, is free but park fees may apply.

Hawaii Volcanoes Observatory scientists Jim Kauahikaua, Frank Trusdell, Wes Thelen, and Jeff Sutton will present a brief history of geothermal development in Hawaii and a description of the location and nature of the hydrothermal system.

The most attractive area for power development is Kilauea’s lower east rift zone. The scientists will address the volcano and seismic hazards on Kilauea and the effects of geothermal development, plus the volcanic gas emissions from the hydrothermal system and their potential hazards.

For more information, contact Jessica Ferracane, Hawaii Volcanoes National Park Public Affairs, 808-985-6018.

Friday, September 7, 2012

Council Tries to Bring Down Cost of Power

Posted on September 5th, 2012
by Dave Smith

A County Council resolution urging Hawaii Electric Light Co. to seek lower power costs from renewable energy providers — hopefully to be passed on to consumers — brought out enthusiastic supporters today.

The measure introduced by Hilo Councilman J Yoshimoto asks HELCO to renegotiate its contracts with independent power producers to “de-link” the power from avoided cost, or what it would have cost to generate the power with fossil fuels.

The concept of avoided cost was established by the Public Utility Regulatory Policies Act of 1978 as an incentive for development of sources of renewable energy. The federal law contained a provision that states could opt out of the program, which Hawaii did in 2006.

Currently, only 13 megawatts of the renewable-source electricity HELCO buys is not tied to avoided cost. That includes a contract recently established for an 8-megawatt expansion of Puna Geothermal Venture and a renegotiated price for 5 megawatts of the 30 megawatts already being provided by PGV.

HELCO President Jay Ignacio responds to questions about the utility’s electrical rates. Photo by Dave Smith.
HELCO has declined to reveal its specific power costs, but the company’s president, Jay Ignacio, told Big Island Now that the impact on residential power bills from the new contracts would be negligible.

According to Yoshimoto’s resolution, which passed unanimously, HELCO estimates that PGV’s 8-megawatt expansion under the lowered cost will reduce a typical residential electricity bill by $1.67 in 2015.

Earlier this year HELCO officials signed another de-linked contract, this one with Hu Honua Bioenergy to provide 21.5 megawatts to be generated by the burning of biomass at the former Hilo Coast Processing Co. sugar mill in Pepeekeo. Hu Honua isn’t expected to begin producing power until 2014 at the earliest.

During a meeting of the council’s Committee on Agriculture, Water & Energy Sustainability that ran well into the night, all of the testimony was in support of Yoshimoto’s resolution, although most of those speaking said it did not go far enough.

Kuulei Cooper of Pohoiki testified that the resolution would be “only a suggestion” and didn’t go far enough to break what she called HELCO’s “egregious monopoly.”

Wallace Ishibashi, a negotiator for the International Longshore and Warehouse Union, told council members that electricity prices must come down. He said it affects workers because their employers pay so much for power.

HELCO’s residential rates, currently about 43 cents per kilowatt hour, are often the highest in the nation.

“This is too much,” Ishibashi said. “They’re not going to take it anymore.”

Mililani Trask, a principal in Indigenous Consultants, an organization seeking to develop geothermal energy sources to benefit indigenous peoples, described the previous contract between Hawaiian Electric Co. and Ormat Technologies, owner of PGV, as “price-fixing.”

Trask suggested requiring that the resolution be amended to require that HELCO report back on its efforts to renegotiate contracts.

Yoshimoto later noted that while the Public Utilities Commission approved the 8-megawatt and 5-megawatt deals, it criticized HELCO and PGV for failing to extend the de-linking to the remaining 25 megawatts.

He said the PUC seemed resigned to the result, but the public need not be, and he hoped his resolution would encourage it to speak out.

“I think change starts with the people,” he said.

Yoshimoto noted that rates are established by contracts over which the council has no power. But, he said, just because the companies can make their own deals, that “doesn’t make it right.”

Yoshimoto’s resolution notes that HELCO contracts with three other companies providing power from wind and hydroelectric facilities remain based on avoided costs.

Councilwoman Brenda Ford expressed doubt that reducing the cost of power to HELCO would translate into much in the way of lower consumer bills.

Independent producers using both renewable resources and oil currently produce about 130 megawatts to HELCO, representing a little under half of the utility’s total power capacity.

HELCO President Jay Ignacio told council members that his company doesn’t make any profit from independent power producers. He said HELCO makes profits on its investments including utility infrastructure.

Ignacio said he is agreement with the resolution and his company has already attempted to renegotiate existing contracts. He said HELCO is currently in talks with PGV at that company’s request.

“That’s good news,” Yoshimoto said. He asked if any details could be provided, but Ignacio said the process has to be confidential.

Ignacio said the existing contract with PGV for the remaining 25 megawatts expires in 2027, and existing contracts with other renewable energy producers run for either 20 or 30 years.

In addition to the roughly 40 megawatts that HELCO obtains from geothermal, wind and hydroelectric power, the utility receives about 17 megawatts in solar power, most from homes or businesses that use net metering to reduce their individual energy bills.

Ignacio said HELCO’s efforts to obtain power from producers such as Hu Honua, as well as its current plan to obtain another 50 megawatts from geothermal, is designed to reduce HELCO’s dependence on oil and its volatile pricing. Increases in the price of oil can raise electricity bills through PUC-approved surcharges.

“If we can drive that down, that will really help our customers out,” he said.

Council Chairman Dominic Yagong successfully introduced an amendment to the resolution similar to Trask’s suggestion which asked that HELCO appear before the council at its Oct. 17 meeting to report on its progress in renegotiating with PGV.

Ignacio said his company would be willing to provide the update, but would still have to maintain confidentiality.

“I’m not sure what we can share with you,” he said. He also noted that the recent 8-megawatt contract took three years to negotiate.

Any contract changes must be approved by the PUC.

HELCO recently asked the PUC to approve a 4.2% rate increase it says is needed to pay for a variety of renewable energy projects including forecasting systems for wind and computerized models to analyze the addition of more solar power into its grid.

If approved, the hike would add $8.32 to a typical 500 kilowatt-hour monthly electric bill.

Public Gets Chance to Comment on Clean Energy EIS

(Honolulu Civil Beat) The programmatic environmental impact statement being conducted by the U.S. Department of Energy and state energy office has been expanded from just Big Wind to look at a range of energy sources.

The public will have a chance to comment on the proposed PEIS at upcoming scoping meetings throughout the islands.

From the Hawaii Clean Energy Programmatic EIS website:

DOE’s proposed action is to develop guidance that it can use in making decisions about future funding decisions and other actions to support Hawai‘i in achieving the goal established in the HCEI. The Hawai‘i Clean Energy PEIS will analyze, at a programmatic level, the potential environmental impacts of clean energy activities and technologies in the following clean energy categories: (1) Energy Efficiency, (2) Distributed Renewables, (3) Utility-Scale Renewables, (4) Alternative Transportation Fuels and Modes, and (5) Electrical Transmission and Distribution.

The meetings will be held at the following locations and times:

Oahu: September 11, 5:00 p.m. - 8:30 p.m.
McKinley High School, 1039 S. King Street, Honolulu, HI, 96814

Kauai: September 12, 5:30 p.m. - 9:00 p.m.
War Memorial Convention Hall, 4191 Hardy St., Lihue, HI 96766

Big Island: September 13, 5:00 p.m. - 8:30 p.m.
Kealakehe High School, 74-5000 Puohulihuli St., Kailua-Kona, HI 96740

Big Island: September 14, 5:00 p.m. - 8:30 p.m.
Hilo High School, 556 Waianuenue Avenue, Hilo, HI,96720

Maui: September 17, 5:30 p.m. - 9:00 p.m.
Pomaika‘i Elementary School, 4650 South Kamehameha Avenue, Kahului

Lanai: September 18, 5:00 p.m. - 8:30 p.m.
Lanai High and Elementary School, 555 Fraser Avenue, Lāna‘i City, HI

Molokai: September 19, 5:30 p.m. - 9:00 p.m.
Mitchell Pauole Community Center, 90 Ainoa Street,Kaunakakai, HI

Oahu: September 20, 5:00 p.m. - 8:30 p.m.
James B. Castle High School, 45-386 Kaneohe Bay Drive,Kaneohe, HI

More information is available online: http://www.hawaiicleanenergypeis.com