Transformers

10 people changing the way Hawaii Electric does business

(page 2 of 3)

     From left: Ron Cox, Colton Ching, Leon Roose and Scott Seu

The Planners

For nearly 100 years, the basic model of an electric-power utility has been relatively simple: Produce electricity in power plants and send it to customers through transmission and distribution lines owned by the utility. If customers need more electricity, fire up another generator. If demand drops, reduce production. This model fit well with the physics of electricity, which require that production and demand move in unison.

But the clean-energy future is less predictable. It’s going to include generation, like wind and solar power, that can’t be fired up at will, and won’t be controlled by the utility anyway. The same opacity will apply to customers as well, many of whom will generate some of their own power. This intermittent, unpredictable power is the bugbear for modern utility engineers, whose principal objective is to produce reliable, high-quality power for their customers.

Some of the key players on the Clean Energy Team are the planners who struggle to cope with this conundrum. It’s their job to design the systems and acquire the resources that will allow the company to integrate ever more renewable energy sources onto the grid without the customer – that’s you and me – even noticing.

Colton Ching
Age:
43
Title: Manager, Corporate Planning

Clean-Energy Responsibilities: Long-range planning to ensure the company has the generation, transmission and program resources to meet its renewable-energy goals and maintain reliability.

“My group has a hodge-podge of responsibilities,” Ching says. “Part if it is internally focused: We do strategic planning for the company. That includes a lot of internal reporting and risk assessment. But the other half of my department is externally focused: planning – we’re talking 20-year planning – related to long-term use of resources in the system. What are our future needs going to be for transmission? For new generation? What kinds of new demand-side management programs should be deployed? And, most important, how would those resources work together so that we can develop some long-range plans to serve our customers?”

Ching describes how the work of his group dovetails with the work of Leon Roose and Scott Seu, the other key planners on the Clean Energy Team. “I’m going to oversimplify this, but the real focus of Leon’s group is to look at the integration of these new resources on our grid, to look at the math, science and actual day-to-day, minute-to-minute, second-to-second type of solutions to answer the question of how you connect a large wind farm or a lot of PV (photovoltaic solar) power to the grid. How do you make use of their energy, but maintain reliability to the customer. It’s very technical, very focused on shorter time frames.

“My planners look at a broader time scale – from an hours perspective up to a multiyear perspective. And because our time frames are so different, the tools that we use and the analyses we perform are very different. But Leon and his folks and me and my folks, we’re literally joined at the hip. Because we have to look at all these time scales when we plan our system.”

Ching also notes that members of the Clean Energy Team have a responsibility to help change the culture within the company. “Aside from the technical, operational and planning things that all of us are tasked with, we have to affect that sort of change in the rest of the employees as well. We’re the saints that have to spread that gospel.”

Leon Roose
Age:
44
Title: Manager, System Integration Department

Clean-Energy Responsibilities: Analyzes the potential effects of integrating new renewable-energy sources into the grid, and develops implementation strategies using technologies like the interisland cable, smart grid and advanced metering systems.
 

Roose’s role on the Clean Energy Team is to figure out what it will take to add new, renewable generation to the system. That turns out to be much more complicated than it seems. “Some people think: ‘It’s a small island system; it must be simple,’ ” Roose says. “But it’s completely the opposite. When you’re a small grid, the physics of electricity are actually more complex, because it’s easier to upset the grid when a small disturbance happens.” It’s his job to make sure that doesn’t happen.

It helps that over the years he’s held most of the planning positions in the company. Now, with systems integration, he is responsible for transmission planning and generation planning. “And I’ve added to those functions the planning for what we call our distribution grid,” he says. “Which means I’m responsible for system protection. That’s how we put in relays and other things on our lines so, when you have a problem, it protects the equipment as well as the public.” These kinds of devices and strategies are also going to be a big part of the smart grid, he says, and that’s the real future of integrating the dramatic amounts of renewables on the grid.

Scott Seu
Age: 44
Title: Manager, Resource Acquisition Department

Clean-Energy Responsibilities: Using tools like power-purchase agreements and feed-in tariffs to negotiate and purchase as much renewable energy as possible.
 

If it’s Roose’s job to figure out how to integrate renewable energy sources onto the grid, it’s Seu’s to actually go out and buy it. That means everything from putting out the requests for proposals and negotiating the power-purchase agreements, to actually administering the contracts. It’s a remarkable commitment to clean energy. “People say ‘seamless,’ ” Seu jokes, “But we’ve still got a few seams to work on.”

In many ways, the leading edge of the clean-energy future is the relationship between the utility and the independent wind farms and photovoltaic arrays and other renewable-energy sources that the HCEI envisions. As Seu points out, feed-in tariffs will help to formalize that relationship, and he’s been a key member of the negotiations on the docket now before the PUC. “As we got into details,” he says, “it quickly became about much more than just distribution issues. It got into talking about all the details of how you develop contracts for renewable-energy resources.”

After all, one of the principal tenets of a feed-in tariff is that the price of these new sources should no longer be tied to the price of oil. “So what should be the appropriate price?” Seu asks. “We want to come up with a fare that will be fair to the developer and pay them a reasonable profit. Yet, at the same time, all that is going to be paid by our customers.”

His point, though, is clear: “I don’t think we’re ever going to build a brand new fossil-fuel power plant again.”

Ron Cox
Age: 53
Title: Manager, Energy Solutions Department

Clean-Energy Responsibilities: Help customers minimize energy use and reduce their bills through programs like demand-side management and the application of advanced technologies.

 Although renewable-energy sources, like solar, wind and biofuels, may seem sexy, in the short term, conservation and greater efficiency will likely play a greater role in helping the state reach its clean-energy goals. It’s Cox’s role to expand and reinforce programs like Energy Scout that help customers reduce the energy they need from HECO.

But like many on the team, Cox brings a breadth of experience that’s invaluable in the group’s customary give and take. He came to the utility after a career in the nuclear Navy. “My first year with the company, I was in operations doing strategic planning,” he says. Then he moved into power purchasing and fuel contracts, including going through the regulatory approval process for critical issues, like biofuels. In fact, this expansion of responsibilities gets to the heart of the Clean Energy Team, Cox says. “This is just the recognition that we needed to make some organizational changes. Today, we literally have three managers doing what I used to do. One manager does nothing but buy biofuels, another manager does traditional fuels and another does power purchase contracts.”

According to Cox, this is a sign of the company’s commitment to clean energy “We’re out there on the leading – sometimes bleeding – edge of trying to implement change. For example, I don’t think any other state has set a target of 40 percent renewables as early as 2030.”
 

Public Face of Change

Of course, careful planning and resourceful operations are essential to the company meeting its clean-energy goals. But they’re not sufficient. The ambitions enshrined in the HCEI will require a partnership between the utility and the community. It means going out and engaging the public. It means accounting for people’s skepticism and managing their expectations. And it means focusing on customers and service as much as technology and policy.

In some ways, this perspective is built into all parts of the Clean Energy Team. Operations and planners, for example, are already obsessed with reliability and customer service programs. But the team also includes members whose principal focus is how the company’s clean-energy plans impact public and customer relations.

Lynne Unemori
Age: 50
Title: Vice President, Corporate Relations

Clean-Energy Responsibilities: Communicate the company’s green objectives, to both employees and the public.
 

Unemori points out that there’s both an internal and external aspect to communicating the company’s clean energy goals. Internally, she says, it’s important that employees realize these goals aren’t just window dressing; they represent the utility’s future. “It’s critical to make sure they understand our mission, our vision of what the goals are, how we’re going to stay focused. Most important: making it clear that every employee has a role to play in our future.” Unemori also acknowledges that the company has to communicate that same sense of conviction and commitment to a skeptical public.

That public – the ratepayers and taxpayers who will ultimately underwrite the goals of the HCEI – has to know they have a stake in the process. “Another key message,” Unemori says, “One, I think isn’t always easy – is that we have to make investments in order to harvest this energy, to get the infrastructure in place, to be able to reliably include renewables. This investment will come with a price tag, too. But, if you look at it in a bigger context, it makes a lot of sense.”

Dave Waller
Age: 61
Title: Vice President, Customer Service

Clean-Energy Responsibilities: Ensure that the company’s clean-energy programs, like demand-side management or net metering, operate seamlessly for customers.

 

Waller, who had an earlier career in the petroleum industry, brings a unique perspective to the team. Ultimately, he says, clean energy, like anything else the company does, has to benefit the customer. “Really, to affect all the change that we’re looking for, the customer plays a very important role in that process. What we really want to do is make sure that, in every product, every service, every interaction with the customer, we execute that with clean energy in mind.”

Although it’s tempting to envision the work of the Clean Energy Team in a technological or regulatory framework, Waller notes, “The effects and the work of clean energy really don’t happen until they happen in the customer’s place of business or at the customer’s home.”
 

Hawaii Business magazine invites you to comment on our articles and the issues they raise. Comments are moderated for offensive language, commercial messages and off-topic posts and may be deleted. Some comments may be chosen for inclusion in the magazine on the Feedback page.

Aug 30, 2010 04:17 am
 Posted by  docberry

An excellent story, but you need more details on present controversies at the PUC on feed-in tariffs and HECO trying to limit
to 15% of total power from private power producers on Oahu. A follow-up piece on the clean energy sources in dispute should interview Mark Duda, Henry Curtis, and EBDT's energy office which analyzed HECO's claim of a 15% limit.
You also need to write the history of the palm oil debacle into which HECO has drawn its consumers..

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