maui electric company - the apocalypse - keep calm and shaka brah
TRANSCRIPT
THE APOCALYPSE – THE ROAD NOT TAKEN
HAWAIIAN ELECTRIC COMPANY (HECO) – MAUI ELECTRIC COMPANY, LTD. (MECO)
ALEXANDER & BALDWIN (A&B) – HAWAIIAN COMMERCIAL & SUGAR COMPANY (HC&S)
MOIPPKIA1 - CHECKMATE
“Maui Electric Co. is seeking approval to install three used diesel power generators temporarily for
times of peak power use and to make up for reserve capacity that will be lost when Hawaiian Commercial
& Sugar Co. closes its sugar plantation and unplugs its Puunene Mill as a source of backup electricity for
Maui’s power grid.
The power-generation units are expected to be removed and sold for nearly $1.7 million after about five
years when the reserve capacity shortfall is anticipated to be eliminated by the installation of new firm
power generation.
According to MECO, other reserve capacity shortfall mitigation measures include:
* Repurposing the company’s existing battery energy storage system.
* Relying on as-available wind resources.
* Pursuing company- or customer-owned, utility-dispatched distributed generation projects.
* Requesting voluntary customer power cutbacks.
* Accelerating the installation of the next firm generating unit or energy storage systems.
* Expanding the company’s fast-demand-response program from 0.2 megawatts to 5 megawatts.
Source: The Maui News. September 9, 2016. Web Accessed: November 27, 2016
http://www.mauinews.com/news/local-news/2016/09/with-hc-s-closing-meco-needs-more-on-
demand-power/
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“Maui Electric is deeply committed to integrating renewable energy on our grids. This includes wind
power from large facilities, biomass energy from Hawaii's last working sugar plantation, hydroelectric
power, and photovoltaic ("PV"), mainly customer-sited rooftop systems that create electricity for
customer use and send the excess to the grid.”
Source: MECO. Understanding Renewable Energy. Web Accessed: November 27, 2016
https://www.mauielectric.com/clean-energy-hawaii/clean-energy-facts/wind-energy-integration
1 Motive, Opportunity, Intent, Plan, Perpetrator, Knowledge, Identity, and Act
Maui Electric Company – Renewable Energy Sources
HC&S WAILOA DITCH HYDROPOWER
Location: Kaheka, Paia, and Hamakua, MAUI
Energy Source: Run-Of-River
Technology: Hydraulic Turbine Generators
System Size: 4.5 Mw (Kaheka), 0.9 Mw (Paia), 0.4 Mw (Hamakua)
Power Purchase Type: As-Available [Emphasis Supplied]
Owner-Operator: Hawaii Commercial & Sugar (HC&S) Maui
Source: MECO. https://www.hawaiianelectric.com/clean-energy-hawaii/clean-energy-
facts/renewable-energy-sources/hydroelectricity Web Accessed: November 27, 2016
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THE GREAT HOAX – THE SHELL GAME
MECO BIAS: Wind & Pumped Storage Hydro vs. HC&S Run-of-River Hydro
“MECO states it plans to investigate other options that may allow it to accept more renewable
energy, such as investments in IPPs to provide down reserve and other ancillary services, future
development and utilization of distributed energy resources on Maui, and other storage projects,
such as pumped storage hydro (“PSH”) projects (although MECO observes that “[t]o date none
of the analysis done – spanning 20 years and performed by multiple consultants has provided a
compelling case for the use of PSH.”
“In general, what is lacking is the vision of MECO as “the utility of the future.” There are
many studies, pilot projects, and plans outlined in the SICR and other MECO documents.
However, while the HECO companies – including MECO – have recently affirmed their
commitment to a corporate culture focuses on providing superior value and choice to their
customers at reasonable rates, there is no specific corporate strategy designed to ultimately
achieve that vision.”
“The commission emphasizes that it is MECO’s responsibility to develop and implement the
specific strategy to realize the essential objectives. [T]he commission should not be forced
arduous regulatory scrutiny and oversight of utility expenditures, operations, and investments to
compel MECO to develop an appropriate implementation strategy. The commission was
unfortunately required to take a step in this direction here when in its own review of the SICR
revealed deficiencies, thus requiring the retention of a consultant, Brenden Kirby, P.E. to further
analyze the SICR. While recognizing progress of MECO as discussed above, Mr. Kirby also
concluded that more could be done – and that more could have been done sooner.”
Source: Hawaii Public Utilities Commission. Decision and Order 32055. Docket No. 2011-
0092. April 28, 2014. http://puc.hawaii.gov/wp-content/uploads/2014/04/Decision-and-Order-
No.-32055.pdf Web Accessed: November 27, 2016
HC&S WAILOA DITCH HYDROPOWER
1. HC&S hydroelectric plants are installed in irrigation ditches.
2. Water is “diverted” from the irrigation ditches to run the hydroelectric plants.
3. The water flow in irrigation ditches is constant but for HC&S operational requirements,
irrigation and/or electricity required for the Puunene Mill).
4. The source of “flowing water” is not dependent on “rainfall” as stated by Maui Electric
Company but is due for HC&S operational requirements.
5. “Excess power” available for sale to Maui Electric is no longer determinative. A&B and
HC&S has ceased growing sugar cane, the last harvest by end of 2016.
6. 100% of electricity generated by the HC&S Kaheka, Paia and Hamakua hydroelectric plants
totaling 5.8 Mw is now available for the Maui Grid.
7. Maui Electric Company has identified a 4-megawatt shortfall of power generation capacity
as of April 2017 and ongoing near-term reserve capacity shortfalls for 2018 to 2022.
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“The Power of Sugar - For most of its history, HC&S has generated all of the power it needs to
operate—for its mills, its irrigation and wells. Today, HC&S also produces excess power which
it sells to Maui Electrical Company, meeting about 6% of the annual electricity needed by
Maui’s homes and businesses 365 days out of the year. HC&S provides “firm” power to Maui
Electric, which means we commit to providing electricity year-round.”
“Hydroelectricity is the world’s largest renewable energy source. At HC&S, three hydroelectric
plants divert water from our irrigation ditches to generate clean energy for the factory’s power
plant. After generating power, the water is recycled–returned to the ditch for irrigation use.”
“HC&S is energy self-sufficient and generates about 75 percent of its electricity through two
renewable sources: hydropower and the burning of bagasse (cane fiber waste). The company
also is a major source of clean, renewable energy for the Maui community, providing about 6%
of Maui Electric Company’s electrical needs.”
Source: HC&S http://hcsugar.com/keeping-maui-green/energy-through-agriculture/ Web
Accessed: November 27, 2016
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MECO and HC&S HYDROPOWER
MECOs Power Purchase Agreement (PPA) with HC&S only covers the biomass plant.
Hydro Electric Power sold to MECO by HC&S is not covered.
Hawaiian Electric Industries, Inc. (HEI) 2015 Annual Report 10K. page 8. http://www.hei.com/Cache/33956068.PDF?O=PDF&T=&Y=&D=&FID=33956068&iid=1031123
“Maui Electric had a PPA with HC&S for 16 MW of firm capacity. Subsequently, HC&S
decreased firm capacity to 8 MW effective January 1, 2015. In October 2015, following PUC
approval, an amended PPA between Maui Electric and HC&S became effective, which changed
the pricing structure and rates for energy sold to Maui Electric, eliminated the capacity payment
to HC&S and Maui Electric’s minimum purchase obligation, provided that Maui Electric may
request up to 4 MW of scheduled energy during certain months and be provided up to 16 MW
of emergency power and extended the term of the PPA from 2014 to 2017. The HC&S
generating units primarily burn bagasse (sugar cane waste) along with secondary fuels of diesel
oil or coal. In January 2016, HC&S announced it will discontinue the growing and harvesting of
sugar cane, and provided Maui Electric with a notice of termination of the amended PPA
effective January 6, 2017 since it will discontinue the growing and harvesting of sugar cane.”
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