HECO’s waiver bid for PV farm is denied

The Public Utilities Commission said Friday it has denied Hawaiian Electric Co.’s request for a waiver from the competitive bidding framework for a utility-scale photovoltaic project near the Kahe power plant on the Leeward coast.

HECO had applied to build the 15-megawatt solar farm next to the company’s 650-megawatt Kahe Generating Station. Because the waiver was denied, the application for building the solar farm will no longer be considered, the PUC said.

The Kahe PV project is the only competitive bidding waiver request for a HECO-owned generation facility and is the first competitive bidding waiver that has been denied by the commission.

The utility intended to develop, own and operate the solar farm without seeking bids from independent companies. That was one factor the PUC noted when rejecting the waiver.

"HECO failed to demonstrate that the bidding process it chose would result in more cost-effective or better performing generation resources," said the commission.

The utility regrets the PUC’s response but will remain committed to pursuing projects that will offer lower electric bills to customers, said Darren Pai, HECO spokesman.

"We are disappointed with the PUC’s decision,"said Pai. "Our proposed Kahe photovoltaic project would have provided low-cost renewable energy and helped lower the bills of all electric customers on Oahu."

The utility’s waiver was denied because HECO failed "to prove that the Kahe PV Project will result in a lower cost supply of electricity or is otherwise in the public interest,"said Deborah Kwan, PUCspokeswoman.

Although the Kahe PV project was denied, the PUCis still reviewing other competitive bidding waivers for proposed utility-scale solarprojects. The PUC previously approved other waivers for projects being developed by independent power producers.

"The commission continues to support integration of additional cost-effective utility-scale PV and other renewable energy projects,"the commission said.