Hawaiian Electric to raise rates because of solar

[Bullwinkle]

In case you missed the headlines yesterday

http://www.bizjournals.com/pacific/blog/...rates.html

[csgray]

Today's article said they aren't raising rates at this time.

Carol

[Bullwinkle]

"Editor's Note: The story has been corrected to reflect the correct rate increases. The information initially quoted from the Honolulu Star-Advertiser was incorrect, according to a Hawaiian Electric Co. spokesman"

[Kapohocat]

quote:

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Originally posted by csgray

Today's article said they aren't raising rates at this time.

Carol

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.... at this time

They just had a increase in Sept 2011?

[Bullwinkle]

Buy solar panels or more HECO stock? - tough call grin

[Kapohocat]

quote:

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Originally posted by Bullwinkle

Buy solar panels or more HECO stock? - tough call grin

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Buy solar panels, and stock.

HEI stock earnings have been puttering around in the 20-40 cent per share range for years but surprisingly Q3 2011 was .50 and the projections for this year are Q1 .36 Q2 .37 Q3 .61 Q4 41 with a P/E of about 18.

Either they are need to be truly regulated by the PUC or the monkeys are running the zoo, or they need to start cutting costs so they can keep their dividends high and overhead low, and not push the people who pay for the electricity out of the game, i.e no more demand. Isnt that kind of like a virus who slowly kills it's host?

[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.

[mikewj]

following quote from Jerry Carr's post:
"Theoretically, everyone would go solar at some point and we wouldn't need HELCO."
This would be true IF everyone installed a solar system with batteries and no grid backup. HELCO's complaint is that most solar systems are grid tied, so they are required to provide electricity when the sun doesn't shine, while also being obliged to buy back excess solar production. The likely net result is that theoretically HELCO would be maintaining and supporting the electrical infrastructure while being unable to sell power.
I am far from being a HELCO supporter, and I'm of the opinion that their business practices are inequable, with differential rates across the Islands, but there needs to be a complete revision in the manner of operation so that all parties get a fair shake.
It certainly makes no sense that power generated on the Big Island is transmitted to Oahu and sold for a lower price than electricity sold here.
More wind and geothermal power would also be most appreciated, so long as the cost of production is not tied to oil pricing.

[jerry]

At the same time they flood the airwaves with commercials touting alternative energies.

Helco wants to own the distribution structure and sell off the production side. Maybe this is a political ploy to advance such a split?

Jerry
Art and Orchids B&B
http://www.artandorchids.com

[EightFingers]

quote:

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while also being obliged to buy back excess solar production.

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I was told Helco no longer does this. Best you can do wth them is a "net" electrical use of "0". You're still gonna have to pay the other fees.