PUC Annual Report–Fiscal Year 2011-12 - Public Utilities Commission

Public Utilities Commission Annual Report 2011-12
State of Hawaii Page 36
Companies will meet energy objectives and customer energy needs consistent
with state energy policies and goals, while providing safe and reliable utility
service at reasonable cost. In this process, the utility is responsible for
developing scenarios and resource plans to guide and develop an Action Plan for
near-term initiatives.
The Commission has selected an Independent Entity to oversee, advise,
facilitate and monitor the IRP process. An Advisory Group, whose mission is to
provide the utility with the benefit of community perspectives by participating in
the IRP process and represent diverse community, environmental, social,
political, or cultural interests consistent of the framework’s goal, was selected by
the Commission on June 29, 2012. This group will meet throughout the process
to discuss the formulation of scenarios and provide feedback on plans. The
revised framework for the IRP process can be found in Docket 2009-0108. The
HECO Companies will file their IRP report and Action plan in March 2013.
PUC Investigations on Competitive Bidding Processes
The Commission adopted a Framework for Competitive Bidding (“Framework”) in
2006 to govern competitive bidding as a mechanism for acquiring new energy
generation in Hawaii. The primary role of the Commission in a competitive bidding
process is to ensure that each competitive bidding process “is fair in its design and
implementation so that selection is based on the merits;” that projects selected through
a competitive bidding process are consistent with the approved IRP; that the utility’s
actions represent prudent practices; and that throughout the process, the utility’s
interests are aligned with the public interest even where the utility has dual rules as
designer and participant. 27 The competitive bidding dockets serve as a central location
for filings related to the process and provide a forum for any necessary review and
resolution of disputes. The following are some highlights from the competitive bidding
process dockets:
• Competitive Bidding Process for Firm Generating Capacity on Maui—
Docket No. 2011-0038
The Commission opened this docket in February 2011 related to MECO’s
plan to proceed with a competitive bidding process to acquire up to
approximately 50 MW of new, renewable, firm, dispatchable capacity generation
resources on the island of Maui, with an initial increment coming on line in the
2015 time frame. Maui Electric is actively preparing the draft request for
proposal, which will be filed with the Commission in 2013 and reviewed by the
Commission’s consultant, the Independent Observer, as well as by the public.
The Commission has selected Boston Pacific Company Inc. as the Independent
Observer via an order on November 16, 2011.
• Competitive Bidding Process for firm Generating Capacity on Oahu—
Docket No. 2011-0039
The Commission opened this docket in February 2011 related to HECO’s
plan to proceed with a competitive bidding process to acquire up to
27 Framework, Part III.B.1, at 12.