PUC Annual Report–Fiscal Year 2004-05 - Public Utilities Commission

Public Utilities Commission Annual Report 2004-05State of Hawaii Page 13In April 2005, the Commission approved HECO’s request for the overhead constructionof a temporary 46 kV subtransmission line and the underground conversion of an existing 46 kVoverhead line for the Palehua East 46 kV relocation project. The project was initiated toaccommodate Castle & Cooke Homes Hawaii, Inc.’s plans to construct new residential units onits property in Makakilo, on the island of Oahu.In June 2005, the Commission approved HECO’s request to relocate a segment of itsMakalapa 42 46 kV overhead subtransmission line above ground. The relocation of the line isneeded to allow for the construction of a housing project on Hickam Air Force Base.In February 2005, the Commission approved HELCO’s request to reconstruct a 69 kVtransmission line above ground. The Kuakini Highway improvement project requires HELCO toreconstruct a segment of the 69 kV overhead transmission line.In January 2005, the Commission approved KIUC’s request to construct portions of theKukui’ula relocation project overhead as well as underground. KIUC will relocate portions of a69 kV overhead transmission line overhead and underground running from KIUC’s Port Allenpower plant to its Koloa Substation.q. HECO FILES REQUEST FOR A NEW GENERATINGSTATION.In June 2005, HECO filed an application to commit approximately $134,310,260 to installa combustion turbine generating unit at its proposed Campbell Industrial Park (“Campbell”) sitelocated adjacent to the AES Substation. The proposed generating facility project will addapproximately 76 MW to 107 MW of peaking generating capacity on HECO’s system. The projectincludes the construction and acquisition of the equipment necessary to generate additionalelectrical power, expansion of HECO’s existing Barbers Point Tank Farm site, construction of asecond 138 kV transmission line between two of the substations in Campbell, and upgrade ofthree substations. It will be the first power plant on Oahu in 17 years by the time of its plannedoperation in 2009.r. HECO FILES REQUEST FOR A COMMUNITY BENEFITSPACKAGE FOR THE NEW GENERATING STATIONPROJECT.In conjunction with the Campbell generating station project, HECO conducted communitymeetings to discuss the impact that the proposed project would have on the surroundingcommunities. As a result of the community meetings, a set of community benefits was agreedupon as the appropriate “give back.”In June 2005, HECO filed an application, as part of a community benefits package,requesting approval for: (1) funds for the purchase and installation of a water pipeline fromCampbell to Kahe Power Plant; (2) funds for the purchase and installation of equipment neededfor environmental monitoring; (3) the accounting and ratemaking treatment of the water pipelineand environmental monitoring programs; and (4) a rate reduction program. The cost of thecommunity benefits package will be shared by HECO customers, the Board of Water Supply, andHECO’s current operations and/or shareholders.s. COMMISSION APPROVES CAPITAL IMPROVEMENTS.Prior to July 1, 2004, electric utilities were required by the Commission’s administrativerules to obtain approval for all capital improvement project (“CIP”) expenditures over $500,000.Effective July 1, 2004, the threshold increased from $500,000 to $2.5 million for the electric andtelecommunications utilities. Beginning this Fiscal Year, only those applications requesting