Distributed Energy Resource (DER) Policies (Docket No. 2019-0323)

Background | Upcoming Events | Past Events |Topic Tracks | Key Orders | More Information

BACKGROUND

Distributed Energy Resources (“DERs”) are small-scale resources that enable customer participation in the generation and delivery of electricity service. The most common DERs used for electricity generation are solar photovoltaic panels, which are often paired with battery energy storage systems.

In September 2019, the Hawaii Public Utilities Commission opened Docket No. 2019-0323 to investigate the technical, economic, and policy issues associated with DERs and rate design, as they pertain to the Hawaiian Electric Companies. Docket No. 2019-0323 is divided into three tracks, covering topics in 1) Advanced Rate Design (“ARD”), 2) DER Programs, and 3) Technical issues.

UPCOMING EVENTS

Date and Link to watch live (if available) Topic Track Description Notice and Agenda
Second Thursday of each month, January – December 2023 Advanced Rate Design Advanced Rate Design Working Group Meetings Notice of Schedule

Notice of Technical Conference

April 14, 2023 Program Meeting to Discuss Draft DPS Phase 3 Modeling Results Forthcoming
June 23, 2023 Program Meeting to Discuss Final DPS Phase 3 Modeling Results Forthcoming

PAST EVENTS

Date and Recording (if available) Topic Track Description Notice, Agenda, and Materials
January 12, 2023 Program Sixth Scheduled Dispatch Program Quarterly Check-In Agenda

Hawaiian Electric Monthly SDP Report

December 19, 2022 Technical Fifth Quarterly DER Technical Track Meeting
December 15, 2022 Program DPS Phase 3 Technical Conference Notice

Agenda (Exhibit 1 of D&O No. 38754)

Hawaiian Electric Slides

Commission Slides

December 12, 2022 Advanced Rate Design Advanced Rate Design Working Group Meetings Notice of Working Group Schedule

Agenda for First Meeting

Hawaiian Electric Slides

Commission Slides

October 14, 2022 All Hawaiian Electric Presentation on the Demand-Side Management Adjustment (Docket No. 2007-0341) and Demand Response Adjustment Clause Adjustment (Docket No. 2019-0323) Notice
October 13, 2022 Program Fifth Scheduled Dispatch Program Quarterly Check-In Meeting Agenda
September 26, 2022 Technical Fourth Quarterly DER Technical Track Meeting
July 14, 2022 Program Fourth Scheduled Dispatch Program Quarterly Check-In Meeting Agenda
June 21, 2022 Technical Third Quarterly DER Technical Track Meeting
April 14, 2022 Program Third Scheduled Dispatch Program Quarterly Check-In Meeting Agenda
March 29, 2022 Technical Second Quarterly DER Technical Track Meeting
March 15, 2022 Program Program Track Phase 2 Technical Conference  

Agenda

January 13, 2022 Program Second Scheduled Dispatch Program Quarterly Check-In Meeting Agenda
December 14, 2021 Technical First Quarterly DER Technical Track Meeting Hawaiian Electric Update
October 14, 2021 Program First Scheduled Dispatch Program Quarterly Check-In Meeting Notice

Agenda

June 28, 2021 Program Status Conference on Hawaiian Electric’s Scheduled Dispatch Program Implementation Plan Notice

Agenda

May 12, 2021 Program Supplemental Phase 1 Program Track Meeting #3 to discuss final Program Track proposals, including Scheduled Dispatch Program proposals Notice and Agenda

Hawaiian Electric Slides

CA Slides

DER Parties Slide Set 1

DER Parties Slide Set 2

April 21, 2021 Program Supplemental Phase 1 Program Track Meeting #2 Agenda

HPVC Slides

Hawaiian Electric Slides

April 7, 2021 Program Supplemental Phase 1 Program Track Meeting #1 Notice

Agenda

March 24, 2021 Program Technical Conference to discuss Scheduled Dispatch Program guidance Notice and Agenda

Commission Slides

March 17, 2021 Program Fifth Monthly DER Program Track Status Conference Agenda

DER Parties Slides

Hawaiian Electric Slides

March 4, 2021 Advanced Rate Design ARD Track Technical Conference Notice and Agenda

DER Parties’ Consultant Slide Set 1

DER Parties’ Consultant Slide Set 2

CA’s Consultant Slides

Hawaiian Electric Slides

February 17, 2021 Program Fourth Monthly DER Program Track Status Conference Notice

Agenda

January 20, 2021 Program Third Monthly DER Program Track Status Conference Notice

Agenda

December 16, 2020 Program Second Monthly DER Program Track Status Conference Agenda

Hawaiian Electric Slide Set 1

Hawaiian Electric Slide Set 2

November 18, 2020 Program First Monthly DER Program Track Status Conference Notice

Agenda

October 21, 2020 Program Status Conference for the DER Program Track Notice and Agenda

HPVC Slides

HPVC and Vote Solar Slides

HSEA Slides

CA Slides

Hawaiian Electric Slides

August – October, 2020 Advanced Rate Design Seven Advanced Rate Design Working Group Meetings (August 5, 2020; August 19, 2020; September 2, 2020; September 16, 2020; September 30, 2020; October 14, 2020; October 28, 2020) Notice, Schedule, and Agenda

Commission Slides

Working Group Report

August 4, 2020 Technical Technical Track Technical Conference Notice and Agenda
July 23, 2020 Program Technical Conference to discuss the DER Program Track initial Proposal and information requests Notice

Agenda

CA Slides

DER Parties Slides

HPVC Slides

Hawaiian Electric Slides

June 4, 2020 Advanced Rate Design Technical Conference to address desired directions for advanced rate design Notice and Agenda

CA Slides

HPVC Slides

Hawaiian Electric Slides

Commission Slides

May 7, 2020 Technical Status Conference to review Hawaiian Electric’s draft proposal to expedite customer interconnection Notice and Agenda

Hawaiian Electric’s Draft Proposal

April 28, 2020 Program, Technical Status Conference to discuss the concerns and proposals raised by the Solar Parties in their joint letter filed with the Commission on April 3, 2020 Notice and Agenda

DER Parties’ Joint Letter

Hawaiian Electric’s Response

CA’s Response

January 30, 2020 Program, Technical Technical Workshop to solicit feedback from the Parties on programmatic and technical issues identified in Order No. 36536 Notice and Agenda

HPVC Slides

CA Slides

Hawaiian Electric Slides

HSEA Slides

DERC Hawaii Slides

TOPIC TRACKS

Docket No. 2019-0323 is divided into three tracks, covering topics in:

Advanced Rate Design (“ARD”),

DER Programs, and

Technical issues.

Advanced Rate Design Track

In the ARD track, the Commission and the Parties have explored dynamic and advanced rate designs intended to incentivize customer behavior to align with grid needs and realize the full value of DER investments.

The Commission and the Parties have been working collaboratively since 2020 in an ARD Working Group process to establish an ARD framework for residential customers and small and medium sized commercial customers, with the objective of ensuring rates are designed to encourage energy efficiency and demand flexibility, improve grid resilience, promote reliability, reduce environmental impacts, and achieve other State energy policy goals.

Following seven stakeholder working group meetings between August and October 2020 and the Parties’ Proposals in March 2021, the Commission issued Order No. 38680 establishing the ARD framework to implement time-of-use (“TOU”) rates.

The ARD framework introduces three phases for the implementation of TOU rates: the Ramp Up Period, the Roll Out Period, and the Evolve Period. The Commission re-established the ARD Working Group to kick off the Ramp Up Period, as the Companies prepare for rolling out the new TOU rates.

Program Track

The Commission identified two broad objectives for the Program Track in Order No. 37066: 1) design and implement long-term DER programs that include both an export-only program and a more advanced program featuring compensation for energy exports and grid services, and 2) develop a transition plan for interim DER programs to promote market stability and minimize customer confusion.

In Phase 1 of the Program Track, through a series of technical conferences and monthly meetings, the Parties prepared several rounds of program proposals for the two long-term DER programs. The Commission determined in the Phase 1 Order, No. 38196, that the Smart DER Tariff and Bring-Your-Own-Device (“BYOD”) Tariff would be the two long-term DER programs. In Phase 2, the Parties prepared additional proposals for these two tariffs, and the Commission established the framework for the tariffs in the Phase 2 Order, No. 38681. In Phase 3, the Companies are collaborating with the Parties to prepare modeling results for the incentives for the Smart DER Tariff and BYOD Tariff. Following review by the Parties and Commission decision-making in Phase 3, the Smart DER Tariff and BYOD Tariff are expected to launch in August 2023.

Separate from these three phases, in Order No. 37816 the Commission approved an emergency grid services program, the Scheduled Dispatch Program (“SDP”; also known as the Emergency Demand Response Program and the Battery Bonus Program), for Oahu to address potential capacity shortfalls beginning in 2022. The Commission also approved amendments to SDP in Order No. 38239 and an expansion of SDP to Maui in Order No. 38393 to address similar capacity shortfalls.

The Parties continue to collaborate in Phase 3 of the Program Track and to hold quarterly SDP meetings to provide updates to the Commission.

Technical Track

The Commission identified four objectives for the Technical Track in Order No. 37066: 1) streamline and improve the interconnection process, 2) harmonize the Companies’ Rule 14H requirements with current Institute of Electrical and Electronics Engineers (“IEEE”) standards, 3) develop policies and procedures for the activation of additional advanced inverter functions, and 4) develop policies and procedures to update legacy equipment (such as inverters) for participation in new DER programs.

The Commission approved two of the Parties’ stipulations to revise Tariff Rule 14H in Order No. 38062 and has addressed several of the Parties’ additional proposed revisions to Rule 14H in Order No. 38070, Order No. 38294, and Order No. 38651. Per Commission guidance, the Parties continue to collaborate to address outstanding issues identified in Order No. 38062, including a modified proposal for the Advanced Inverter Workplan.

KEY ORDERS AND FILINGS

April 9, 2020: Order No. 37066 – Establishing Procedural Details and Modifying Hawaiian Electric’s Customer Grid Supply Plus Program for Hawaii Island (Established Track Scopes)

September 24, 2019: Order No. 36538 – Opening the Docket

Advanced Rate Design Track

October 31, 2022: Order No. 38680 (Establishing the Advanced Rate Design Framework)
Summary: The ARD framework introduces TOU rates, with three time periods that have distinct prices that reflect how much it costs to produce energy during that period. Daytime energy prices will be the cheapest, reflecting the low cost of renewable energy produced during the daylight. Overnight prices will be slightly more expensive, and Evening Peak prices during weekdays will be the highest. Weekends and holidays will replace the Evening Peak Period with the Overnight Period.

The Companies will implement TOU rates over three phases:

Ramp Up Period: The Companies will calculate the TOU rates, prepare effective marketing, education and outreach materials, develop an evaluation and assessment plan, and prepare for the TOU Study;

Roll Out Period: The Companies will conduct a TOU Study, beginning in July 2023, with a sample of customers enrolled in the new TOU rates to understand the impacts and effectiveness of the rates; and

Evolve Period: The Companies will refine the TOU rates and accelerate customer enrollment in the TOU rates.

The ARD framework also provides guidance on the application of rate adjustments and surcharges for TOU rates, the design of customer bills, and the design of a non-time varying rate option for customers that opt out of TOU rates. During the Ramp Up Period, the Commission plans to re-establish the ARD Working Group to collaborate on the implementation of TOU rates. The TOU rates are expected to roll out to customers beginning in July 2023 with a TOU Study to explore the effectiveness of the rate design, followed by full roll-out to all customers.

Program Track

December 22, 2022: Order No. 38787 – Amending the DER Program Structure Phase 3 Third Extension of the Procedural Schedule
Summary: The Commission amended the DPS Phase 3 procedural schedule following discussion with the parties at the DPS Phase 3 Technical Conference, incorporating additional time and events to support the Parties’ collaborative modeling efforts and program implementation.

October 31, 2022: Order No. 38681 (Phase 2 Program Track Order)
Summary: The Phase 2 Program Track Order established the framework for the Smart DER Tariff, including the export compensation methodology and requirements for advanced metering and TOU enrollment, and the BYOD Tariff, including available grid services, eligible customers, the incentive rate methodology, and requirements for advanced metering and TOU enrollment. The Commission also determined transition plans for existing DER and SDP customers, rejected the establishment of an interconnection application fee, and opened Phase 3 of the Program Track. In Phase 3, the Companies will conduct modeling to determine the final export rate for the Smart DER Tariff and incentive rate for the BYOD Tariff. Following this modeling process and review by the Parties, the Smart DER Tariff and BYOD Tariff are expected to launch for customer enrollment in August 2023.

May 20, 2022: Order No. 38393 – Approving Hawaiian Electric’s Request for SDP Expansion
Summary: The Commission approved an expansion of SDP to Maui to address similar anticipated capacity shortfalls. The terms of the program on Maui are nearly identical to those of the program on Oahu, except that the capacity is 15 megawatts, with enrollment to customers open through June 2024.

February 25, 2022: Order No. 38239 – Amending the Scheduled Dispatch Program
Summary: The Commission approved amendments to the Scheduled Dispatch Program to increase customer compensation (via additional monthly incentives) and update customer performance requirements.

January 25, 2022: Order No. 38196 (Phase 1 Program Track Order)
Summary: The Phase 1 Program Track Order found that the Smart DER Tariff, which determines how a new DER customer may connect to the grid and how their energy exports are compensated on a time-varying basis, will be the long-term basic DER program. The BYOD Tariff, which compensates customers for grid services they supply to the Companies in addition to the terms of the customer’s underlying DER tariff, will be the long-term advanced DER program.

June 8, 2021: Order No. 37816 (Establishing the Scheduled Dispatch Program for Oahu)
Summary: The Scheduled Dispatch Program provides upfront and monthly incentives to customers for installing new battery storage paired with solar that dispatches daily during the grid’s peak hours for a commitment period of 10 years. The Commission established SDP with a capacity of 50 megawatts for Oahu, with enrollment to customers open through June 2023 to address anticipated capacity shortfalls.

Technical Track

October 17, 2022: Hawaiian Electric Final Revised Rule 14H, Appendix I Tariff Sheets Amending the IEEE 1547 Harmonization Date

October 14, 2022: Order No. 38651 – Approving the Hawaiian Electric Companies’ Revisions to Revised Rule 14H, Appendix I Tariff Sheets, Filed on September 14, 2022, and Rules 14H and 22 to 25 Tariff Sheets, Filed on September 21, 2022

April 1, 2022: Order No. 38294 – Approving the Hawaiian Electric Companies’ Revised Rule 14H (Moving Inverter Certification Deadline to October 1, 2022)
Appendix I Tariff Sheets, Filed March 17, 2022

November 16, 2021: Order No. 38070 – Approving the Hawaiian Electric Companies’ Revised Rule 14H, (Approving Revised Tariffs to Comply with Order No. 38062)
Appendix I Tariff Sheets, Filed November 8, 2021

November 4, 2021: Order No. 38062 (Denying the Companies’ Advanced Inverter Workplan and Supplement, approving the Parties’ Stipulation of Revisions and Volt-Watt Stipulation, and providing additional guidance)

MORE INFORMATION

To see more and view all filed documents in the docket, see Docket No. 2019-0323