Thursday, March 28, 2024
Hawai'i Free Press

Current Articles | Archives

Tuesday, September 20, 2016
PUC Approves ‘Time of Use’ Electric Rates
By News Release @ 5:10 PM :: 5995 Views :: Energy, Cost of Living

PUC APPROVES TARIFF FOR INTERIM TIME-OF-USE RATES

News Release from Hawaii PUC, Sept 19, 2016

HONOLULU – The Hawaii Public Utilities Commission (“PUC” or “Commission”) issued an order on Friday, September 16, 2016, instructing the Hawaiian Electric Companies (the “HECO Companies”) to offer a tariff giving customers the option of enrolling in a new time-of-use (“TOU”) program, which allows customers to manage their electricity consumption to reduce monthly bills and benefits the overall grid.  The HECO Companies serve the islands of Hawaii, Lanai, Maui, Molokai, and Oahu.

Traditional electricity prices are flat and do not change based on time of day. TOU programs are designed to price electricity in a way that reflects electricity’s true costs by charging customers different rates at different times of the day, instead of a flat rate.  This encourages customers to reduce electricity use during times when electricity is more expensive to produce, while allowing them to take advantage of less expensive electricity being offered at other times.

The optional TOU rates approved by the Commission offer lower electricity prices during the daytime to encourage customers to use energy when solar and other lower-cost renewables are available. In exchange, the TOU rates are higher during the evening when the overall electricity demand is greatest (the system “peak”). The TOU program is the result of collaborative efforts of the HECO Companies and interested stakeholders, including local community groups, non-profit organizations, and renewable energy companies.

The “on-peak” TOU period coincides with the time of day during which the HECO Companies typically experience the highest volume of residential customer demand.  This period has the highest TOU electricity rate, higher than the price a typical customer would be subject to under the current residential tariff.  The “mid-day” period represents the time of day during which the HECO Companies typically experience relatively lower residential customer demand and higher level of solar PV and other renewable generation. This “mid-day” period features the lowest TOU period rate, below what a typical customer would pay under the current residential tariff.  TOU rates are intended to encourage customers to shift their demand from the “on-peak” evening period to the “mid-day” period and to enable more cost-effective integration of renewable energy.

Several key features of the TOU Program include:

  • Open, voluntary, optional enrollment to all residential customers of the HECO Companies.
  • A rate structure with three distinct time periods, each with its own “TOU” rate: (1) a “mid-day” period from 9am up to 5pm; (2) an “on-peak” period from 5pm up to 10pm; and (3) an “off-peak” period overnight from 10pm up to 9am.
  • A “shadow bill” feature which will allow program participants to compare their bill under the TOU program to what their bill would have been under their previous residential tariff, in order to determine if the program is beneficial to them.
  • A two-year program duration, subject to change by the Commission.
  • An option for customers to opt-out of the program at any time, without penalty.

The Commission instructed the HECO Companies to file a tariff for the interim TOU program within thirty days, at which time the tariff will take effect and the program will be open for enrollment.  The complete Order, as well as links to the docket record, may be found on the Commission’s website at: http://puc.hawaii.gov/.

# # #

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