Alicia Moy, president and CEO of Hawaii Gas, said she supports a bill sitting on Gov. David Ige’s desk that would limit the use of liquefied natural gas in Hawaii, despite the utility looking to supply the resource to the state in bulk.
House Bill 1286 mandates that the use of LNG in Hawaii does not slow the development and use of renewable energy sources, reaffirms Hawaii’s need to cut its dependence on imported fuels and encourages utilities to make the social and financial interests of ratepayers a priority.
Lawmakers sent the bill to Ige on Tuesday. The governor has 10 days to either sign the bill into law, return it with objections to the Legislature or veto the bill. If it is not signed or returned within that time, it will become law.
Ige said in a March interview with the Honolulu Star-Advertiser that if LNG were to be included in Hawaii’s energy mix, it must be used as a bridge fuel.
Moy said the gas utility’s LNG plans would align with the state’s goals to increase the use of renewable energy.
"It is very clear the permanency is not something people want out of LNG," Moy said. "It is something that has been part of our plan, part of our guiding principals from the very beginning. The LNG model must address the changing demand scenarios of increasing renewable energy development. We are very flexible and amenable to where the state policy is going."
Hawaii Gas filed an application in October with the state Public Utilities Commission to use more LNG. The gas utility wants to use LNG to serve its 70,000 customers and the statewide demand for power generation, which includes Hawaiian Electric Co. power sources.
It could cost between $337 million and $437 million to include LNG in the state’s electrical energy mix, according to utility estimates.
To modify HECO’s generation units for natural gas would cost roughly $187 million, the electric utility said in its Power Supply Improvement Plans filed in August with the PUC.
Hawaii Gas would invest an additional $150 million to $250 million to bring LNG into the state.
Whether the gas utility and electric utility will work together to supply the fuel is undecided.
Moy said she hopes the two utilities can work together to bring LNG to Hawaii.
"We are in conversations with them," Moy said. "We’re hopeful that we can work together on a solution, a joint solution for the state."
