A proposed Hawaii Electric Light Co. rate increase triggered biting comments from the public about the power company’s performance during a state Public Utilities Commission meeting Tuesday evening. ADVERTISING A proposed Hawaii Electric Light Co. rate increase triggered biting comments
A proposed Hawaii Electric Light Co. rate increase triggered biting comments from the public about the power company’s performance during a state Public Utilities Commission meeting Tuesday evening.
The gathering in the Hilo High School cafeteria was hosted to gather verbal testimony, with a court reporter documenting input from community members.
HELCO proposed a 6.5 percent rate increase in September, just months after a proposed merger failed between NextEra Energy and HELCO’s parent company, Hawaiian Electric Industries.
HELCO President Jay Ignacio spoke during the meeting, summarizing the utility company’s reasons for seeking the rate increase, which would amount, on average, to a $9.31 per month increase on a typical residential bill for 500 kilowatt hours.
He noted capital investments the company has made, such as installation of new conductors, transformers and lights. He also emphasized the goal of getting power from 100 percent renewable energy and the high cost of removing vegetation to prevent fallen trees from interrupting power. Ignacio said recent storms, with fewer outages and faster recoveries, have shown that the company’s vegetation-removal program is working.
But audience members disagreed with his views, offering blunt criticism of the power company’s motives, choices and speed at implementing renewable energy options.
“The ratepayers of Hawaii Island pay costs at a higher rate than Oahu and other islands,” said Mililani Trask of Ola‘a. “Although we have significant solar and wind resources, vast geothermal resources and a wealth of ocean thermal possibilities, none of these ‘renewables’ identified in our state … has been developed to lower our rates because HELCO has prioritized its own profit margin through fossil fuels and imported liquefied natural gas.”
State Sen. Russell Ruderman said he spoke at the microphone as a citizen with his own personal views, rather than as a senator.
“It’s a civil rights issue,” he said. “To me, it’s a humanitarian issue.”
Further burdening the populace, Ruderman said, is something he doesn’t think can be done because the power costs will fall on the poorest of residents to enrich “one of the wealthiest corporations.”
The high cost of energy affects many other things, such as the cost of food, Ruderman added.
“The people of our island cannot afford higher electric rates. I oppose the rate increase,” he said.
HELCO was criticized for buying new trucks, for making decisions without vetting proposed projects first to make sure they’ll work and for failing to work fast enough to adopt renewable energy options.
Lon Putnam told commissioners that HELCO is characterizing its proposed rate increase as a small one.
But, he said, “just a ‘little bit’ you reference is, to me, like being nibbled to death by a duck.”
Robert Petricci said HELCO is doing the wrong thing by focusing too much on grid connectivity and not enough on renewable energy.
“I think that grid is an 18th-century technology,” he said.
HELCO previously said it increased its use of renewable energy for its power supply from 35 percent in 2010 to 49 percent in 2016.
Not everyone thinks HELCO has performed badly nor is everyone against the company’s rate increase request.
Leroy Chincio, assistant business manager for the International Brotherhood of Electrical Workers Local Union 1260, for example, spoke in favor of HELCO’s request — on behalf of IBEW 1260 members.
“While the IBEW understands the hardship a rate increase to a service as essential as electricity places on families and businesses, including our own members,” he said to the approximately 40 people in attendance, “this increase is necessary for many reasons, one of which is tackling and stabilizing fuel cost, the largest cost component directly passed on to a customer’s electric bill.”
He emphasized the work electrical workers have done to bring reliable energy to schools, hospitals, businesses and residents.
Union workers are on the front lines every day, Chincio said, and “to continue providing the quality, reliable, 24/7 service our state has become accustomed to, while simultaneously transitioning into a renewable energy future, requires investment from and partnership of all stakeholders — the company, union and community. As such, we must acknowledge the complexities and cost realities involved in running an energy system accessible to most parts of Hawaii Island, and this proposed rate increase should be looked at for what it is — an investment into stabilizing energy costs, securing our energy future and economic development for the Island of Hawaii.”
Public Advocate Dean Nishina said he will investigate the proposed rate increase, HELCO’s reasoning and public comment and send resulting testimony to the PUC. The commission must approve the request for the rate increase to go into effect.
Email Reporter Jeff Hansel at jhansel@hawaiitribune-herald.com
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Give your opinion
• Written comments are still being accepted via mail at Public Utilities Commission, 465 S. King St., Room 103, Honolulu, HI, 96813, or email at puc.comments@hawaii.gov. Mention Docket No. 2015-0170, include the author’s name and, if needed, the organization the author represents. Written testimony must be submitted by Dec. 27.
