Oahu customers’ October electric bills will be the lowest this year, as oil prices cut the cost of power.
Customers’ bills will drop $7.38, or 5 percent lower than the typical bills in September. The decrease is due to lower fuel prices, according to Hawaiian Electric Co., the state’s largest utility provider with service to Oahu, Maui and Hawaii island.
DROPPING RATE
Hawaiian Electric Co. customers’ October electric bill will be the lowest this year thanks to declining oil prices. However, Hawaii still has the highest prices in the nation.
Based on 500 KWH monthly use:
April: $140.96
May: $140.48
June: $144.54
July: $146.21
Aug.: $142.51
Sept.: $144.33
Oct.: $136.95
TYPICAL OCTOBER BILLS
| Island |
Usage of 500 KWH |
Cents/KWH Rate |
| Oahu |
$136.95 |
25.3¢ |
| Hawaii |
$168.73 |
31.4¢ |
| Maui |
$148.88 |
27.8¢ |
| Island |
Usage of 400 KWH |
Cents/KWH Rate |
| Lanai |
$138.53 |
32.2¢ |
| Molokai |
$133.75 |
31¢ |
|
“This is the lowest we’ve seen this year,” said Darren Pai, HECO spokesman. “While oil prices remain low, we’re focused on continuing to increase our use of renewable energy to ensure sustained savings for our customers.”
On Wednesday, the benchmark West Texas Intermediate crude closed at $44.65 a barrel on the New York Mercantile Exchange. That’s down from more than $80 a barrel a year ago.
The bill for a typical household using 500 kilowatt-hours on Oahu will be $136.95 this month, HECO said. The price per kilowatt-hour decreased to 25.3 cents this month from 26.8 cents in September, when the average bill was $144.33.
Despite this month’s drop, Hawaii has the highest electrical rates in the nation due in part to the state’s dependence on imported oil for most of its power. In 2013, oil made up roughly 72 percent of the HECO companies’ energy mix. Other states use natural gas, hydroelectric power or nuclear power to keep costs low.
The latest figures provided by the U.S. Energy Information Administration show that Hawaii’s price of electricity is more than double the national average. Hawaii residents paid an average of 30.04 cents a kilowatt-hour in July. The national average was 12.98 cents in July.
Neighbor island residents will also see a drop in October bills.
The residential rate for Hawaii Electric Light Co. customers on Hawaii island decreased to 31.4 cents a kilowatt-hour from 32.1 cents in September, when the average bill was $172.43. The October bill for a household using 500 kilowatt-hours of electricity is $168.73.
Maui Electric Co. customers will see a decrease in rates to 27.8 cents per kilowatt-hour from 29.4 cents in September. A household using 500 kilowatt-hours will pay $148.88, down from $157.12 last month.
The Kauai Island Utility Cooperative lowered its rate to 30.66 cents a kilowatt-hour in October, from 31.13 cents a kilowatt-hour in September. The bill for a household using 500 kilowatt-hours of electricity, including a $10.58 customer base charge, is $163.88, down from $166.23.
Average monthly usage varies by island, but the 500-kilowatt-hour number is used to make comparisons. Monthly bills include the cost for kilowatt-hours used plus various other charges.
The typical customer bill on Lanai and Molokai is measured with electrical use at 400 kilowatt-hours due to lower energy use, HECO said.
Maui Electric Co. customers on Molokai using 400 kilowatt-hours of electricity will pay an average of $133.75 with effective rates of 31 cents per kilowatt-hour, down from 34.9 cents per kilowatt-hour in September, when the typical bill was $149.59
Customers on Lanai using 400 kilowatt-hours of electricity will pay 32.2 cents per kilowatt-hour, a decrease from the 33.9 cents per kilowatt-hour in September.
Lanai residents will pay $138.53 in October compared with $145.71 in September.
