Hawaiian Electric to raise rates because of solar

[JerryCarr]

There's a potential here (if it isn't already well under way) for a classic feed-back escalation phenomenon. The more HELCO raises rates, the more people will find it economical to go solar. The more people go solar, the more HELCO will feel entitled to raise rates to keep their earnings the same without becoming more efficient or reforming their rate structure. Theoretically, everyone would go solar at some point and we wouldn't need HELCO. (How nice!) Practically, however, this is unlikely to happen.

Cat is right on target with her "monkeys running the zoo" metaphor. The current regulatory environment in Hawaii is arranged to guarantee HELCO a healthy profit and return for stockholders' investment. There is no incentive to be more efficient or reform the rate structure until this changes.