PUC Approves New Firm Generation to Address Oʻahu’s Critical Electric Reliability Needs

HONOLULU - The Public Utilities Commission today approved the Hawaiian Electric Company Waiau Repowering Project, to address urgent reliability needs on Oʻahu's electric grid, while putting in place strict cost controls to limit financial impacts on customers.

The project proposes to replace six aging, inflexible oil-fired steam units with six new fuel-flexible, simple-cycle combustion turbines totaling 253 megawatts. As a condition of approval, Hawaiian Electric must operate the new units on a minimum of 51 percent renewable fuel at commissioning of the first four units or by 2032, whichever occurs first, increasing to 75 percent by 2040 and 100 percent by 2045 to ensure continued progress toward the state's renewable energy goals.

The new units' flexibility and fast-start capabilities will enable more integration of renewable energy and improve reliability as older fossil-fuel burning units are retired. The new units will also help maintain sufficient firm power to support grid resiliency and reliability during the transition to a 100% renewable energy future.

The project was selected through a competitive bidding procurement process that was overseen by an independent observer and independent engineer, which sought firm renewable resources on Oʻahu to improve system reliability while helping to move the state closer to its clean energy goals.

After selection under the competitive bidding process, the commission completed a comprehensive review of the project's anticipated benefits and costs to carefully balance system reliability, safety and affordability.

To safeguard customers, the commission did not approve Hawaiian Electric's amended request to recover up to $1.155 billion for the project. Instead, the commission set a cost recovery cap at the utility's original competitive bid of $847 million, plus a limited inflation adjustment. Pursuant to this cap, Hawaiian Electric may not recover more than that amount from customers through electricity rates, even if its final costs exceed it. If the final project cost is less than the bid, the company may only recover the lower, actual cost. Based on the cap, the project is estimated to increase the bill of a typical residential customer on Oahu by about $3.62 per month.

This action reflects the commission's continued commitment to balancing safety, reliability, affordability, and Hawaiʻi's long-term clean energy goals.

The decision and order, along with a summary of it, is available here.

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More Information

• Summary of Decision and Order No. 42411
• Decision and Order No. 42411; Hawaiian Electric Company, Inc.; Docket No. 2025-0211
• Docket No. 2025-0211