Oahu customers will see the lowest electrical rates in more than a year this month as residential bills dropped more than $10 due to reductions in fuel prices.
The bill for a typical household using 600 kilowatt-hours will be $203.79 in November, down $10.12 from October, according to Hawaiian Electric Co., the state’s largest utility provider with service to Oahu, Maui and Hawaii island.
"This is positive news for our customers, but we are always mindful that oil prices are volatile, and this is why we are reducing our dependence on oil," said Darren Pai, HECO spokesman. "We’re continuing to focus on lowering customer bills by reducing dependence on imported oil and by using more clean energy to help reduce and stabilize rates."
The price of electricity in Hawaii is nearly three times the national average in large part because of the high cost of fuel oil used for power generation.
Isle residents paid an average of 33.79 cents a kilowatt-hour for electricity in August compared with the national average of 10.92 cents, according to the latest data available from the U.S. Energy Information Administration.
Alex Martin, a Hawaii Kai resident, said the small decrease on his bill was an improvement, but his enthusiasm was limited when comparing how much residents in other states pay.
LOWER BILL FOR OAHU
The typical electrical bill hit a new low for November, dropping $10.12.
January ………………. $211.22 |
February …………….. $217.36 |
March …………………. $210.07 |
April …………………… $212.05 |
May ……………………. $210.28 |
June ……………………. $216.08 |
July …………………….. $217.24 |
August ……………….. $218.18 |
September …………. $218.96 |
October ……………… $213.91 |
November ………… $203.79 |
Source: Hawaiian Electric Co.
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"I just moved here from California six months ago, and it was kind of a sticker shock —my bill is twice as much here," Martin said. "It’s the right direction. I would expect it to go down, but when you are paying $180, it’s not even 10 percent."
HECO, its sister utilities in Hawaii and Maui counties, and the Kauai Island Utility Cooperative adjust their rates monthly to reflect changes in their fuel costs and the prices they pay for electricity purchased from independent power producers.
HECO gets 72 percent of its electrical power from oil imported mainly from Southeast Asia and the Middle East. Oil prices have decreased 23 percent this year as U.S. output surged to the highest level in more than three decades and demand declined. On Monday, West Texas Intermediate crude fell to $75.41 a barrel on the New York Mercantile Exchange.
Jose Olivieri, a Makakilo resident, said he is hoping the lower oil prices and lower electrical rates continue.
ISLE ELECTRICAL BILLS
Typical November electric bill and percent change from October
Oahu…………….$203.79 – 4.7% |
Maui…………..$231.48 + 0.03% |
Hawaii island..$247.03 – 2.2% |
Kauai…………… $226.72 – 6.2% |
Source: Hawaiian Electric Co., Kauai Island Utility Cooperative
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"If it’s over a year, that would really add up," Olivieri said after noting a decrease in his October bill.
On Oahu the November rate fell to 32.5 cents per kilowatt-hour from 34.2 cents a kilowatt-hour in October, when the typical bill was $213.91.
Big Island residents will see a decrease in their bills in November, but Maui customers’ bills will slightly increase.
Maui Electric Co. customers using 600 kilowatt-hours of electricity will pay $231.48, up from $230.60 in October. Hawaii Electric Light Co.’s residential rate on Hawaii island decreased to 39.4 cents a kilowatt-hour from 40.3 cents a kilowatt-hour in October. The bill for a household using 600 kilowatt-hours of electricity is $247.03, down from $252.56.
Hawaiian Electric Cos. has more than 450,000 residential and commercial customers — 300,000 on Oahu, 70,000 on Maui and 80,000 on Hawaii island. KIUC is a member-owned cooperative that serves 33,000 customers.
On Kauai the rate this month is 37.8 cents a kilowatt-hour compared with 40.3 cents in October. The bill for a household using 600 kilowatt-hours of electricity is $226.72, down from $241.81.
Average monthly kilowatt-hour usage varies by island, but the 600-kilowatt-hour number is used for comparative purposes.