Thursday, March 28, 2024
Hawai'i Free Press

Current Articles | Archives

Sunday, July 24, 2011
MECO to seek 6.7% Rate Hike to pay for Windfarms
By News Release @ 3:18 PM :: 11415 Views :: Kauai County, DHHL, Energy, Environment

KAHULUI, Hawaii, July 22, 2011 -- /PRNewswire/ -- Maui Electric (MECO), subsidiary of Hawaiian Electric Industries, Inc. (HEI) (NYSE: HE), today filed a request for a rate increase with the Hawaii Public Utilities Commission (PUC) for Maui County customers in 2012. The increase would cover the cost of improvements to integrate additional renewable energy and improve the reliability of service to its Maui, Lanai and Molokai customers.

If approved, the request would result in an increase of 6.7% or $27.5 million in net revenues. Any increase, if granted, would not go into effect until mid-2012 at the earliest.

If the full amount requested is granted, the monthly increase would vary by customer depending upon customer category and the amount of electricity used. Based on the tiered rate structure approved by the PUC in January which rewards customers who use less electricity with lower rates, a typical bill for residential customers on each island would increase by approximately $13 a month. Typical monthly residential electric bills would increase to $243 (Maui - 600 kilowatthours), $243 (Molokai - 500 kilowatthours) and $241 (Lanai - 500 kilowatthours).

"We know that any increase is difficult for our customers," said MECO President Ed Reinhardt. "It is critical that we continue to make investments that will enable us to add more clean energy to our grid and ensure service that our customers can continue to count on."

More than 15% of the electricity sold by MECO in 2010 came from renewable sources. In addition, more than 1,200 solar and wind systems have been installed under the company's Net Energy Metering program. MECO will also begin integrating an additional 21 megawatts of wind energy from the new Kaheawa Wind Power II project in early 2012.

The requested increase would help cover the operations and maintenance costs of safely and reliably integrating existing and future renewable energy resources into MECO's three isolated, island electrical grids. Also included are energy storage projects which will help integrate even higher levels of variable resources such as wind and solar, including:

  • A battery energy storage system at MECO's Wailea Substation; and
  • A energy storage system on a distribution circuit in Central Maui.

The increase would also help pay for more than $80 million in investments to be completed in 2011 and 2012 including:

  • Upgrades and improvements to generation facilities on Maui, Lanai and Molokai that will increase efficiency, improve service reliability and help to reduce emissions;
  • Replacement of aging underground electric lines and equipment to increase service reliability in Central, South and West Maui;
  • Upgrades to underground electric lines and equipment that will add capacity to MECO's electrical system; and
  • Installation of fiber optic equipment at the Maalaea Power Plant that will improve communication and data acquisition and provide greater reliability of service.

The PUC is expected to hold a public hearing on the proposed 2012 increase later this year and an evidentiary hearing next year. An interim increase may be granted within 10 to 11 months following MECO's application; however there is no guarantee of such interim increase. The timing and amount of any increase is at the discretion of the PUC.

MECO's last increase was a 3.3% interim increase which went into effect in August 2010.

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