The state Public Utilities Commission scolded Hawaiian Electric Co. for its “repeated failures to properly plan” a path to lower electrical rates using renewable energy.

In August 2014 HECO filed a “Power Supply Improvement Plan” with the PUC with its goals for 2030, which included lowering residential customer bills by “more than 20 percent,” getting 65 percent of its energy from renewable sources, using liquefied natural gas as a bridge fuel and tripling rooftop solar.

In a 192-page order this week, the PUC took a red pen to that plan, saying it fell short by not aggressively seeking access to lower cost renewables.

“The commission finds it necessary to remind the HECO companies that as a result of their numerous, repeated failures to properly plan for an affordable, high renewable future, the commission has had to take appropriate actions to address the companies’ poor performance,” the PUC commissioners wrote.

The August 2014 plan was a second attempt after the PUC rejected HECO’s initial renewable plan. The PUC originally asked Hawaii’s largest electrical utility to come up with an action plan to achieve the state’s energy goals and integrate substantial amounts of renewable energy resources while maintaining affordable rates.

Colton Ching, vice president for energy delivery at HECO, said the latest utility plans were a starting point for discussion.

“We recognized that any plans with a long planning horizon would need to continue evolving and adapting in a rapidly changing energy environment,” he said. “Our energy environment certainly has continued to develop since (August 2014).”

Ching said the company’s original target of 65 percent of electricity from renewable sources by 2030 has shifted as Hawaii has enacted a new law that set a 100 percent-renewable standard by 2045.

“Based on this and other developments, a review and update of the plans make sense, and this is what the PUC directed us to do,” Ching said.

Some of the clean-energy and environmental groups involved praised the PUC for its decision.

“We greatly appreciate the commission’s well-reasoned findings and guidance in response to Hawaiian Electric’s plans,” said Jeff Mikulina, executive director of the Blue Planet Foundation. “The commission is unambiguous in directing the utility to embrace a modern, low-cost, low-carbon future. Now they are giving them a third chance to get it right.”

“The PUC validated the chorus of public criticism of HECO’s plans,” said Isaac Moriwake, attorney for Earthjustice representing the Sierra Club. “Its order highlights how the utility is still focused on massive over-building and over-spending to benefit its profits, but not the customers.”

The PUC also criticized HECO’s heavy reliance on liquefied natural gas as a bridge fuel. HECO’s plan said LNG will reduce rates while allowing the state to transfer power dependence to renewables.

HECO’s plan said LNG would cost less than the oil currently being burned to generate most of Hawaii’s electricity. The commission said the recent drop in oil prices shows that any benefit from switching HECO’s power plants to LNG is “highly uncertain.”

The commission also said HECO has to update its LNG plans to take into account Gov. David Ige’s opposition to using LNG as a bridge fuel.

“The HECO Companies need to address the uncertainties and changes in circumstances regarding the timing, likelihood cost and feasibility of bulk import of LNG for use in power generation,” the PUC said.

In the order, the PUC said the promised cost savings of the HECO plan were misleading.

“The companies’ prominent claim that the (Power Supply Improvement Plan) would result in 20 percent residential bill reductions is selectively limited and potentially misleading,” the commission said. “Closer examination indicates that the PSIP costs and rates would increase for HECO (Oahu), and would not decrease substantially for MECO (Maui) and HELCO (Hawaii island). The high PSIP costs and rate impacts are concerns that the HECO companies need to address. Furthermore, it appears that there may be alternative strategies that can deliver more certain and timely benefits to customers.”

The PUC said HECO’s plan was too slow in renewable-energy adoption. The plan fell short by not including any mention of many new technologies or strategies outside rooftop solar. Even HECO’s plans for solar were below the commission’s expectations.

The commission said it was concerned that HECO plans provide less benefit for ratepayers and instead favor the financial interests of the utility.

Several state agencies, renewable-energy organizations and renewable-energy companies will be added as official “participants” in the drafting of the new plans.

The local office of Florida-based NextEra Energy, which has proposed buying Hawaiian Electric Industries for $4.3 billion, is one of the approved participants.

Mikulina said this provides NextEra an opportunity to provide its own plan for Hawaii.

“That NextEra has simply adopted these deficient plans as their own is cause for concern,” Mikulina said. “Given the commission’s order, NextEra’s leadership now has the opportunity to prove that they have a different vision of Hawaii’s energy future.”

Moriwake said NextEra’s “sales pitch is ‘We’ll do HECO’s plan better.’ Well, the PUC just declared the plan ‘not acceptable.’”

NextEra spokesman Rob Gould declined to comment for this article.

In addition to NextEra, the Sierra Club and Blue Planet Foundation, there are 15 other groups allowed to participate in the new plans. The Renewable Energy Action Coalition of Hawaii Inc., Life of the Land, Hawaii Solar Energy Association, Puna Pono Alliance, The Alliance for Solar Choice, Hawaii Renewable Energy Alliance, The Gas Co. Inc., AES Hawaii Inc., Ulupono Initiative LLC, Hawaii PV Coalition, Tawhiri Power LLC, Sunpower Corp., Paniolo Power Co. LLC, Eurus Energy America Corp. and First Wind Holdings LLC are allowed to participate.

The commission gave the state Department of Business, Economic Development and Tourism and Hawaii and Maui counties the status of “intervenors” in the plans.

On or before Nov. 25, HECO has to file a revision schedule and work plan on how they are going to address all comments and observations. On Jan. 15 the outside groups must file comments on the revision schedule and work plan. On Feb. 15 HECO has to file an initial PSIP update and supplement of “new plan.” On April 1 HECO has to submit the final PSIP and supplement.