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

Public Utilities Commission Annual Report 2011-12
State of Hawaii Page 39
• MECO 2012 Test Year Rate Increase Request—Docket No. 2011-0092
In July 2011, MECO filed an application requesting a general rate increase
of $27,523,000, or approximately 6.68 percent, based on a total estimated
revenue requirement of $439,377,000 for the 2012 test year. In addition to the
rate increase, MECO proposes to establish a purchased power adjustment
clause to recover non-energy purchased power cost, revise its ECAC tariff, and
implement a change in accounting for administrative and general transfers to
construction projects.
In an order issued on May 21, 2012, the Commission approved an interim
rate increase in revenues of $13,089,000 or approximately 3.16 percent based
on a 2012 test year. In this interim decision, the Commission also approved
revisions to the ECAC, changes in accounting, and considered other MECO
requests.
• HELCO 2010 Test Year Rate Increase Request—Docket No. 2009-0164
On December 9, 2009, HELCO filed an application requesting a general
rate increase of $20,934,500 (approximately 6.0 percent) over its revenues at
current effective rates. In addition, HELCO proposes to establish: (1) a
purchased power adjustment clause/surcharge to recover non-energy purchased
power agreement costs by effectively transferring the recovery of purchased
power costs from base rates to the new surcharge that will be adjusted monthly
and reconciled on a quarterly basis; and (2) a revenue balancing account for a
revenue decoupling mechanism that will remove the linkage between electric
revenues and sales, if such a revenue balancing account is not otherwise
approved by the Commission in its separate revenue decoupling investigative
proceeding, Docket No. 2008-0274.
On November 3, 2010, the Commission issued its Interim Decision and
Order, which approved an interim increase of $5,956,000 over revenues at
present rates rather than the $20,934,500 that was requested in the application.
In a Decision and Order issued on April 4, 2012, the Commission approved a
rate increase of $4,494,000 over its revenues at current effective rates.
• HELCO 2013 Test Year Rate Increase Request—Docket No. 2012-0099
On August 16, 2012, HELCO filed an application requesting a general rate
increase of $19,808,000 (approximately 4.2 percent) over its revenues at present
rates. HELCO, as part of its overall request, also seeks the Commission's
approval of: (1) an interim increase in its revenues at present rates through an
interim 2013 test year surcharge, pending the Commission's issuance of its final
decision; and (2) other requests that it proposes to take effect simultaneously
with any interim increase in revenues that is approved by the commission,
including: (A) certain accounting changes; (B) the re-setting of its target heat
rates by fuel type and its loss factor to 2013 test year levels for the purpose of
calculating its existing energy cost adjustment clause; and (C) changes in the
monthly allocation factors and the basis for these factors in the revenue
balancing account provision of its existing revenue decoupling mechanism. On
October 29 and October 30, 2012, the Commission held two public hearings on