Originally published in The Lahaina News – April 11, 2019 – On March 27-28, West Side resident Jennifer Potter attended the sixth annual Hawaii Energy Conference (HEC) and Exhibition at the Maui Arts & Cultural Center in her role as commissioner on the Hawaii Public Utilities Commission (PUC).
Jennifer Potter, PUC Commission
Organized by Maui Economic Development Board and supported by the County of Maui Office of Economic Development, the sixth annual conference drew over 400 people, an increase of more than 25 percent from last year.
Commissioner Potter was appointed to the PUC by Gov. David Ige in March 2018 for a term to expire in June 2024. Previously, she was a faculty member at the Hawaii Natural Energy Institute, an independent research institute within the University of Hawaii, where she conducted research on demand response, Distributed Energy Resources (DERs), locational benefits of DERs, and energy efficiency.
Potter holds a Master’s Degree of Science in Public Policy and Management from Carnegie Mellon University and a Bachelor’s Degree in International Studies and Economics from Southern Oregon University.
Committed to Hawaii’s ambitious renewable energy goals, Commissioner Potter also brings her wealth of experience as a senior scientific engineering associate at Lawrence Berkeley National Laboratory to the PUC.
“Hawaii continues to be a leader in DER integration and is positioned to be a leader in utility-scale renewable projects in the next five years,” Potter said.
“We are working on regulatory reform, direct response markets, microgrid initiatives, integrated grid planning, resilience, and climate change initiatives across local and state governments.”
Commissioner Potter became “hooked on energy” when she started working for a small electric utility in Northern California directly after graduate school.
“I analyzed how and when customers used energy,” she said. “This research was called load research and is the foundation for setting rates, forecasting load growth and sales within utilities around the country. It provides a thorough and reliable knowledge of trends and general behavior of the load characteristics of the customers serviced by the electrical industry.”
Becoming intrigued with how customer demand drives utility generation and supply, Commissioner Potter’s direction became crystal clear: customers are the main actor in the clean energy future, and when they use energy is critical.
“If customers use less energy in the evening hours when energy is generated from dirty fossil fuel plants, and instead use most of their energy during the day when solar is abundant and powering our grid, then we have changed the fuel mix of our energy. We would be using more renewable resources,” Potter said.
“The next seven years of my career were dedicated to trying to figure out how to help customers make the transition to using more clean energy and less dirty energy.”
What Commissioner Potter learned is that if you offer customers incentives, education and technologies that help control when their appliances use energy, they are willing and able to participate in the clean energy future.
“Give customers a discount on their energy use during the day, with some home automation like Alex and Nest thermostats, and it is easy for them to save money and use clean energy.” she said. “This is a significant part of my vision for Hawaii – to empower our residents to use clean energy and conserve energy where they can, without being inconvenienced. The Hawaii Electric Company (HECO) is working hard to bring renewable energy online, and we, as customers, have to do our part, too.”
Commissioner Potter continued, “The PUC recently approved Maui Electric Company’s (MECO’s) purchase power agreement with AES Renewable Energy for 60 megawatts of solar power and 240 megawatt-hours of battery capacity. MECO will pay eight cents a kilowatt hour from the solar array and battery system, the lowest cost for renewable energy on the island and much lower than fossil-fuel-generated power. The goal is to replace the Kahului Plant, which is the dirtiest and least efficient fossil fuel plant in Hawaii, with this clean energy. The solar and storage facility can produce enough energy for nearly 27,000 Maui homes at a fraction of the cost of the Kahului plant. Not only do customers get clean energy, that energy is much cheaper.”
That said, while MECO can bring the clean energy resources to the grid, customers need to help manage their energy use, so they are using the majority of energy when the solar is produced.
For example, if you have an electric vehicle, charge it during the day so that you are using clean electrons. Use a timer for your dishwasher and pre-cool your home. Buy efficient appliances, like Energy Star, and check with Hawaii Energy for rebates and programs that can lower your electric bill.
“We all have to work together to get to a 100 percent clean energy future, both the utilities and the customers,” Potter said, noting the announcement of the landmark Memorandum of Understanding (MOU) between Hawaii and California.
“The California and Hawaii PUCs will now officially collaborate to address climate change, reduce the use of fossil fuels and greenhouse gas emission,” she said. By entering into a MOU, staff at each commission will undertake actions within their mandate to further these goals. This was a remarkable opportunity for the Hawaii PUC to make a strong public commitment to reducing carbon emissions and accelerate clean energy in our state. I am honored to have worked on the MOU.”
One of the most important issues in front of the Hawaii PUC right now is Performance Based Regulation (PBR), an approach to utility regulation designed to strengthen utility performance incentives.
The term “PBR” is synonymous with incentive regulation. Legislation was passed in 2018 that directed the PUC to implement PBR by 2020 that breaks the link between utility revenues and capital investments.
“The commission has been working closely with stakeholders, consumer advocates and the utilities to define a set of goals, outcomes and metrics that will replace the cost-of-service and rate-based regulatory model of cost recovery for the utilities,” Potter said.
“These goals include: enhance the customer experience; improve utility performance; and advance societal goals. The outcomes include efforts like reducing greenhouse gases, using distributed energy resources and investing in an efficient grid.”
On Feb. 7, 2019, the Hawaii PUC staff issued a proposal to adopt updated utility regulations to encourage the HECO Companies to cost-effectively achieve state energy goals and deliver cost savings to customers.
Commissioner Potter concluded, “The current regulatory model encourages companies to make large capital investments to earn a return. Our efforts will break that link, so that utilities can earn a return on providing services and programs instead of just capital investments. We must think of a broader set of regulatory mechanisms that allow the utility to move with flexibility and accelerate our path to renewable energy. Regulation is where the rubber hits the road. How we perform our function as the PUC must improve the utility and align utility performance with community interest.”
In its sixth year, the Energy Conference on Maui was renamed the Hawaii Energy Conference (HEC) to reflect what it has always been–the premier Energy Conference in Hawaii focused on statewide interests as seen through the prism of national and international developments in energy.
Hawaii has experienced enormous growth in distributed energy resources, primarily photovoltaic systems. This year’s conference will take an in-depth look at the innovative policies and technologies that continue to allow rapid growth in PV, and will compare Hawaii solutions with those in Colorado, California and other states. We will also ask what the right blend of fossil fuel and renewable energy sources is for the portion of our economy not covered by the Renewable Portfolio Standard. Come join the discussion at one of the nation’s leading energy conferences.
Colton Ching| Senior Vice President, Planning & Technology, Hawaiian Electric Frank De Rego Jr. | Vice Chair, Conference Program Committee; Director of Business Development Projects, Maui Economic Development Board, Inc. William Giese| Executive Director, Hawaii Solar Energy Association Jonathan Koehn| Senior Sustainability Policy Advisor, City of Boulder Dawn Lippert| Chief Executive Officer, Elemental Excelerator Doug McLeod| Chair, Conference Program Committee; Member, DKK Energy Services, LLC Jennifer Potter| Commissioner, Hawaii Public Utilities Commission Frederick Redell | Co-Founder and Managing Member, BlüNebü
Day 1 of the 2019 Hawaii Energy Conference featured on KITV with special attention given to the signing of the MOU between the Public Utilities Commissions (PUC) of Hawaii and California.
The 6th Annual Hawaii Energy Conference presented by Maui Economic Development Board kicked off today on the Valley Isle. The two-day conference attracted energy industry leaders from Hawaii, the Mainland, Japan and Europe to exchange ideas on how to better serve customers in the Islands’ rapidly changing energy environment.
Among the highlights of today’s program was the announcement and signing of a landmark Memorandum of Understanding (MOU) made by James “Jay” Griffin, Chair of the Hawaii Public Utilities Commission and Michael Picker, President of the California Public Utilities Commission. These Commissions will be collaborating in an effort to achieve each state’s clean energy and climate goals.
According to Griffin, “This MOU establishes a framework for Hawaii’s and California’s Commissions to share information and best practices with the mutual goals of decarbonization, the development and deployment of innovative technologies and planning in the energy and transportation sectors to reduce reliance on fossil fuels and promote clean energy, improve reliability, and obtain cost benefits for ratepayers.”
In this collaborative effort, California and Hawaii have committed to:
Addressing climate change and limiting global warming emissions to less than two degrees Celsius by the end of this century.
Development and use of low and zero-carbon technologies in the energy and transportation industries to meet each state’s aggressive clean energy goals and achieve carbon neutrality as soon as possible and no later than 2045.
The promotion of carbon offset programs.
Support for energy planning processes that recognize the ability of low-carbon resources to provide reliability and cost-effective benefits, while fostering new technology and innovation.
Promotion of cost-effective conservation and demand response.
Advancement of infrastructure to reduce carbon emissions in the energy and transportation sectors.
L to R: James “Jay” Griffin, Chair of the Hawaii Public Utilities Commission, and Michael Picker, President of the California Public Utilities Commission.
Picker announced, “I had a vision that our states could work together for a cleaner energy future by reducing the effect of climate change on our communities. Today, I’m honored to say, we signed a formal commitment for Hawaii and California to reach our renewable energy goals together.”
Today, Governor David Ige was also featured among a number of key decision makers from throughout the nation who exchanged ideas on responding to the challenges associated with replacing fossil fuels with diverse and renewable energy resources. Governor Ige joined the panel “Moving Away from Convention: Innovations in Regulatory Policy,” with Michael Picker, President, California Public Utilities Commission; Abigail Anthony, Commissioner, Rhode Island Public Utilities Commission; and Jennifer Potter, Commissioner of the Hawai’i Public Utilities Commission.
The Hawaii Energy Conference continues tomorrow (March 28) at the Maui Arts & Cultural Center in Kahului. The program will feature invited Keynote speakers, panel sessions, case studies, exhibits, and ample time for networking. For information, visit www.hawaiienergyconference.com.
This annual conference is presented by Maui Economic Development Board, a 501(c)(3) not-for-profit corporation established in 1982 with a mission to diversify Maui County’s economy, building pathways to innovation, jobs and opportunity for our residents. Through partnerships with the public and private sector, MEDB undertakes projects that assists growth industries with navigating and thriving in our county, educates and trains residents for new careers, and engages our community in forums that determine future economic directions.
Governor David Ige will speak at the 2019 Hawaii Energy Conference
Governor David Ige will be featured among a number of key decision makers from throughout the nation at the 6th Annual Hawaii Energy Conference (HEC). These leaders will exchange ideas on responding to the challenges associated with replacing fossil fuels with diverse and renewable energy resources. Governor Ige will join the panel Moving Away from Convention:Innovations in Regulatory Policy, with Michael Picker, President, California Public Utilities Commission; Abigail Anthony, Commissioner, Rhode Island Public Utilities Commission; and Jennifer Potter, Commissioner of the Hawai’i Public Utilities Commission.
Some of the central questions this panel will explore include the following: What regulatory initiatives are Commissions undertaking to improve utility performance? What incentives have been approved for fuel cost and renewables procurement? What incentives will work to align the interests of the utility with public policy? If new incentives are crafted, can they avoid increasing the ultimate cost to rate payers? What instances make sense to transform the market through incentives?
Hawaii has experienced enormous growth in distributed energy resources, primarily photovoltaic systems. Thus, this year’s conference will take an in-depth look at the innovative policies and technologies that continue to allow rapid growth in PV, and will compare Hawaii solutions with those in Colorado, California and other states.
“If you are coming from a place where distributed solar PV is beginning to ramp up, there is a lot to learn from both what we did right and what we did wrong in Hawaii,” says Doug McLeod, Conference Program Committee Chair. “If you live here in the islands, this is an unparalleled opportunity to interact with the leaders in the energy community.”
Other panels at the conference will discuss topics such as the interplay between fossil and renewable energy; a comparison of paths to 100% renewable energy; and unleashing the power of clean energy in housing markets.
The HEC will be held at the Maui Arts Cultural Center March 27 & 28. Presented by the Maui Economic Development Board (MEDB) and supported by the County of Maui Office of Economic Development.
This event consistently attracts energy industry leaders from Hawaii, the Mainland, Japan and Europe to exchange ideas on how to better serve the community in today’s rapidly changing energy environment. Highlights of the conference include thought-provoking keynote speakers, panel sessions, case studies, exhibits and ample time for networking.
Frank De Rego, Jr.
“The rapid development of new business models, regulatory processes and rules, alongside burgeoning technological improvements in energy production, delivery, and storage have wide-ranging implications for all energy stakeholders, especially those directly involved in building the energy sector of the future,” observed Frank De Rego Jr., Hawaii Energy Conference Program Committee Vice Chair and Director of Business Development Projects at MEDB. “The Hawaii Energy Conference provides a forum to discuss the future of energy with emphasis on a practical and iterative approach to innovation.”
The 2019 Hawaii Energy Conference is made possible by the following sponsors: Carbon Lighthouse, Hawaii Natural Energy Institute, Johnson Controls, Ulupono Initiative, Innergex, Hawaii Electric Companies, Hawaii Energy, PXiSE Energy Solutions, Powin Energy, Ameresco, Ampaire, Burns & McDonnell, DOE Western CHP Technical Assistance Partnership, Eaton, Gridworks, UH Hawaii Energy Policy Forum, Neste, Ohm Energy Techologies, Opus One Solutions and Pika Energy.
