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The Honolulu Advertiser
Posted on: Thursday, December 15, 2005

Big Island power plan deserves serious look

There is simply no way a utility company can talk about raising rates without generating howls from consumers.

That's particularly true in Hawai'i, which has some of the highest average rates in the country.

And so it was when the Big Island's Hawai'i Electric Light Co., HELCO (a subsidiary of Hawaiian Electric) announced this week that it would seek a substantial rate increase next spring averaging around 10 percent.

The increase is designed to recoup some $300 million spent on two new West Hawai'i generators that have substantially increased power reliability on the Big Island. The new rates also would allow the utility to give a slight boost in returns to HELCO investors.

Those are legitimate reasons to seek a rate increase, but they won't go that far in satisfying paying customers.

What may help, however, are some innovative ideas that HELCO intends to propose to the Public Utilities Commission for approval.

The first is that it proposes a two-tier rate structure for residential customers. Those who consume less electricity from the grid would receive lower rates.

Now, it has always been possible to save on one's electric bill by being conservative in how much one uses. But this proposal, if approved, would go a strong step further by reducing actual rates for low-use households.

This would in turn act as a strong incentive for homeowners to adopt alternatives such as solar water heating or photovoltaic power. The company is looking at stepping up its incentive programs to help customers install and use these alternatives.

Perhaps most interesting was a statement by HELCO president Warren Lee that the company has likely built its last fossil fuel-burning plant on the Big Island.

In fact, the last generating unit to go in won't even burn oil; it will run off waste heat generated by existing units.

Going forward, Lee said he expects to meet additional power needs through alternative sources such as wind, geothermal, burning of wood chips and waste and possibly a county waste-to-energy plant.

These ideas are the future not just for the Big Island but for all of Hawai'i: active efforts to stimulate conservation and co-generation and vigorous use of alternatives to imported fossil fuel.

These deserve serious consideration.