Hawaiian Telcom Inc. is seeking approval from state regulators to install rooftop solar photovoltaic panels on 78 of its locations across the state in a move the utility says will produce "significant savings" on its electric bill.
The planned solar systems with 7.5 megawatts of generating capacity would be installed by Kailua-based Sunetric and financed by TSWG Solar, according to Hawaiian Telcom’s application filed last week with the state Public Utilities Commission. TSWG is a Honolulu company managed by Larry Gilbert, who is also a managing partner at Sennet Capital, another Honolulu company that finances renewable energy projects.
TSWG solar would own the photovoltaic (PV) systems and sell the power to Hawaiian Telcom under a power purchase agreement at a rate below what the telecommunications company pays the state’s two electric utilities.
"With the cost of electricity steadily increasing over the last several years due in large part to the electric utilities’ heavy dependence on fuel oil, HTI (Hawaiian Telcom) has evaluated and begun initiating various measures to reduce its O&M (operations and maintenance) electric expenses," according to Hawaiian Telcom’s application.
"The proposed transaction will allow HTI to realize significant savings for O&M electric costs starting in the first year of the term without HTI having to expend its limited capital for the PV systems."
Hawaiian Telcom is asking the PUC to rule on its application by May 30. Hawaiian Telcom’s power purchase agreement with TSWG solar would be for 25 years.
The multiphase project includes sites on Oahu, Maui, Hawaii island and Kauai. Phase 1 of the project consists of 11 sites on Oahu with an expected start date of June 30. Phase 2 involves as many as 33 sites on several islands, according to the filing,
Future phase sites will depend on specific site conditions, electric utility renewable energy saturation levels on circuits servicing the sites, and the continued availability of tax credits to TSWG, according to the filing.
Hawaiian Telcom will have the option to purchase the PV systems at the end of the 25-year term. If Hawaiian Telcom does not exercise the option, TSWG will be required to remove the PV systems within 120 days.
