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Combined Heat and Power Partnership

Hawaii Standby Rates

Date Last Updated6/6/2014
Policy TypeState Utility Rate Policy
Policy Administrator/Contact OfficeHawaii Public Utilities Commission (PUC)
Policy Initiation Date5/15/2008
Policy SummaryIn 2008, the PUC issued an order that made standby rates optional for 10 years for customer-sited generators who install CHP and other forms of distributed generation power systems. If CHP customers choose not to take standby service, they remain on the otherwise applicable rate schedule. Hawaii Electric Company's (HECO) tariff, for instance, includes a reservation fee and calculates demand charges based upon the contract demand or the highest 15-minute backup demand amount, whichever is lesser. Additionally, customers taking standby service have the option of waiving their demand (due to an unscheduled outage) for billing purposes once a year. There is no demand ratchet in place.
CHP Eligibility RequirementsDoes Not Specify
Eligible Project Size (MW)Does Not Specify
Minimum Efficiency Required/
Other Performance Requirements
Does Not Specify
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