Competitive Bidding Framework & Waiver Projects

The Competitive Bidding Framework was adopted by the Public Utilities Commission (“Commission”) in December 2006 as part of Decision and Order No. 23121.  The Competitive Bidding Framework sought to establish a competitive process for acquiring or building new energy generation sources in Hawaii.

Read Decision and Order No. 23121, including the Competitive Bidding Framework (attached as Exhibit A) here.

The Competitive Bidding Framework also identified several conditions or circumstances in which competitive bidding may be waived by the Commission.  For example, under Section II.A.3.b.(iii), competitive bidding may not be appropriate “…when more cost-effective or better performing generation resources are more likely to be acquired more efficiently through different procurement processes.”  Section II.A.3.d. goes on to state “… the Commission may waive this Framework or any part thereof upon a showing that the waiver will likely result in a lower cost supply of electricity to the utility’s general body of ratepayers…”

Initial Waiver Invitation (Docket No. 2013-0156)
On June 18, 2013, Hawaiian Electric Company (“Hawaiian Electric”) filed an application requesting the Public Utilities Commission approve waivers from the Competitive Bidding Framework for five renewable energy projects.  These projects were selected as part of Hawaiian Electric’s Invitation for Low Cost Renewable Energy Projects on Oahu Through Request for Waiver from Competitive Bidding.  To qualify for selection, projects must have included pricing below 17 cents per kilowatt-hour (kWh) and proof of acceptable site control.

On February 13, 2014, the Commission issued Decision and Order No. 31913 approving the request for waivers.  Because two projects voluntarily withdrew from the process, the order applies to the remaining three (solar) projects located on Oahu and totalling approximately 33 MW. Read the Decision and Order here.

For more on this docket, type Docket No. “2013-0156″ into the Docket Quick Link search on the PUC-DMS website.

Pricing Refresh Opportunity (Docket No. 2013-0381)
On November 14, 2013, Hawaiian Electric filed an application requesting the Commission approve waivers from the Competitive Bidding Framework for six projects, totaling 210 megawatts (“MW”) of renewable energy.  These projects were selected as part of a “pricing refresh opportunity” offered to developers whose projects were not selected in the Initial Waiver Invitation above.  The criteria for selection in this refresh opportunity included revised energy pricing below 16.25 cents per kWh and proof of acceptable site control.

Follow this docket by typing Docket No. “2013-0381″ into the Docket Quick Link search on the PUC-DMS website.

Kahe Utility-Scale Photovoltaic (“PV”) Generating System (Docket No. 2013-0360)
On October 22, 2013, Hawaiian Electric filed an application requesting a waiver from the Competitive Bidding Framework for the 15 MW Kahe Utility-Scale PV Generating System (“Kahe PV Project”). Hawaiian Electric estimates the cost of this project to be $42.4 million and that the levelized cost, assuming a 30-year life, will be approximately 16.1 cents per kWh. Hawaiian Electric is also requesting Commission determination that a 46 kilovolt (“kV”) subtransmission line be constructed.

Follow this docket by typing Docket No. “2013-0360″ into the Docket Quick Link search on the PUC-DMS website.