Selling Power to the Utility

Stage 3 Maui RFP Questions & Answers

Hawaiian Electric (sometimes also referred to as the "Company") provides the answers below, based on the best information available at the time an answer is posted, which may not reflect the scope and requirements of the final RFP. Prospective Proposers should review this Q&A page periodically to check for updates, additions, clarifications and/or corrections to any of Company's prior responses. Each Proposer is solely responsible for reviewing the final RFP (including all attachments and links) and all responses on this Q&A page. Each Proposer is also solely responsible for thoroughly investigating and informing itself with respect to all matters pertinent to the RFP, the Proposer's Proposal, and the Proposer's anticipated performance under the applicable power purchase agreement. It is the Proposer's responsibility to ensure it understands all requirements of the RFP and to seek clarification if the RFP's requirements or the Company's requests or responses are not clear. Accordingly, a potential Proposer may not rely upon a prior response that may be clarified or corrected in a subsequent response. Efforts will be made by the Company to highlight subsequent clarifications and corrections to prior responses, but potential Proposers are ultimately responsible for monitoring this Q&A page and to inquire with the Company regarding any perceived inconsistencies or contradictory information. Finally, a Proposer's submission of information to the Company will not be independently confirmed by the Company. All Proposers must separately request confirmation of receipt of submitted information if desired by any Proposer.


Q1:

[Posted 6/20/22] If a proposed 30 MW project is interconnected to a point of interconnection with 20 MW of available MW capacity, can the additional 10 MW be shifted with longer than 4 hour duration storage to comply with the transmission line’s available MW capacity limitations?

A1:

A project proposing to a point of interconnection with an available MW capacity of 20 MW cannot have a contract capacity more than 20 MW as the company needs the flexibility from its procurements to export the full contract capacity from all procurements, to support reliability, adequacy of supply and resilience. For a paired generation with energy storage project, the storage must be a minimum of four times the net nameplate capacity. Additional storage may be offered for increased duration, but the Company will not allow the installation of additional generating capacity to increase the contract capacity beyond the identified point of interconnection’s available MW capacity.

Q2:

[Posted 7/29/22; Updated 9/14/22] Are the “less feasible/not recommended” substations (Maalaea, Kahului Power Plant, Wailea, Puunene, Pukalani, Puukolii, Mahinahina, Napili, Kihei, Waiehu 23 kV, Waikapu 23 kV, Maui Hardwood 23 kV, Kaonoulu) noted in Section 2.3.7.1 being provided by the Company in this RFP?

A2:

Pursuant to PUC Order 38479, the Company will make the offered transmission lines and transmission substations identified in Section 2.3.7 of the RFP recommendations for interconnection. But the Company will allow Proposers to propose interconnection to other 69 kV transmission lines and 69 kV substations as long as Proposers include the cost of transmission network upgrades into the Proposal as the Commission states. Proposers should be aware, however, that there will be less upfront information available for 69 kV transmission lines and 69 kV substations not offered in the RFP. Also, estimated costs available in Appendix H are customized for the offered transmission lines and substations, and might not capture all the cost estimates necessary for other transmission lines and substations. In addition, the timeliness to requests for information outside of the offered lines and substations will likely require more time to gather and the level of detail available will be less, posing increased risk of uncertainty for those choosing to interconnect to other non-offered locations.

Q3:

[Posted 8/16/22] May a third party manage the community benefits fund required by the Oahu and Maui Stage 3 RFPs?

A3:

Yes, it is acceptable to involve a third party to manage the community benefits fund, as stated in Section 4.4.2 of the Oahu and Maui Stage 3 RFPs.

Q4:

[Posted 11/29/22] When will Hawaiian Electric be providing information on available transmission line capacity on Maui or Oahu?

A4:

Hawaiian Electric will provide information on available transmission line capacity on Maui or Oahu upon request and if such information is available. At this time, injection capacity information for the Stage 3 Oahu and Maui RFPs is not yet available. Injection capacity information will be available when the final Stage 3 Oahu and Maui RFPs are issued and will be publicly filed in Docket No. 2017-0352. If your team is interested in specific points of interconnection on Company-owned lines or substations, please provide the proposed point of interconnection and proposed project size (in MW). When providing the proposed point of interconnection, please provide a specific location (i.e., address, TMK number, etc.) in addition to a map of the parcel identifying the proposed point of interconnection. Once identified, the RFP team will review these proposed points of interconnection and notify you if there is enough capacity to host the proposed project.

Please note that the final version of the RFP will govern the scope and requirements sought in this RFP and will be issued after the PUC approves the Company's proposed final RFPs. The Company's response will be provided in the interest of time and therefore will only reflect the Company's current understanding. Accordingly, the response may not reflect the scope and requirements of the final RFP. It is incumbent upon Proposers to follow up with any additional questions if they believe differences in the final RFP may change the nature of their original question or the Company's response.

Q5:

[Posted 01/24/23] Three line diagrams required per the RFP would require extensive time above and beyond typical requests for a proposal. The Lanai and Molokai RFPs allowed three-line diagrams to be submitted within 30 days after selection of the Final Award Group. Will the Company allow a similar concession?

A5:

The RFP Appendix B Proposer’s Response Package Section 2.11.2 instructs Proposers to “provide all project single line and three line diagram(s) with the Proposal submission.” Single line diagrams are required with each Proposal response package. However, the Company will allow delaying the submission of its three line diagrams until after Final Award Group selection, but must be submitted within 30 days after notification to the Final Award Group.

Q6:

[Posted 2/6/23] Has there been any change to available capacity due to recent terminations of Power Purchase Agreements?

A6:

As a renewable energy project recently had its Power Purchase Agreement officially terminated, 20 MW of available capacity is now available on the Lahaina #2 Mauka - Napili 69kV transmission line. This information is not reflected in the Injection Study Report.

Q7:

[Posted 2/6/23] Section 1.2.11 of the RFP states, “No single point of failure from the Facility shall result in a decrease in active power output measured at the Project’s POI greater than 20 MW.” Furthermore, Section 4.2, Item #11 states, “No single point of failure from the Facility shall result in a decrease of active power output measured at the Project’s POI greater than 20 MW.” However, the Maui Stage 3 RFP Appendix B - “Proposer’s Response Package,” Section 2.0 Proposal Summary Table - Item #15 states, “The Proposer hereby certifies that no single point of failure from the Facility shall result in a decrease of active power measured at the Facility point of interconnection greater than 30 MW. (Yes/No)”. Please confirm the correct single point of failure.

A7:

The single point of failure for this RFP is 20 MW, as per Section 1.2.11 and Section 4.2, Item #11 of the RFP. The 30 MW noted in Appendix B, Section 2.0 - Proposal Summary Tables, Item #15 is incorrect.

The updated Appendix B (the only update being the single point of failure change to 20 MW) has been uploaded into Power Advocate and also to the Stage 3 Maui RFP Documents webpage.

Q8:

[Posted 3/22/23] Can Hawaiian Electric begin engineering during the IRS phase, before execution of a contract?

A8:

Hawaiian Electric will offer early engineering. If Proposers elect to engage in early engineering, a written commitment will be required at the time of final award group selection and upfront payment for early engineering work will be required. As early engineering will be done in conjunction with the IRS, all early engineering work will be done at the developers risk. Early engineering will commence with a preliminary Facility Study to identify scope of work, assumptions and responsibilities (separate and prior to the final IRS Facility Study). Early engineering will also include Company review of engineering design, and other project support, associated with the Company Owed Interconnection Facilities.

Q9:

[Posted 3/23/23] The introduction to Appendix B, Attachment 3 states, "This document summarizes requirements of generation facility technical model submittals for request for proposals for variable renewable dispatchable generation and energy storage and describes the review process for model submittals." Is Appendix B Attachment 3 applicable for Firm project as well?

A9:

Yes, Appendix B, Attachment 3 applies to all projects, including firm.

Q10:

[Posted 6/5/23] Is there any information that can be provided based on the Waena Site visit held on May 4, 2023?

Q11:

[Posted 7/5/23] Are there any system requirements that have changed due to the utilization of N-1 contingency planning criteria being introduced in the Stage 3 Maui RFP?

A11:

The N-1 contingency planning criteria requirement, made available to potential bidders as part of the December 22, 2022 Injection Study, specifically requires the potential loss of MW from a generation facility at 100% capacity during an N-1 system contingency condition to be no higher than the maximum single contingency (20 MW). A line currently having more than the SPOF limit (20 MW) that could be exported under an N-1 contingency has the potential to cause excessive underfrequency load shedding (i.e., outages) should greater than 20 MW of generation be lost. Proposers are still allowed to proceed with a project interconnecting to a line in this condition; however, system upgrades such as adding a transmission line(s) as well as the potential for reconductoring would be required to increase the capacity at the location.

The planning requirement ensures that the full capacity of the facility can be available to serve customer demand under normal and single contingency conditions, without excessive reliability risk (excessive underfrequency load-shed beyond single contingency). The Companies preparation of the Stage 3 RFP (with IGP guidance) now identifies the transmission upgrades and additions to avoid projects being connected where reliability constraints limit the ability to safely and reliably take the full capacity.

The Company would like to refer potential bidders to Section 2.2.1 where it says “Proposers seeking to propose Projects with system upgrades must seek feedback from the Company prior to bid submittal, as there may be reliability limitations on certain facilities that do not allow capacity increases.”

Additionally, the Company would like to note that potential bidders should not rely on information from previous RFPs when developing their proposal. Technical and administrative requirements may be different for each procurement.

Q12:

[Posted 7/6/23] RFP Section 1.2.3, 4th paragraph, 1st bullet, states that “Reserve fuel may be any fuel the developer is permitted to consume.” Can reserve fuel be fossil fuel as the RFP requires facilities to be capable of operating using fossil fuels, in which proposer permitting must be obtained?

A12:

Reserve fuel cannot be a fossil fuel. The language sited in Section 1.2.3, 4th paragraph, 1st bullet, is in reference to Section 1.2.3, 1st paragraph, where “Renewable Energy” is defined under Hawaii Renewable Portfolio Standards (“RPS”) law and permitted energy sources are defined.

From HRS § 269-91:

By statute, “Renewable Energy” means energy generated or produced using the following sources: (1) wind; (2) the sun; (3) falling water; (4) biogas, including landfill and sewage-based digester gas; (5) geothermal; (6) ocean water, currents, and waves, including ocean thermal energy conversion; (7) biomass, including biomass crops, agricultural and animal residues and wastes, and municipal solid waste and other solid waste; (8) biofuels; and (9) hydrogen produced from renewable energy sources.

Q13:

[Posted 7/14/23] Does renewable/biofuel have to be neat (e.g. B100/neat/clean) or can it be a blend?

A13:

Renewable fuels and biofuels used for Stage 3 Maui RFP Projects must be 100% renewable fuel and therefore cannot be a blend.

Q14:

[Posted 7/27/23] Can Proposers ask the Company to confirm whether their proposed project’s system upgrades are adequate for the project they are proposing?

A14:

Per Section 2.2.1 of the RFP regarding Projects being proposed with project sizes greater than the potential available MW capacities, “Proposers seeking to propose Projects with system upgrades must seek feedback from the Company prior to bid submittal, as there may be reliability limitations on certain facilities that do not allow capacity increases.”

Per Section 2.2.2 of the RFP regarding Projects electing to interconnect to non-offered 69 kV transmission lines or 69 kV substations, “Proposers proposing Projects to non-offered locations should submit a proposed interconnection location, project size, and other available project details.”

To summarize, based on the referenced sections above, Proposers should submit their system upgrades for Company review, via mauirenewablerfp@hawaiianelectric.com, for projects: 1) at locations with 0MW available capacity, and 2) that are proposing more capacity than the available capacity identified at the proposed interconnection location.

Note that Section 2.2.4 of the RFP states, “a detailed IRS, when performed, may reveal other adverse system impacts that may further limit a Project’s contract capacity or require interconnection upgrades.”

Q15:

[Posted 7/28/23] The highlighted Note under Section 2.1.C for a Typical Transmission Interconnection states, “Please contact Company for more information on if Items 34a – 34c are required for a proposed GCP.” Can you please advise on Items 34b and/or 34c as they do not appear in the Stage 3 Maui Appendix H.

A15:

The highlighted Note under Section 2.1.C of Appendix H should state, “Please contact Company for more information on if Item 34a is required for a proposed GCP.”

2.1 - Substation & Meter Baseline Costs
2.1 - Substation & Meter Baseline Costs continued

Q16:

[Posted 8/9/23] In follow-up to the Waena Site Visit Q&A, regarding the irrigation ditch that bisects the project site, can clarification be given in regards to access to the project site from Pulehu Road and the interconnection route to the MECO Switchyard (see Appendix F, pdf pgs. 6-10 of 113):

  1. Does Mahi Pono have an exclusive or non-exclusive easement for Easements 3 and 4?
  2. Please provide documentation, on easements 3 and 4, supporting any exclusive or non-exclusive easement terms and conditions.
  3. Does HECO have an easement (exclusive or non-exclusive) template that could be reviewed and used if a developer is awarded the Project?

A16:

  1. Please refer to the Final Order of Condemnation describing Easements 3 and 4, including a letter agreement attached as that contains further information (description of Easement 4 is on pages 7-8 of the pdf, description of Easement 3 is on page 10 of the pdf). Neither description states the easements to be exclusive or non-exclusive, however, we are also not aware of any other party that has asserted rights to these easements.
  2. See the Final Order of Condemnation and response to question 1 above.
  3. To the extent that an easement is necessary for a proposer’s project, Hawaiian Electric does have an easement template that can be provided at such time as it is determined to be required.

Q17:

[Posted 8/9/23] Section 10 of Attachment Y to the Stage 3 Model Firm PPA appears to require 24/7 staffing at (not nearby) the facility.

Stage 3 Model Firm PPA Section 10 Attachment Y

Section 2.9 Operations & Maintenance (O&M) of the Proposers Response Package seems to imply that 24/7 staffing is optional, and offers a discussion of controlling the Project remotely, and whether the proposer would consider 24-hour staffing.

Section 2.9 Operations and Maintenance of the Proposers Response Package

Please advise if 24/7 staffing is required or not.

A17:

Proposers should submit their staffing plan in their bid proposal. The highlighted portion of Section 10 of Attachment Y to the Stage 3 Maui Firm PPA is subject to negotiation. However, note that location of staff (onsite vs. offsite) depends on the type of facility and what type of resources are required to operate it. The intent is to have 24/7 capability to manage operations – which may or may not require 24/7 onsite personnel.

Q18:

[Posted 8/15/23] Due to the recent events in Maui regarding the wildfires, will the August 17, 2023 @ 2:00pm HST Proposal Due Date be postponed?

A18:

Regarding the August 17th Proposal Due Date, the Company is moving forward as scheduled with the RFP. Proposals are still due on August 17, 2023 at 2:00pm HST.

In the event there is a change to the RFP, including any changes to the schedule, a notification will be sent out via: 1) Company email list, 2) direct messages to bidders registered in Power Advocate, and 3) on the Stage 3 Maui RFP webpage.