NOTICE OF PUBLIC HEARING
APPLICATION OF HAWAIIAN ELECTRIC COMPANY, INC.
FOR APPROVAL OF RATE INCREASES AND
REVISED RATE SCHEDULES AND RULES
DOCKET NO. 2019-0085
NOTICE IS HEREBY GIVEN that, pursuant to Hawaii Revised Statutes §§ 269-12 and 269-16, the STATE OF HAWAI’I PUBLIC UTILITIES COMMISSION (“Commission”) will hold a public hearing relating to the Application of HAWAIIAN ELECTRIC COMPANY, INC. (“Hawaiian Electric”), filed on August 21, 2019, for Commission approval of rate increases and revised rate schedules and rules (“Application”).
The public hearing will be held as follows:
Thursday, November 14, 2019, at 6:00 p.m.
Public Utilities Commission
465 South King Street, Room 103
Honolulu, Hawaii 96813
Hawaiian Electric is an operating public utility engaged in the production, purchase, transmission, distribution, and sale of electricity on the island of Oahu. Hawaiian Electric seeks to increase its rates by $77,554,000, or approximately 4.12% over revenues at current effective rates, based on a revenue requirement of $1,960,400,000 for a normalized calendar 2020 test year (“2020 Test Year”). If the effects of the revenues that Hawaiian Electric receives pursuant to the Revenue Balancing Account (“RBA”), Rate Adjustment Mechanism (“RAM”), Major Project Interim Recovery (“MPIR”) adjustment mechanism, and Demand Side Management (“DSM”) surcharge (which all operate as separate cost recovery mechanisms aside from base rates) are included, Hawaiian Electric’s requested increase is $146,961,000, or approximately 8.10% over revenues at present rates, to achieve a revenue requirement of $1,960,401,000. Hawaiian Electric states that the requested increase is based on fuel prices in 2018, the depreciation rates recently approved in Decision and Order No. 35606, filed July 30, 2018, in Docket No. 2016-0431, and a 7.97% rate of return, which incorporates a return on common equity of 10.50%, on Hawaiian Electric’s average rate base of $2,476,801,000.
As part of its Application, Hawaiian Electric also proposes the following:
(1) certain modifications to the Energy Cost Recovery Clause (“ECRC”) tariff to: (a) revise the target heat rates for low sulfur fuel oil (“LSFO”) to reflect 2020 test year production simulations; (b) widen the heat rate deadband for LSFO; (c) modify the annual adjustment to the LSFO target heat rate to be bi-directional; and (d) modify the non-adjustable component to reflect 2020 test year fuel handling expenses.
(2) modification to the RBA Provision tariff such that the monthly allocation factor applicable to target revenues is based on the number of days in the month, and to modify the RBA rate adjustment such that it is applied as a non-bypassable percentage of base revenues.
(3) certain modifications to Hawaiian Electric’s tariffs including but not limited to: (a) Rule No. 6 on customer deposits; (b) Rule No. 7 to increase the Service Establishment Charge and the additional charge for same day service or for service outside of normal business hours; and (c) an increase of the paper application fee and establishment of the CIT (Customer Interconnection Tool) application fee.
(4) change in rate base related to the treatment of contributions in aid of construction and developer advances.
(5) allocation of the interim and final increase in electric revenues such that each rate class moves closer to their respective cost of service.
Hawaiian Electric also requests that should the Commission approve an interim increase, any interim rate increase be implemented as a surcharge on base revenues, calculated as a percentage increase on revenues at current effective rates.
The increases in Hawaiian Electric’s rates and charges to be finally approved by the Commission, if any, may be higher or lower than the proposed rates and charges noted in Hawaiian Electric’s Application.
Hawaiian Electric’s Application is available for review through the Commission’s electronic Document Management System, accessible at the following website address: http://dms.puc.hawaii.gov/dms/, Docket Quick Link 2019-0085. In addition, Hawaiian Electric’s Application is available for review by contacting Hawaiian Electric [(808) 548-7311], the Commission’s Honolulu Office [(808) 586-2020], or the Division of Consumer Advocacy [(808) 586 2800].
All interested persons are invited to attend the public hearing to state their views on Hawaiian Electric’s Application orally, in writing, or both. So that all in attendance will have the opportunity to speak at the public hearing, the Commission may impose time limits for each person’s testimony. Special accommodations for persons with disabilities can be made if requested reasonably in advance by contacting the Commission’s Honolulu Office. Written statements may also be mailed to the Public Utilities Commission at 465 South King Street, Room 103, Honolulu, Hawai’i 96813, or submitted via electronic mail at firstname.lastname@example.org. All written statements should reference Docket No. 2019-0085 and include the author’s name and the entity or organization that the author represents, if any. Any motions to intervene or participate in this proceeding must comply with the applicable provisions of the Commission’s Rules of Practice and Procedure Before the Public Utilities Commission, Hawai’i Administrative Rules, Title 16, Chapter 601, and must be filed with the Commission at its Honolulu Office by November 25, 2019.
Alan M. Oshima
President and CEO
Hawaiian Electric Company, Inc.