Smart Meter Setback: Hawaii PUC Kicks Back Project, Tells Utility to Try It Again

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In the latest smart meter deployment setback, the Hawaii Public Utilities Commission deep-sixed a smart meter proposal from Hawaiian Electric Company to expand a test project on the island of Oahu. "Our office was concerned that the investment would be made but ratepayers wouldn't see the benefits," state Division of Consumer Advocacy Executive Director Dean Nishina was quoted as saying in an Associated Press article. Hawaiian Electric had asked regulators for an additional 18 months to expand the test, with the tab — $1.35 million — to be picked up by residents and businesses. The decision also unraveled the utility’s broader plan for a $115 million smart meter deployment at 451,000 locations on the Big Island, Maui and Oahu. However, the PUC invited Hawaiian Electric to come back with a more comprehensive plan. While certainly not good news for the company, a utility spokesman said the decision wasn't the end of the world. "They want to see a Smart Grid roadmap first. It's not a big setback. They're saying 'Let's do it in a more deliberative manner,'" spokesman Peter Rosegg was quoted as saying. Critics of the utility’s proposal have questioned the need for spending money on metering technology when other choices may be more practical.

Quick Take: After Maryland regulators last month knocked down Baltimore Gas & Electric's proposal to have ratepayers shell out most of the initial costs of an $835 million smart meter deployment (and accept mandatory time-of-use pricing), we shouldn’t be surprised to see the stance taken by Maryland regulators resurface. Lessons learned to date: Maintain an open, continuing dialogue with regulators, concentrate on the benefits to consumers, and steer clear of mandatory TOU for the time being.

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