Renewable-energy bill compromise reached

As lawmakers moved forward with renewable-energy goals for Hawaii’s electric utilities Tuesday, state regulators begin to question the possible new owner of Hawaiian Electric Co.

Lawmakers compromised Tuesday on the timeline for Hawaii to reach a goal of producing 100 percent of its electric power from renewable energy sources. A conference committee passed a bill, House Bill 623, proposing to set 2045 as the target.

The House originally proposed a renewable-energy goal of 100 percent by 2040, while the Senate voted for 100 percent by 2050.

The bill must now go back to the full House and Senate for final approval.

In line with the state’s current renewable-energy plan, the interim goal the committee passed calls for 40 percent renewables by 2030 and 70 percent by 2040.

Hawaii got 18 percent of its electric power from renewable energy in 2013. Electricity accounts for about 28 percent of petroleum use in Hawaii, with most imported oil being used for transportation, according to the Department of Business, Economic Development and Tourism.

Whatever goal the state adopts for renewable power generation may become the primary responsibility of a relatively new player in Hawaii. Florida-based NextEra Energy Inc. is proposing to buy the state’s largest power company, Hawaiian Electric Industries Inc., for $4.3 billion.

The sale needs the approval of the state Public Utilities Commission, which has begun accepting input on the deal from interested parties.

Last week the Hawaii State Energy Office and the Division of Consumer Advocacy submitted questions to HEI and NextEra as part of the PUC review.

State regulators asked how NextEra will accelerate Hawaii’s clean-energy goals and save ratepayers.

The Division of Consumer Advocacy asked NextEra about the use of renewable energy at the company’s electrical utility in Florida and how NextEra plans to save ratepayers a promised $60 million over a four-year base rate freeze.

The Hawaii State Energy Office, a division of the Department of Business, Economic Development and Tourism, asked the Florida-based company how it plans to save Hawaii customers money beyond its announced four-year commitment.

"Explain in detail the steps NextEra Energy proposes to take to produce customer savings in the long term. Explain why these steps cannot be taken in the absence of the proposed transaction," the office said.

Both state departments requested more information about NextEra’s Florida utility, Florida Power & Light. DBEDT asked about the history of solar adoption at FPL.

"How many residential rooftop solar installations does FPL have in its Florida service territory?" DBEDT asked in the filing.

DBEDT also asked the company to confirm or deny whether Florida Power & Light backed a proposal to end solar rebate programs in Florida by 2015.

The Consumer Advocate asked about the development of renewable energy at FPL.

"What portion of the generation mix was solar and wind in Florida for FPL 10 years ago, 5 years ago and currently?" asked the consumer advocate in a filing

As the applications noted there would be $100 million in benefits from the acquisition, DBEDT asked whether the savings would be reflected in customer bills.

"What portion of that $100 million will flow to ratepayers?" DBEDT said.

The Division of Consumer Advocacy asked what was considered clean energy.

"Does Mr. (Alan) Oshima (president and CEO of HECO) consider nuclear energy to be ‘clean energy’?" the Consumer Advocate said.

The Consumer Advocate also asked NextEra to provide detail about its renewable and undersea cable projects in Hawaii.