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The Honolulu Advertiser
Posted on: Saturday, August 2, 2008

Audit faults city energy tab

By Peter Boylan
Advertiser Staff Writer

A new audit takes the city to task for failing to manage its energy costs, citing a 44 percent increase in the city's electricity bill in the last five years.

Despite conservation efforts, the "city lacks a comprehensive framework to effectively manage electricity costs and consumption," according to a report released yesterday by the office of the city auditor.

From fiscal year 2003 to 2007, the city's energy use rose nearly 6 percent as government expanded, and the city's tab grew from $19.8 million to $28.5 million, the audit said.

In the audit, the city administration responded by saying that energy costs have risen across the country, adding that it has significantly expanded operations that require electricity in the last five fiscal years.

New facilities include the Honolulu Fire Department's headquarters on South Street, the East Honolulu police station, the Kapolei Corporation Yard and ambulance facilities in Kalihi and Kapolei, the city said.

Additionally, 45 new traffic signals have been added and ultraviolet treatment lights mandated by federal decree have been installed at the Sand Island wastewater treatment plant.

The audit criticizes the city's plan for sustainable municipal operations as a "consumption goal that lacks achievement."

"We found no clear definition as to what city facilities were subject to the 10 percent reduction and no guidelines as to what affected agencies must do to meet this goal," according to the audit.

At a recent conference of U.S. mayors, the city's Ahupua'a plan was one of five plans selected out of 70 as "outstanding."

In a September 2005 memo to all city departments, Mayor Mufi Hannemann cited rising energy costs and a need to conserve electricity.

"Over the years, the city has implemented many electricity conservation projects that have had a significant positive effect on electricity consumption," said Mary P. Waterhouse, city director of budget and fiscal services, in a letter to the auditor.

Waterhouse leads a monthly meeting of city department heads to review and track energy consumption trends and practices.

City agencies are "unable to verify whether electricity consumption or cost goals are achieved," according to the audit.

Unlike Mainland cities such as Portland, Phoenix, Philadelphia, and Seattle, Honolulu does not have a formal plan for conservation, use of energy saving mechanisms, an energy strategy, or an office responsible for monitoring and managing costs, the audit said.

Reach Peter Boylan at pboylan@honoluluadvertiser.com.