By Hawaiian Electric Companies.
HONOLULU, May 18, 2016 /PRNewswire/ -- The Hawaiian Electric Companies today asked the Hawai'i Public Utilities Commission (PUC) to review and approve a proposed contract with Fortis Hawaii Energy Inc. to import liquefied natural gas (LNG) for electricity generation on O'ahu, Hawai'i Island and Maui.
The contract, the culmination of a request for proposals issued two years ago, would provide a cleaner, low-cost fuel to replace oil in the transition to achieving Hawai'i's 100 percent renewable portfolio standard by 2045. If approved, Hawaiian Electric envisions beginning use of natural gas in 2021 with a 20-year contract ending as Hawai'i approaches its 100 percent renewable energy goal.
"We are committed to achieving our state's 100 percent renewable energy goal with a diverse mix of renewable resources," said Ron Cox, Hawaiian Electric vice president for power supply. "As we make this transition, LNG is a cleaner-burning alternative that potentially can provide billions of dollars in savings and stabilize electric bills for our customers compared to continuing to rely on imported oil with its volatile prices. LNG is a superior fuel for the firm generation needed to keep electric service reliable as we increase our use of variable renewables like solar and wind."