Category Archives: Lowering Electric Rates

Front Page News

Richard Ha writes:

Front page news today in the Hawai‘i Tribune-Herald newspaper:

September 28, 2012

Isle’s energy at center of debate

By PETER SUR

Tribune-Herald staff writer

The Public Utilities Commission’s public hearing on Hawaii Electric Light Co.’s rate increase and biofuel surcharge proposals is a month away, and all sides are digging in for what could be an explosive meeting.

The PUC has scheduled public hearings to gather community input on Oct. 29 at the Hilo High cafeteria and Oct. 30 at the Kealakehe High cafeteria. Both meetings start at 6 p.m.

At issue are two proposals by HELCO. One is for a $19.8 million increase in revenue, or 4.2 percent in the coming year. The other, which is being jointly proposed by Hawaiian Electric Co., is the establishment of a biofuel surcharge provision of between 84 cents to $1 per month to support a Ka‘u biodiesel refinery to be built by Aina Koa Pono.

The article goes on to discuss the Big Island Community Coalition and actions we are taking. It also discusses the Aina Koa Pono project.

Both proposals are opposed by the Big Island Community Coalition, formed by a group of prominent citizens who are asking people to come out and tell the PUC the effect of HELCO’s utility prices on their lives. Read the rest here

Did you mark your calendar yet? Come to the PUC meetings (October 29 at Hilo High cafeteria, and October 30 at Kealakehe High cafeteria; both at 6 p.m.) and here’s more on what you can do to help with our mission to make Big Island electricity rates the lowest in the state.

Master Gardeners Visit Hamakua Springs

Richard Ha writes:

The master gardeners came to visit Hamakua Springs yesterday. I told them their entry fee was that they had to listen to my pitch about the Big Island Community Coalition, through which we advocate for lowest electricity rates in the state.

We all laughed, and then I handed them flyers to post everywhere they can.

The Master Gardeners, solely as volunteers, help staff the University Extension Service. Somone pointed out that when they are not there, the Extension Service office is empty.

It was great to talk with people who grow things and have hands-on experience with insect and disease issues. They peered under leaves and asked lots of questions. Many of them grow tomatoes, so we had a lot in common. We feel a special closeness to them.

Mastergardener

Master Gardeners decided to do their vegetable shopping while on their tour.

My daughter Tracy
explained our Food Safety program, which involves nearly 60 line items for the field operation and 60 more for the packing operation. Everything is documented.

I pointed out that
smaller growers have a very difficult time both farming and maintaining the
detailed paperwork necessary to become Food Safety-certified. The Food Safety program evolved as large retailers pushed the liability down the chain. It is neither good nor bad – It just is.

Someone asked how long we have been at Pepe‘ekeo and why we chose this location, and I explained that we started looking at different possible locations 20 years ago. Plantations were closing down, the market was on O‘ahu – there were many factors in play.

What it came down to were the physical resources. At Pepe‘ekeo, which is located close to a deep water port, there is deep soil, and most of all, there is an abundance of water. Our average annual rainfall here is close to 140 inches per year. More than 1/4 of the volume of water that goes to the Ewa plains on O‘ahu flows downhill through our farm alone. And there is a 150-foot elevation difference in the water flow.

That water was free, and would be free for as long as we could imagine. We made our decision based on free water.

Gail Tverberg on the Link Between Energy Consumption, Employment & Recession

Richard Ha writes:

In this article called The Close Tie Between Energy Consumption, Employment, and Recession, from OurFiniteWorld.comGail Tverberg says that our energy use rises and falls with employment numbers, and also that Gross Domestic Product is related to energy use: The cheaper the energy, the more one uses and conversely, the more expensive the energy, the less people use. It’s all about the cost of the energy.

The Close Tie Between Energy Consumption, Employment, and Recession

by Gail Tverberg

Posted on September 17, 2012 

…Since 1982, the number of people employed in the United States has tended to move in a similar pattern to the amount of energy consumed. When one increases (or decreases), the other tends to increase (or decrease)….

I have written recently about the close long-term relationship between energy consumption and economic growth. We know that economic growth is tied to job creation, so it stands to reason that energy consumption would be tied to job growth1. But I will have to admit that I was surprised by the closeness of the relationship for the period shown.

This close relationship is concerning, because if it holds in the future, it suggests that it will be very difficult to reduce energy consumption without a lot of unemployment. It also would seem to suggest that a shortage of energy supplies (as reflected by high prices) can lead to unemployment….

Gail Tverberg’s former career was as an insurance actuary. Her job was about pricing insurance risk. That’s a relevant set of skills to have as we move into the uncertain future.

Here in Hawai‘i, we are very fortunate: We have a robust set of alternative energy workarounds. But we do need to focus on affordable energy and proven technology to help us dodge the economic downturn bullet.

Read Gail’s whole article here.

My Audio at Kona Blog Radio

Richard Ha writes:

My friend Dave Ross invited me to be a guest speaker on Kona Blog Radio. The program was recorded at Boston Basil’s in Kailua-Kona on Tuesday, and you can listen to it here:

Listen to internet radio with KBP on Blog Talk Radio

I talked about the Big Island Community Coalition (BICC), the organization recently formed to make the island’s electricity rates the lowest in the state.

The next step: Asking people to attend upcoming PUC hearings.

The PUC is holding these hearings to learn what people think about HELCO’s proposed 4.2 percent rate hike, as well as the proposed Aina Koa Pono biofuels project at Ka‘u. BICC is against both proposals because they would raise our electricity rates, not lower them.

The first PUC hearing is on Monday, October 29, 2012, 6 p.m. at the Hilo High School cafeteria. The next is on Tuesday, October 30 at 6 p.m. at Kealakehe High School.

We need your input so we can work on getting our electricity rates down, instead of just watching them go up.

PUC: Here’s When You Can Show Up & Make a Difference

Richard Ha writes:

If we show up in huge numbers at PUC hearings, we can make a difference.

The PUC will hear HELCO’s proposal for a 4.2 percent rate hike, as well as about Aina Koa Pono’s proposed biofuel project, on:

  • Monday, October 29, 2012 at 6 p.m. at the Hilo High School cafeteria, and
  • Tuesday, October 30, 2012 at 6 p.m. at the Kealakehe High School cafeteria.

The Big Island Community Coalition opposes both proposals because they would raise, rather than lower, our electricity rates.

The PUC members are caring human beings. But they have to know what the people want. Only two people, I think, showed up at the last PUC hearing in Hilo. We need hundreds!

The Big Island is in trouble. We have one of the highest electricity rates in Hawai‘i – almost 25 percent higher than O‘ahu’s.

High electricity rates are like a giant regressive tax, only worse. As people leave the electric grid to escape its high cost, those who cannot afford to do so pay even more.

The Big Island has a robust supply of alternatives to oil. We need to mobilize and make meaningful change.

The world has been using twice as much oil as it’s been finding for 20 to 30 years now, and this trend continues.

Growing gap

In the last 10 years, the price of oil has quadrupled. Something significant has changed: This has never before happened in the 150 years comprising our “Age of Oil.”

Oil price quadrupled

In China, they use two barrels of oil/person/year, and even when oil costs $100/barrel, their economy continues to grow. Here in the U.S., we use 23 barrels of oil/person/year, and at $100 oil, our economy is sputtering. It is reasonable to assume that the price of oil will continue to rise as it continues to be influenced by China’s demand.

Who here is most vulnerable to rising electricity costs?

  • Senior citizens on fixed income, for one, who sometimes have to make choices between food, medicine and electricity. We cannot leave our kupuna – our moms and dads, grandmas and grandpas – out there to fend for themselves. These are the ones who sacrificed so we could have a better life.
  • Single moms are also very vulnerable. I talked to a person who has several kids she hopes to send to college. She told me the threat of rising electricity prices weighs on her every day.

According to this week’s Hawaii Tribune-Herald, 3,000 of the 10,000 folks in Hawai‘i who receive federal aid to help pay their electric bill are on the Big Island. We have less than 15 percent of the state’s population, yet more than 30 percent of Hawai‘i’s residents who receive federal assistance to pay their electricity bill are on the Big island.

Join the Big Island Community Coalition to receive an occasional email telling you how you can help bring down the cost of Big Island electricity.

Pohoiki: Taking Our Community Coalition Into The Community

Richard Ha writes: 

Ramp

Pohoiki Boat Ramp
There was a Ho‘olaule‘a yesterday, sponsored by the Kealoha Trust, at Pohoiki Beach Park.

Richard Ha, Kuulei Kealoha Cooper, Faye Hanohano, Noelani Kalipi

Richard Ha; Ku’ulei Kealoha Cooper, administrator of the Kealoha Trust which sponsored the Ho‘olaule‘a; Representative Faye Hanohano; Noelani Kalipi,  her husband Gaylen, and their two

small children, as well as Kapono Pa and me, manned a booth for the Big Island Community Coalition (BICC) and signed up new members.

Noe Kalipi, Richard Ha, Kapono Pa

Noe Kalipi is involved with BICC for the sake of her children.
Screen shot 2012-09-03 at 9.29.05 AM
Signing up Leah Gouker.

The BICC’s mission is to lower electricity rates on the Big
Island
so that they are the lowest in the state.

Sign

I got involved with the BICC for the same reason I got involved in Ku‘oko‘a: We need to align the needs of the people with the needs
of the utility
. The world is changing and we must adapt.

Sign1

This is the same reason I got involved with the Thirty Meter Telescope; it helps our community transition. And it’s also why I now support the Hawaii Island Beacon Community, which is involved in making the health care system more efficient, and therefore more affordable.

Did you see the front page headline in yesterday’s Hawaii Tribune-Herald?

Poor Hit Hardest by Rate Hikes

Should a proposed electricity rate increase of 4.2 percent in 2013 be approved by the state’s Public Utilities Commission, Big Island low-income families will be among those hardest hit by higher power bills. 

Last year, almost a third of all Hawaii families that sought federal assistance with paying their electricity bills were located on Hawaii Island. 

“For many of our families, the money covers one or two bill payments, and that’s it. Then they’re in trouble,” said [Kayla Rosenfeld, spokeswoman for the Department of Human Services]….. “I get concerned every time I see that HELCO is getting a rate increase because it has a tremendous impact on these families. Their bills are already high now…. And for the elderly, some have to make a choice each month, between buying food or paying for medicine or paying their electric bill.”  Read the rest

The bottom line re: all my involvement is that agriculture
is a hard business. I am unable to raise my workers’ pay, and they are coming under increasing pressure from the economy.

Everything I do starts with the objective of helping my farm workers. And helping our workers helps everyone in the community, as well.

‘Your Words Become Your Actions’

Richard Ha writes:

Our Big Island Community Coalition — whose goal is “to make Big Island electricity rates the lowest in the state by emphasizing the use of local resources” — seems to be really making people think in a new way. It’s the right goal at the right time.

Someone who has been reading about our efforts said they make him think of these words of Gandhi’s, which are pretty profound. If these words were a roadmap, we’d be at the “thoughts/words” intersection, and coming up on “actions.”

Your beliefs become your thoughts,

Your thoughts become your words,
Your words become your actions
Your actions become your habits,
Your habits become your values,
Your values become your destiny.

                  – Mahatma Gandhi

This is a goal we are setting, and which we plan to meet, solely because it’s the right thing to do. The Big Island Community Coalition doesn’t have a budget, and in fact, we don’t need a budget. This is not about slick P.R. This isn’t P.R. at all. Not having a budget means we are just getting out there and talking to real people.

Join us at www.bigislandcommunitycoalition.com if you’d like to be on our mailing list.

There’s Something In The Air

Richard Ha writes:

There’s something really interesting, and different, about what we’re doing now – about this Big Island Community Coalition campaign to make the Big Island’s electric rates the lowest in the state.

When I ask people to write a letter in support, they are saying, “I’m going to send this around to my email list.” In the past when I’ve been involved in campaigns to get something done, people would write an individual letter. Now they are spreading the word far and wide and getting their own contacts involved. They are volunteering to share it with their people.

This is a big difference compared to anything else I’ve been involved with.

The idea of lowering our electric rates, rather than just letting them rise uncontrollably, really resonates with people across all walks of life. Everyone feels we need to do something. I haven’t heard anyone say, “No, we want our electric rates to be higher!”

‘HELCO & Your Bill: What’s Wrong With This Picture?’

Richard Ha writes:

This Op-Ed piece just ran at Civil Beat, the Honolulu Star-Advertiser, the Hawaii Tribune-Herald and West Hawaii Today.

HELCO & YOUR BILL: WHAT’S WRONG WITH THIS PICTURE?

By Noelani Kalipi 

Hawaii Electric Light Co. is applying to raise Big Island electricity rates by 4.2 percent — shortly after its parent company announced impressive profits that were 70 percent higher than last year.

What’s wrong with this picture?

We — John E.K. Dill, Rockne Freitas, Richard Ha, Wallace Ishibashi, Ku‘ulei Kealoha Cooper, Noelani Kalipi, Ka‘iu Kimura, Robert Lindsey, H.M. “Monty” Richards, Marcia Sakai, Bill Walter — invite you to join our newly formed group, the Big Island Community Coalition. Our mission is “to work together as an island community for the greater good of Hawai‘i Island and its people.”

Our first priority: To make Big Island electricity rates the lowest in the state by emphasizing the use of our ample local resources.

The proposed HELCO rate increase, coming at a time of record profits, does not sit right with us.

We understand the regulatory system, which is rate-based. Our concern is that we continue to see requests for rate increases at the same time that we read about record profits for the utility.

While we understand the fiduciary duty to maximize profits for the shareholders, we believe the utility’s responsibility to the rate payer is just as important. As part of good corporate business, it should benefit both by investing its profits into a sustainable grid.

The Big Island is one of the few places on the planet where we have robust, renewable energy resources that can be harnessed effectively to provide firm, reliable, low cost electricity for our residents.

One example is geothermal, which costs about half the price of oil. We also have solar, wind and hydroelectric. We have resources right here that can both lower our electricity costs and get us off of imported oils.

Lower rates would mean that when the grid needs repairs, or the cost of oil goes up again, it will not be such a punch-in-the-gut to our electric bills.

If HELCO is allowed to raise its rates by the requested 4.2 percent, plus raise rates again via the Aina Koa Pono project, and then the oil price goes up, that would be a triple whammy price hike on your electric bill.

Big Island Mayor Billy Kenoi has sent a strong message that the county will not support new renewable energy projects — such as Aina Koa Pono, which would add surcharges to every electric customer’s bill — unless they result in cheaper energy. “Unless it has lower rates, we will not support it,” he said recently.

UH-Hilo just had a $5.5 million electric bill — almost $500,000 more than last year — and HELCO’s proposed 4.2 percent rate increase would add another $230,000 to their bill. The same thing is happening at hospitals, hotels and businesses. Farmers’ expenses are going way up, which threatens our food security. Electricity rate increases ripple through every part of our economy. They are already rippling.

People are already struggling with their monthly HELCO bill. Some are having their lights turned off.

As rates continue to increase, more people will leave the grid and fewer will remain to pay for the infrastructure, meaning that those households and businesses that remain (because they cannot afford to get off the grid) will pay even more.

You may think the electric utility is a big powerful entity that you cannot affect, but you can. Pay attention! Show up! Write a letter! Do something! If you leave your name and contact information at www.bigislandcommunitycoalition.com, we will send an occasional email to keep you informed of what’s happening, and how you can help.

‘Nuff already!!

Let’s be clear. This is not about how green the energy is. This is about how much the energy costs. This is not about saving the world. It’s about saving ourselves first, so we are in good condition to help save the world.

We had hoped that HECO would have a balanced approach to solving the problems. There are books written on how corporations can take care of people and the environment as well as their investment. The term is called “triple bottom line.”

From The Triple Bottom Line: How Today’s Best-Run Companies Are Achieving Economic, Social and Environmental Success – and How You Can Too:

Increasingly, businesses are expected to find ways to be part of the solution to the world’s environmental and social problems. The best companies are finding ways to turn this responsibility into opportunity. We believe that when business and societal interests overlap, everyone wins.

Rising electricity costs are like a regressive tax, where the poor pay a disproportionate amount of their income. Only it’s worse. As the price of oil rises, people who are able to, leave the grid. This leaves a diminishing number of people – those who cannot afford to leave – to pay for the grid.

What’s wrong with this picture?!

Kuokoa Board Member James Woolsey

James Woolsey, former director of the Central Intelligence Agency and a board member of Ku‘oko‘a, was in Hawai‘i recently to deliver the keynote address at the Asia Pacific Clean Energy Expo and Summit in Honolulu.

His keynote speech is here; forward ahead to 37:00 to hear it.

A recent Civil Beat article starts:

Hawaii needs to take decisive action in moving away from its dependence on foreign oil and capturing local renewable energy sources to power its energy needs, according to James Woolsey, former CIA director under President Bill Clinton and board member of Kuokoa, the local start-up company that wants to take over Hawaiian Electric Co.

“This will not work, this moving Hawaii into a position of leadership and saving Hawaii from its terrible energy dependence — it will not work without decisive action,” said Woolsey. “One can’t halfway do it.” Read the rest

Though he delivers a very sobering message, Jim also has a great sense of humor. While here he also spoke in Kona, and during that Q&A session, he turned his back, unbuttoned his long-sleeve dress shirt, and untucked it. Then he turned back around to face the audience to reveal his t-shirt.

Tshirt

His t-shirt shows a cartoon figure with a gas nozzle in one ear, which is blowing his brains out the other ear. The audience screamed laughing.

Also while he was here, we took the opportunity to make sure he became culturally familiar with who the Hawaiian people are, and how much importance we at Ku‘oko‘a place on all our people having a good cultural grounding in how the people think.

Greg Chun, president of Kamehameha Investment Group and an expert on the Keauhou/Kona area, met us at Keauhou to give us an orientation.

Cropped group on roof with heiau

Left to right: Ku‘oko‘a Board Member Noe Kalipi; daughter-in-law of Jacqui Hoover; Board Member Jim Woolsey; Jacqui Hoover, President of the Hawai‘i Island Economic Development Board; Kamehameha Schools’ Greg Chun, and Ku‘oko‘a President Ted Peck.

We went up on roof of the Keauhou Outrigger, because from there Jim could see a paranomic view of Keauhou – from the bay to the heiaus and to the hillsides, large expanses that were formerly terraced and planted and which supported many people in pre-contact Hawai‘i.

Heiau

We have had a lot of conversations with Jim about these things we are so grounded in, but to actually see it all and walk it is different than just talking about it. We walked to the heiaus, and out to the ocean.

Heiau - view from roof

Before Jim was a lawyer and high up in government, he studied history. So he knows a lot about civilizations and this was not foreign to him; he understood it immediately. He gets it.

Noe Kalipi, Ted Peck, June and I had a very fun dinner with him the night before his speech. He is a really good guy!

He sees that Hawai‘i is a place where you can scale technology to demonstrate that these things can be done. His whole idea is that we can do this here in Hawai‘i.

He’s like us: We are all committed to making this happen. It’s not an “if.” We must do this.