Time for action Time for action ADVERTISING The primary reason the cost of electricity incurred by the consumer is outrageously high on the Big Island is because it is linked to the price of oil. When HELCO buys electricity from
Time for action
The primary reason the cost of electricity incurred by the consumer is outrageously high on the Big Island is because it is linked to the price of oil.
When HELCO buys electricity from Puna Geothermal Venture (by far the cheapest source of electricity produced in Hawaii), it has to pay “avoided costs,” which is the cost it would incur to generate electricity from oil on this island.
The real costs seem to be a well-guarded secret, but let’s assume for a moment that it costs PGV 7 cents to produce 1 kilowatt-hour of electricity and assume HELCO pays PGV 25 cents per killowatt-hour (because that is what it would cost HELCO to generate a kilowatt-hour burning fossil fuel).
It then sells it to us for 40 cents per kilowatt-hour. If HELCO did not have to buy power at “avoided” costs, it could pay PGV “cost plus” a small profit (say, 7 cents) and could buy 1 killowatt-hour for 14 cents and sell it to us for 24 cents. Both PGV and HELCO could make a profit, and the consumers would see their bills slashed! It seems like a common sense solution. As an aside, I do believe my cost assumptions are not very far from reality.
When the Public Utilities Commission (in all its wisdom) decided to peg the price of electricity to the price of oil, we all lived in a different world. With the ever-escalating and uncertain price of oil in today’s world, this “rule” is now archaic and anachronistic. It is high time we de-linked the two and annulled it.
This can only be done if HELCO (assuming, for a moment, that it has our interests at heart), our mayor, legislators and all the people of this island (with the possible exception of the Pele Defense Fund) joined hands and approached the PUC in a determined and united manner to undo the old “rule.” That would free HELCO to negotiate new contracts and spread the costs.
It makes sense to me. So why aren’t we pushing for it?
Pradeepta Chowdhury
Hilo
Protect motorcyclists
Thursday’s article on the death of yet another motorcyclist made me wonder why lawmakers spend so much time on inane law-making when a law that can possibly save many lives is right there to help the “romantic” motorcyclist from playing “Russian roulette ” with their lives.
I was a Harley rider for over 50 years and have had the good luck to survive two crashes and hospital visits. I have to believe that wearing the proper equipment — helmet, boots, leathers, jacket and gloves — helped me get through those ordeals.
Lawmakers, help our two-wheelers live to enjoy the ride. Enact a bill that would require the proper dress for safe motorcycling. Be bold and save the careless motorcyclists from themselves!
Carmine Spada
Pahoa
