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HELCO President Jay Ignacio, left, waits to testify at a PUC hearing for a proposed rate increase by the company.

Photography and story by Baron Sekiya | Hawaii 24/7

A Public Utilities Commission hearing on a proposed Hawaii Electric Light Company rate increase was poorly attended by the public with mostly HELCO employees in the audience Thursday night (Feb 25) at Hilo Middle School. It was the second hearing – the first was Feb. 22 in Kona.

Jay Ignacio, president of HELCO, explained why the rate increase is needed and how the average household would be affected. For example, Ignacio said, a customer’s rate could increase 1.4% to 8% under a proposed system called ‘decoupling.’

Decoupling would allow HELCO to change the rate it bills customers by increasing the rate if energy use rises. A customer using less electricity would be rewarded with a lower rate per kilowatt hour (kWh) than a customer consuming larger amounts.

Ignacio said under the proposed system a residential customer using 500 kWh a month would see their electric bill increase by $9.57.

Ignacio said the rate increase would be used to pay for projects to upgrade, replace and install new systems for electric production and distribution. A 16-megawatt steam generator was put into service in June 2009 at Keahole Generating Station and uses exhaust heat from existing turbines to generate electricity.

Ignacio said no new fossil fuel generating systems are planned for the Big Island with all future systems using renewable energy sources such as geothermal, solar, wind, hydroelectric, biomass and possibly waste-to-energy systems. Ignacio said HELCO charges more for electricity than the other islands due to the rural nature of the Big Island with fewer customers along each mile of transmission line.

Pat Kahawaiolaa, of Keaukaha, was the only member of the public to testify at the PUC hearing and questioned if future rate increases would be used to rectify current issues with power plants near Hawaiian Home Lands, specifically any ‘pollution’ output by the generating plants.

John Itamura from the Department of Consumer Advocacy was present to listen to public testimony on the rate increase and urged the public to contact them should there be any concerns with the proposals. The public can contact the DCA at hawaii.gov/dcca/dca/contact

Text of Jay Ignacio’s presentation

Hawaii Electric Light Company
Public Hearing Statement
Docket No. 2009-0164
HELCO Application for a Rate Increase

February 22, 2010
Kealakehe Intermediate School Cafeteria, Kailua-Kona

February 25, 2010
Hilo Intermediate School Cafeteria, Hilo

Introduction

Good evening Chairman Caliboso, Commissioner Cole, Commissioner Kondo and members ofthe audience; My name is Jay Ignacio and I am President of Hawaii Electric Light Company.

Let me begin by thanking all of our customers who came tonight to share their thoughts. Your feedback is important to us. My staff and I will be available after the hearing and will be available to talk with you if you have further questions or comments.

Like everyone else, we have been doing our best to control costs in this tough economy. Even in the best of times, we know that any rate increase is hard on our customers. Therefore, we never take the decision to ask for one lightly. However, we also need to maintain and upgrade our electric system by making the investments that will allow the integration of even larger amounts of renewable energy, make better use of fuel and improve reliability.

We have invested millions of dollars HELCO’s current facilities. Our requested increase would cover more than $289 million in new capital projects since 2006 to improve service reliability.

We are also asking that this case serve as the starting point for a potential new regulatory model called “decoup|ing.” This model could move the utility away from earning revenues based on the amount of electricity sold and instead encourage us to help our customers use less electricity. In a separate proceeding, the specifics of the decoupling mechanism are being established to delink the earning of revenues from electricity usage.

So with that as a background, let me discuss the specifics of this particular rate increase.

Tonight, I will briefly cover how much of an increase we are asking for, what the increase will be used for, and how it will affect customer bills.

How much of an increase is HELCO reguesting and how will it be structured?

HELCO is requesting an overall net increase of 6.0% or $20.9 million in base revenues. However, we have proposed opportunities for customers to save money and to fairly shift more of the responsibility to those who contribute the most to high electricity costs.

First, we are asking the Commission to approve an adjusted residential tiered rate structure so those who use less electricity will pay lower rates. Under this plan, the majority of HELCO customers will see smaller monthly increases in their electric bill, in the range of 1.4% to 5.8%. Those who use a lot of electricity will see larger increases in their monthly bill, for example, approximately 8.0% for a residence using 1,000 kWh. This encourages energy conservation and efficiency and rewards customers who use energy wisely.

At the same time, recognizing that some low-income families have large households with higher electricity use, we have also developed a provision to cap the electric rate applied for certain low-income households so that the tiered rate system does not unduly burden these families. In a separate application, we have also proposed a Lifeline Rate Program that, if approved, will replace the tiered rate cap for low income customers.

Second, to encourage use during off-peak times when power generation reserves are greater, the proposal also includes a voluntary time-of-use rate option for residential and commercial customers, which would provide lower electric rates for off-peak usage times and higher electric rates for peak usage times.

Why is a rate increase needed?

The major reasons for this requested increase are to help pay for capital improvements and increased operating and maintenance costs.

Among the major projects is the 16 megawatt ST-7 steam generating unit at the Keahole Generating Station, which started commercial service in June 2009. Instead of using oil, the exhaust heat from two existing combustion turbines is used to run the new steam turbine to generate electricity. In addition to significantly increasing efficiency and saving fuel, the new unit also adds generating capacity in West Hawaii, which now accounts for about half of the is|and’s demand for electricity.

Another key project involved upgrades to two major West Hawaii transmission lines, which were completed in November 2008 and December 2007, respective|y. These upgrades improve reliability, reduce transmission line losses and helps prepare the HELCO system to accept more renewable energy.

Other significant capital projects included power plant controls upgrades and other upgrades or replacements to increase the efficiency and reliability of our older generating units, and also investments in overhead and underground cables, as well as transformers, poles, meters and other facilities to maintain reliable service and fulfill new service requests from customers.

As we have said before, HELCO does not plan to add any more fossil fuel generation on our island. Going forward, we anticipate that any new generation would come from renewable resources, such as geothermal, solar, wind, hydro, biomass or even waste-to-energy.

When it comes to integrating renewable energy, HELCO continues to set standards for the rest of the country. In 2009, more than 30% of electricity sold on this island came from renewable sources, making HELCO a national leader in renewable energy use.

What is the effect of the rate increase on customer bills?

What most of our customers will want to know is “how will this increase affect my electric bilI?” If the full request is approved, a “typicaI” HELCO residential customer using 500 kWh a month would see their bill go up by $9.57.

Again, the tiered system we are proposing is intended to encourage conservation and lessen the impact on residential customers who use smaller amounts of electricity. If approved, we anticipate that the earliest a rate increase might take effect would be near the end of this year.

Conclusion

Thank you for this opportunity to briefly describe our rate increase application. As I mentioned earlier, we will also be available after the public hearing to answer your questions and concerns.

MEDIA RELEASE

Family Support Services of West Hawaii (FSSWH) has received a $5,000 grant from the Hawaii Electric Light Company (HELCO) to support its Na Makuakane Maikai O Hawaii — Great Fathers of Hawaii — Fatherhood Initiative.

The initiative’s counseling, educational and public awareness activities continue to highlight the importance of father involvement in the lives of children.

JoAnn Bishop Freed, executive director of Family Support Services, said, “The grant from Hawaii Electric Light Company through the HEI Charitable Foundation will help the initiative’s Father Facilitators assist our communities’ fathers through classes, parent-child interaction and support groups, as well as the annual Celebration of Fatherhood Conference.

“We’re very proud to be able to support such an important educational program and help make our Hawaii Island families stronger,” said Jay Ignacio, president of Hawaii Electric Light Company.

Family Support Services’ mission is “to support families and communities in providing love and care for our children.” The organization was established in 1979 by community volunteers who were concerned for the children traumatized by abuse and neglect in our community.

The agency has been in the forefront of providing free supportive services to families through its programs and Family Resource Centers in Waimea, Kailua-Kona, Hilo and Ka’u.

For more information on this grant or other services provided by Family Support Services of West Hawaii, call 326-7778.

(Photo courtesy of Tradewinds Forest Products)

MEDIA RELEASE

Tradewinds Forest Products announced its plan today to begin the first phase of construction of a $62 million veneer manufacturing plant at Ookala on the Hamakua Coast. Groundbreaking is planned for the first quarter of this year.

Phase two of construction entails building a small cogeneration biomass power plant that will burn mill residuals and provide steam for running the dryers to finish the veneer products.

Tradewinds Forest Products has a purchase power agreement in hand from HELCO as well as a Clear Air Permit issued by the State of Hawaii Department of Health.

“We are absolutely thrilled in announcing our construction plans for Tradewinds’ veneer manufacturing plant. Not only will we generate approximately 75 local construction jobs for the next 12 months, but upon completion, Tradewinds Forest Products will create 100 permanent jobs in one of the hardest hit economic regions in the state,” Tradewinds Forest Products President Don Bryan said.

Permanent employment at the veneer mill will begin in spring or summer of 2011. In addition to Tradewinds’ jobs, 60 new jobs will also be created by logging contractors.

“We see Tradewinds Forest Products as a continuation of the Hamakua Coast’s rich agricultural heritage, an opportunity for family wage jobs close to home and a source for badly needed economic diversification,” Bryan said.

Financing in these unusual economic times has been the culprit in delaying Tradewinds’ construction start.

To resolve this financing conundrum a hui was formed with Rockland Capital Energy Investors of Houston and GMO Renewable Resources of Boston. The joint venture hui takes advantage of Tradewinds’ business strengths—a deeply experienced management team, incredible growth rates of eucalyptus trees and the skills, commitment and work ethic of workers on the Hamakua coast.

Tradewinds Forest Products will work with Hawaii Community College in Hilo and the State’s Workforce Development Division to create a program to benefit the local workforce.

Tradewinds is the first major Hamakua Coast employer since the demise of the sugar industry. It is envisioned that the Hamakua Coast will again be a Smart Growth community where residents can work at good jobs close to where they live.

Tradewinds Forest Products, LLC is developing a state-of-the-art veneer mill on the Big Island’s Hamakua coast. The mill will convert eucalyptus logs into high-value visual grade, strength grade and commodity grade veneer using an environmentally sustainable process.

Tradewinds is positioned to become the only industrial scale high-value log processor on the island.

Adequate timber sources on the island of Hawaii from Kamehameha Schools lands and from the State’s DLNR forests at Waiakea will allow Tradewinds to sustainably supply two shifts of production.

When the trees currently growing have been utilized, a second crop of trees will be ready for use.

— Find out more:

www.tradewindsforestproducts.com

MEDIA RELEASE

Hawaii Electric Light Co., (HELCO) is scheduled to close Palani Road between Kealakaa to Tomi Tomi on Saturday, Dec. 19 to complete transferring utility lines.

Palani Road will remain closed from midnight to 7 a.m. Sunday, Dec. 20. Motorists traveling makai on Palani will detour on to Uluaoa to Kealakaa and back on to Palani Road at Palihiolo.

Mauka bound motorists will turn left at Palihiolo on to Kealakaa, left at Uluaoa, and back on to Palani Road.  Off-duty officers will direct traffic at Uluaoa, and at Palihiolo.  Weather conditions could alter this schedule.

Earlier this week, Palani Road was closed for night roadwork between Kealakaa to Laimana Street.

For updates, call the hotline at 334-9559

MEDIA RELEASE

Hawaii Electric Light Co., (HELCO) is scheduled to close Palani Road overnight  Monday, Dec. 14 and transfer existing transmission lines between Kealakaa to Laimana Street.

Palani Road will be closed between Kealakaa and Palihiolo from 9 p.m. to 7 a.m.

Motorists traveling makai on Palani will detour on to Uluaoa to Kealakaa and back on to Palani Road at Palihiolo. Mauka bound motorists will turn left at Paliholo on to Kealakaa, left at Uluaoa and back on to Palani Road.

Only residents between Uluaoa  and Kealakaa will be allowed into the area. Off-duty officers will be directing traffic at Uluaoa and at Palihiolo.

Weather conditions could alter this schedule.

For updates, call the hotline at 334-9559.

Photography by Baron Sekiya/Hawaii247.org

At approximately 3 p.m. a bolt of lightning strike and damaged a utility pole at the intersection of N. Kulani Road and Highway 11 Wednesday (July 22) Fire and HELCO crews responded to the scene, there was no fire or injuries.

The top of the utility pole was struck and splintered by a lightning strike according to a HELCO crewmember on scene.

Pieces of the utility pole on Highway 11 near N. Kulani Road. HELCO crews powered down lines to make repairs. Yisa Var said she was at a stop sign below the pole when the lighting hit and falling pieces damaged her car. She and her seven year-old son sustained no injuries but were shaken-up from the incident.

Var's Mustang convertible sustained damaged from the falling pole pieces to the soft-top, hood and the fender which was hit the hardest. Photo courtesy of Yisa Var.

View Lightning struck pole (7/22/09) in a larger map

View Severed Utility Pole in a larger map

A sedan rests under a severed utility pole on Kilauea Avenue. The accident shut-down the street on the Puna side near . Palai Street. Photography by Baron Sekiya/Hawaii247.org

A car severed a utility pole and snapped it in half early Friday evening (July 10). A friend of the car’s operator said the driver had just picked-up a family member at the airport and was headed in the Puna bound lane of Kilauea Avenue when the car hydroplaned in the rain and hit the pole. Both the driver and passenger of the vehicle did not need medical attention. There were no other vehicles involved, the car suffered extensive damage to the front end. Police initially shut down one lane of traffic but closed both lanes so repair crews could work on the pole and remove the vehicle.

Later in the evening two-way traffic was opened with both lanes being routed past HELCO crews replacing the broken pole.

The car could not be removed until HELCO crews removed a utililty pole on and hanging over the vehicle.

Extensive damage to the front end of the car that severed a utility pole on Kilauea Avenue.

View Transformer Explosion in a larger map

An explosion at a HELCO substation on on 31st Avenue between Paradise Drive and Kaloli Drive shut down power to Hawaiian Paradise Park Wednesday morning. Hawaii County Fire Department crew responded and a HELCO crew is on site.

An electrical box bulges and smokes after neighbors said there was an explosion followed by a power outage in Hawaiian Paradise Park.

MEDIA RELEASE

The University of Hawaii at Hilo has turned on the first in a series of  PV (solar) panels designed to promote energy efficiency through greater use of renewable sources.  

The solar panels are located on the building that houses UH-Hilo’s Kipuka Native Hawaiian Student Center, in the area known as “Redwood City.”    

The project was the inspiration of Gail Makuakane-Lundin, director of Kipuka, and a founding member of the Sustainability Committee.  Makuakane-Lundin secured funding for the project in a Title III Native Hawaiian Serving Institutions renovation grant obtained from the U.S. Department of Education in FY 2005-2006.  

She said much can be learned from the practices of Native Hawaiians and their kinship with the environment.

“Our ancestors had a special harmonious relationship with the environment that provides a working model for meeting the challenges of a growing population and limited resources,” Makuakane–Lundin said. “They understood that the resources you preserve today through smart, sustainable practices will insure that future generations enjoy a comparable quality of life.”     

The panels were purchased some time ago, but the project was delayed while legalities of the interconnectivity agreement between the University and Hawaii Electric Light Company (HELCO) were worked out. The agreement was finally completed last week, clearing the way for the PV panels to be turned on.    

The panels generate approximately 10.15 kilowatts of energy, resulting in a total savings of 11,195 kilowatt hours.  

Dr. Debra Fitzsimons, vice chancellor for administrative affairs, said the achievement might seem small by itself, but is significant in the bigger picture.

“We’re currently working on several different strategies to obtain funding for a large-scale, campuswide solar panel project that has the potential to generate up to 600 kilowatts,” Fitzsimons said. “What makes this project so important is that it provides us with the prototype interconnectivity agreement that will facilitate the installation of additional PV panels in the near future.”   

The Kipuka solar panel project is just one of the energy savings/sustainability initiatives UH Hilo has undertaken during the past year. 

Photos and video by Baron Sekiya/Hawaii247.org

Fire, police and HELCO crews responded to Banyan Drive when an explosion blew open a manhole.

An explosion in a utility manhole along Banyan Drive near the entrance to Queen Liliuokalani Gardens blew a 6×7 foot concrete and metal cover open, shorted out circuits and led to a power outage in the area. Hawaii Electric Light Company crews were investigating the late Thursday afternoon blast with fire and police crews on hand. Banyan Drive was closed in the north-bound lane as emergency vehicles were on scene but was opened to traffic less than an hour later.

Hotels and businesses along Banyan drive were thrown into darkness and HELCO crews were planning to make repairs to the shorted switch and circuits in the manhole.

MEDIA RELEASE

Hawaii Electric Light Co., Inc. is replacing a telephone pole in Captain Cook, across from the Fire Station, Wednesday evening, March 4. Night work will begin at 9:00 p.m. and is expected to be completed on March 5 at 6:00 a.m. A section of Mamalahoa Hwy in front of the Fire Station will be conned off during these hours.

Resurfacing Mamalahoa Hwy in Kainaliu continues for the rest of this week. Night work occurs between the hours of 7:00 p.m. to 5 a.m.

Motorists should plan on delays.

The county Department of Public Works has announced HELCO crews will be working in Waikoloa beginning Monday, Dec. 15 replacing an underground cable from the Post Office area on Pua Melia Street down Paniolo Avenue to the Francolin Place area.

They are blocking one of the southbound Paniolo lanes. Guards will direct traffic around the area.  Anticipate 10-12 minute delays.

Work will be daily except holidays for the next 5 – 6 weeks.