Full Breakdown
Hawaiian Electric's Waiau Power Plant Project Faces Flood Zone Challenges
4/15/2026, 11:44:05 AM
Overview of the Project and Flood Zone Designation
Hawaiian Electric Co., Inc. (HECO) is pursuing a $1.15 billion upgrade to its Waiau power plant, initially announced in December 2023. However, the project has encountered significant hurdles following the designation of the site as a 100-year flood zone by the Federal Emergency Management Agency (FEMA) in July 2024. This designation, which will take effect in June 2026, raises concerns about the project's viability, particularly regarding building permits and federal funding.
Implications of the Flood Zone Designation
The flood zone designation could complicate HECO's ability to secure a crucial loan from the U.S. Office of Energy Dominance Financing, which is necessary for the project. Federal law discourages funding for projects in flood zones, requiring additional scrutiny and mitigation measures. Jim Kelly, HECO's vice president, stated that the preliminary flood maps were not seen as affecting project planning since the new equipment would be built on existing infrastructure elevated above the ground.
Controversy Surrounding Public Comments
A public comment from an anonymous group, Concerned Ratepayers of O‘ahu, has added controversy to the proceedings. The group questioned whether HECO disclosed the flood zone designation in its loan application. Notably, there is no registered entity by that name with the Hawai‘i Department of Consumer Affairs, raising questions about the comment's legitimacy. Henry Curtis, executive director of Life of the Land, emphasized that the substance of the comment could not be easily dismissed by the Public Utilities Commission (PUC).
Regulatory and Financial Challenges
The PUC previously approved the project but limited the amount HECO could charge ratepayers to $847 million, significantly less than the requested $1.15 billion. HECO has since requested a reconsideration of this decision. The flood zone issue is expected to prompt further inquiries from the PUC, potentially increasing costs for HECO and its customers. The utility's financial situation is precarious, as it is also obligated to pay $1.99 billion to settle claims related to the 2023 Maui wildfires.
Official Statements and Responses
Scott Humber, communications director for Honolulu's mayor, confirmed that the Waiau project now falls within a flood zone, which may require HECO to meet stricter federal and city flood resilience standards. Kelly defended the project, arguing that the flood maps only indicate the footprint of potential flooding and not the depth.
Criticism and Opposition
Critics, including Curtis, argue that the flood zone designation raises substantive issues that the PUC cannot ignore. He stated, “I think HECO may be screwed on this one,” indicating the potential for significant regulatory challenges ahead.
What's Next for the Waiau Project?
As the PUC prepares to address the flood zone issue, HECO's request for increased funding will likely face additional scrutiny. The outcome of this proceeding could have lasting implications for the utility and its customers, particularly in light of the ongoing financial obligations stemming from past disasters.
Verbatim Quotes
- “To anonymously express concerns about the project after its approval by the PUC raises questions about the real motivations of those behind the letter, whether they’re truly ‘concerned ratepayers’ or something else entirely,” — Jim Kelly, Vice President, HECO
- “It raises too many substantive issues for the PUC simply to ignore it,” — Henry Curtis, Executive Director, Life of the Land
- “This new issue about flood zones would have to be taken up as part of the proceeding,” — Henry Curtis, Executive Director, Life of the Land
