Integrated Grid Planning Docket for Hawaiian Electric (2018-0165)

BACKGROUND

In 2018, the Hawaii Public Utilities Commission opened the Integrated Grid Planning (“IGP”) Docket (No. 2018-0165) to replace earlier grid planning efforts, namely Hawaiian Electric’s Integrated Resource Planning (1990 – 2014) and Power Supply Improvement Planning (2014 – 2017). The IGP process includes the Commission, Hawaiian Electric, intervenors, and a broad range of stakeholders working together to determine the grid’s needs and to plan how to meet them, particularly for the State’s renewable energy transition. The results of IGP will determine the future of Hawaiian Electric’s grid—what types of generation are needed and where, how and at what pace we’ll reach 100% renewable energy generation, and how to keep the lights on during extreme events.

In practice, the bulk of IGP consisted of studies by Hawaiian Electric, national labs, and others which assess the current state of the grid and suggest solutions. The assumptions of these studies (e.g., expected amounts of installed rooftop solar, land constraints on new development, and load increases due to electric vehicle charging) and the models they use are of critical importance to determine the needs of the future grid. The Commission reviews Hawaiian Electric’s plans at key “Review Points,” at which the Commission may redirect Hawaiian Electric’s efforts and provide additional guidance.

IGP differs from earlier planning processes because of its: (1) increased transparency, (2) in-depth stakeholder engagement, and (3) integration of electricity system planning across generation, transmission, and distribution resources, which have historically been separated. The Commission, Hawaiian Electric, and numerous working groups, panels, and councils (described below) are all working together to plan a future grid for Hawaii that provides safe, reliable, clean, and fairly priced electricity.

The first round of IGP concluded in March 2024 with the issuance of Decision & Order No. 40651. In this Order, the Commission summarizes and accepts the 2023 Final Report, documents the strengths and weaknesses, and describes the Commission’s directives for follow-up actions. The Commission also directs Hawaiian Electric to plan to file the Final Report from its next round of IGP within the next five years and to file annual updates on the Action Plan from the first round of IGP. The Commission intends to issue a subsequent Order with guidance for the next round of IGP. The results of IGP will also inform the issuance of an IGP Request for Proposals (“RFP”) to start another round of resource procurement.

EVENTS

Hawaiian Electric is responsible for hosting events in the IGP Docket across the numerous groups described below, but the Commission may schedule conferences as necessary. Hawaiian Electric’s IGP website provides a list of recent and upcoming meetings, in addition to several other resources, including interactive resources, an overview of community and stakeholder engagement, a document library, and contact information.

IGP COMMISSION REVIEW POINTS

As work is completed at each major step in the IGP process, Hawaiian Electric files relevant studies, documents, and information at a “Review Point” with the Commission. The Commission provides feedback and guidance to Hawaiian Electric during these Review Points, often redirecting Hawaiian Electric, some of which are summarized below. In addition, the Commission participates in ongoing Hawaiian Electric-led stakeholder engagement and considers stakeholder feedback when providing guidance at Review Points.

At the first Review Point in March 2022, the Commission approved Hawaiian Electric’s Inputs and Assumptions for them to utilize in their suite of modeling tools. The Inputs and Assumptions include data, studies, estimates, and other inputs Hawaiian Electric will use in their Grid Needs Assessment Methodology (described below). For example, determining the impact of electric vehicles on the grid requires estimating future electric vehicle adoption and the charging habits of electric vehicle customers.

At the second Review Point in June 2022, the Commission approved Hawaiian Electric’s Grid Needs Assessment Methodology, which defines what models and scenarios Hawaiian Electric will use to determine the grid’s needs, using the approved Inputs and Assumptions. For example, Hawaiian Electric defines ten scenarios that they will use in the IGP modeling process, to capture a range of possibilities for future grid needs.

At the third Review Point in 2023, the Commission accepted Hawaiian Electric’s IGP Report. The IGP Report identifies an action plan for meeting grid needs on Oahu, Hawaii Island, Maui, Molokai, and Lanai through 2050. The report discusses community and stakeholder engagement, data collection, resilience and reliability planning, customer impacts, energy equity, program development, and resource procurement in detail. Following a public comment and stakeholder review period, the first round of IGP concluded with the Commission’s issuance of Decision & Order No. 40651, accepting the 2023 Final Report. After the first round, Hawaiian Electric plans to issue an RFP to initiate further resource procurement.

IGP Stakeholders

IGP is a collaborative effort that involves multiple stakeholders including formal intervenors, public engagement, a Technical Advisory Panel, a Stakeholder Council, and working groups.

Parties and Formal Intervenors

The parties to the IGP docket were Hawaiian Electric and the Consumer Advocate, and intervenors included Blue Planet Foundation, County of Hawaii, Energy Island, Hawaii PV Coalition, Hawaii Solar Energy Association, Life of the Land, Progression Hawaii Offshore Wind, and Ulupono Initiative. Together, these parties formally participate in the docket process.

Public Engagement

Hawaiian Electric sought public engagement in their IGP process to solicit communities’ input on the planning process to reach the state’s goal of 100% renewables by 2045. In addition to public meetings, panel discussions, and virtual open houses, Hawaiian Electric launched Hawaii Powered as an online hub for community involvement in Hawaiian Electric’s plan for a clean energy future.

Technical Advisory Panel

Hawaiian Electric established a Technical Advisory Panel (“TAP”) of experts in the electricity industry from internationally recognized utilities, market operators, and research organizations with demonstrated engineering expertise in related efforts. The TAP meets regularly with Hawaiian Electric to provide input and feedback on Hawaiian Electric’s IGP efforts.

Stakeholder Council

A Stakeholder Council, representing customers and broader stakeholder interests in Hawaii, is an additional component of Hawaiian Electric’s IGP process that helps to ensure Hawaiian Electric’s plans align with customer and stakeholder interests. A full list of representatives on the council is available at Hawaiian Electric’s website.

Working Groups

During the first cycle of IGP in 2019, Hawaiian Electric put together several working groups to address specific topics in an advisory capacity. These working groups were formed around the following topics: Forecast Assumptions, Competitive Procurement, Distribution Planning and Grid Services, Solution Evaluation and Optimization, Resilience, and Standardized Contract.

The Stakeholder Technical Working Group was formed in 2021, and has been meeting on a regular basis, to streamline the previous working group structure so that Hawaiian Electric could focus stakeholder time and efforts, provide opportunities for stakeholder presentations, and allow for robust and comprehensive discussion and collaboration on various technical topics.

RELATION TO OTHER COMMISSION DOCKETS

IGP relates to and overlaps with many docketed proceedings at the PUC. A few efforts closely related to the grid planning process include the:

energy procurement process (see the Request for Proposals Docket No. 2017-0352 and associated power purchase agreement dockets), which help identify grid needs for Hawaiian Electric to meet through procurement.
development of customer programs and rates in the Distributed Energy Resources Docket (“DER,” Docket No. 2019-0323), which result from grids needs identified during IGP.
performance and incentive structure for the utility in the Performance-Based Ratemaking Docket (“PBR,” Docket No. 2018-0088), which incentivizes Hawaiian Electric to control costs while providing better service to customers, through using several novel metrics that affect the grid planning process, including renewable energy generation and the interconnection of new resources.

HAWAIIAN ELECTRIC STUDIES AND REPORTS

IGP involves understanding the electric grid’s needs and planning for them. This requires numerous studies and reports examining different aspects of Hawaiian Electric’s system. Below is a list of studies and reports completed for IGP with a brief summary of their contents.

February 13, 2023: 2021 System Stability Study
Summary: Hawaiian Electric filed two system stability studies—one for Oahu, Maui, and Hawaii Island, and one for Molokai and Lanai—which identify issues and recommendations for the planned system in 2028 based on Hawaiian Electric’s plans for the electric grid. The findings from these studies will be used in the system security analysis in IGP as a basis for further analysis in longer-term IGP scenarios.

October 26, 2022: Hawaiian Electric Companies’ Under-Frequency Load Shed Study
Summary: Per Order No. 38197 in Docket No. 2021-0017, Hawaiian Electric developed and filed a study holistically reviewing Hawaiian Electric’s Under-Frequency Load Shed (“UFLS”) scheme. The UFLS scheme is currently used as a protective measure to prevent cascading system outages during situations where excessive generation has been lost, by automatically disconnecting load to maintain generator-load balance and system frequency. Hawaiian Electric’s study explores both the current use of the scheme and a vision for the future use of the UFLS scheme in Hawaii.

October 14, 2022: Hawaiian Electric Companies’ Fossil Fuel Retirement Report
Summary: Per Order No. 38429 in Docket No. 2018-0088, Hawaiian Electric must present a semi-annual Fossil Fuel Retirement Report, focusing on the steps necessary to safely retire fossil fuel units from the Companies’ system, beginning with units identified for near-term retirement. In its first report, Hawaiian Electric discusses the timely retirement of the Waiau Power Plant Units 3 and 4 and Honolulu Units 8 and 9 on Oahu, as well as the retirement of the Kahului Power Plant on Maui.

November 2021: Hawaiian Electric Transmission Renewable Energy Zone (“REZ”) Study
Summary: Hawaiian Electric developed a study to identify transmission infrastructure necessary to accommodate the large blocks of utility-scale renewable energy that may be necessary on the islands of Oahu, Maui, and Hawaii Island to meet forecasted load growth and renewable energy goals. Hawaiian Electric indicates that this study is an initial step in the transmission planning process, and that it will refine the steps involved in this process with stakeholder and community feedback.

November 2021: Hawaiian Electric Distribution DER Hosting Capacity Grid Needs
Summary: Hawaiian Electric uses three DER forecast sensitivities (low, base, and high) to identify hosting capacity grid needs for the next five years as part of Hawaiian Electric’s planning for the future of the distribution system. This process results in the identification of grid needs and solution options to enable deployment of DERs across Hawaiian Electric’s service territories.

November 1, 2021: Applied Energy Group: HECO IGP Energy Efficiency Supply Curve Inputs
Summary: In consultation with the Commission, Applied Energy Group (“AEG”) completed a Market Potential Study in August 2020 to quantify future opportunities for energy efficiency and other demand-side interventions in Hawaii. Hawaiian Electric and AEG collaborated to use information from this study to develop energy efficiency supply curves for use in the IGP process.

October 1, 2020: National Renewable Energy Laboratory: Assessment of Wind and Photovoltaic Technical Potential for the Hawaiian Electric Company
Summary: The National Renewable Energy Laboratory (“NREL”) developed a report on the technical potential for utility-scale solar and wind and distributed rooftop solar for Hawaiian Electric’s service territories. The report provides an upper boundary estimation of available land, potential capacity, and potential electricity generation for Oahu, Maui, Lanai, Molokai, and Hawaii Island, for use in Hawaiian Electric’s IGP process.

KEY ORDERS AND FILINGS

Third Review Point: IGP Report

March 4, 2024: Order No. 40651 – Accepting the 2023 Final IGP Report and Providing Guidance
Summary: The Commission accepted Hawaiian Electric’s Final IGP Report, reviewing the plan’s strengths and weaknesses, addressing shortcomings with guidance on near-term and long-term improvements, discussing the cadence of future IGP cycles, and noting that the Commission will address additional issues and close the docket via a subsequent order.

November 11, 2023: Hawaiian Electric Companies’ Supplemental Integrated Grid Plan Report
Summary: In response to Commission Order. 40311 Hawaiian Electric filed the Supplemental Integrated Grid Plan Report to further explain and clarify its near- and long-term preferred plans for generation and capacity.

May 12, 2023: Hawaiian Electric Companies’ Integrated Grid Plan Final Report (Book 1, Book 2, Book 3)
Summary: Hawaiian Electric filed its Integrated Grid Plan Final Report which integrates comments and feedback from Commission staff, the Technical Advisory Panel, and other stakeholders in response to the March 2023 Draft Report.

March 31, 2023: Hawaiian Electric Companies’ Integrated Grid Plan Draft Report (Book 1, Book 2, Book 3)
Summary: Hawaiian Electric filed its third Review Point, which provides an action plan for meeting grid needs identified through the Grid Needs Assessment for Oahu, Hawaii Island, Maui, Molokai, and Lanai through 2050. The report provides significant detail on community and stakeholder engagement, data collection, resilience and reliability planning, customer impacts, energy equity, and program and procurement planning. Hawaiian Electric initiated a three-week public comment period, with the IGP Final Report to incorporate and respond to public comments.

Second Review Point: Grid Needs Assessment

September 14, 2022: Resource Adequacy Workplan and Finalized Grid Needs Methodology (Supplemental Filing, filed October 11, 2022)
Summary: In response to Order No. 38482, Hawaiian Electric filed its finalized Grid Needs Assessment Methodology and its Resource Adequacy Workplan to conduct a comparative analysis of resource adequacy criteria in its evaluation of the appropriate methodology following the first cycle of IGP.

September 14, 2022: Order No. 38606 – Addressing the Hawaiian Electric Companies’ Motion for Clarification and/or Partial Reconsideration of Decision and Order No. 38482
Summary: The Commission provided additional clarity on its decisions, noting in relevant part that the Commission believes exploring improvements to Hawaiian Electric’s resource adequacy modeling is appropriate, but that Hawaiian Electric could use its current resource adequacy methodology where approved by the Commission, including in the first cycle of IGP.

July 11, 2022: Hawaiian Electric Companies’ Motion for Clarification and/or Partial Reconsideration of Decision and Order No. 38482
Summary: Hawaiian Electric requested clarification on the Commission’s decisions regarding the resource adequacy methodologies discussed in Order No. 38482. Hawaiian Electric sought approval to apply its proposed resource adequacy methodology (i.e., energy reserve margin and hourly dependable capacity) in the first cycle of IGP, while reviewing alternatives (e.g., the effective load carrying capacity methodology identified by the Commission) in a parallel process.

June 30, 2022: Order No. 38482 – Approving with Modifications Hawaiian Electric’s Grid Needs Assessment
Summary: The Commission approved Hawaiian Electric’s Grid Needs Assessment Methodology, directing Hawaiian Electric to provide additional clarifications on certain issues and create a workplan to refine its resource adequacy criteria for use in IGP.

November 5, 2021: The Hawaiian Electric Companies’ Grid Needs Assessment Methodology Review Point: Book 1, Book 2
Summary: Hawaiian Electric filed its second Review Point, which describes the planning criteria, suite of modeling tools, and process Hawaiian Electric plans to use to identify the near-term quantity and timing of grid needs, develop resource plans for near-term needs and long-term objectives, and evaluate proposed solutions as part of a request for proposal (“RFP”). Book 2 of this Review Point included several relevant reports: Transmission Renewable Energy Zone Study, Location-Based Distribution Forecasts, Distribution DER Hosting Capacity Grid Needs, and an energy efficiency Supply Curve Memo (provided by Applied Energy Group).

First Review Point: Inputs and Assumptions

March 31, 2022: Hawaiian Electric Response to Order No. 38253 Approving Inputs and Assumptions with Modifications
Summary: Hawaiian Electric modified its Inputs and Assumptions in compliance with the Commission’s directives in Order No. 38253, providing both a narrative discussion of the modifications and ongoing IGP work as well as the revised workbooks.

March 3, 2022: Order No. 38253 – Approving, with Modifications, Hawaiian Electric’s Revised Inputs and Assumptions
Summary: The Commission reviewed Hawaiian Electric’s response to Order No. 37730 directives, approving the first Review Point subject to additional modifications and directing Hawaiian Electric to file finalized Inputs and Assumptions.

August 3, 2021: Hawaiian Electric Updated and Revised Inputs and Assumptions & Distribution DER Hosting Capacity Grid Needs (Supplemental Filing, filed August 19, 2021)
Summary: Hawaiian Electric filed its updated and revised Inputs and Assumptions, which provide an overview of stakeholder engagement, an overview of the models used in IGP for capacity expansion modeling and production simulation modeling, assumptions baked into forecasts, studies related to resource potential and renewable energy zones, a description of planned modeling scenarios and sensitivities, and other inputs related to the generation units involved in the modeling. Hawaiian Electric notes that the inputs and assumptions are necessary to begin preliminary analyses of grid needs in the IGP process and for use in work products across other interrelate dockets.

July 28, 2021: Update on Integrated Grid Planning Workplan
Summary: Hawaiian Electric provided an additional update on efforts to respond to Order No. 37730, including a report on energy efficiency supply curve development for use in IGP.

June 18, 2021: Hawaiian Electric Updated Timeline and Stakeholder Engagement Plan
Summary: Hawaiian Electric filed this plan following Commission guidance, discussing its updated stakeholder engagement plan and workplan to revise its Forecast and Inputs and Assumptions. Hawaiian Electric also flagged several key inputs and assumptions where additional guidance would be helpful.

April 14, 2021: Order No. 37730 – Directing Hawaiian Electric to File Revised Forecasts and Assumptions
Summary: The Commission found that the IGP process had strayed from its objectives by not sufficiently incorporating stakeholder feedback and updating its inputs and assumptions after the filing date. In particular, the Commission directed Hawaiian Electric to file a revised Forecasts and Assumptions draft subject to ten areas of modifications, to expand its Technical Advisory Panel with a focus on grid services and planning criteria, and to file an updated timeline and stakeholder engagement plan.

January 19, 2021: Draft IGP Inputs and Assumptions
Summary: Hawaiian Electric filed a draft of its first Review Point, the Draft IGP Inputs and Assumptions, the final version of which Hawaiian Electric intended to file by the end of the first quarter of 2021 following stakeholder feedback.

Competitive Bidding Framework

June 30, 2022: Order No. 38481 – Approving the Revised Competitive Bidding Framework
Summary: The Commission approved the Revised Framework for use in the first round of the IGP process, noting that experience with IGP may require further changes to the Revised Framework as part of the next round of IGP.

February 12, 2021: Submission of an Updated Framework for Competitive Bidding
Summary: Hawaiian Electric filed an updated Framework for Competitive Bidding (“CBF”) for review and approval by the Commission, developed with the Competitive Procurement Working Group in the IGP process. Updates focused on clarifying the contingency and parallel plans, allowing more flexibility in the grid needs and system resources requirements to mee the needs of IGP, introducing a long-term RFP for projects with longer developmental timelines (e.g., 8-12 years), and discussing improvements to the interconnection and procurement scoping processes.

IGP Workplan and Guidance

October 17, 2022: Updated Schedule for Stage 3 RFPs and IGP Process
Summary: Hawaiian Electric filed jointly in the IGP Docket and RFP Docket an updated schedule, which included IGP tasks through 2024. Notably, Hawaiian Electric’s schedule includes the filing of a Draft IGP Report and Final IGP Report in the second quarter of 2023.

January 19, 2021: Hawaiian Electric Companies’ Updated Workplan
Summary: Hawaiian Electric provided an updated workplan in response to guidance from the Commission in Order No. 38419.

November 5, 2020: Order No. 37419 – Providing Guidance
Summary: The Commission provided additional guidance regarding coordination across Hawaiian Electric’s teams, the reorganization of stakeholder groups to promote meaningful stakeholder engagement, and the transparency of Hawaiian Electric’s decisions and filings. The Commission also directed Hawaiian Electric to file an updated version of its IGP Workplan in compliance with Commission guidance.

May 27, 2020: Hawaiian Electric Companies’ Update to IGP Schedule, Workplan, and Interdependencies with Other Dockets
Summary: Hawaiian Electric provided an update on their progress on the IGP workplan, an updated timeline and docket interdependency discussion, and a description of how the COVID-19 Pandemic impacted IGP activities.

November 4, 2019: Order No. 36725 – Providing Guidance
Summary: The Commission provided additional guidance to Hawaiian Electric, regarding the Commission’s role in the IGP process, meaningful opportunities for stakeholder feedback, independent evaluation in the IGP process, the format of Review Points, timelines for Working Group meetings, and docket interactions.

March 14, 2019: Order No. 36218 – Accepting the IGP Workplan and Providing Guidance
Summary: The Commission accepted Hawaiian Electric’s IGP Workplan and provided initial guidance as Hawaiian Electric began its implementation, regarding notices and transparency for Working Group, and Stakeholder Council, and Technical Advisory Panel meetings.

December 14, 2018: Hawaiian Electric Companies’ Integrated Grid Planning Workplan
Summary: Hawaiian Electric provided a detailed workplan of major steps in the IGP process, the stakeholder engagement model, and the initial set of stakeholder groups. Major steps include the forecasts and planning inputs, the identification and quantification of system needs, the sourcing of solutions, and solution evaluation and optimization.

July 13, 2018: Hawaiian Electric Companies’ Integrated Grid Planning Report
Summary: Hawaiian Electric laid out its vision for the IGP process, including the redesign of the system planning and solution sourcing process and an active customer and stakeholder engagement model.

July 12, 2018: Order No. 35569 – Instituting a Proceeding to Investigate Integrated Grid Planning
Summary: The Commission opened this proceeding to investigate Hawaiian Electric’s IGP process, soliciting public comments on the IGP Report, asking for intervenors in the docket, and directing Hawaiian Electric to file an IGP Workplan.

MORE INFORMATION/

To view all filed documents in the docket, see Docket No. 2018-0165. For other information on IGP, see Hawaiian Electric’s IGP website.

Updated 5/2024

Public Utilities Commission