HomeMy WebLinkAboutCOM 0880.006 2010-2012 COUNTY CLERK tS '
17 Oct 2012
Hawaii County Council 1092 OCT 7 '
HELCO Electricity Rates for Consumers
My name is John Y. Ota, born and raised on this Island. The highest Electricity
Rate in the Nation is the Big Island, even compared to Maui, Molokai, Lanai, Oahu
or even Kauai. Kauai Electrical is independent from HEI.
The Public Utilities Commission (PUC), with 3 Members, is responsible to
regulate Electricity Rates for consumers. The PUC Avoided Costs definition
"means the incremental or additional costs to an electric utility of electric energy or
firm capacity or both which costs the utility would avoid by purchase from the
qualifying utility". What was the Base Costs for the initial 1KW Energy cost? Oil
is not mentioned in the PUC definition.
HELCO created the huge appetite for Oil by purchasing Swedish Turbine Electric
Generating System to produce Electricity, without public input. Increases through
the years, approved by the PUC, using "Imported foreign oil" to substantiate the
request, created the highest Electric Rate. Initial purchase, transportation Costs,
spare parts, major repairs and maintaining the equipment are all additional costs to
the consumers.
The "Automatic Fuel Adjustment Clause" explain the responsible parties. Young
Brothers (Barges) uses large amount of Oil. The PUC regulates Transport Cost as
well. When Oil prices decreases, the Rate Charge is also decreased by Young
Brothers. HELCO has never decreased the Electric Rate for the customers.
Compare the two Companies and it will make you wonder what HELCO is doing
to the consumers.
The Federal Government funded the Renewable Energy programs and HELCO
purchases from 5 Renewable Energy Suppliers. 48% of Electricity is provided by
Renewable Energy. The consumers DO NOT realize any reduction from the 48%
reduction in Oil usage. WHY? The PUC Admin Rules, Rates for Purchase states,
"Be just and reasonable to the electric consumer of electric utility and in the Public
interest". Chapter 74-25 Rates for Sale states, "shall be just and reasonable in the
Public interest". HELCO contracted the Energy Suppliers based on the price of
Imported Oil. The Cost Rate for each Energy Supplier to produce 1KW of
Electricity, using their designed system, is less than producing 1KW of energy
using Oil. Why is the higher Oil rate Contract approved by the PUC and passed to
the consumer? Why should the residents support Renewable Energy under this
condition? If reduction in Electric Rates is not attainable, why is HELCO pursuing
renewable Energy?
I recommend that the County of Hawaii request the State Legislature to conduct a
thorough review of the PUC procedures to eliminate the current "Loop Holes", add
Comm. No o ° •�
Ref.To: "—'-
Ref. Date NOV 0 V 2012
Renewable Energy Supplier Costs to produce 1 KW of Electricity, and ensure that
customers are not required to pay 2 times for Oil. HELCO decisions that do not
reduce customer costs should be borne by the Share Holders. Additionally HELCO
procedures need scrutinizing and effective enforcement is required to ensure that
the Company is complying with all requirements.
Sincerely,
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John Ota