Maui Electric pollution fine cut

By Deborah Adamson
Advertiser Staff Writer

Maui Electric Co. has reached a settlement with the state that will reduce a $1.56 million fine for air pollution violations to $800,000, the company said.

Last September, the subsidiary of Hawaiian Electric Industries was assessed one of the largest penalties in state history for violations of state and federal air pollution laws. The state also cited Hawaiian Commercial & Sugar Co., which was fined almost $2 million.

The state Department of Health had fined Maui Electric because two of its diesel engine generators at the Ma'alaea plant allegedly exceeded visible emission permit limits several times between February 1999 and June 2000. The number and duration of violations determined the amount of the fine.

A violation occurs when emissions can be seen at the stack for six minutes or longer, according to state officials.

MECO President Edward L. Reinhardt said smoke visibility at the plant has fallen by 90 percent since 2000.

Reinhardt said he was "surprised and disappointed" when the original fine was announced because the company had been cooperating with the state Health Department's Clean Air Branch for five years.

The settlement will not be final until a 30-day period for public comment has passed, according to an HEI filing with the Securities and Exchange Commission.

Hawaiian Commercial & Sugar Co., a unit of Alexander & Baldwin, was fined for allegedly burning substandard fuel in a biomass boiler at its Pu'unene Mill starting in June 1975. The company voluntarily reported the problem in 2001 after the finding out it was burning the wrong fuel, and acted to correct the situation. The penalty mainly reflects the economic gain to the company from using cheaper fuel.

Alexander & Baldwin officials did not return calls seeking comment.

Reach Deborah Adamson at dadamson@honoluluadvertiser.com or 525-8088.