HECO’s request for
rate hike criticized

Participants at a public hearing last night complained that Hawaiian Electric Co.'s plans to raise electricity rates will add to spiraling consumer costs without ensuring service improvements and could leave Oahu without a comprehensive energy efficiency policy.

HECO is seeking the state Public Utilities Commission's blessing to raise its base electricity charges by about 7.3 percent, and stated its case at Kaimuki High School at the only scheduled hearing on the matter.

HECO says the additional $74.2 million annual revenue is needed to maintain existing energy conservation programs, such as rebates for solar water heaters, and to implement new programs designed to cap runaway power use that is straining the company's generating capacity.

If granted, the increase would raise the typical household electricity bill by $7.03, to $111.67.

"We know higher prices are hard on consumers, but it's always a challenge to balance our costs with the need for reliable service," said Robbie Alm, HECO's senior vice president for public affairs.

But some challenged HECO's energy conservation plans.

Carl Friedman, an electric resource planning consultant from Maui, testified that HECO will have little incentive to foot the bill for truly effective new conservation programs since they cut demand for the company's core product.

"What if for some reason they can't do the expansion as quickly as they want? Does the company still get to keep the rate increase? It's a valid question to ask," he said.

Friedman said the PUC should use the rate increase request as an opportunity to open a discussion on devising a comprehensive conservation program.

"Otherwise, you could wind up rewarding the implementation and expansion of (an ineffective program)," he said.

Caron Wilberts, a state Department of Health employee, testified that the rate increase will further burden poor and elderly consumers who are already struggling with the high cost of living.

"(The increase) might not seem like much, but it has a big impact on the poor and on people who are already on fixed incomes," she said.

HECO says its existing conservation rebate programs have resulted in the installation of 16,000 solar water heaters and a range of other energy-efficient devices that have reduced power demand by 34 megawatts since 1996.

But HECO says it will need an additional 200 to 250 megawatts of capacity -- equivalent to the energy saved -- by the end of the decade, and wants to add new programs.

"Some households will actually see their bills go down through these programs," said HECO spokeswoman Lynn Unemori.

The PUC is not expected to rule on the request until late this year.