Hawaiian Electric's $1 Billion Power Project Faces Flood Zone Risks
Hawaiian Electric Company’s proposed $1.15 billion upgrade to its Waiau power plant in Pearl City faces significant regulatory and financial hurdles after it was revealed that the site lies within a newly designated 100-year flood zone. Although the project was not in a flood zone when announced in December 2023, FEMA’s July 2024 preliminary maps included the site, with final designations taking effect in June 2026. A group called Concerned Ratepayers of Oʻahu highlighted this issue in a public comment, questioning whether Hawaiian Electric disclosed this risk in its federal loan application. This oversight could impact building permits and federal funding eligibility, potentially increasing costs for ratepayers who are already set to bear $847 million of the project cost. Hawaiian Electric executives argue that the new equipment will be built on existing elevated infrastructure, minimizing flood risk, and have criticized the anonymous nature of the complaint. However, city officials warn that stricter flood resilience standards may now apply. The Public Utilities Commission previously approved the project but limited customer charges, leaving the utility responsible for over $300 million. The company is currently seeking reconsideration to pass the full cost to customers.
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Hawaiian Electric's $1 Billion Power Project Faces Flood Zone Risks
Hawaiian Electric Company’s proposed $1.15 billion upgrade to its Waiau power plant in Pearl City faces significant regulatory and financial hurdles after it was revealed that the site lies within a newly designated 100-year flood zone. Although the project was not in a flood zone when announced in December 2023, FEMA’s July 2024 preliminary maps included the site, with final designations taking effect in June 2026. A group called Concerned Ratepayers of Oʻahu highlighted this issue in a public comment, questioning whether Hawaiian Electric disclosed this risk in its federal loan application. This oversight could impact building permits and federal funding eligibility, potentially increasing costs for ratepayers who are already set to bear $847 million of the project cost. Hawaiian Electric executives argue that the new equipment will be built on existing elevated infrastructure, minimizing flood risk, and have criticized the anonymous nature of the complaint. However, city officials warn that stricter flood resilience standards may now apply. The Public Utilities Commission previously approved the project but limited customer charges, leaving the utility responsible for over $300 million. The company is currently seeking reconsideration to pass the full cost to customers.
AP News