APPLICATION OF HAWAII ELECTRIC LIGHT COMPANY, INC. AND
HAWAIIAN ELECTRIC COMPANY, INC. FOR APPROVAL OF THE
BIODIESEL SUPPLY CONTRACT WITH AINA KOA PONO-KA`U LLC
AND TO ESTABLISH A BIOFUEL SURCHARGE PROVISION

Docket No. 2012-0185

NOTICE IS HEREBY GIVEN that the STATE OF HAWAII (“State”), PUBLIC UTILITIES COMMISSION (“Commission”), will hold a public hearing on the application of HAWAII ELECTRIC LIGHT COMPANY, INC. (“HELCO”) and HAWAIIAN ELECTRIC COMPANY, INC. (“HECO”) (collectively, the “Companies”), filed on August 2, 2012, for approval to, among other things, establish a Biofuel Surcharge Provision that will apply to the customers of HELCO and HECO. The public hearing will be held as follows:

November 1, 2012, 6:00 p.m.
Farrington High School cafeteria
1564 North King Street
Honolulu, Hawaii

By their application, the Companies seek the Commission’s approval, among other things: (1) of HELCO’s Biodiesel Supply Contract with Aina Koa Pono-Ka`u LLC (“AKP”), dated August 1, 2012, for approximately sixteen million net United States gallons annually of locally produced biodiesel over twenty years, and the related contract costs, including the biodiesel, transportation, and storage costs, and related taxes; (2) to include the costs of the Biodiesel Supply Contract, including without limitation, the costs associated with the biodiesel, transportation, storage, and related taxes, in HELCO’s Energy Cost Adjustment Clause, to the extent that such costs are not recovered in HELCO’s base rates (pursuant to Hawaii Administrative Rules § 6-60-6) or through the proposed Biofuel Surcharge Provision; and (3) to establish a Biodiesel Surcharge Provision that will apply to the customers of HELCO and HECO. AKP intends to sell the locally produced biodiesel to HELCO to utilize as a fuel source for the electric utility’s Keahole power plant.
As described by the Companies, the proposed Biofuel Surcharge Provision is a mechanism that will pass through the differential between the cost of the biofuel and the cost of the fossil fuel that the biofuel is replacing, in the event that the biofuel cost is higher than the fossil fuel cost, over the customer base of HELCO and HECO, based on kilowatt-hour (“kWh”) usage. According to the Companies, the application of the biofuel surcharge will add about $0.84 to $1.00 per month to a typical residential customer’s bill (typical residential use varies between 500 to 600 kWh a month for Hawaii island and Oahu customers). The Companies assert that, in effect, the proposed Biofuel Surcharge Provision will: (1) support the State’s move toward energy independence; (2) increase energy security; and (3) reduce greenhouse gas emissions through the reduction of the State’s reliance on imported fossil fuels.
Copies of the Companies’ application are available for review through the Commission’s electronic Document Management System, accessible on-line, at the following website address: http://dms.puc.hawaii.gov/dms/, Quick Link 2012-0185. In addition, copies of the Companies’ Application are available for review by contacting HECO [(808) 543-5670], HELCO [(808) 969-0121], the Commission’s Honolulu Office [(808) 586-2020], or the Division of Consumer Advocacy [(808) 586-2800].
All interested persons are invited to attend the public hearing to state their views. Statements may also be submitted: (1) to the Public Utilities Commission at 465 South King Street, Room 103, Honolulu, Hawaii 96813, via postal mail or hand delivery; and/or (2) by electronic mail to the Commission’s electronic mail address at Hawaii.PUC@hawaii.gov. All written statements should reference Docket No. 2012 0185. Unless extended otherwise by the Commission, the deadline for the public to submit written comments to the Commission is November 30, 2012.
Special accommodations for persons with disabilities can be made if requested reasonably in advance by contacting the Commission’s Honolulu Office.