BEFORE THE PUBLIC UTILITIES COMMISSION

OF THE STATE OF HAWAII

In the Matter of

PUBLIC UTILITIES COMMISSION DOCKET NO. 2019-0323

Instituting a Proceeding to Investigate Distributed Energy Resource Policies.

ORDER NO. 3 6 9 22APPROVING THE HAWAIIAN ELECTRIC COMPANIES' REVISED SCHEDULE

TOU-RI TARIFF SHEETS, FILED NOVEMBER 27, 2019

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BEFORE THE PUBLIC UTILITIES COMMISSION

OF THE STATE OF HAWAII

- - In the Matter of - -

PUBLIC UTILITIES COMMISSION

Instituting a Proceeding to Investigate Distributed Energy Resource Policies.

Docket No. 2019-0323

Order No. 3 6 9 2 2 '

APPROVING THE HAWAIIAN ELECTRIC COMPANIES' REVISED SCHEDULE TOU-RI TARIFF SHEETS, FILED NOVEMBER 27, 2019

By this Order, the Public Utilities Commission

{"commission") approves the Companies'^ proposed revised TOU-RI

^The Parties to this proceeding are HAWAIIAN ELECTRIC COMPANY, INC. ("HECO"), HAWAII ELECTRIC LIGHT COMPANY, INC. ("HELCO"), MAUI ELECTRIC COMPANY, LIMITED ("MECO") (collectively, HECO, HELCO, and MECO are referred to as the "Companies") and the DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS, DIVISION OF CONSUMER ADVOCACY {the "Consumer Advocate"), an ^ officio party, pursuant to Hawaii Revised Statutes § 269-51 and Hawaii Administrative Rules § 16-601-62(a). In addition, the commission has granted Intervenor status to the HAWAII PV COALITION, the DISTRIBUTED ENERGY RESOURCES COUNCIL OF HAWAII, and the HAWAII SOLAR ENERGY ASSOCIATION. Order No. 36777, "(1) Granting Motions to Intervene Filed By Hawaii PV Coalition, Distributed Energy Resources Council Of Hawaii, And Hawaii Solar Energy Association; (2) Dismissing Without Prejudice The Motion To Participate Filed By Itron, Inc.; (3) Enlarging Time For Itron, Inc. To File A Motion To Participate; And (4) Addressing Other Preliminary Matters," filed November 15, 2019.

tariff sheets, filed on November 27, 2019,^ which shall take effect

on January 1, 2020.

I.

BACKGROUND

On September 16, 2016, in Docket No. 2014-0192,

the commission issued Order No. 33923, which established an

interim time-of-use ("TOU-RI") program for residential customers

of the HECO Companies.^ Under Order No. 33923, the Companies are

instructed to refresh the marginal cost data underlying the

TOU-RI rates on an annual basis.** Pursuant to Order No. 33923,

^Letter From: K. Katsura To: Commission Re: Docket No. 2019-0323 - Hawaiian Electric Companies' DER Policies; Schedule TOU-RI Tariff Sheets Effective January 1, 2020, filed November 27, 2019 ("2020 TOU-RI Tariffs").

^In Public. Util. Comm'n, Docket No. 2014-0192,

Order No. 33923, "Instructing the Hawaiian Electric Companies to Submit Tariffs for an Interim Time-Of-Use Program," filed September 16, 2016 ("Order No. 33923").

Docket No. 2014-0192 was an investigatory docket opened by the commission to examine policies for distributed energy resources ("DER") in Hawaii. On August 19, 2019, the commission issued Order No. 36476, which, in relevant part, closed Docket No. 2014-0192, observing that the commission intended to open this proceeding (Docket No. 2019-0323) to examine policies and programs related to DER comprehensively with Demand Response ("DR") policies and programs, which had previously been examined separately in Docket No. 2015-0412. Docket No. 2014-0192, Order No. 36476, "Modifying Hawaii Electric Light Company's Smart Export Program and Closing the Docket," filed August 19, 2019 ("Order No. 36476") .

^Order No. 33923 at 44.

2019-0323

the Companies were instructed to file compliant TOU-RI tariffs

within thirty days of Order No. 33923, at which time they would

take effect.^

On October 18, 2016, the Companies submitted their

initial TOU-RI tariffs to the commission ("initial TOU-RI

tariffs"), at which time they took effect. Consistent with

Order No. 33923, the initial TOU-RI tariffs were effective until

October 17, 2018.^

On September 10, 2018, the Companies filed a request

seeking, among other things, an extended effective date of

October 18, 2018, for the initial TOU-RI tariffs."^ Included in

this TOU-RI extension request were proposed tariff sheets that

would extend the initial TOU-RI tariffs beyond the initial period

ending October 17, 2018 ("2018 TOU-RI tariffs").^

On October 9, 2018, the commission issued Order No. 35740

which, in pertinent part, granted the Companies' TOU-RI extension

request and approved the 2018 TOU-RI tariffs with an effective

border No. 33923 at 51.

®See Schedule TOU-RI tariff sheets, effective

October 18, 2016, for HECO, HELCO, and MECO.

'^Docket No. 2014-0192, Letter From: K. Katsura To: Commission Re: Docket No. 2014-0192 - Distributed Energy Resource Policies Investigation; Hawaiian Electric Companies' Request to Extend TOU-RI Tariff Sheets, filed September 10, 2018

("TOU-RI Extension Request").

^See TOU-RI Extension Request, Attachment 1.

2019-0323 3

date of October 18, 2018, thereby extending the TOU-RI program.^

In addition, the commission ruled that, consistent with

Order No. 33923, the Companies' TOU-RI rates must be updated to

incorporate estimated marginal costs for 2019.^° Accordingly,

notwithstanding the approval of the 2018 TOU-RI tariffs,

approved to take effect October 18, 2018, the commission

instructed the Companies to submit updated TOU-RI tariff sheets

that reflected marginal cost data for 2019, which would take effect

on January 1, 2019 ("2019 TOU-RI tariffs").

On November 21, 2018, the Companies submitted their

2019 TOU-RI tariffs, scheduled to take effect on January 1, 2019,

which incorporated estimated 2019 marginal costs, consistent with

the commission's directives in Order No. 35740.

On December 21, 2018, the commission issued

Order No. 35970, which approved the Companies' 2019 TOU-RI tariffs

for HELCO and MECO, with an effective date of January 1, 2019.^2

Regarding HECO, the commission noted that the approval of the

^Docket No. 2014-0192, Order No. 35740, "Partially Approving the Hawaiian Electric Companies' Request to Extend TOU-RI Tariff Sheets, Filed on September 10, 2018," filed October 9, 2018 ("Order No. 35740"); see also, TOU-RI Extension Request, Attachment 1.

loOrder No. 35740 at 8-9 and 12.

iiOrder No. 35740 at 12.

^^Order No. 35740 at 4-5.

2019-0323

Energy Cost Recovery Clause in HECO's 2017 test year rate case,

Docket No. 2016-0328, which was then on-going, required further

adjustments to HECO's 2019 TOU-RI tariffs, to account for

the removal of fuel and purchased power from base rates.

The commission instructed HECO to re-file its 2019 TOU-RI tariffs

by December 31, 2018, so that they could also have an effective

date of January 1, 2019.

On December 28, 2018, the Companies submitted their

revised 2019 TOU-RI tariffs for HECO, consistent with the

directives in Order No. 35970, which took effect on

January 1, 2019.

On August 19, 2019, the commission issued

Order No. 36476, which closed Docket No. 2014-0192.^^ In relevant

part, Order No. 36476 recognized that the commission was

consolidating its investigation of DER policies and programs

{Docket No. 2014-0192) with its investigation of DR policies and

programs (Docket No. 2015-0412) into a comprehensive new docket.

i^Order No. 35970 at 5-7.

^‘^Docket No. 2014-0192, Order No. 36476, "Modifying Hawaii Electric Light Company's Smart Export Program, and Closing the Docket," filed August 19, 2019 ("Order No. 36476") .

2019-0323 5

Docket No. 2019-0323.^^ The commission instructed the Companies

to continue filing their DER reports in Docket No. 2019-0323.^^

On November 21, 2019, the Companies submitted their

2020 TOU-RI Tariffs in this proceeding. In accordance with

Order No. 33923, the Companies' 2020 TOU-RI Tariffs "utilize the

estimated marginal cost of production for 2020."^'^

II.

DISCUSSION

Upon review of the 2020 TOU-RI Tariffs, it appears that

the Companies have complied with Order No. 33923 by refreshing the

TOU rates with updated estimates of marginal costs for the next

calendar year, i.e., 2020.^® Accordingly, the commission approves

the Companies' 2020 TOU-RI Tariffs. The 2020 TOU-RI Tariffs shall

have an effective date of January 1, 2020.

i^Order No. 36476 at 19-26.

^^Order No. 36476 at 26; see also. Order No. 36538, filed on September 25, 2019, in this docket, at 13.

1^2020 TOU-RI tariffs, cover letter at 1.

^^See 2020 TOU-RI tariffs, cover letter at 1; and Order No. 33923 at 50-51.

2019-0323

Ill.

ORDERS

THE COMMISSION ORDERS that the Companies' 2020 TOU-RI

Tariffs, filed on November 27, 2019, are approved and shall take

effect January 1, 2020.

DONE at Honolulu, Hawaii DEC 3 0 2019

PUBLIC UTILITIES COMMISSION OF THE STATE OF HAWAII

Jeirnif er

f R. Asuncil CommissionerLeodol

APPROVED AS TO FORM:

Mark Kaetsu^ Commission Counsel

2019-0323-ljk

2019-0323

CERTIFICATE OF SERVICE

The foregoing order was served on the date of filing by mail,

postage prepaid, and properly addressed to the following parties:

DEAN NISHINA EXECUTIVE DIRECTORDEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS DIVISION OF CONSUMER ADVOCACY P. O. Box 541 Honolulu, HI 96809

KEVIN M. KATSURAMANAGER, REGULATORY NON-RATE PROCEEDINGS HAWAIIAN ELECTRIC COMPANY, INC.

P. O. Box 2750 Honolulu, HI 96840-0001

ROBERT D. HARRIS HAWAII PV COALITION 437 Keolu Drive Kailua, HI 96734

CHRIS DeBONE PRESIDENT

DISTRIBUTED ENERGY RESOURCES COUNCIL OF HAWAII P.O. Box 2553 Honolulu, HI 96813

ISAAC H. MORIWAKE KYLIE W. WAGER CRUZ EARTHJUSTICE

850 Richards Street, Suite Honolulu, HI 96813

400

Attorneys for HAWAII SOLAR ENERGY ASSOCIATION