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+--- Thread: HELCO seeks rate increase (/showthread.php?tid=20482)
HELCO seeks rate increase - terracore - 12-15-2018
Utility uses Trump tax windfall as opportunity to raise rates
HILO — Hawaii Electric Light Co. is seeking a 3.4 percent increase in base rates it says is needed to keep up with operation costs.
The proposal announced Friday afternoon is part of a rate review required every three years, and is subject to approval by the state Public Utilities Commission.
Any increase is not expected to take effect until late 2019.
HELCO estimates the rate hike will generate $13.4 million in additional revenue.
It would cost a typical residential customer using 500 kilowatt-hours of electricity another $8.21 per month.
In a press release, the utility said part of the increase would be used to fund grid modernization efforts, repairs to facilities damaged by the Kilauea eruption and increasing operation at power plants due to the loss of Puna Geothermal Venture, increased vegetation management, repairing and repowering the Waiau hydro plant, enhancing cybersecurity, and equipment upgrades or repairs.
Additionally, HELCO says the funds would help pay for power grid improvements to integrate more renewable energy sources.
PGV has a capacity of 38 megawatts and remains offline. Ormat Technologies, which owns the lava-locked facility, says it plans to restart. It began building a road over the cooling lava channel this week.
The loss of the geothermal power plant required HELCO to increase production at its steam power plants, which burn oil.
The utility’s monthly rates can fluctuate based on the price of oil.
In early 2018, the utility generated 63 percent of its power from renewable sources. That’s down to about half without PGV, HELCO said.
On Thursday, HELCO President Jay Ignacio said he hadn’t done an analysis, but he doesn’t think losing PGV had a significant impact on rates since most of the power purchased from the plant is already tied to the price of oil.
For instance, the first 25 megawatts is paid at “avoided costs,” meaning HELCO pays PGV the cost difference for not needing to burn as much oil to produce power. Ignacio said there are different rate schedules for power supplied above that amount.
“The last increment (of 8 megawatts) was where we really got favorable rates not connected to the price of oil,” he said.
Ignacio said PGV was producing at above capacity shortly before the eruption forced it to shut down.
http://www.westhawaiitoday.com/2018/12/15/hawaii-news/helco-seeks-rate-increase/
RE: HELCO seeks rate increase - Chunkster - 12-15-2018
And the Public Utilities Commission will say, "Yes, sir! Right away, sir!"
RE: HELCO seeks rate increase - Obie - 12-15-2018
"Utility uses Trump tax windfall as opportunity to raise rates"
Didn't see this in the article.
RE: HELCO seeks rate increase - terracore - 12-15-2018
That was my commentary, article below.
RE: HELCO seeks rate increase - macuu222 - 12-15-2018
Speaking of rate increases...My electric bill this month was $30.00 higher. Same kilowatt hours and same amount of days as last month...only $30.00 higher. What's that all about?
RE: HELCO seeks rate increase - alohanaia - 12-15-2018
Just shameless. With oil well below the 10 year average, why exactly does Helco need to raise the highest electric rates in the country? Why are they the worst in the country at what they do, and getting worse? How could any legitimate, non-captured regulatory body grant such a request without demanding that the problems be transparently identified and fixed? It would be cheaper to fire everyone at helco, refund the salaries of the PUC, sell the grid for scrap, and buy every resident a generator.
I am willing to consult on this project. Will work for avoided cost.
RE: HELCO seeks rate increase - glinda - 12-15-2018
Why are they the worst in the country at what they do...
Really, they are? I had no idea. Got any examples?
RE: HELCO seeks rate increase - EightFingers - 12-15-2018
This was in last month’s bill. I posted it. Does anyone read the inserts that come in their bills?
RE: HELCO seeks rate increase - alohanaia - 12-15-2018
quote:
Originally posted by glinda
Why are they the worst in the country at what they do...
Really, they are? I had no idea. Got any examples?
Sure thing glinda:
https://www.electricitylocal.com/states/hawaii/hilo/
The average residential electricity rate in Hilo is 42.47¢/kWh
Residential rates in the U.S. range from 8.37¢/kWh to 37.34¢/kWh (sic)
RE: HELCO seeks rate increase - glinda - 12-15-2018
Thanks for that alohanaia, though I am hard pressed to see how that suggests that they are the worst in the country at what they do, but rather just that they have the highest rates. I mean come on, I thought you were going to tell me how the linemen are all left handed or they run their wires backwards or some such!
I know the highest rates thing is a bitch, but when you think of where we are, and how spread out our population is, ie how much the cost of running their system is, I kind of think you will find several reasons to justify some seriously high rates. But nothing about all that is bad (as I took your use of the word worse to imply), it's just the facts of life on the island, in every industry. For all of us. If you want it cheap, you should consider moving.
I think if people want to bitch about the costs of our electricity they should look at the regulators (PUC) and the government (who makes deals that include too many subsidies) not the regulated.