Wednesday, August 17, 2011
Pay More, Get Less
By Henry Curtis
A few days ago (August 12, 2011) Hawaiian Electric Company (HECO) submitted to a proposed Power Purchase Agreement (PPA) with Forest City to the Hawai`i Public Utilities. Forest City has already placed the orders for the equipment.
HECO asserts that “Forest City has requested that the Commission issue a decision and order on the PPA on or before November 18, 2011,” so that Forest City can qualify for federal Stimulus Funds and State tax credits. This timeframe is also quite conveniently too short a period to allow for any third party to intervene in the PUC proceedings.
HECO will purchase solar energy from the Forest City one megawatt (MW) photovoltaic facility (Kapolei Sustainable Energy Park) located in Campbell Industrial Park on a site capped because it sits on hazardous waste.
HECO submitted its proposed PPA with IC Sunshine to the Commission last January and it is still being reviewed by the Commission. HECO’s current Application states: “The proposed fixed energy pricing for the KSEP [Kapolei Sustainable Energy Park] project, is about $11/MWh higher than IC Sunshine's levelized energy pricing.”
HECO submitted its proposed PPA with Kalaeloa Solar to the Commission last March and it is also still being reviewed by the Commission. HECO’s current Application states: “The proposed fixed energy pricing for the KSEP [Kapolei Sustainable Energy Park] project, is about $18/MWh higher than Kalaeloa Solar's levelized energy pricing.”
HECO is asserting that we should pay more for this project to help Forest City get tax credits, and that the Commission should approve the proposal quickly, thus denying intervention by other interested parties.
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