Energy Informational BriefingHouse Committee on Energy & Environmental Protection
and the Senate Committee on Energy and Environment
UPDATE ON ENERGY INITIATIVES
Public Utilities CommissionState of HawaiiCarlito P. Caliboso
Chairman
January 22, 2009
Commission Regulatory Authority
• General supervisory power over public utilities under Chapter 269, HRS. HRS §269-6(a).
• “The public utilities commission may consider the need for increased renewable energy use in exercising its authority under this chapter.” HRS §269-6(b). Act 177 (SLH 2007).
Traditional Regulatory Objectives, Ch. 269 HRS
• Reliable Electricity Service
• Just and Reasonable Electricity Rates
• Fair Opportunity to Earn Reasonable Rate of Return
OIL PRICES (WTI)
40
50
60
70
80
90
100
110
120
130
140
Jan-
07
Feb-
07
Mar-
07
Apr-
07
May-
07
Jun-
07
Jul-
07
Aug-
07
Sep-
07
Oct-
07
Nov-
07
Dec-
07
Jan-
08
Feb-
08
Mar-
08
Apr-
08
May-
08
Jun-
08
Jul-
08
Aug-
08
Sep-
08
Oct-
08
Nov-
08
Dec-
08
Jan-
09
Data Source: U.S. DOE Energy Information Administration
http://tonto.eia.doe.gov/dnav/pet/pet_pri_spt_s1_m.htm
$/B
arr
el
OIL WTI
EFFECTIVE RATES
0.10
0.15
0.20
0.25
0.30
0.35
0.40
0.45
0.50
Jan-
07
Feb-
07
Mar-
07
Apr-
07
May-
07
Jun-
07
Jul-
07
Aug-
07
Sep-
07
Oct-
07
Nov-
07
Dec-
07
Jan-
08
Feb-
08
Mar-
08
Apr-
08
May-
08
Jun-
08
Jul-
08
Aug-
08
Sep-
08
Oct-
08
Nov-
08
Dec-
08
Jan-
09
Data Source: HECO Companies' "Effective Rate Summaries" Reports
KIUC Fuel and Purchased Power Rate Adjustment Reports
Mo
nth
ly E
ff R
ate
s -
En
erg
y C
ha
rge
s $
/kw
h
OAHU HAWAII MAUI LANAI MOLOKAI KAUAI
EFFECTIVE RATES AND OIL PRICE CHANGESSINCE JANUARY 1, 2007
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
140%
160%
Jan-
07
Feb-
07
Mar-
07
Apr-
07
May-
07
Jun-
07
Jul-
07
Aug-
07
Sep-
07
Oct-
07
Nov-
07
Dec-
07
Jan-
08
Feb-
08
Mar-
08
Apr-
08
May-
08
Jun-
08
Jul-
08
Aug-
08
Sep-
08
Oct-
08
Nov-
08
Dec-
08
Jan-
09
Data Source: HECO Companies' "Effective Rate Summaries" Reports
KIUC Fuel and Purchased Power Rate Adjustment Reports
U.S. DOE Energy Information Administration
http://tonto.eia.doe.gov/dnav/pet/pet_pri_spt_s1_m.htm
Pe
rce
nt
(%)
Ch
an
ge
Eff
ec
tiv
e R
ate
s -
En
erg
yC
ha
rge
s
OAHU HAWAII MAUI LANAI MOLOKAI KAUAI OIL
Priority Policy andRegulatory Objectives
• Energy Security – Reduce Dependence on Imported Oil– Supply Security
– Price Stability
• Climate Change – Reduce Green House Gas Emissions
• Maximize Cost-Effective Energy Efficiency
• Increase Renewable Energy
• See HCEI Agreement
Energy Strategies
• 2004 HECO Rate Case 04-0113 DSM Application Bifurcated
• Energy Efficiency Docket 05-0069
• Public Benefits Fee, Act 162 (2006)
• Energy Efficiency Program Administrator Docket 2007-323
Energy Efficiency
• RFP Issued and Contractor Selected
• Fiscal Administrator: BoH
• Contract Administrator: Jim Flanagan Associates
• Program Administrator: Science Applications International Corporation (SAIC)
Energy EfficiencyProgram Administrator
• RPS– 10% Renewable Energy by 2010
– 15% Renewable Energy by 2015
– 20% Renewable Energy by 2020
• Penalties Established for RPS at $20 per MWh of deficiency. (Order 12/19/2008 Docket 2007-0008)
Increasing Renewable Energy Generation
• Feed-in-Tariffs (Docket 2008-0273)
• Decoupling Mechanism (Docket 2008-0274)
• Net Energy Metering– System Caps Increased for HELCO
and MECO from 1.0% to 3.0%-4.0% (Order 12/26/2008, 2006-0084)
– HECO to apply for 15% circuit cap per HCEI
Increasing Renewable Energy Generation
