Hawaii

Summary: In April 2008, The Hawaiian Electric Company (HECO), Hawaii’s largest electric utility, adopted, by order 24159, enhanced and improved interconnection regulations for distributed generation. Order 24159 makes changes to the existing interconnection standard applicable to HECO, Rule 14H. Though the new rules do not explicitly state that CHP is an eligible technology, it is interpreted as eligible by the Hawaiian Public Utilities Commission and the affected utilities. The standard, which is based upon the IEEE 1547 standard, offers no explicit limit on size of system, but there are clearly expedited processes for systems smaller than 100kW.

Links:

• Order No. 24159 can be found here: Decisions and Orders
• Rule 14H can be found here: Rules

Contact:
Stacey Djou
465 South King Street
Kekauauno's Building, Room 103
Honolulu, HI 96813 
Stacey.K.Djou@hawaii.gov
(808) 586-2180
(808) 586-2066

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Description: In 2008, the Hawaii Public Utilities Commission issued an order that made standby rates optional for 10 years for CHP-using consumers taking service from the state’s investor-owned utilities. If CHP customers choose not to take standby service, they remain on the otherwise applicable rate schedule. HECO filed its standby service tariff in 2008 in response to the Hawaii PUC’s order to establish standby tariffs. HECO’s tariff includes a reservation fee and calculates demand charges based upon the contract demand or the highest 15-minute backup demand amount, whichever is lesser. Additionally, customers taking standby service have the option of waiving their demand (due to an unscheduled outage) for billing purposes once a year. There is no ratchet in place. This tariff is viewed as favorable toward CHP.

Links:

• HECO’s Schedule SS can be found here: Tariff
• For more on Hawaii’s distributed generation policies, visit the Energy and Environmental Analysis, Inc. Hawaii policy page
• More information about best practices in utility rate design can be found on the EPA’s CHP Partnership website

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Description: In 2004, Hawaii’s Senate Bill 2474 expanded its existing renewable portfolio standard to include “electric energy savings brought about by the use of energy efficiency technologies,” which includes CHP. The most recent amendments to the RPS passed in June 2009 and became effective in July. Under the standard, 40% of the state’s electricity must be generated by renewable electrical energy resources by 2030.

Links:

• Senate Bill 2474 can be found here: Legislation
• Authority 1: HRS § 269-91 et seq.
• Visit the DSIRE database for greater detail on this policy and the changes that have been made to it.

Contact:
Steven Alber
Hawaii Department of Business, Economic Development, and Tourism
Strategic Industries Division
P.O. Box 2359
Honolulu, HI 96804
Phone: (808) 587-3837
Fax: (808) 587-3839
E-Mail: salber@dbedt.hawaii.gov
Web site: http://www.state.hi.us/dbedt/ert/

Last Updated 08/27/2009

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