MECO Request for Proposals (RFP) for Renewable Firm Dispatchable Capacity Resources for the Island of Maui
RFP Update (April 8, 2013)
Section II.B.1 of the Competitive Bidding Framework states “An electric utility’s IRP shall specify the proposed scope of the RFP for any specific generation resource or block of generation resources that the IRP states will be subject to competitive bidding.” The Integrated Resource Planning (“IRP”) process for Hawaiian Electric Company, Inc., Hawaii Electric Light Company, Inc. and Maui Electric Company, Limited is currently in progress in Docket No. 2012-0036. The scope of Maui Electric’s RFP will be further defined in the IRP filing targeted for June 2013. Accordingly, the timing for the issuance of the Draft of the MECO Firm Capacity RFP will be assessed once the IRP filing is formally submitted.
Background
The RFP process is subject to the Competitive Bidding Framework adopted by the Hawaii Public Utilities Commission in Decision & Order No. 23121, issued on December 8, 2006, in Docket No. 03-0372.
Maui Electric Company, Limited (MECO) filed their Adequacy of Supply (AOS) with the Commission on January 27, 2011. As stated in the AOS, MECO will need an additional firm capacity in the 2015 time frame and will seek to acquire the additional firm capacity through a competitive bidding process. MECO currently plans to seek up to 50 megawatts (“MW”) of firm capacity to accommodate anticipated load growth and to maintain generating system reliability. The first 25 MW will need to be in service by 2015 to accommodate the anticipated loss of generating capacity. The next 25 MW will need to be in service by 2018 to accommodate load growth. However, provisions in the RFP will be included to indicate that the capacity need dates may change due to unforeseen conditions and that Bidders should provide adjustment mechanisms in their proposals should MECO’s need for capacity change. Attributes of the desired future firm generating capacity is described in Section 1.8.4.3 of the AOS.
On January 31, 2011, MECO filed with the Commission a request to open a new docket for the purposes of receiving filings, reviewing approval requests and resolving disputes, if necessary, related to MECO’s plan to proceed with a competitive bidding process to acquire up to approximately 50 MW of new, renewable firm dispatchable capacity generation resources on the island of Maui, with the initial increment coming on line in the 2015 time frame. In addition, the filing also requested the approval of the contract with Van Horn Consulting, Inc. to serve in the role of Independent Observer.
On November 16, 2011, the Commission issued an Order selecting Boston Pacific Company, Inc. as the Independent Observer to monitor the competitive bidding process for the RFP.
MECO filed their AOS with the Commission on March 9, 2012. As stated in the AOS, MECO will need an additional firm capacity in the 2015 time frame and will seek to acquire the additional firm capacity through a competitive bidding process.
MECO filed an Updated AOS Analysis for Maui with the Commission on September 19, 2012. As reflected in the Updated AOS Analysis, due to the forecasted slower growth of peak demand, MECO plans to seek up to 30 MW of firm capacity in one increment in its upcoming RFP in Docket No. 2011-0038, and the need date for the next increment of additional firm generating capacity on the island of Maui has been revised from 2015 to 2019.
MECO filed their AOS with the Commission on January 30, 2013. As stated in the AOS, MECO continues to seek up to 30 MW of firm capacity in one increment and such capacity will need to be in service by 2019.
If you are interested in receiving notification of the release of the Draft RFP, please submit the attached Notice of Interest to genbid@mauielectric.com.
