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  • Crutch or Bridge? Panel Debates Using Liquefied Natural Gas in Hawaii

    · By Nathan Eagle

    Hawaii Gas and Hawaiian Electric Co. executives stood firm Tuesday in their support of liquefied natural gas as the transitional fuel the state needs to achieve its 100 percent renewable energy goal by 2045, touting its financial efficiency and environmental attributes.

    Ron Cox of HECO and Joseph Boivin of Hawaii Gas served on a panel with Blake Blackwell of Excelerate Energy and Kyle Datta of Ulupono Initiative, taking up the issue of LNG on the second day of the Asia Pacific Resilience Innovation Summits & Expo.

    Their 90-minute discussion, moderated by John Pierce of Perkins Coie, came after Gov. David Ige announced his opposition to LNG on the first day of the three-day conference at the Hawaii Convention Center.

    A liquefied natural gas ship exhibit at the Asia Pacific Resilience Innovation Summits & Expo.

    Cory Lum/Civil Beat

    “We’re on the same mission,” Cox said. “We just think that using cleaner and cheaper natural gas that’s more stable in price would be a good bridge fuel to help us get to that 100 percent renewable energy future.”

    He said LNG would have a side benefit of being able to be used in the transportation sector, pointing at a study that found that by 2040 as much as 60 percent of the demand would come outside of distributed generation facilities.

    Because it’s a cleaner fossil fuel, Cox said transitioning to LNG would be the equivalent of taking 49,000 cars off the road.

    “It’s not a

  • Partners in Proposed Power Merger Pressed to Release LNG Emails

    · By Nathan Eagle

    A social investment firm has joined Hawaii Gas in calling on the state Public Utilities Commission to force NextEra Energy and Hawaiian Electric to turn over internal emails about using liquefied natural gas to help power the islands.

    Ulupono Initiative filed a motion this week in support of Hawaii Gas’ request that the PUC compel the information, an action NextEra and Hawaiian Electric have opposed.

    “We believe that the more NextEra is willing to be transparent about its plans and intentions, even if not fully formed, the more we can trust them, and the more we can have a relationship based on mutual respect,” Kyle Datta, a general partner at Ulupono, told Civil Beat on Wednesday.

    Hawaii Gas workers unearth and replace gas pipes along South Beretania Street before a repaving project.

    Cory Lum/Civil Beat

    The PUC is eight months into the biggest utility merger case in Hawaii history. A decision on the proposed $4.3 billion sale of Hawaiian Electric Industries to Florida-based NextEra Energy is not expected until June, but the back-and-forth between the companies and some of the 28 PUC-appointed intervenors has been heating up.

    In July, Gov. David Ige’s administration came out against the planned merger as it currently stands.

    He questioned the companies’ support of the state’s goal of becoming 100 percent renewable by 2045 and said the information submitted so far lacks sufficient responses to show why the sale would benefit Hawaii’s electric customers.

    ‘The Same Type of Stonewalling’

    NextEra has repeatedly tried to assure public officials and others that the deal is good for Hawaii.

  • Ige Rebuffs Merger Deal Between NextEra Energy and Hawaiian Electric

    · By Nathan Eagle

    Hawaii Gov. David Ige and two key state agencies are not convinced that it would be in the public’s best interest for Hawaiian Electric Industries to sell itself to Florida-based NextEra Energy.

    The Office of Planning and Department of Business, Economic Development and Tourism came out in opposition to the planned $4.3 billion deal in their voluminous comments Monday to the Public Utilities Commission.

    Ige called a press conference Tuesday to address the state’s position.

    Gov. David Ige answers questions during a press conference Tuesday regarding the state’s opposition to the planned NextEra Energy purchase of Hawaiian Electric Industries.

    Cory Lum/Civil Beat

    “Although I welcome capital investment in Hawaii with respect to energy, any merger or investment must align with the state’s 100 percent renewable energy goal,” he said.

    “We are taking the position that the merger as proposed at this point is unacceptable.”

    Ige described NextEra’s responses to questions about the state’s 100 percent goal as “vague and noncommital, to say the least.”

    The governor said the state is also concerned about losing local control of a company based some 5,000 miles away.

    “We are looking for a partner that shares our hopes and dreams,” Ige said. 

    NextEra remains committed to the deal.

    “NextEra Energy and the Hawaiian Electric Companies believe that this merger truly is in the best interest of the state of Hawaii, and in particular, Hawaiian Electric’s customers,” NextEra spokesman Rob Gould said in a statement Tuesday.

    “That said, we know

  • Achieving the Impossible: A Renewable Energy Future

    · By Chris Lee

    Achieving what many once thought impossible, Hawaii is the first state requiring electric utilities to generate 100 percent of their power from renewable energy. Governor Ige has signed the new bill into law triggering a 30-year countdown to 2045, by which time Hawaii utilities must eliminate their use of fossil fuels.

    Locally, this dramatic shift from fossil fuels to renewable energy will mean big savings for Hawaii consumers, a boost to our economy, and a cleaner future for our next generation. But perhaps equally important, an entire state abandoning fossil fuels may signal to the rest of the nation that the climate debate is over and the time for action is now.

    Rep. Chris Lee, left, was the chief architect of the renewable energy bills signed into law this week by Gov. David Ige.

    Cory Lum/Civil Beat

    Residents know Hawaii has relied on imported fossil fuels more than any other state just by checking their electric bills. Just 10 years ago imported fossil fuels accounted for 90 percent of our energy, contributing to electricity prices three times the national average, stifling business and raising the cost of living.

    Since then, we have already more than doubled our renewable energy production which has begun to boost the economy and save consumers hundreds of millions of dollars. Beginning to replace fossil fuels with renewables saved $67 million, or about $150 per household, in 2012 alone.

    Forcing the utilities to invest in renewable energy projects also created a booming new renewable energy industry.

  • Hawaiian Electric Shareholders Approve Takeover By NextEra

    · By Patti Epler

    The proposed merger of Hawaiian Electric Co. with Florida’s NextEra Energy has crossed another hurdle. Hawaiian Electric Industries officials say shareholders have finally approved the merger, something they had been reluctant to do four weeks ago.

    NextEra wants to acquire Hawaii’s primary electric utility in a $4.3 billion deal that is under review by the state Public Utilities Commission. The merger needs shareholder approval to move forward but last month fell short of the supermajority — 75 percent of shareholders — required under state law.

    In a press release, HEI said about 90 percent of shareholders favored the deal in the new round of voting on Wednesday.

    The merger involves HECO, Maui Electric Co. and Hawaii Electric Light Co. on the Big Island. Activist groups on both Maui and the Big Island are exploring ways to form new power companies for those islands, much as Kauai did years ago with the Kauai Island Utility Cooperative.

    While the Federal Energy Regulatory Commission has approved the proposed merger, the transaction remains subject to other regulatory approvals including approval by the PUC, other customary closing conditions and the spinoff of American Savings Bank, a subsidiary of HEI and one of Hawaii’s largest full-service financial institutions, according to HEI’s press release.

    The Hawaiian Electric building in downtown Honolulu.

    Cory Lum/Civil Beat

  • Hawaii’s Bold New Approach to Energy Policy

    · By The Civil Beat Editorial Board

    Quietly and without much opposition or fanfare, Hawaii in recent weeks has taken huge, historic steps toward a sustainable energy future characterized by an end to decades of costly reliance on fossil fuels.

    On Monday, Gov. David Ige signed House Bill 623, which provides for Hawaii to move gradually and consistently over the next 30 years to a new reality in which our electric utilities generate all their power from renewable sources — 100 percent.

    Hawaii is the first state to commit to such a goal. And that’s entirely appropriate, given that our state is currently the most dependent on fossil fuels in the country — a dependency that is bleeding us dry.

    This will not only mean dramatically higher uses of solar, wind and geothermal power — already rapidly growing components in our mix of energy sources — but the likely emergence of untapped resources, such as wave and tidal energy, hydrogen power and more. In fact, Ige signed two other bills Monday that would facilitate growth of hydrogen use in Hawaii and create a community based renewable energy program.

    Rep. Chris Lee and Sen. Mike Gabbard fist-bump after Gov. David Ige signs the bill.

    Cory Lum/Civil Beat

    “Hawaii spends roughly $5 billion a year on foreign oil to meet its energy needs,” Ige said in a statement. “Making the transition to renewable, indigenous resources for power generation will allow us to keep more of that money at home, thereby improving our economy, environment and energy

  • Geothermal Developer Denies Fraud in Response to Whistleblower Lawsuit

    · By Rui Kaneya

    In a document filed Tuesday at a federal court in Nevada, the owner of Hawaii’s sole geothermal power plant denied allegations that it fraudulently obtained more than $130 million in federal grants.

    Ormat Technologies Inc., a Nevada-based geothermal power developer, could face penalties of up to $400 million in a whistleblower lawsuit brought by two of its former employees.

    At issue are federal grants Ormat received through the U.S. Department of Treasury’s 1603 program, an initiative created under the so-called stimulus package in 2009. The plaintiffs allege that the company “knowingly and purposefully exploited” the program by filing fraudulent grant applications.

    The Puna Geothemal Ventures plant on the Big Island.

    Ormat Technologies Inc.

    In its first answer to the plaintiffs’ complaint, Ormat — which owns Puna Geothermal Ventures, the operator of a geothermal power plant on the Big Island — categorically denied any wrongdoing.

    “All accusations of an intent to defraud the Treasury or to obtain grants to which Ormat was not entitled are specifically rejected,” it wrote. “Ormat generally denies the allegations of wrongdoing in the complaint and affirmatively asserts that, at all times, Ormat and its officers acted reasonably and in good faith in light of all circumstances and in compliance with all applicable legal requirements.”

    The lawsuit, filed in 2013, has been making its way slowly through the court. Ormat initially sought to dismiss it on technical grounds, but a federal judge rejected the move in March and forced the company to file its response this week.

    It appears

  • Battle Over Geothermal Contract Plays Out in Court and at PUC

    · By Rui Kaneya

    It looked as though the end was finally in sight.

    In February, Hawaii Electric Light Co. selected Ormat Technologies Inc. to provide an additional 25 megawatts of geothermal energy to the Big Island grid, completing a drawn-out bidding process that began nearly four years ago.

    In many ways, the selection seemed a logical one for HELCO. Ormat is the Nevada-based owner of Puna Geothermal Ventures, which operates Hawaii’s sole geothermal plant that already produces up to 38 megawatts of power for the Big Island’s electric utility.

    The entire deal, in theory, could be complete within a matter of weeks. HELCO now only needs the state Public Utilities Commission to sign off on its power purchase agreement with Ormat — which, according to the company’s schedule, will be submitted for the PUC’s review by the end of the month.

    But not so fast.

    The Puna Geothemal Ventures plant on the Big Island.

    Ormat Technologies Inc.

    HELCO’s critics, including Ormat’s bidding competitors, are vowing to challenge the deal. They contend that the entire bidding process was rigged from the get-go in favor of Ormat, which has long enjoyed a chummy relationship with HELCO.

    And they say their arguments are bolstered by a whistleblower lawsuit making its way through a federal court in Nevada.

    As Civil Beat recently reported, two former Ormat employees sued the company in 2013, alleging that it lied to the U.S. Department of Treasury to land more than $130 million in federal grants. In March, a federal judge rejected Ormat’s attempt to

  • New Tesla Batteries May Answer Hawaii Energy Problem

    · By Nathan Eagle

    Tesla is expected to make a major announcement next Thursday about a new battery that can store energy from rooftop solar systems instead of dumping it back into the grid, which can overwhelm old utility infrastructure.

    All eyes are on Hawaii, the nation’s leader in solar energy with 12 percent of homes having some type of system.

    Everyone from Gizmodo to the New York Times have featured the islands and Hawaiian Electric Co. in recent stories about the problem of so much solar energy being produced that the utility can’t handle it.

    Solar panels on a parking structure in Kakaako.

    PF Bentley/Civil Beat

    “The absolute best idea is for homeowners to start installing batteries that can store the power for later use instead of giving the power back to the utilities, something called peak load shaving,” Alissa Walker wrote in a piece for Gizmodo on Thursday.

    Tesla Motors, which produces those fancy yet relatively affordable electric cars, hasn’t revealed much about its new home battery or the utility-scale one it’s also making. The batteries could store solar as well as energy from other renewable sources like wind and waves.

    Hawaii would top the list of places that could benefit from the new technology.

    A front-page NYT story Sunday neatly laid out the problem the state is facing as residents, struggling to afford among the nation’s highest electric bills, are having trouble installing rooftop PV systems because HECO can’t handle the load. The utility was designed to send power to homes, not receive it.

    “Hawaii’s case is not

  • Suit Alleging Massive Fraud Includes Hawaii Geothermal Plant

    · By Rui Kaneya

    Ormat Technologies Inc., the Nevada-based owner of the Big Island’s geothermal power plant, is trying to fend off a whistleblower lawsuit that could cost the company hundreds of millions of dollars in penalties.

    The lawsuit, filed under seal in 2013, alleges that Ormat and its subsidiaries — including Puna Geothermal Ventures, which operates the Big Island plant — lied to the U.S. Department of Treasury to secure about $136 million in federal grants.

    Unsealed in 2014, the case has been making its way slowly through the courts without much public scrutiny. In March, Ormat’s attempt to have the case tossed on technical grounds was rebuffed by a federal judge in Nevada, and it now has until April 28 to respond to the allegations.

    The Puna Geothemal Ventures plant on the Big Island.

    Ormat Technologies Inc.

    The case focuses on federal assistance that Ormat received through the U.S. Treasury Department’s 1603 grant program, an initiative created under the so-called federal stimulus package, the American Recovery and Reinvestment Act of 2009, that provides cash payments to qualifying renewable energy projects.

    Two former Ormat employees who brought the lawsuit allege that the company “knowingly and purposefully exploited” the program to “perpetuate and sustain a financial fraud of unprecedented proportions.”

    “Ormat carried out this scheme by … submitting false or fraudulent grant applications, certifications of compliance, reports and claims to the federal government under 1603, thereby obtaining hundreds of millions of dollars in payments to which it was never entitled,” the plaintiffs’ complaint states.

    An Ormat

  • Could Hawaii Geothermal Plant Become a Windfall for Public?

    · By Rui Kaneya

    Last year, Tesla Motors, the maker of all-electric luxury sedans, revealed its plan to open a $5 billion battery factory, the world’s largest. The idea is to mass-produce the lithium-ion batteries it needs to reach its goal of making 500,000 electric cars a year by 2020.

    To make it work, the company has to find enough lithium, the lightest of all metals found on earth and the hidden power behind modern gadgets, like cellphones, laptops and a new generation of electric cars.

    The trouble is, there’s nowhere near enough battery-grade lithium currently being mined to meet the sudden demand, and it’s spurring a race to find new sources in the remotest corners of the world, from the wilds of northern Tibet to distant salt plains in South America.

    But the solution could come from an unlikely source: geothermal power plants, including the one operating on the Big Island.

    The Puna Geothermal plant on the Big Island.

    Courtesy of Puna Geothermal Venture

    An emerging technology is making it possible to extract lithium from the hot, mineral-rich brine that geothermal power plants pump out of the ground to generate energy. And the technology is not limited to extracting lithium — it can also recover a variety of other rare earth elements and valuable metals out of what is now being treated as wastewater.

    In the parlance of geothermal engineering, this is called “solution mining by nature,” and the potential profits to be made from it are immense — so much so that it

  • State Tracking Sustainability Progress Via New Online Dashboard

    · By Nathan Eagle

    Hawaii residents are spending more than three times as much on imported fuel than they were a decade ago, state data shows.

    But total fossil fuel use and emissions have come down during that same period.

    That’s just some of the info you can quickly glean from a new online dashboard that Gov. David Ige’s administration was touting Monday.

    Members of the Hawaii Green Growth partnership, including county mayors, the UH president and others, applaud the launch of a new online dashboard to track state sustainability goals, April 1.

    Office of the Governor

    You can also see that Hawaii is on track to reduce total fossil fuel use to below the 2008 level and increase total clean energy to 70 percent by 2030.

    Ige, the four county mayors, the Office of Hawaiian Affairs, University of Hawaii and Hawaii Green Growth launched the Aloha+ Challenge dashboard last week. It features indicators for two of six targets — clean energy and solid waste reduction — that were set, according to a release from the governor’s office Monday.

    Indicators for the four remaining Aloha+ Challenge targets — local food, natural resource management, smart sustainable communities, and green workforce and education — are expected to be complete by 2017.

    “As a new initiative, we are spearheading a statewide Sustainable Transportation Committee to form partnerships and fund projects in support of clean energy and sustainable communities,” Ige said in the release.

    “I will continue to work closely with the mayors, OHA, state legislature, UH and other partners to make progress on the Aloha+ Challenge in the next

  • Blue Planet Foundation Blasts Hawaii PUC Ruling

    · By Nathan Eagle

    One of the top clean-energy nonprofits in Hawaii sharply criticized the state Public Utilities Commission on Wednesday over its much anticipated order on decoupling, which separates Hawaiian Electric’s revenues from its sales.

    Blue Planet Foundation, headed by Jeff Mikulina, said the commission failed to adopt proposals to tie the utility’s revenues to clean energy performance.

    The nonprofit also faulted the PUC’s rationale for not doing so, noting how the regulators’ decision says performance-based utility regulations are “impractical” at this time because the utility lacks a clear strategic plan and because the pending sale of Hawaiian Electric to NextEra Energy could have a major impact on the operation of the Hawaiian Electric companies.

    Hawaiian Electric’s Iwilei station.

    Cory Lum/Civil Beat

    “The tail is wagging the dog here,” Mikulina said in a release. “We shouldn’t use the lack of a utility strategic vision as a reason to protect the status quo. It should be the other way around.”

    He pointed at the fact that the decoupling review began long before Florida-based NextEra and Hawaiian Electric Industries announced their $4.3 billion merger deal and before Hawaiian Electric’s power supply improvement plans were released.

    Blue Planet also highlighted how the incentives currently in place within the decoupling mechanism haven’t yielded utility performance that customers demand.

    “The Commission had a perfect opportunity to shape the structure under which customers should expect the ‘new’ NextEra-owned utility to perform,” Mikulina said.

    “Instead, customers will be asked to accept a new utility operating under the old incentive system,” he said, noting the status-quo strategy of fossil fuels,

  • Hawaiian Electric CEO: We Will Continue to Pursue LNG

    · By Nathan Eagle

    Hawaiian Electric Industries CEO Connie Lau made it clear during her closing speech Thursday at the Maui Energy Conference that the company will continue to pursue liquefied natural gas as a “bridge fuel.”

    Moments earlier she highlighted how “amazingly aligned” virtually everyone seems to be in terms of the end goal of getting off imported oil and transforming the energy landscape.

    Lau acknowledged that people may disagree over how Hawaii gets there — and the pace. A temporary shift to LNG is definitely one of the areas in which there’s disagreement, particularly over the necessary infrastructure costs and concerns over the “fracking” process that is used to produce some natural gas.

    Hawaiian Electric Industries Chairwoman and CEO Connie Lau speaks at the Maui Energy Conference, Thursday.

    Nathan Eagle/Civil Beat

    Her remarks closed the conference with the same tone and focus that HECO President Alan Oshima and NextEra Energy Hawaii President Eric Gleason had opened it with the previous day. It was a message of hope, of improving customer relationship and assuaging fears over NextEra’s purchase of HECO.

    When she and NextEra CEO Jim Robo jointly announced their $4.3 billion deal in December, the expectation was that it would close within a year. But the new head of the Public Utilities Commission, Randy Iwase, has since said that the regulatory process will likely take 18 months.

    A critical player in that review is the state Division of Consumer Advocate, headed by Jeff Ono,

  • Geothermal Study Planned for Hualalai Volcano

    · By Chad Blair

    The Hawaii Tribune-Herald has this item on big geothermal plans on the Big Island. Excerpt:

    The search for geothermal energy under the dormant Hualalai volcano is moving forward.

    A University of Hawaii researcher has asked the state Board of Land and Natural Resources for a geothermal exploration permit to conduct a noninvasive geophysical study of the west rift zone of Hualalai, just north of Kailua-Kona.

    The project is funded by the U.S. Department of Energy and the state Department of Land and Natural Resources, researcher Nicole Lautze, with the Hawaii Institute of Geophysics and Planetology, said in her application. She did not return a phone message left at her office by press time Monday.

    The Land board is scheduled to consider the application Friday. The meeting is held in Honolulu and begins at 9 a.m. …

    Hawaii, as you may be aware, is overly dependent on imported fossil fuels for its energy needs.


    Volcanic emissions on the Big Island.