Hawaii Electric Light Co. (HELCO) has gotten approval of an amended power purchase agreement (PPA) with Puna Geothermal Venture, according to documents filed Tuesday with the state Public Utilities Commission (PUC).
HELCO asked that the PUC approve the PPA early this year, stating in the filing it would provide “significant benefits,” including lower bills for customers, a reduction in the use of fossil fuels, and a “reduction in customers’ exposure to fossil fuel price volatility,” among others.
Under the new agreement, the rate paid by the utility to PGV will be fixed and no longer linked to the price of oil.
By eliminating the volatility of oil prices from the rate paid to PGV, the new fixed-price contract will ensure that bills are more stable, the news release stated. This new pricing arrangement follows guidance provided by the PUC.
PGV officials said recently they hoped the plant would be operational by the end of 2019 and could sell electricity early in 2020.
Under the existing power purchase agreement, PGV provides HELCO with up to 38 megawatts of energy and capacity, the filing states.
As part of the amended agreement, PGV has agreed to modify its current facility to provide an additional eight megawatts of energy and firm capacity, which will further reduce bills and the use of fossil fuels to generate electricity.