07-03-2014, 08:25 AM
Two expenses in electricity: generation and distribution.
Generation costs are especially driven by cost of fuel and cost of generation infrastructure; and are much higher on Oahu and Hawaii Island than on ConUS.
Distribution costs are especially driven by the cost of distribution infrastructure. The further apart and more difficult to get to that each customer is, the higher the costs. This would seem to be an issue in large ConUS areas, and I would propose that the lower final cost of electricity in those areas is due to lower generation costs.
Generation costs are especially driven by cost of fuel and cost of generation infrastructure; and are much higher on Oahu and Hawaii Island than on ConUS.
Distribution costs are especially driven by the cost of distribution infrastructure. The further apart and more difficult to get to that each customer is, the higher the costs. This would seem to be an issue in large ConUS areas, and I would propose that the lower final cost of electricity in those areas is due to lower generation costs.