Amendments to a power purchase agreement between Puna Geothermal Venture and Hawaiian Electric have been approved by the state, with some conditions.
Since 2019, PGV and Hawaiian Electric — then called Hawaiian Electric Light Company — have been negotiating potential amendments between their existing power purchase agreement that could de-link the agreement from the cost of fossil fuels. Since then, the matter has remained under consideration by the Hawaii Public Utilities Commission.
On March 16, the PUC approved an amended agreement that HELCO had proposed at the end of 2019. That agreement would, among other things, allow PGV to expand its facilities to generate up to 46 megawatts of power, up from the maximum of 38 megawatts stipulated in its previous contract.
However, the PUC’s approval was contingent on several conditions placed on both PGV and Hawaiian Electric by the PUC and the state Consumer Advocate.
Mike Kaleikini, PGV’s senior director of Hawaiian Affairs, said the PUC condition most significant to the power plant is that construction of an expansion at the facility cannot begin until an environmental review is fully completed.
The environmental review has itself been a longstanding roadblock for the amended agreement.
In March 2021, the PUC suspended the PPA matter entirely until a supplemental environmental review could be completed. Although the PUC lifted the suspension in November, the environmental review still has not begun after several back-and-forth communications between the PUC and Hawaii County over who will actually conduct the review.
“Right now we’re still evaluating the PUC’s decision,” Kaleikini said. “We’re assessing the conditions and the economics of it all. We should know more about what it means for us in a few weeks.”
The other conditions are largely imposed on Hawaiian Electric: The company will be required to submit an amended PPA application should the PGV expansion contradict the environmental review, must submit reporting milestones to the PUC, and more.
For its part, Hawaiian Electric has consented to the majority of the conditions, except for one by the Consumer Advocate requiring that 80% of the savings generated by the amended agreement be passed to consumers and revising how those savings would be calculated.
Meanwhile, PGV began drilling on a new well last month in an effort to restore the facility back to maximum power generation following the 2018 Kilauea eruption. Although some inundated wells have been restored, Kaleikini said others have been damaged and must be replaced.
Currently, the facility is generating about 25 megawatts of power, Kaleikini said.
“The new well will certainly get us above 25 megawatts, and it’ll get us closer to 38,” Kaleikini said. “But we won’t know exactly how much it will get us until we get down to the power source.”
Kaleikini estimated that the well will be completed sometime in late June or early July.
The environmental review, amended agreement and new well will be possible subjects at PGV’s next quarterly community meeting, to be held April 13 at 4 p.m. The meeting can be accessed online at punageothermalproject.com, and questions can be submitted in advance at punageothermalproject.com/public-meetings.
Email Michael Brestovansky at mbrestovansky@hawaiitribune-herald.com.
