The Public Utilities Commission, asserting its power over Hawaiian Electric Co., got the utility to agree Friday to free up rooftop solar approvals.
The agreement, signed by PUC Chairman Randy Iwase and HECO CEO Alan Oshima, said that HECO has a "duty" to approve solar systems.
"Stated simply, the policy is that the HECO Companies have an affirmative duty to interconnect a potential customer," the statement said.
The two major players in Hawaii’s energy landscape agreed that the commission would have the final say when it comes to approving rooftop solar.
"What is in the ‘best interest’ of the HECO Companies’ customers is, in the final analysis, determined by the commission," the statement said.
PUC sought the agreement in response to letters that HECO’s Hawaii island subsidiary, Hawai‘i Electric Light Co., sent to some customers last week saying it was in the "best interest" of customers to halt approval of rooftop solar systems until the PUC ruled on HECO’s request to cut the amount it pays for excess solar power sent to the grid.
The letter said, "Until the Public Utilities Commission makes a decision on our proposal, it is in the best interest of all customers and the utility to suspend approving additional interconnections in areas highly saturated with distributed generation other than interconnections for those customers who applied for interconnection on or before Oct. 22, 2014."
HECO told a meeting of solar energy representatives Monday it would be sending similar letters to customers on Oahu and in Maui County this week.
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PUC’S DECISION
Technical difficulties are the only reason that rooftop panel approvals can be denied, the state agency tells HECO
HECO’S RESPONSE
The utility will not send letters to Oahu and Maui County customers saying their PV requests must be put on hold
COMMISSION TAKES A STAND
Excerpts from Friday’s letter from the Public Utilities Commission to Hawaiian Electric Co.:
“Stated simply, the policy is that the HECO Companies have an affirmative duty to interconnect a potential customer … where that project does not affect circuit or system level security and reliability.”
“Future letters … relating to the denial or delay of interconnection of residential rooftop photovoltaic systems to the grid, shall first be submitted to the Public Utilities Commission … ten business days prior to the proposed issuance date with full documentation in support of their reasons for proposing to issue the letter.”
“What is in the ‘best interest’ of the HECO Companies’ customers is, in the final analysis, determined by the commission.”
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The letters effectively halted rooftop solar systems being added in neighborhoods with more than 120 percent of what HECO defines as solar capacity until the PUC rules on HECO’s request to pay less for solar power.
HECO said Friday it will not be sending the letters to any more customers.
There are approximately 2,193 solar applications waiting for approval in areas on Oahu with 120 percent solar saturation; two applications still waiting approval on Maui; and 336 on Hawaii island. Last year HECO was slow to approve solar systems in high-saturation areas, saying it was concerned about safety and the stability of the grid if more solar was added.
HECO said in January that a new study showed neighborhoods could go up to 250 percent of solar capacity without any safety or technical problems.
That seemed to open the door for more solar systems to be approved until HECO shut the door with the letters to Big Island customers.
Also in January, HECO asked the PUC for permission to cut the rate the utility pays solar customers on Oahu who feed excess power into the grid to about 15 cents per kilowatt-hour from 29 cents. It asked for similar reductions on neighbor islands. That means if a customer was able to zero out his or her electrical bill with a solar system with, say, 25 panels at the old rate, the customer would need 50 panels under the new, lower rate to achieve the same results.
HECO was in effect holding the solar approvals hostage until the PUC decided on its request.
In the Friday agreement, HECO and the PUC said technical difficulties are the only reason the utility can deny rooftop solar, and those technical reasons must be reported to the commission before the utility sends a letter of denial to a customer.
"Future letters … relating to the denial or delay of interconnection of residential rooftop photovoltaic systems to the grid, shall first be submitted to the (PUC) … ten business days prior to the proposed issuance date with full documentation in support of their reasons for proposing to issue the letter," the two parties agreed in the filing.
HECO said in a statement after the PUC agreement was released that HECO is committed to increasing rooftop solar.
"We appreciate the Public Utilities Commission’s guidance and direction. We are continuing to accept, review and approve net energy metering applications under the processes, technical reviews, and time frames previously approved by the PUC," said Darren Pai, HECO spokesman. "We remain committed to increasing rooftop PV in ways that are safe, sustainable and fair for all customers. And we look forward to continuing to work with the PUC and other stakeholders on achieving a clean energy future for our state."
In the agreement, the PUC denied HECO’s request to act within 60 days of the Jan. 20 proposal to change its net energy metering program, which sets the rate the utility pays rooftop solar customers.
Iwase said there are too many issues to respond to the utility’s request in 60 days.
"We have to go into this very carefully, digging out, accumulating as much information as we can so we can reach some understanding of where we should be going," Iwase said. "We have to look at the cost to the state and ratepayers and non-PV owners — it’s looking at the complete picture."
Iwase, whose appointment as head of the PUC was approved by the state Senate on Tuesday, said the PUC’s control over HECO is necessary as the state works to move Hawaii away from fossil fuels and adopt more renewable energy.
"We are not limited to rates," Iwase said. "Not as I see it."
