Hawaiian Electric seeks to speed up development of low-cost renewable energy for Oahu

 Hawaiian Electric seeks to speed up development of low-cost renewable energy
                                   for Oahu

PR Newswire

HONOLULU, June 19, 2013

HONOLULU, June 19, 2013 /PRNewswire/ --To accelerate the development of
renewable energy resources, Hawaiian Electric Company (HECO),subsidiary of
Hawaiian Electric Industries, Inc. (NYSE: HE),has asked the Public Utilities
Commission for permission to negotiate with five proposed projects that could
quickly provide low-cost electricity for Oahu.

If the PUC approves, Hawaiian Electric will negotiate power purchase
agreements directly with the developers of the five projects, which include a
mix of solar and wind technologies across Oahu with a combined capacity of 64
megawatts. Hawaiian Electric anticipates negotiating long term, 20-year
contracts with each project.

Combined, the projects have committed to sell electricity to Hawaiian Electric
at an average price of 15.9 cents per kilowatt-hour. This is about one-third
less than prices paid to existing solar and wind energy projects on Oahu and
the current cost of generating electricity from oil. 

"These projects represent an important first step as we are starting to see
lower market prices for renewable energy," said Scott Seu, Hawaiian Electric
vice president for Energy Resources and Operations. "The strong response we
received demonstrates the high level of competition in our market. That's good
news for our customers."

Based on preliminary estimates, Hawaiian Electric expects the combined effect
of all five of these projects could reduce generation costs by approximately
$7.4 million a year, compared to today's cost of generation. Hawaiian
Electric's goal is to have as many of these projects as possible in service by
the end of 2015.

"Every step we take toward reducing our customers' bills helps. We can't
control the cost of oil, but we can try to accelerate the addition of more low
cost renewable energy resources," said Seu.

In addition, 20 projects that originally provided proposals but were not
selected will be given the opportunity to update and resubmit their pricing
proposals. If those projects meet lower pricing and other criteria such as
site control, they could be considered in a supplemental request to negotiate
power purchase agreements.

In February, Hawaiian Electric issued a call for low-cost renewable energy
projects on Oahu that could qualify for a waiver from competitive bidding.
Hawaiian Electric narrowed the responses to five projects based on prices and
other criteria such as site control and development experience.

Under PUC rules, Hawaiian Electric normally must use competitive bidding to
select generation projects larger than 5 megawatts. To accelerate the benefits
of these low cost projects to customers, Hawaiian Electric is asking the PUC
to waive competitive bidding for these five projects. After power purchase
agreements are negotiated, each one must be submitted to the PUC for
individual review and approval before it goes forward. The individual
developers are also responsible for other key steps including environmental
review, permitting and community outreach.

Information: Darren Pai
808-543-7753 or darren.pai@heco.com

For institutional investor inquiries:
Shelee Kimura
(808) 543-7384
skimura@hei.com

(Logo: http://photos.prnewswire.com/prnh/20110411/LA80136LOGO)

SOURCE Hawaiian Electric Industries, Inc.

Website: http://www.hei.com
 
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