Thursday, March 28, 2024
Hawai'i Free Press

Current Articles | Archives

Friday, March 25, 2011
VIDEO: All Costs for Wind Cable are on the Ratepayer
By Video @ 3:02 AM :: 10077 Views :: Kauai County, DHHL, Energy, Environment

SB367: HECO wants to socialize cable cost, privatize any profit

by Rep Cynthia Thielen

If the majority of the lawmakers and Hawaiian Electric Co. get their way under Senate Bill 367 — the bill designed to finance an interisland cable — the Oahu ratepayer will be solely responsible for the cost of the project, predicted to cost somewhere between $500 million to $1 billion.

An editorial in Sunday’s Star-Advertiser indicated otherwise (“State utility grid desirable but help small-scale users, too,” Star-Advertiser, Our View, March 20).

SB 367 contains several astonishing entitlements. It allows the utility to recover the full cost of the interisland cable and on-island infrastructure, no matter what the outcome. Once approved by the Public Utilities Commission, these costs would be applied to the ratepayer in the form of an automatic rate adjustment, seen as an added surcharge on everyone’s bill until the project is paid in full. The cost includes every conceivable expense, from predevelopment through commercial operations, and even includes a guaranteed rate of return for the utility and its lucky shareholders.

This boon applies to the utility no matter what degree of success the project has. Even if the cable is unsuccessful or plagued by problems, the utility will still recoup all its expenses, from planning to operations with a profit to boot.

Proponents of the bill argue that SB 367 is just establishing a regulatory structure. True enough, and this regulatory structure will change the way the utility does business, forever.

Proponents also argue that the risk is very small that the project will not succeed. But if the risk is so small, why are HECO and state Department of Business, Economic Development and Tourism so determined to pass all the costs to all of us?

Proponents argue that the only way to make the cable happen is to take all of the risk out of the project. But is this truly the only way? And if the ratepayer must foot the bill, why aren’t they entitled to a part of the profits as well?

Almost everyone agrees that Hawaii must wean itself from imported oil before it is too late, but the question is how.

Perhaps the only possible way for Hawaii to move forward is for the ratepayer to foot the entire bill for a massive wind project, and that it is too much to ask the utility to take any of the risk.

But if this is true, it seems only prudent, only fair, that before the ratepayer agrees to pay for the cable, we would know the cost.

The likely response? The utility can’t tell us the cost until we agree to pay for it.

 

Rep. Thielen Addresses HECO's underwater cable project

excerpt from Capitol TV March 24, 2011

RELATING TO ENERGY.

Report Title: Energy; Interisland High Voltage Electric Transmission Cable System; Public Utilities Commission; Tax Exemptions

Description: Establishes a regulatory structure for the installation and implementation of an interisland high voltage electric transmission cable system and for the construction of on-island transmission infrastructure. Allows for the utility company to collect surcharges from its ratepayers to recover the costs of the cable installation on behalf of the cable company. Exempts the surcharges from being counted as gross income, adjusted gross income, or taxable income for tax purposes. Provides for the eventual acquisition of the cable system by the utility company from the cable company. Allows the utility company to recover the costs of acquiring the cable system and developing the on island infrastructure through an automatic rate adjustment clause and then through its rates. Allows the utility to recover the reasonable costs, as determined by the public utilities commission, of predevelopment and development in the event that the system is not completed. Effective July 1, 2011. (SB367 HD1)

http://www.youtube.com/watch?v=-zHJwMPgpE0

 

 

 

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Moms for Liberty

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

MentalIllnessPolicy.org

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

No GMO Means No Aloha

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT