Hawaiian PUC greenlights Hawaiian Electric acquisition of electric systems for 12 U.S. Army facilities

At 12 United States Army installations on Oahu, power will soon flow from a new source as the Hawaii Public Utilities Commission (PUC) approved last week Hawaiian Electric’s plans to take over electric distribution systems feeding those facilities.

For the next 50 years, as contracted, Hawaiian Electric will own, operate, maintain and upgrade the electric distribution systems feeding these Army bases, installations, and facilities. While this will affect the Army, it will not affect non-Army customers, who will not pay for any of the services or work performed under the new contract, which is part of the Army’s Utilities Privatization Program.

A one-year transition period will put the official takeover of the system in late 2021. Once complete, Hawaiian Electric will provide electricity to the Army, distributing that electricity to facilities and bills to its users. During the transition, the Army will identify capital improvements and aging distribution infrastructure replacement projects. The cost of improving and maintaining these will be paid by the Army separate from its regular monthly electricity bill.

Going forward, the PUC will require regular reports on Hawaiian Electric’s activities and investments for the contract. Reviews will also be required of major projects planned on the Army’s behalf. In all, the contract has been valued at $638.5 million.