PUC Annual ReportâFiscal Year 2011-12 - Public Utilities Commission

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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
Public Utilities Commission Annual Report 2011-12 State of Hawaii Page 40 Hawaii Island to take public comment relating to HELCO’s application. docket process is ongoing. The • KIUC DSM and IRP Cost Adjustment Surcharge—Docket No. 2011-0388 On December 28, 2011, KIUC submitted an application to the Commission for approval of changes to their tariff to reflect a surcharge to recover costs for its 2012 IRP and DSM programs. The surcharge also includes a reconciliation adjustment of amounts collected in 2011. In an order filed on February 24, 2012, the Commission found that the proposed tariff changes are reasonable and appropriate, effective March 1, 2012. • HECO/MECO/HELCO Modification of Rule 14H—Docket No. 2010-0015 Tariff Rule 14H governs the interconnection of distributed generating facilities operating in parallel with the utilities’ electrical systems. The HECO companies initially filed this application to amend parts of the appendices of this rule in January 2010. The parties reached a consensus about some of the proposed revisions to Rule 14H, which were adopted in an order filed on May 26, 2010. The agreed upon changes approved in this order include (1) increasing the percentage of annual peak kilovolt-ampere load for the feeder that triggers additional technical studies from 10 to 15 percent, (2) establishing a standard three-party interconnection agreement, (3) including cross-limitation of liability and non-indemnification language with respect to projects where a State of Hawaii agency is the customer; and (4) including additional data information regarding the customer’s generating facility. To deal with the amendments that were contentious among the parties, the Commission filed a Decision and Order on December 20, 2011. The Commission decided that (1) for generating facilities with an aggregate capacity of greater than 250 kW for HELCO and MECO, supervisory controls shall be required; (2) for generating facilities with an aggregate capacity of greater than 1 MW for HECO, supervisory controls shall be required; (3) for generating facilities with an aggregate capacity of 250 kW or less for HELCO, MECO, and HECO supervisory controls per se are not required, and for generating facilities with an aggregate capacity greater than 250 kW and up to 1 MW for HECO, supervisory controls may be required; (4) remote disconnection will apply to generating facilities if such facilities have supervisory control; and (5) the electric utility may require the installation or modification of equipment under certain conditions, once a generating facility has been interconnected, provided that the electric utility is responsible for the post-interconnection associated costs. The Commission declined to adopt the proposals that enabled the HECO companies to (1) require inverters to operate outside of the voltage levels that are presently specified in Rule 14H, and (2) establish set points and clearing times outside of the ranges that are presently specified in the rule. The Commission also declined to adopt the HECO Companies’ proposals to provide them with the absolute authority to defer the interconnection of a generating facility under certain conditions.
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PUC Annual ReportâFiscal Year 2011-12 - Public Utilities Commission

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PUC Annual ReportâFiscal Year 2011-12 - Public Utilities Commission