Hawaiian Electric Company

From dKosopedia

Jump to: navigation, search

Hawaiian Electric Company (HECO) and its subsidiaries, Hawaii Electric Light Company (HELCO) and Maui Electric Company (MECO), provide electricity for 95% of Hawaii’s residents. [1]

In 1968, HECO purchased the Maui Electric Company (MECO). In 1970, HECO also acquired the Big Island's Hilo Electric Light Company (later to be known as Hawaii Electric Light Company, or HELCO).

In 1988, MECO acquired the Lanai City power plant on the island of Lanai, and in 1989, Molokai Electric Company on the island of Molokai. With these acquisitions, all major islands in the Hawaiian chain, except Kauai, were now part of the service territories of HECO or its subsidiaries. [2]

Established in 1891, HECO, HELCO, and MECO employ almost 2,000 people. Almost 20,000 Hawaii residents are shareholders of HECO’s parent company, Hawaiian Electric Industries (HEI). [3]

Contents

HECO's long range planning

Hawaiian Electric’s Integrated Resource Plan (IRP) looks at the demand for electricty over the next 20 years, and determines how to meet that demand with a combination of:

  • Programs to encourage wise use of electricy by the customer .
  • Maximizing the efficiency of existing power generation.
  • Increasing power generation sources. [4]

HECO’s IRP is developed with input from IRP Advisory Groups, which include representatives from business, government, and the community. [5]

Filed with the Hawaii Public Utilities Commission in January 1998, the plan is updated periodically to account for changes in forecasts for electrical demand and fuel prices, new generation and energy efficiency technologies, environmental requirements, and land permitting rules. The last IRP was done in 2005. [6]

A decreasing power reserve margin

A June 3, 2006 Honolulu Star-Bulletin article entitled, HECO: More blackouts a certainty, Craig Gima reports on HECO's decreasing power reserves as demand for electricty increases, resulting an increased risk for blackouts :

With demand for electricity increasing and no significant increase in its generating capacity since 1992, HECO's power reserves have fallen below the 30 percent margin that the utility said it needs to be able to maintain its aging generators without the risk of outages.

"We expect it to happen again," said Jose Dizon, company spokesman. "Our margins are getting tight."

[...]

There are 16 HECO and independent power generation units on Oahu, Dizon said. In addition to normal maintenance, the units must be overhauled every three years, which puts them off-line for up to three months.

The age of HECO's generators and how hard they are run also contribute to unplanned shutdowns, Dizon said.

[...]

In the last year, HECO has been able to add 43 megawatts of power generation because of increased capacity from the Kalaeloa Partners plant and three small 5-megawatt generators that the utility has installed at some of its substations and other facilities.

HECO is also seeking Public Utilities Commission approval for a new $130 million, 100-megawatt plant that will burn naphtha, a cleaner-burning fuel product, and would be able to burn ethanol.

The utility is also looking at building a wind farm in Kahuku after the city objected to plans to put up electricity-generating wind turbines on the ridge behind the Kahe power plant.

Dizon said HECO is also trying to reduce demand by promoting the use of solar water heaters and energy-efficient appliances and light bulbs; by working with large customers to become more efficient; and building "co-generation" plants that would generate electricity and be able to provide hot water or air conditioning.

Unless HECO's energy-reduction strategies work and demand decreases, the new 100-megawatt power plant, if it comes on as scheduled in 2009, will still be about 40 megawatts short of the ideal reserve margins, Dizon said.

Henry Curtis of the environmental group Life of the Land agrees that HECO's reserve margins are thin. But he said the utility is not doing enough to reduce electricity use and promote alternatives to relying on a large oil-burning power plant.

Curtis said he believes the utility can reach its power goals by moving more aggressively to reduce demand and by building more smaller co-generation and renewable energy plants, instead of one large generating plant.

planned 100-megawatt power plant

HECO has plans for a 100-megawatt power plant in Campbell Industrial Park, which is awaiting approval from the state Public Utilities Commission. This plant would be able to burn a blend of ethanol and naphtha. [7]

Henry Curtis, executive director of environmental group Life of the Land said "producing ethanol in Hawaii raises other environmental concerns, including the use of fertilizers, pesticides and herbicides. And he questions where growers will get the water for their crops. He also questions whether ethanol can truly reduce the islands' dependence on oil." [8]

Life of the Land's position:

  1. Something is needed (megawatts)
  2. Climate Change is for real
  3. We oppose building another fossil fuel power plant
  4. We oppose ethanol
  5. We support energy efficiencies and renewable energy: solar; wind (on and off shore); wave (off shore), sea water air conditioning; and OTEC (off shore -- barge)
  6. We believe that renewables should be overbuilt so that the Downtown Honolulu Power Plant (adjacent to Aloha Tower) can be torn down. [9]

The Public Utilities Commission evidentiary hearing will be held the week of December 11, 2006.

HECO related legislation in 2006

In a May 18, 2006 Star-Bulletin article entitled, Isles' PUC plugs into quest for alternate energy, Tara Godvin reports on HECO related legislation awainting Gov. Linda Lingle's signature:

The three electric company measures are contained in a single bill still awaiting Lingle's signature.

The new projects given to the commission under the bill include:

» Considering the creation of a new agency dedicated to administering tens of millions of dollars electric companies collect in surcharges each year for use on energy efficiency projects. Hawaiian Electric Co., the state's largest electric company, spent only about $7 million of the $19 million it collected for the projects in 2004, according to the Lingle administration.

» Refining how the state will get its utilities to reach a goal of using 20 percent renewable, nonfossil fuels -- such as wind, solar, ocean wave or geothermal power -- by 2020.

» Reviewing whether to end the companies' ability to automatically pass along the higher cost of fossil fuels to customers. The idea is that if companies are forced to share the burden, they might feel more inspired to switch to another fuel source.

HECO spokesman Robbie Alm said last week that his company was not authorized by the commission to spend 2004's entire $19 million on the efficiency programs. He said he hopes the panel now looks at all the different incentives for utilities to use renewable fuels and selects the right ones. [10]


External Links

Planned rate increase

Planned 100-megawatt power plant

October Earthquake blackout

Tariffs forn on-site generators

Solar Energy

Retrieved from "http://www.dkosopedia.com/wiki/Hawaiian_Electric_Company"
Personal tools