12-28-2013, 02:14 PM
The contract guaranteed that HELCO would purchase all of their oil at $200/barrel for 20 years regardless of the market value of that oil. To ensure that HELCO could pay the premium all Hawaii Island and Oahu rate payers were to pay a surcharge. At the same time it was clear that far less expensive renewable resources were available at or below current costs - where oil is about $100/barrel. These include solar biomass and geothermal.
It left begging the question of why HELCO would even entertain such a contract. The PUC saw that a reasonable answer to that question was NEVER provided. Hence, after a year of deliberation the contract request was denied.
It left begging the question of why HELCO would even entertain such a contract. The PUC saw that a reasonable answer to that question was NEVER provided. Hence, after a year of deliberation the contract request was denied.