Things are probably going to get worse before they get better, where Hawaii ratepayers’ electricity bills are concerned. So it’s reasonable that the public watches every twist and turn in energy policy with interest, even worry.
The latest twist involves the Public Utilities Commission, and mixed signals from Gov. Neil Abercrombie about the appointment of its newest member, Michael Champley. Observers wondered whether the fact that the governor had not forwarded Champley’s name to the state Senate for confirmation meant the appointment was in danger.
Champley has an impressive resume and technical expertise with the restructuring of an electric utility in Michigan. That’s the sort of skills that will help Hawaii triangulate away from the current situation of Hawaiian Electric Co. handling virtually all power generation and distribution and toward a model in which the utility primarily serves as a distributor for multiple producers.
Fortunately, the governor’s office confirmed Thursday that Champley’s nomination is moving forward. That’s good news, whether it was clamor of alternative-energy interests that did the trick or whether there were, as Abercrombie’s staff contends, more mundane reasons.
Scheduling conflicts had prevented a meeting between Abercrombie and Champley to discuss energy policy, as part of the appointment review, said Donalyn Dela Cruz, the governor’s spokeswoman. She added that Deputy Chief of Staff Blake Oshiro did have that discussion with Champley.
Nervousness over the appointment arose from reports, citing unnamed sources, that the administration was unhappy with recent PUC decisions taken since Champley joined on an interim basis. Among them: the unanimous vote against Aina Koa Pono biofuels, a project with lobbyist support from William Kaneko, Abercrombie’s campaign manager.
The decision clearly had a sound basis: It would have resulted in a monthly surcharge of $1.75 for Hawaii island customers and $2.10 a month for Oahu ratepayers, the last thing consumers need right now.
All of this is happening in the context of rising electric bills for Hawaiian Electric customers, which the utility executives ascribe to turbulence in the global oil prices. In addition, HECO’s numbers point to an anticipated increase in rates to offset a loss in revenue due to customers turning to rooftop solar panels for their power.
The move away from fossil fuels to renewable energy sources — as necessary as it is in the long run — is proving to be painful in the short term. So it’s a critical part of the PUC’s job to help manage the transition, balancing the concern that Hawaii has reliable energy sources against the consumer interest. Some of its other recent decisions have been encouraging, including its pursuit of a comprehensive program enabling customers to finance costly “green” upgrades such as solar panels by paying gradually on their electric bills.
And some legislation under consideration this legislative session can advance energy goals, too. Among them, House Bill 2525 and Senate Bill 2787 would give the PUC oversight over developing grid reliability and interconnection standards, rather than leaving it to HECO alone to decide when renewable sources can and can’t be accepted on the electrical grid.
These initiatives seem to be advancing, but another, HB 2400, is stalled. That measure seeks to compel electric utilities to focus on distribution rather than energy generation. Opponents are worried that moving too abruptly in this direction would compromise the viability of the utility, and that other components such as reliability standards need to be in place first.
They may be right, but it’s clear that the ultimate goal remains to have a utility that’s not tethered to an expensive energy source, that’s freer to enable multiple producers to deliver electricity.
Lawmakers and the public need to hear the governor’s strategy for moving toward that goal. The confirmation hearing for Michael Champley provides the ideal opportunity for the administration to articulate such a plan.
