Hawaiian Electric Industries Enters 30‑Year Power Purchase Agreement (208 MW)

What Happened
Hawaiian Electric Company, Inc. (a subsidiary of Hawaiian Electric Industries, HEI) and Kalaeloa Partners L.P. entered into a new Power Purchase Agreement (New PPA) dated July 27, 2026. The New PPA covers 208 megawatts (MW) of firm capacity for a 30‑year term following commercial operation and replaces an Amended and Restated PPA from October 2021 that is expected to terminate in early 2033. Kalaeloa plans to repower its facility to enable fuel flexibility and to produce energy that qualifies as renewable under Hawaii’s Renewable Portfolio Standards.

Key Details

• Parties & date: Hawaiian Electric Company, Inc. and Kalaeloa Partners L.P.; New PPA executed July 27, 2026.
• Capacity & term: 208 MW of firm capacity for 30 years after commercial operation date.
• Pricing changes: fixed capacity charge reduced to $93/kW-year (for full 208 MW) vs. $100/kW-year under prior PPA; O&M: variable $0.004/kWh (2023$) escalating with GDP implicit price deflator, fixed O&M $96/kW-year (2023$) for 208 MW, and overhaul charge $300/hour (2023$) plus a starts-based component.
• Conditions: New PPA effectiveness is subject to certain conditions including acceptance by the Hawaii Public Utilities Commission (PUC); either party may declare the New PPA null and void under specified timelines if PUC approval is not obtained or if Kalaeloa breaches certain commitments.

Why It Matters
This is a long‑term supply agreement that locks in 208 MW of firm capacity for Hawaiian Electric and reduces the fixed capacity charge versus the prior contract, which could affect future capacity costs and reliability planning. The repowering to allow renewable‑qualified energy supports Hawaii RPS goals. However, the New PPA is subject to regulatory approval by the PUC and other conditions, so its benefits depend on those approvals and on Kalaeloa’s performance. The full New PPA text will be filed as an exhibit to HEI’s 10‑Q for the quarter ending September 30, 2026.