Monday, July 06, 2020
Hawai'i Free Press

Current Articles | Archives

Saturday, July 30, 2011
Political Insiders aim to soak Electric Rate Payers with Bio-Fuel surcharge
By Henry Curtis @ 9:23 PM :: 8679 Views :: Hawaii County , Akaka Bill, Maui County, Education K-12, Energy, Environment

The Hawaii Public Utilities Commission will hold public hearings on August 2 & 4 to accept testimony on the proposed HECO-Aina Koa Pono (AKP) Biofuel Contract

by Henry Curtis, Executive Director Life of the Land

According to the PUC Notice, AKP will provide 16 million gallons of biofuel to HELCO’s Keahole Generator at above the cost to use fossil fuel based diesel.  The Companies maintain that “it would be unfair for customers on Hawaii Island, where AKP will operate, to bear the full burden of this important step toward reducing Hawaii's imported oil consumption, a goal which will benefit everyone in the State.” According to the Companies, the application of the biofuel surcharge “would apply to HELCO and HECO customers, and would add about 1/3 of a cent per kilowatt hour.”

HECO responded on July 27, 2011 to questions asked by the Consumer Advocate: “The proposed surcharge is intended to be implemented as a cents per kWh rate that is the same for all customer classes of Hawaiian Electric and HELCO.... The Companies confirm that the proposed biofuel surcharge is meant to apply to all rate classes of Hawaiian Electric and all rate classes of HELCO. ...The cost anticipated to be reflected in the tariff is estimated to be the incremental cost of the biofuel over the equivalent cost of the petroleum fuel that the biofuel replaces.”

According to Hawai`i Electric Industries (HEI) filings with the U.S. Securities and Exchange Commission (SEC), last year HECO sold 7.657 billion kWh and HELCO sold 1.194.2 billion kWh. These two utilities sold 8.8 billion kWh. A subsidy of 3 cents/kWh would raise $26.553 million/year. Since 16 millions of gallons of biofuel is being subsidized, the subsidy per gallon would be $1.6595. Since there are 42 gallons per barrel, the subsidy for a barrel of biodiesel would be $69.70.

Price (Barrel Biodiesel) = Price (Diesel) + $69.

Puna Geothermal Ventures proposes to increase their output from 30 to 38 MW. The additional geothermal-based electricity would be sold to HELCO at 9 cents/kwh (on-peak), 6 cents/kwh (off-peak), with an average of 7.99 cents/kwh. The effective average price (including fixed payments for firm capacity et al) would 11.59 cents/kwh. (PUC Docket 2011-0040)

This would be less that the cost for HELCO to generate the electricity themselves. In February, 2011 HELCO’s avoided cost was 16.75 cents/kwh (on-peak), 14.447 cents/kwh (off-peak), averaging 15.79 cents/kwh.

The logic of HECO’s approach to adding renewable energy is bizarre. O`ahu ratepayers are being asked to heavily subsidize unproven microwave biodiesel technology which will raise rates for HELCO customers. Adding additional geothermal energy would result in rate reductions for HELCO customers.

Written Testimony

Public Utilities Commission, 465 South King Street, #103 Honolulu, Hawaii 96813

Email Testimony

hawaii.puc@hawaii.gov

Oral Testimony

  • Hilo (August 2, 9:00 am-12:00 pm) 75 Aupuni Street (joint AKP & Young Brothers hearing)
  • Kailua-Kona (August 2, 4:00-6:00 pm) 74-5044 Ane Keohokalole Highway (joint AKP & Young Brothers hearing)
  • Honolulu August 4, 6:00-8:30 pm) Basement, 465 South King Street (Territorial Bldg across the street from Hawaii State Library)

*****

Background:

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

808 State Update AM940

ABCDEFG Blog

ACA Signups Hawaii

ACCE

ALEC

Alliance Defending Freedom

Aloha Life Advocates

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

American Mothers of Hawaii

AMVETS-Hawaii

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Audit The Rail

Ballotpedia Hawaii

Better Hawaii 

Blaisdell Memorial Project

Broken Trust 

Build More Hawaiian Homes Working Group

CAFR Hawaii

Castaway Conservative

Children's Alliance Hawaii

Children's Rights Institute

ChinaTownWatch.com

Christian Homeschoolers of Hawaii

Citizens for Recall

Cliff Slater's Second Opinion

Coffee Break

CSIS Pacific Forum

DAR Hawaii

DeedySupport.com

DVids Hawaii

E Hana Kakou Kelii Akina

E Māua Ola i Moku o Keawe

Farmers For Choice Hawaii

FIRE

Fix Oahu!

Follow the Money Hawaii

Frank in Hawaii

Front Page Magazine

Frontline: The Fixers

Genetic Literacy Project

Get Off Your Butts!

God, Freedom, America

Grassroot Institute

Habele.org

Hawaii Aganst Assisted Suicide

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crime Victims' Rights

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defending Marriage

Hawaii Defense Foundation

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Firearm Community

Hawaii Fishermen's Alliance

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii March for Life

Hawaii Meth Project

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Right to Life -- Big Island

Hawaii Right to Life -- Oahu

Hawaii Shield Law Coalition

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

Heritage Foundation

HI Coalition Against Legalized Gambling

HIEC.Coop 

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Homeless Crisis

Honolulu Navy League

Honolulu Traffic

Horns of Jericho Blog

House Minority Blog

House Republican Caucus YouTube

HPACC

Hump Day Report

I Vote Hawaii

If Hawaii News

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

Iowa Meets Maui

Jackson v Abercrombie

Jihad Watch

July 4 in Hawaii

Kahle v New Hope

Kakaako Cares

Kau TEA Party

Kauai Co GOP

Keep Hawaii's Heroes

KeyWiki

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group

MentalIllnessPolicy.org

Middle East Forum--The Legal Project

Mililani Conservatives for Change

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

Muslim Brotherhood in America

NAMI Hawaii

NARTH

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

National Wind Watch

New Hawaiian

New Zeal

NFIB Hawaii News

No GMO Means No Aloha

Northwest Economic Policy Seminar

Not Dead Yet, Hawaii

Now What I Really Think

NRA-ILA Hawaii

Oahu Alternative Transport

ObamaCare Abortion Hawaii

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Pacific Aviation Museum

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons 

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

Republican Party -- Hawaii State

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Save Dillingham Airfield

School Choice in Hawaii

SenatorFong.com

SIFE Remington

SIFE W. Oahu 

Sink the Jones Act

Smart About Marijuana--Hawaii

St Marianne Cope

State Budget Solutions Hawaii

State Policy Network

Statehood for Guam

Tax Foundation of Hawaii

The Harriet Tubman Agenda

The Long War Journal

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

Truth About Trade & Technology - Hawaii

UCC Truths

Union Members Know Your Rights

US Tax Foundation Hawaii Info

Valor in the Pacific

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT