Hawaiian Electric recently announced it has renegotiated three renewable energy contracts — Puna Geothermal Venture, Hawi Renewable Development, and Wailuku River Hydroelectric — to be at fixed rates, which will result in "long-term savings" for Hawaii Island customers. The amended contracts were recently filed with the Hawaii Public Utilities Commission for approval, according to the announcement.
Based on current rates, a typical residential customer could see savings between $9 to $13 per month, according to Hawaiian Electric. The amount of savings also depends on when PGV and HRD expand their output, which is expected to happen in 2026. The majority of savings will come from the amended PGV contract, according to the announcement.
"Commercial customers can expect a reduction of 2 to 2.5 cents per kilowatt hour. The savings will depend on their specific rate schedule," A spokesperson for Hawaiian Electric told PBN in an email.
“We’ve been working hard with our independent power producers to amend these contracts to provide substantial benefits to our customers on Hawaii Island,” Hawaiian Electric Vice President of Resource Procurement, Rebecca Dayhuff Matsushima, said in a statement. “Benefits include bill savings, stabilized energy rates, more renewable energy and reliability, and decreased fossil fuel consumption and greenhouse gas emissions."
The original contracts were negotiated when utilities were required to purchase energy from renewable energy producers at “avoided cost," which means paying the same rate avoiding the use of oil, according to Hawaiian Electric.
The PUC conditionally approved the PGV contract in March 2022, subject to an environmental review, and a first amendment to the contract was filed in April. The amendment includes an updated in-service date of September 2026, and the facility would be repowered with modern generating equipment and could provide up to 46 megawatts to the grid, according to the announcement.
The amended Hawi Renewable Development was filed in December 2021. A first amendment to the contract was filed in January 2023, which includes the upgrading and repowering of the facility to provide up to 34 megawatts, according to Hawaiian Electric.
A second amendment to the existing Wailuku River Hydroelectric contract is currently under review. Hawaii Island customers could see bill savings from the hydroelectric contract as early as this summer, according to the announcement.
The remaining long-term avoided cost contract, Pakini Nui Wind Farm, expires in 2027, according to Hawaiian Electric.
