No one spoke in opposition to Hawaiian Electric Co.’s proposed 6.9 percent rate increase Wednesday night at the only scheduled public hearing on the request.
If approved by state regulators, the increase will add $8.71 a month to the typical electric bill on Oahu.
Of the 30 people who attended the public hearing at Ala Wai Elementary School’s cafeteria, all but five were either HECO employees, state staff members or representatives from nonprofit organizations.
Only one of the five members of the public spoke at the hearing, and his main concern was that HECO failed to send an email alerting him of a scheduled power outage at his home Tuesday.
Just because the community didn’t testify in opposition to the rate increase doesn’t mean HECO is guaranteed to get it, said state Consumer Advocate Dean Nishina.
“We’ll still do our analysis,” Nishina said. “Lack of public participation doesn’t mean it will be approved as is.”
HECO submitted the request to the state Public Utilities Commission in December. If approved, it would boost revenue for the company by $106 million per year.
“I know no one wants to pay more, so in the proceeding we need to demonstrate that we provide safe, reliable electric service and at the same time are making real progress in replacing fossil fuels with renewables,” Alan Oshima, president and CEO of Hawaiian Electric Co., said at the hearing.
The next step in the approval process is for the PUC to host a trial-like hearing where different groups can request to participate in questioning HECO about the rate increase.
The last HECO rate case was opened in May 2010. At the time, HECO was seeking a 6.6 percent increase. The total amount requested was $113.5 million. The PUC approved a 3.4 percent increase, or $58.1 million, in September 2012.
Hawaii residents pay the highest electricity rates in the nation, more than double the national average.
In November, Hawaii residents paid an average of 28.48 cents a kilowatt-hour. The national average was 12.75 cents in the same month, according to the latest figures from the U.S.
Energy Information Administration.
Oahu customers experienced a jump Opens in a new tab in bills this month. An average Oahu household using 500 kilowatt-hours paid $142.81, or 26.5 cents a kilowatt-hour, this month, $7.42 higher than January’s bill.
HECO’s base rate is only a part of the costs customers see on their bills. The other costs customers pay change monthly, and include surcharges such as the Energy Cost Adjustment, the Purchased Power Adjustment, Integrated Resource Plan Cost Recovery, Revenue Balancing Account Adjustment and the Renewable Energy Infrastructure Program.
When applying for the increase in December, HECO said the new rate would help enhance customer service, pay for operating costs and add more renewable energy resources. The utility said it has spent more than
$900 million upgrading the electrical grid on Oahu since 2011.
HECO said the money went to replacing 6,800 poles and 4,800 transformers, installing advanced cybersecurity technology, and clearing trees and other vegetation from around poles and power lines to prepare for storms.
The electric utility also said it has spent more than $25 million since the last rate case to improve customer service. It said it spent that money on increasing staff, adding new technology and providing more online options.
