PUC Approves Hawaiian Electric Company’s Waiau Repowering Project to Address Oʻahu’s Critical Electric Reliability Needs
The Public Utilities Commission has not only approved the Hawaiian Electric Company Waiau Repowering Project to address urgent reliability needs on Oʻahu’s electric grid but has also placed strict cost controls to limit financial impacts on customers.
The project proposes to replace six aging, inflexible oil-fired steam units with six new fuel-flexible, simple-cycle combustion turbines totaling 253 MW. As a condition of approval, Hawaiian Electric is asked to operate the new units on a minimum of 51% renewable fuel at commissioning of the first four units or by 2032, whichever occurs first, increasing to 75% by 2040 and 100% by 2045 to ensure continued progress towards the state’s renewable energy goals.
The new units’ flexibility and fast‑start capabilities will help integrate renewable energy and improve reliability as older fossil-fuel burning units are retired. They will also help maintain sufficient firm power to support grid resiliency and reliability during the transition to a 100% renewable energy future.
The project was selected through a competitive bidding procurement process overlooked by an independent observer and independent engineer, which sought firm renewable resources on Oʻahu to improve system reliability while helping to move the state closer to its clean energy goals. After selection under the competitive bidding process, the commission completed a complete review of the project’s anticipated benefits and costs to balance system reliability, safety and affordability.
The commission did not approve Hawaiian Electric’s revised request to recover up to $1.155 billion for the project to safeguard customers. On the contrary, the commission set a cost recovery cap at the utility’s original competitive bid of $847 million and a limited inflation adjustment.
If the final project cost is less than the bid, the company is expected to recover only the lower, actual cost. Based on the cap, the project is estimated to increase the bill of a typical residential customer on Oʻahu by about $3.62 per month.