Hawaiian Electric wins contract to provide electricity for Army facilities in Hawaii

Hawaiian Electric won a contract to own and operate the electric distribution system for 12 U.S. Army’s 12 installations on the Island of Oahu.

The installations include Schofield Barracks, Wheeler Army Airfield, Tripler Army Medical Center, Fort Shafter, and various Army housing areas. The 50-year contract is valued at $638.5 million, according to the U.S. Defense Logistics Agency.

“In a rigorous and competitive process that lasted nearly three years, we made the case that we could deliver a cost-effective, long-term solution for the Army,” Alan Oshima, Hawaiian Electric president and CEO, said. “I’m proud that a Hawaii-based company was selected to provide these vital services, and we look forward to being a trusted energy partner to the Army and to thousands of military service members for decades to come.”

The contract is part of the Army’s effort to upgrade and sustain utilities using private-sector partnerships.

“The Army needs secure, reliable energy to do our mission and that’s what this effort is all about,” Col. Tom Barrett, commander of the U.S. Army Garrison Hawaii, said. “Privatizing the Army’s electrical system on Oahu supports energy resilience, and energy resilience is critical to Army readiness.”

The state’s Public Utilities Commission must approve the contract. After it is approved, the company and the Army have agreed to a one-year transition period, with the takeover of the system in late 2021.

Hawaiian Electric will perform all capital improvements and replace any infrastructure with the cost paid by the Army through a special billing separate from its regular monthly bill for electricity.