The Public Utilities Commission (PUC) in Hawaii has broad authority to regulate public utilities, including their rates, services, and operational practices. This authority is derived from state statutes, such as Hawaii Revised Statutes (HRS) Chapter 269. When considering the integration of distributed energy resources (DERs) like rooftop solar and battery storage, the PUC must balance the interests of consumers, utilities, and the broader public policy goals of the state, which include achieving high renewable energy penetration and grid reliability. HRS §269-15.5 specifically addresses the PUC’s role in approving utility-proposed integrated resource planning (IRP) and power supply improvement plans (PSIPs), which are crucial for managing the transition to a cleaner energy future. The PUC’s decision-making process involves reviewing proposals, considering expert testimony, and holding public hearings to ensure that utility plans are in the public interest, cost-effective, and supportive of Hawaii’s renewable energy targets. The concept of “net energy cost” in the context of utility regulation typically refers to the total cost of energy procured or generated by the utility minus any revenue generated from selling electricity. However, in the context of DERs and evolving rate structures, the PUC’s focus shifts to ensuring that all customers, including those with DERs, contribute fairly to the cost of maintaining the grid. This involves evaluating different rate designs, such as fixed charges, demand charges, and energy charges, and their impact on cost recovery and customer bills. The PUC’s mandate extends to ensuring that utility investments are prudent and that the costs are not unduly burdensome on ratepayers. Therefore, the PUC’s review of utility plans for DER integration is a critical function in shaping Hawaii’s energy landscape, ensuring that such integration is managed in a way that is technically sound, economically viable, and aligned with the state’s ambitious clean energy objectives.

The Public Utilities Commission (PUC) in Hawaii, under its statutory authority, is tasked with ensuring that utility rates are just and reasonable and that the provision of utility services is adequate and efficient. When a regulated utility proposes a change in its rate structure, such as a shift from a traditional volumetric rate to a fixed charge plus a lower per-unit energy charge, the PUC must conduct a thorough review. This review process, often initiated through a formal rate case filing, involves evaluating the utility’s proposed revenue requirement, the allocation of costs among customer classes, and the impact of the new rate design on consumer behavior and energy conservation. A key consideration is whether the proposed rate structure supports the state’s energy policy goals, which, in Hawaii, strongly emphasize renewable energy integration, energy efficiency, and the reduction of reliance on fossil fuels. The PUC’s decision-making framework is guided by principles of fairness, affordability, and the long-term sustainability of the energy system. For instance, a rate design that disproportionately burdens customers who are actively participating in distributed generation programs, like rooftop solar, without a clear justification based on cost-causation principles, could be deemed unreasonable or discriminatory. The commission weighs evidence presented by the utility, consumer advocates, and other stakeholders to determine if the proposed rates align with both the financial needs of the utility and the broader public interest as defined by Hawaii law and policy directives.

Hawaii’s Renewable Energy Standard (RES), codified in Hawaii Revised Statutes (HRS) Chapter 269, mandates that electric utilities achieve specific percentages of their electricity sales from renewable sources. The initial target was set at 40% by 2030, with subsequent amendments and legislative actions, particularly Act 200 of 2015, accelerating and increasing these goals. Act 200 established a target of 100% clean energy by 2045. The RES is administered by the Public Utilities Commission (PUC) of Hawaii, which has the authority to set rules and approve utility plans for meeting these standards. Utilities can meet the RES through various means, including direct ownership of renewable generation facilities, power purchase agreements (PPAs) with independent renewable energy producers, and other mechanisms approved by the PUC. The law also considers the economic impact and reliability of the grid when setting standards and approving utility plans. The concept of a “Renewable Energy Credit” (REC) is central to many RES frameworks, allowing for the trading of renewable attributes, though the specific implementation and accounting mechanisms in Hawaii are subject to PUC regulation and utility-specific filings. The PUC’s oversight ensures that the transition to renewable energy is conducted in a manner that is just and reasonable for consumers and maintains grid stability.

The question probes the understanding of Hawaii’s renewable energy portfolio standards (RPS) and the mechanisms for compliance, specifically focusing on the role of Renewable Energy Credits (RECs). Hawaii’s RPS, as established by Hawaii Revised Statutes (HRS) Chapter 269, mandates that electricity suppliers procure a certain percentage of their electricity from eligible renewable sources. RECs are the tradable, non-power components of this electricity that represent the environmental attributes of one megawatt-hour (MWh) of electricity generated from a renewable energy facility. When a utility or electricity provider in Hawaii procures renewable energy, they can acquire both the energy and the associated RECs. If they procure renewable energy from a facility where they do not acquire the RECs (e.g., the RECs are sold separately), they can still meet their RPS obligations by purchasing RECs from other eligible renewable energy generators in Hawaii. This is a crucial compliance mechanism that allows for market-based achievement of renewable energy targets, fostering investment in renewable generation across the state. The core concept is that RECs are the primary instrument for demonstrating and verifying compliance with the RPS mandates, allowing for flexibility in how the underlying renewable generation is sourced. The Public Utilities Commission (PUC) oversees the implementation and enforcement of these standards, ensuring that the RECs acquired meet specific eligibility criteria and are retired appropriately to avoid double-counting.

The Public Utilities Commission (PUC) of Hawaii plays a crucial role in regulating utilities, including the development and implementation of renewable energy standards. Hawaii Revised Statutes (HRS) Chapter 269 outlines the PUC’s authority. Specifically, HRS §269-151.5 mandates the adoption of a Renewable Energy Portfolio Standard (RPS). This statute requires electric utilities to source a certain percentage of their electricity from eligible renewable energy resources. The law has been amended over time to increase these targets. For instance, Act 155 of the 2015 Hawaii Session Laws significantly raised the RPS target to 100% by 2045. The PUC is responsible for establishing the rules and mechanisms to achieve these targets, which may include net energy metering, feed-in tariffs, or competitive procurements. The commission also oversees the integration of distributed energy resources and ensures that the transition to renewable energy is conducted in a manner that is just and reasonable to ratepayers, considering factors like cost, reliability, and grid stability. The specific percentage required for any given year is determined by commission rules and orders, which are informed by legislative mandates and ongoing proceedings. The question probes the understanding of the legal basis and the commission’s role in setting these targets, not a specific year’s percentage, as those are subject to change and specific commission decisions. The focus is on the statutory authority that empowers the PUC to mandate such standards.

The Public Utilities Commission (PUC) of Hawaii has the authority to set just and reasonable rates for public utilities, including electric utilities, under Hawaii Revised Statutes (HRS) Chapter 269. When considering rate adjustments for Hawaiian Electric Company (HECO), the PUC evaluates various factors to ensure that rates reflect the cost of service and promote the public interest. One critical aspect of this evaluation involves the treatment of deferred accounting for costs that are either extraordinary or prudently incurred but not immediately recoverable through standard rate structures. In the context of renewable energy integration and grid modernization, HECO might incur significant upfront costs for infrastructure upgrades or to manage the intermittency of renewable sources. If these costs are deemed by the PUC to be prudently incurred and beneficial for the long-term stability and affordability of the grid, the Commission may authorize their deferral for future recovery. This mechanism allows the utility to spread the financial impact of these investments over a period of time, rather than burdening current ratepayers with the full cost immediately. The PUC’s decision to allow or disallow such deferrals, and the terms under which they are allowed, are subject to rigorous review and public participation processes, often involving detailed cost-benefit analyses and consideration of the utility’s overall financial health and the impact on consumers. The authority to approve such deferrals is a key regulatory tool for managing the transition to a cleaner energy future while maintaining utility financial viability and consumer affordability.

The Hawaii Public Utilities Commission (HUC) has broad authority to regulate public utilities, including electric utilities, to ensure fair rates, reliable service, and the public interest. When considering the integration of distributed energy resources (DERs) like rooftop solar and battery storage, the HUC must balance the benefits these resources offer, such as reduced reliance on fossil fuels and grid stabilization, with the costs they may impose on the grid and non-participating customers. The concept of “non-bypassable charges” is a critical tool in this balancing act. These charges are designed to ensure that all customers, including those who generate some or all of their own electricity through DERs, contribute to the fixed costs of maintaining the grid infrastructure that they continue to use. Without such charges, customers with DERs might effectively “bypass” their obligation to pay for essential grid services, leading to a disproportionate cost shift to customers who do not have DERs. This can undermine the financial stability of utilities and potentially lead to higher rates for a shrinking customer base. The HUC’s decisions on how to structure these charges, often through mechanisms like demand charges, customer charges, or energy charges that are applied regardless of consumption levels, are central to achieving an equitable transition to a cleaner energy future in Hawaii. The commission’s mandate under Hawaii Revised Statutes Chapter 269, and its specific decisions in proceedings concerning rate design and DER integration, reflect a continuous effort to adapt regulatory frameworks to evolving energy technologies and market conditions. The specific wording of the statute and prior commission rulings inform the HUC’s authority to implement these types of charges to prevent cost shifting and ensure the financial health of regulated utilities while promoting renewable energy adoption.

The Public Utilities Commission (PUC) of Hawaii has established specific guidelines for the interconnection of distributed energy resources (DERs) with the electric grid. These guidelines are primarily codified in Hawaii Administrative Rules (HAR) Chapter 60, specifically HAR §161-60-23, which details the requirements for net energy metering (NEM) and other forms of compensation for customer-sited generation. For systems exceeding certain thresholds, or for those seeking to take advantage of advanced rate structures or programs, a more detailed interconnection study might be required. However, for typical residential or small commercial solar photovoltaic systems that are designed to offset a portion of the customer’s own electricity consumption, the standard interconnection process, as outlined in the PUC’s rules, generally does not mandate a full, upfront cost-based interconnection study if the system size is within predefined limits and does not pose significant grid impacts. Instead, a streamlined application and review process is typically employed. The concept of “customer impact studies” is more often associated with larger-scale generation projects or situations where the DER could potentially affect grid stability, voltage, or power quality. The PUC’s approach prioritizes facilitating DER adoption through efficient processes while ensuring grid reliability. Therefore, for a standard residential rooftop solar installation in Hawaii that is sized to offset a customer’s typical load, a comprehensive, cost-based interconnection study is not a mandatory prerequisite for approval under the standard net energy metering program.

The Public Utilities Commission (PUC) in Hawaii, under its statutory authority, is tasked with regulating public utilities to ensure reliable and affordable energy services for consumers. This regulatory framework is established by Hawaii Revised Statutes (HRS) Chapter 269. When considering the integration of distributed energy resources (DERs) like rooftop solar, the PUC must balance the benefits of these resources, such as reduced reliance on fossil fuels and lower system costs, with the potential impacts on grid stability, utility finances, and the equitable distribution of costs among all customer classes. A key consideration in this balancing act is the compensation mechanism for DER owners. Historically, net energy metering (NEM) has been a common approach, where customers are credited at the full retail rate for excess energy sent back to the grid. However, as DER penetration increases, concerns arise that this compensation structure may not fully reflect the actual value of this energy to the grid, potentially leading to cost shifts to non-DER customers. The PUC, in its proceedings, evaluates various rate design and compensation proposals. These often involve exploring alternatives to traditional NEM, such as: 1. **Avoided Cost Rates:** Compensation based on the cost the utility would have incurred to generate or purchase that energy from other sources. 2. **Value of Solar Tariffs (VOST):** A more comprehensive approach that attempts to monetize various benefits of solar, including energy, capacity, environmental attributes, and grid services. 3. **Grid Participation Rates:** Compensation structured to reflect the specific services DERs provide to the grid at different times. The PUC’s decision-making process involves extensive stakeholder engagement, technical studies, and economic analyses to determine rate structures that are just and reasonable, promoting the public interest. This often leads to evolving policies that adapt to technological advancements and market conditions, as seen in the transition from traditional NEM to more sophisticated compensation models designed to better align DER value with grid needs. The overarching goal is to ensure that the energy transition is orderly, affordable, and equitable for all Hawaii residents, while also meeting the state’s ambitious renewable energy targets, as mandated by laws like the Renewable Energy Portfolio Standard (RPS).

The Public Utilities Commission (PUC) in Hawaii, under Hawaii Revised Statutes (HRS) Chapter 269, has broad authority to regulate public utilities, including electric utilities. The concept of “least cost procurement” is a guiding principle for utilities in Hawaii, mandating that they acquire energy resources in a manner that minimizes costs to customers while ensuring reliability and environmental sustainability. This principle is directly reflected in the PUC’s oversight of utility integrated resource planning (IRP) and power purchase agreements (PPAs). When a utility proposes a new power purchase agreement, the PUC scrutinizes it to ensure it aligns with the least cost procurement mandate. This involves evaluating the proposed contract’s terms, pricing structure, duration, and the availability of alternative, potentially lower-cost resources. The PUC’s decision-making process often involves detailed analyses of the economic and technical feasibility of proposed projects, considering factors such as fuel costs, operational efficiency, environmental compliance, and grid integration challenges. The commission’s role is to balance the utility’s need for reliable energy supply with the imperative to protect ratepayers from excessive costs, making it the ultimate arbiter of whether a proposed procurement strategy meets the state’s energy policy objectives. The PUC’s authority extends to approving or rejecting such agreements, and it can impose conditions to ensure compliance with least cost procurement principles.

The Public Utilities Commission (PUC) of Hawaii, under its authority to regulate public utilities and promote renewable energy, has established specific rules and guidelines for net energy metering. These rules are designed to ensure fair compensation for distributed generation system owners while also considering the impact on the grid and other ratepayers. Hawaii’s net metering policies, as codified in various Hawaii Revised Statutes (HRS) and PUC decisions, generally allow customers to receive credit for excess electricity generated by their renewable energy systems and sent back to the grid. The compensation rate for this exported energy is a critical aspect of these policies. Historically, Hawaii has moved towards compensation rates that reflect the avoided costs of the utility, which can be complex to calculate and may vary depending on the specific tariff structure and the time of day or year. The concept of “avoided cost” refers to the costs a utility would otherwise incur to generate electricity itself or purchase it from another source. This includes fuel costs, capacity costs, and other operational expenses. The PUC’s determination of the net metering credit rate is a key mechanism for incentivizing renewable energy adoption while balancing economic considerations for all utility customers. The question probes the fundamental principle of how exported energy from a customer’s renewable system is valued under Hawaii’s regulatory framework. The PUC’s decisions and the underlying statutes aim to establish a compensation mechanism that is equitable and sustainable, reflecting the value of distributed generation to the grid. This value can be influenced by factors such as the time of injection, the capacity of the system, and the overall grid conditions. The PUC’s authority to set these rates is derived from its mandate to ensure just and reasonable rates for utility services and to foster the development of clean energy resources for the state of Hawaii.

The Public Utilities Commission (PUC) of Hawaii, under its authority to ensure just and reasonable rates and to promote the public interest in energy matters, has established specific guidelines for utility cost recovery related to renewable energy projects. When a utility proposes to recover costs associated with a renewable energy generation facility, the PUC evaluates these costs against the “avoided cost” of alternative generation sources that the utility would otherwise have to procure. Avoided cost represents the incremental cost to the utility of electricity or capacity that, in the absence of the renewable energy project, would have been avoided. This concept is central to the economic viability and regulatory approval of such projects, as it provides a benchmark for whether the renewable energy is providing a net benefit to ratepayers. The PUC’s determination of avoided cost is influenced by various factors, including fuel costs, capital costs of new generation, and the operational characteristics of existing and potential alternative generation. The PUC’s role is to ensure that ratepayers are not burdened with costs that exceed the economic benefit derived from the renewable energy source, thereby balancing the promotion of clean energy with the affordability of electricity. The specific methodology for calculating avoided costs is detailed in various commission orders and rulemakings, often involving sophisticated modeling that considers the utility’s system needs and future resource plans.

The question probes the understanding of Hawaii’s regulatory framework for distributed generation, specifically focusing on the interplay between customer-sited renewable energy systems and the grid. Hawaii Revised Statutes (HRS) Chapter 269, particularly sections concerning public utilities and their duties, along with Hawaii Administrative Rules (HAR) Title 13, Chapter 60, which governs net energy metering and other distributed generation programs, are foundational. The Public Utilities Commission (PUC) plays a pivotal role in establishing and modifying these rules. For a customer-sited solar photovoltaic system to be eligible for interconnection and compensation under Hawaii’s programs, it must comply with specific technical and legal requirements. These typically include adherence to safety standards, interconnection agreements, and program-specific eligibility criteria. The concept of “deemed generation” or “virtual net metering” is relevant when considering off-site generation, but for on-site systems, the direct export of excess generation to the grid for credit is the core mechanism. The Public Utilities Regulatory Modernization Act of 2016 (Act 154) further influenced the evolution of distributed energy resources in Hawaii, emphasizing grid modernization and equitable cost allocation. Therefore, understanding the legal and regulatory basis for these systems, as established by the legislature and administered by the PUC, is crucial. The eligibility for interconnection and the subsequent compensation mechanisms are directly tied to compliance with these established rules and statutes, ensuring grid stability and fair treatment of all ratepayers.

The Public Utilities Commission (PUC) of Hawaii, established under Hawaii Revised Statutes (HRS) Chapter 269, has broad authority to regulate public utilities to ensure reliable, safe, and reasonably priced service. When considering the integration of distributed energy resources (DERs) such as rooftop solar and battery storage, the PUC’s mandate includes ensuring that the costs and benefits of such integration are fairly distributed among all customer classes and that the grid remains stable and efficient. HRS §269-15 mandates that the PUC consider the public interest when setting rates and service standards. In the context of net energy metering (NEM) policies, which allow customers with DERs to receive credit for excess electricity sent back to the grid, the PUC must balance encouraging renewable energy adoption with ensuring that non-participating customers do not bear an undue burden for grid infrastructure costs. This often involves analyzing the “cost shift” from DER customers to non-DER customers. The PUC’s decisions on NEM successor tariffs, such as the Customer Grid Supply (CGS) program, reflect this balancing act. The CGS program, for instance, moved away from a direct retail rate credit towards a tariff that better reflects the avoided costs of generation and the costs of grid services provided by DERs. The specific details of these tariffs, including the calculation of avoided costs and the allocation of grid access charges, are determined through formal dockets and rulemaking processes where stakeholders present evidence and arguments. The PUC’s role is to adjudicate these matters based on statutory mandates and the overall public interest, considering factors like grid reliability, environmental goals, and economic fairness. The principle of ensuring that all customers pay their fair share for the grid’s operation and maintenance, while still incentivizing clean energy, is a central tenet of the PUC’s regulatory approach to DERs in Hawaii.

The question probes the nuanced application of Hawaii’s renewable energy portfolio standards (RPS) and the regulatory framework governing utility procurement of renewable energy. Specifically, it tests understanding of the Public Utilities Commission’s (PUC) role in approving power purchase agreements (PPAs) and the criteria used to evaluate such proposals, particularly concerning their alignment with state energy goals and the economic impact on ratepayers. Hawaii Revised Statutes (HRS) Chapter 269, and specifically HRS §269-151.5, outlines the RPS requirements. The PUC’s decisions, often detailed in dockets such as those pertaining to Hawaiian Electric Company’s Integrated Resource Planning (IRP) and renewable energy procurements, emphasize cost-effectiveness, reliability, and the integration of distributed energy resources. When a utility proposes a PPA for a renewable energy project, the PUC scrutinizes the terms to ensure they are in the public interest, considering factors like the project’s contribution to achieving RPS mandates, the price of electricity compared to alternatives, the project’s impact on grid stability, and the potential for economic development. The PUC’s approval process is designed to balance the imperative to decarbonize the grid with the responsibility to ensure affordable and reliable electricity for Hawaii’s residents. The concept of “least-cost procurement” is central, but it is evaluated within the broader context of achieving state-wide energy objectives, including resilience and energy independence.

The Public Utilities Commission (PUC) of Hawaii, established under Hawaii Revised Statutes (HRS) Chapter 269, is the primary regulatory body for public utilities in the state. Its mandate includes ensuring that utility services are safe, reliable, and provided at reasonable rates. When considering the integration of distributed energy resources (DERs) like rooftop solar and battery storage, the PUC plays a crucial role in establishing policies and rules that govern their interconnection, compensation, and impact on the grid. HRS §269-15.5 specifically addresses the commission’s authority to adopt rules for interconnection standards for customer-owned renewable energy systems. Furthermore, HRS §269-7.5 grants the PUC the power to encourage and promote the development of renewable energy sources and energy conservation programs. The concept of “non-bypassable charges” is a key regulatory tool used to ensure that all customers, including those with DERs, contribute fairly to the fixed costs of maintaining the utility’s infrastructure. This prevents a “free-rider” problem where customers who heavily utilize the grid infrastructure do not contribute to its upkeep, potentially leading to cost shifts onto other customer classes. The PUC’s authority to implement such charges is derived from its general rate-making powers and its specific duties to ensure the financial health and operational integrity of the electric utility. Therefore, the PUC has the explicit authority to mandate that customers with DERs continue to pay a portion of the grid’s fixed costs through non-bypassable charges, ensuring a more equitable cost-sharing mechanism.

The Public Utilities Commission (PUC) of Hawaii, under its authority to ensure reliable and affordable energy, often considers the impact of distributed energy resources (DERs) on grid stability and the existing regulatory framework. When a utility proposes a new tariff or program that significantly alters how DERs are compensated or integrated, the PUC must evaluate the proposal against established principles of ratemaking, public interest, and statutory mandates. Hawaii Revised Statutes (HRS) Chapter 269 grants the PUC broad oversight over public utilities. Specifically, HRS §269-16.3 addresses the integration of renewable energy and distributed generation. A key consideration for the PUC is whether a proposed change, such as a shift from net energy metering to a different compensation mechanism for rooftop solar, is just and reasonable and promotes the public interest. This involves balancing the benefits DERs provide to the grid (e.g., reduced transmission losses, deferred infrastructure upgrades) against their costs. If a utility’s proposal disproportionately shifts costs onto non-participating customers or fails to adequately value the grid services provided by DERs, the PUC may disallow or modify it. The PUC’s decision-making process involves extensive evidentiary hearings, stakeholder input, and adherence to administrative procedure. The concept of “cost shifting” is central to these deliberations, as is the PUC’s duty to ensure that rates are not unduly discriminatory. Therefore, a proposal that fails to reflect the full value of DERs to the grid and instead relies on a simplified cost-allocation method that burdens non-DER customers would likely face scrutiny and potential rejection or modification by the PUC to ensure fairness and adherence to the public interest standard.

The Public Utilities Commission (PUC) of Hawaii, established under Hawaii Revised Statutes (HRS) Chapter 269, is the primary regulatory body overseeing public utilities in the state. Its mandate includes ensuring that utility services are safe, reliable, and provided at reasonable rates. The PUC’s authority extends to approving or denying rate increases, setting service standards, and overseeing utility mergers and acquisitions. In the context of renewable energy integration, the PUC plays a crucial role in approving power purchase agreements (PPAs) between utilities and independent power producers, as well as setting net energy metering (NEM) policies, which govern how customers with distributed generation systems are compensated for excess electricity sent back to the grid. Furthermore, the PUC is responsible for approving utility integrated resource plans (IRPs), which outline the utility’s long-term strategy for meeting energy demand, including the procurement of renewable energy and the retirement of fossil fuel generation. This regulatory oversight ensures that the transition to cleaner energy sources aligns with the state’s energy goals and protects the interests of ratepayers.

The Public Utilities Commission (PUC) in Hawaii, under Hawaii Revised Statutes (HRS) Chapter 269, has broad authority to regulate public utilities to ensure adequate service, reasonable rates, and compliance with public interest. Specifically, HRS §269-15.5 addresses the PUC’s role in approving financing arrangements and securities issued by public utilities. When a utility seeks to issue new debt or equity, it must obtain PUC approval to ensure the financing is in the public interest and does not jeopardize the utility’s financial stability or its ability to serve customers. This approval process involves reviewing the proposed terms, the necessity of the financing, and its impact on rates and service. The PUC’s oversight is crucial for maintaining the financial health of utilities and protecting consumers. Therefore, any issuance of new securities or long-term debt by Hawaiian Electric Company, a regulated utility in Hawaii, would require prior authorization from the Hawaii Public Utilities Commission.

The question probes the nuances of Hawaii’s Renewable Energy Standards (RES) and the mechanisms for achieving compliance, particularly concerning the role of Renewable Energy Credits (RECs). Hawaii Revised Statutes (HRS) Chapter 269, specifically HRS §269-77, establishes the state’s RES, mandating that electric utilities procure a certain percentage of their electricity from eligible renewable sources. The Public Utilities Commission (PUC) of Hawaii oversees the implementation of these standards. Utilities can meet these obligations through direct ownership of renewable generation, power purchase agreements (PPAs) with renewable developers, or by purchasing RECs. RECs represent the environmental attributes of renewable energy generation. In Hawaii, the framework allows for the decoupling of RECs from the underlying energy and capacity, enabling their separate trading. This separation is crucial for utilities that may not have direct access to sufficient renewable generation within their service territory or that have PPAs structured in a way that retains RECs with the developer. The PUC’s regulations, particularly those pertaining to resource procurement and compliance filings, detail how utilities demonstrate their adherence to the RES. The concept of “unbundled” RECs, where the credit is sold separately from the electricity, is a key mechanism for market participation and compliance for utilities facing diverse resource portfolios or contractual arrangements. Therefore, the ability to acquire RECs from sources outside their direct operational control or contractual agreements is a fundamental aspect of meeting Hawaii’s RES targets.

Hawaii Revised Statutes (HRS) Chapter 303A, the Hawaii Renewable Energy Act of 2009, as amended, provides the framework for the development and implementation of renewable energy projects in the state. A key component of this act is the establishment of renewable energy portfolio standards (RPS) that require electricity suppliers to procure a certain percentage of their electricity from eligible renewable sources. The Act also outlines provisions for net energy metering, which allows customers who generate their own electricity from renewable sources to receive credit for excess electricity sent back to the grid. Furthermore, HRS Chapter 269, concerning public utilities, grants the Public Utilities Commission (PUC) the authority to regulate utilities and implement policies that support renewable energy goals. The PUC plays a crucial role in approving power purchase agreements, setting rates for renewable energy, and ensuring compliance with state mandates. The question probes the understanding of the regulatory body responsible for overseeing the implementation of Hawaii’s renewable energy mandates, specifically focusing on its role in approving necessary agreements for project viability.

The question assesses understanding of Hawaii’s renewable energy procurement processes, specifically concerning the role of the Public Utilities Commission (PUC) in approving power purchase agreements (PPAs) for independent power producers (IPPs). Hawaii Revised Statutes (HRS) Chapter 269, particularly sections related to public utilities and their operations, grants the PUC broad authority over rates, services, and contracts. HRS §269-15 requires the PUC to approve any contract for the sale of electricity by an IPP to an electric utility if it is found to be in the public interest, which includes ensuring fair rates and reliable service. The PUC’s review process involves evaluating the economic feasibility, environmental impact, and overall benefit to Hawaii’s ratepayers. This includes scrutinizing the terms of the PPA, such as the price of electricity, contract duration, and performance standards. The PUC’s decision-making framework is guided by legislative mandates to promote renewable energy and achieve decarbonization goals, as outlined in various state energy plans and HRS Chapter 201-N. Therefore, the PUC’s approval is a critical legal and regulatory step for an IPP to commence operations and sell power to an incumbent utility in Hawaii.

The Public Utilities Commission (PUC) of Hawaii, under Hawaii Revised Statutes (HRS) Chapter 269, is vested with broad authority to regulate public utilities, including electric utilities. HRS § 269-16.9 specifically addresses the development of renewable energy and energy efficiency programs. This statute mandates that the PUC consider the feasibility and benefits of such programs when setting rates and approving utility plans. The question hinges on the PUC’s power to mandate specific resource procurement strategies for utilities, such as requiring a certain percentage of new capacity to come from distributed generation sources. While the PUC cannot directly dictate the operational minutiae of a utility’s day-to-day activities, it can, and often does, establish procurement targets and guidelines that effectively steer the utility’s resource development. This includes setting policies that favor or require certain types of generation, like rooftop solar or community-based renewable energy projects, to meet the state’s renewable energy portfolio standards and decarbonization goals. The PUC’s authority is exercised through rulemaking, adjudicatory proceedings, and the approval of utility integrated resource plans (IRPs). Therefore, the PUC has the explicit power to mandate that a significant portion of a utility’s future energy needs be met through distributed generation, provided such a mandate is supported by evidence of its feasibility and alignment with public interest, as outlined in the state’s energy policies and statutes.

The Public Utilities Commission (PUC) in Hawaii has the authority to regulate public utilities, including electric utilities, to ensure just and reasonable rates and service. Hawaii Revised Statutes (HRS) Chapter 269 grants this authority. When considering proposals for new energy infrastructure, such as large-scale solar farms or offshore wind projects, the PUC conducts a thorough review process. This process typically involves evaluating the project’s economic feasibility, environmental impact, and its contribution to Hawaii’s renewable energy portfolio standards (RPS) as mandated by HRS §269-17. The commission also considers the impact on existing utility infrastructure and the overall reliability of the grid. Public input is a critical component, with opportunities for testimony and comments from stakeholders, including consumer advocates and community groups. The PUC’s decision-making framework is guided by the principle of balancing the interests of the utility, consumers, and the state’s long-term energy goals, which include achieving 100% clean energy by 2045. The commission’s approval is a prerequisite for the project to proceed, and its decisions are subject to judicial review.

The Hawaii Public Utilities Commission (HUC) has broad authority to regulate public utilities, including electric utilities, to ensure safe, reliable, and reasonably priced service. This authority extends to approving rate structures, infrastructure investments, and the procurement of energy resources. The Public Utilities Regulatory Modernization Act of 2014 (Act 96) significantly reshaped the regulatory landscape in Hawaii, emphasizing performance-based regulation, renewable energy integration, and grid modernization. Under this framework, the HUC is empowered to approve long-term power purchase agreements (PPAs) for renewable energy projects, provided they align with the state’s clean energy goals and offer reasonable value to ratepayers. The HUC’s review process for such agreements typically involves detailed technical and economic evaluations to assess the project’s impact on grid stability, cost-effectiveness, and the overall energy mix. Decisions are guided by statutory mandates and the HUC’s own rules and orders, which often incorporate evolving energy technologies and market conditions. The commission’s role is to balance the interests of utilities, consumers, and the state’s environmental objectives, making its decisions critical in the transition to a sustainable energy future for Hawaii.

Hawaii’s renewable energy landscape is significantly shaped by its Public Utilities Commission (PUC) and its regulatory framework, particularly concerning grid modernization and distributed energy resources (DERs). The Hawaii Revised Statutes (HRS) Chapter 269 grants the PUC broad authority to supervise and regulate public utilities. In the context of DERs, such as rooftop solar and battery storage, the PUC plays a crucial role in setting interconnection standards, net energy metering policies, and grid access rules. Act 155 of the 2015 Hawaii State Legislature, for instance, mandated the development of a clean energy portfolio standard, requiring utilities to procure a significant portion of their electricity from renewable sources. The PUC’s decisions on grid upgrades, such as advanced metering infrastructure (AMI) and smart grid technologies, are essential for integrating these variable DERs reliably and efficiently. These decisions are often informed by dockets and proceedings where stakeholders, including utilities, consumer advocates, and DER developers, present evidence and arguments. The PUC’s responsibility extends to ensuring that utility investments in grid modernization are prudent and that the costs are recovered in a manner that is fair to all ratepayers, balancing the benefits of DER integration with the need for grid stability and affordability. The concept of “rate design” is central to this, as it determines how costs are allocated and how customers are charged for electricity, influencing the economic viability of DERs and the utility’s business model.

The Hawaii Public Utilities Commission (HUC) has broad authority to regulate public utilities in the state, including electric utilities. This authority is derived from Hawaii Revised Statutes (HRS) Chapter 269. The Commission’s mandate includes ensuring that utility services are safe, reliable, and provided at reasonable rates. When considering proposals for utility infrastructure development, particularly those involving renewable energy integration or grid modernization, the HUC conducts thorough reviews. These reviews often involve assessing the economic feasibility, environmental impact, and public interest implications of the proposed projects. For a utility to recover costs associated with such projects, it must typically seek and obtain approval from the HUC through a formal rate-making process, often initiated by a rate case filing. This process allows the HUC to scrutinize the prudency of expenditures and determine how these costs will be allocated among customer classes. The concept of “least cost procurement” is a guiding principle in Hawaii’s energy policy, encouraging utilities to acquire energy resources in a manner that minimizes costs for ratepayers while meeting reliability and environmental objectives. Therefore, a utility seeking to recover costs for a new solar farm project would need to demonstrate to the HUC that this project aligns with the state’s energy goals and represents a prudent investment under the least cost procurement framework, which is then formalized through an approved rate adjustment.

Hawaii Revised Statutes (HRS) Chapter 378, Part II, addresses the Public Utilities Commission’s (PUC) authority over public utilities, including the regulation of rates and services. Specifically, HRS §378-12 grants the PUC the power to prescribe rules and regulations for the operation of public utilities to ensure efficient and safe service. In the context of renewable energy integration, the PUC plays a crucial role in setting standards for interconnection, net energy metering, and the procurement of renewable energy through power purchase agreements or competitive bidding processes. The PUC’s mandate under HRS §378-12 extends to ensuring that utility investments in grid modernization and distributed energy resources are prudent and in the public interest. This includes evaluating the cost-effectiveness of such investments and ensuring that the benefits are passed on to ratepayers. When a utility proposes a new rate structure or tariff designed to incentivize or manage distributed generation, it must file an application with the PUC. The PUC then initiates a formal proceeding, often a rate case or a specific docket for renewable energy, where it reviews the proposal, considers testimony from stakeholders, and ultimately issues a decision. The PUC’s decision-making process is guided by the public interest, which encompasses affordability, reliability, environmental sustainability, and the promotion of clean energy technologies, as envisioned in Hawaii’s renewable energy goals.

The Hawaii Public Utilities Commission (HUC) has broad authority to regulate public utilities, including electric utilities, to ensure just and reasonable rates and adequate service. In the context of renewable energy development, particularly distributed generation like rooftop solar, the HUC plays a crucial role in establishing the frameworks under which these systems interconnect with the grid and are compensated. Net energy metering (NEM) policies, which credit customers for excess electricity sent back to the grid, are a prime example of such regulatory mechanisms. When a utility proposes changes to these policies, such as adjusting the export rate for distributed generation, it must file a formal application with the HUC. This application is subject to a rigorous review process that includes public notice, opportunities for intervenors (like consumer advocates, environmental groups, or other stakeholders) to participate, and evidentiary hearings. The HUC’s decision on such an application is based on whether the proposed changes are in the public interest, considering factors like cost-shifting between customer classes, grid reliability, the continued viability of renewable energy deployment, and the overall impact on Hawaii’s clean energy goals as mandated by state law, such as Hawaii Revised Statutes Chapter 269. The commission’s final order will detail the approved changes, any modifications made during the proceeding, and the rationale behind its decision, often referencing specific sections of Hawaii’s energy statutes and established administrative law principles.

Hawaii Revised Statutes (HRS) Chapter 304A, specifically sections related to the Hawaii Green Energy Market Securitization (HGEMS) program, provides a framework for financing renewable energy projects. The HGEMS program, established by Act 237 of the 2011 Hawaii Session Laws, aims to facilitate the development of clean energy projects by providing access to capital through securitization. This mechanism involves pooling eligible energy assets and issuing bonds backed by the revenue streams from these assets. The statute outlines the types of projects that can qualify, the process for establishing the securitization trust, and the governance structure. A key aspect is the role of the Hawaii Green Energy Market Securitization Corporation, a public body corporate and politic, in managing the program. The statute also addresses the allocation of proceeds from the securitization, including provisions for debt service, reserve funds, and potentially for further investment in renewable energy projects or related infrastructure. The statute’s intent is to leverage private capital for public benefit in advancing Hawaii’s renewable energy goals, which are particularly critical given the state’s reliance on imported fossil fuels and its commitment to achieving 100% renewable energy.