Amended fuel contract expected to save Oahu households nearly $3 a month on electric bills

News Release from Hawaiian Electric, 6/23/2025

HONOLULU, June 23, 2025 – Typical residential bills for Hawaiian Electric customers on Oahu will be lower under an amended fuel supply contract approved by regulators.

“Oahu rates are at their lowest level in more than three years and this contract amendment will help provide continued price stability at a time of economic uncertainty, so this is a win for customers,” said Brendan Bailey, Hawaiian Electric vice president, customer service.

The contract amendment negotiated with Par Hawaii and approved by the Public Utilities Commission (PUC) includes significant changes aimed at stabilizing fuel costs and enhancing customer savings, including:

An estimated $2.77 reduction in typical monthly residential bills for customers using 500 kilowatt-hours

A reduction in Hawaiian Electric’s annual fuel costs by $31 million

An extension of the contract for an additional three years, through Jan. 31, 2029

A modified pricing structure to reduce price volatility

A guaranteed emergency fuel supply of up to 1,000 barrels per day to supply Hawaiian Electric’s Schofield Generation Station during emergencies

The cost reductions and bill impacts are estimated and may vary depending on factors out of Hawaiian Electric’s control, such as volatility in global oil markets. In its ruling, the PUC said it was aware that future fuel prices are uncertain. The amended contract only covers fuel used for power generation on Oahu.

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