Category Archives: Community

The Lamakū Project

Richard Ha writes:

I want to tell you what’s new. The Big Island Community Coalition (BICC), in partnership with ‘Imiloa Astronomy Center, is kicking off the Lamakū Adopt-a-Visit project.

Download Adopt a Visit Program_2013_brochure

Lamakū means “torch of light.” This project will sponsor Puna and Ka‘ū students to go on a field trip to ‘Imiloa Astronomy Center in Hilo. 
Lamaku

Here’s how it works: You make a 100 percent tax-deductible donation to ‘Imiloa, specifying that it’s in support of the BICC “Adopt-a-Visit” project. (You can specify that it’s for a certain Puna or Ka‘ū school if you’d like, but that’s optional.)

Each $5 donation sponsors one student. Public, private, charter and homeschooled students are eligible.

Donations will be applied to the ‘Imiloa admission fee.  As long as funds are available, ‘Imiloa will cover the cost of bus transportation to the Center. ‘Imiloa will coordinate the school visits, and will ensure that the donor receives feedback about the trip to ‘Imiloa they helped sponsor.

Eighty-nine percent of students in the Pahoa school complex participate in the free/reduced lunch program. This is the highest percentage in the state.

This is an opportunity to make a real difference on the ground. Thanks for your help.

How to donate

World-Renowned Systems Ecology Expert Charles A.S. Hall Speaks in Hilo

Richard Ha writes: 

On Friday, Professor Charles A. S. Hall gave two free lectures at UH Hilo. Hall is a world-renowned systems ecology and biophysical economics expert, and is considered the father of modern day Energy Return on Investment (EROI).

Here is a video, approximately 30 minutes long, from a previous talk of Professor Hall’s.

At UHH, he talked about a systems approach to energy issues here in Hawai‘i.

A “systems approach” is a fancy way to say: Use what you have to come to a good result. It’s about using all we have available to us, in a commonsense way, to move in the right direction. It’s not rocket science.

For a long time now we have known that the resources supporting our world population are finite. Professor Hall approaches these issues from a scientific point of view, i.e., one based on data. His analysis and conclusions can be duplicated by others.

Friday night’s audience was made up of legislators, environmentalists, proponents of Hawaiian culture, University of Hawai‘i staff and students, etc. When Professor Hall advocated for a “systems approach” to our resource issues, they broke into spontaneous applause.

He was startled by the response, but the folks in the audience knew that if we do not start working on commonsense solutions, we’re going to be in deep Kim Chee in the future.

We’ve begun a conversation now about bringing together multiple disciplines, such as agriculture, engineering, energy and more. The idea is to cut to the chase and work on solutions.

For example, in food production, we know that the micronutrients that might be deficient are zinc and boron, and the macronutrients that might be limiting are nitrogen and potassium. Phosphorous
is there; it’s mainly tied up in the soil. So, as we attempt to solve energy issues, how can we simultaneously address issues of food production?

And maybe we should be teaching this to our keiki, so that by the time they are ready to run things, they have a true view of the world.

We all need to be on the same page, solving real problems for all of us—not just for a few of us.

The folks in Professor Hall’s lecture were all realists. This is why I say that I am optimistic about our future here on the Big Island.

Looking Back: RIP Senator Inouye

Richard Ha writes:

Senator Dan Inouye had a direct influence on Hamakua Springs Country Farms, primarily through the Rural Economic Transition Assistance Hawaii (RETAH) program. That, in turn, allowed us to be part of the Big Island Community Coalition, where our mission is to achieve the lowest-cost electricity in the state.

We continue to follow Senator Inouye’s example: It is about all of us, not just a few of us.

Mahalo, Senator Inouye—Rest in Peace.

Let me tell you a story. Nearly 18 years ago, C. Brewer Executive John Cross let me use 10 acres at Pepe‘ekeo, rent free, to test grow bananas. It was not clear then whether or not bananas could be successfully farmed in the deep soil and heavy rainfall of the Hilo Coast.

Having farmed bananas in the rocks of Kapoho and Kea‘au, I had no experience pulling a plow or getting stuck in mud. Until then, the standard way of planting bananas was by the “mat” system. The idea was to plant 250 plants per acre. Then, after the first bunch was harvested, you let four plants grow up, thereby increasing the population to 1000 plants per acre.

We decided to plant 25 percent fewer plants, in straight rows, so sunlight could hit the ground. The idea was to mow the grass in the
middle aisles in order to get traction instead of getting stuck in the mud. On that 10 acres, I mowed the grass and pulled a plow during the week to mark the lines. Then every weekend for several months, Grandma (who was 71), June, Tracy, Kimo and I, plus our two grandkids, would plant the banana plants from our own tissue culture lab.

(UH Hilo Professor Mike Tanabe taught us how to do that. And, by the way, instead of having a drop in production, the bunch size became larger, which made banana farming at Pepe‘ekeo more efficient.)

Kimo would carry a bucket of lime and dropped a handful as a marker every so many steps. Tracy or June drove the truck, and Kapono, who was around 6 years old, sat in the back and dropped a plant by the lime marker. Using picks and shovels, the rest of us set the plants in the ground. Even Kimberly, who was around 3, had a pick. She dug a hole wherever she wanted. After all the plants were planted, we took buckets and fertilized them.

At the end of that year, we felt it would work. We had a small ceremony where Doc Buyers, C. Brewer’s Chairman of the Board, cut off the first bunch of bananas. Also present were Jim Andrasick, who was then President of C. Brewer, and later Chairman of the Board of Matson; Willy Tallett, Senior Vice President of Real Estate/Corporate Development, and John Cross, who later became President of Mauna Kea Agribusiness (the successor company of C. Brewer).

C. Brewer had tens of thousands of acres and we had 10 acres – but our dreams were huge! We did not feel awkward that this group of heavy-duty corporate people were in attendance. We knew where we were going and it felt very appropriate for them to be there.

Then, a few years later, Senator Inouye, the leader of the Democratic party, appointed Monty Richards, a staunch Republican, to administer the RETAH program. That helped us expand our production at a critical time. And again Senator Inouye demonstrated that it wasn’t about a few of us, but it was about all of us.

We are only one of the tens of thousands of people who were helped by Senator Inouye.

At this special time of year, we look back at times and people from long ago and we smile. We thank everyone who has helped us along the way.

If we can continue to grow food, and if we can help our workers have a better life for their children, those are our goals.

Happy Holidays, Everyone.

Free UH Hilo Talk from Expert on the Economics of Energy

Richard Ha writes:

Professor Charles A.S. Hall will give a free lecture on “Peak Oil, EROI and Your Financial Future in Hawai‘i.” It will be at UH Hilo on Friday, January 4th at 6:30 p.m.

Professor Hall received the Matthew R Simmons/M. King Hubbert Award for excellence in education at the 2012 Association for the Study of Peak Oil (ASPO) conference, mostly for his work on Energy Return on Investment (EROI).

From UH Hilo Chancellor Donald Straney’s blog:

Dec.13, 2012

 


Charles A. S. Hall

The University of Hawai‘i at Hilo College of Agriculture, Forestry & Natural Resource Management and Chancellor Don Straney will sponsor a free public lecture on the economic impact of rising energy costs by New York State University Professor Charles A.S. Hall.

The address, “Peak Oil, EROI and Your Financial Future in Hawai‘i,” is scheduled for Friday, Jan. 4, 2013, at 6:30 p.m. in University Classroom Building room 100.

Hall, the author of Energy and the Wealth of Nations: Understanding the Biophysical Economy, will explain how high energy prices reduce discretionary incomes by using the concept of Energy Return on Investment (EROI).The lecture is free and open to the public. For more information, contact Alyson Kakugawa-Leong.

He will also speak on O‘ahu on January 10th; details of that free lecture to be announced.

You can read more about Professor Hall in this post Economics & a Hawaiian Way of Thinking.

Biomass To Electricity: A Fancy Way To Talk About Firewood

Richard Ha writes:

At last week’s PUC meeting in Hilo regarding the Hu Honua Bioenergy project slated for Pepe‘ekeo, few members of the public objected to the project.

The hearing was required because HELCO is proposing to relocate a switching station. The proposed site is on a 13-acre parcel that June and I own; they want to buy half of the property. We notified the community associations that this was taking place several months ago, and, as a consequence, I do not plan on submitting personal testimony to the PUC.

At the PUC meeting, the Kamehameha Schools (KS) representative talked about forest products as an industry. What is more practical and proven than using firewood to boil water? This is what we need; it’s practical.

This Big Island Video News video covers the meeting, and here are some things to especially note:

At the 3:00 minute mark, the KS representative expresses how this project could be the catalyst around which a forest industry could grow. Native trees, especially, take a longer time, and so a combination of native and non-native trees could make the forest industry viable.

As a scalable feedstock, trees work on the Hamakua Coast. They’ve been growing for 20 years. KS is crucial to making this big picture work.

Of course we won’t overdo it. Everyone knows what happened to Easter Island. We are talking about balance and proportion.

Early Hawaiians understood this; it’s why they sometimes had a kapu on fishing – in order to prevent overtaxing the resource.

At 6:50, David Tarnas presents Robert Rapier’s testimony. Robert was in Austin at the time, where he was lead speaker on the second day of the Association for the Study of Peak Oil conference. Giorgio Calderone and Jason Jeremiah, both from KS, and Noe Kalipi and I also attended that conference.

Robert lives in Waimea and we would love to claim him, but he is more of a national/international representative. He participates in the HECO Integrated Resource Planning process.

His testimony was that the Big Island needs a firm power alternative to oil, and that biomass and geothermal fit that description. His testimony is that the most efficient way to turn biomass (firewood) to electricity is to burn it.

At the 8:30 mark, Elaine Munro talks about the conflict between HECO’s fiduciary duty to the shareholders and the rate payer. She talks about the cost of capital and how the present model results in unnecessary higher costs to the rate payer. We all know that the model is broken.

Lynn Nakim, at 11:00 minutes, talks about environmental effects. Lynn is a neighbor of ours at Hamakua Springs. She uses solar panels for power.

At the 16:00 minute mark, a worker expresses his opinion. The money stays in Hawai‘i and provides jobs for Big Islanders, instead of being sent to foreign countries to pay foreign workers.

Making firm power electricity is mostly about making steam to turn a turbine. Burning wood to make steam is proven technology and will be cheaper and more stable than oil price in the long run.

From Big Island Video News:

HILO, Hawaii: The public expressed widespread support
for the Hu Honua Bioenergy project at Wednesday night’s Public Utilities Commission hearing in Hilo.

Hu Honua Bioenergy LLC is converting the former Hilo Coast
Power Company plant at Pepeekeo into a modern biomass energy facility. The 24-megawatt operation is expected to meet about 10 percent of the island’s electrical needs and about enough for 14,000 homes, once in operation.

Hu Honua has negotiated a power purchase agreement with
Hawaii Electric Light Company, which is subject to approval by the PUC. 
However, the hearing was triggered by the need to install transmission lines for the project, as explained by this HELCO engineer.

Nevertheless, the hearing created an opportunity for the public to share its views on the entire project.

Speaking in favor of the proposal, the growing forestry industry on the Hamakua Coast, where thousands of acres on the Hamakua Coast are occupied by Eucalyptus trees, ready for harvest….

Read the rest

A Modern Day ‘Avoided Cost’ Contract. What?!

Richard Ha writes:

Dr. Jim Kennedy, a friend of mine, is a respected member of the astronomy community and a tireless supoorter of the community at large. Below is the testimony he sent to the PUC.

Today is the last day the PUC is accepting testimony re: the proposed Aina Koa Pono biofuels project and HELCO 4. percent rate increase. Email your thoughts today to hawaii.puc@hawaii.gov.

Click to read Jim Kennedy’s letter.

Page 1:

Kennedy pg. 1

 

Page 2:
Kennedy pg. 1

 

Bill Walter Tells PUC No to 4.2% HELCO Increase

Richard Ha writes:

Here is Bill Walter’s testimony against HELCO’s proposed 4.2 percent rate increase, which he submitted to the PUC. Tomorrow (Friday, November 30, 2012) is the deadline for all testimony against this rate increase, as well as the proposed Aina Koa Pono project. You can email your testimony to: hawaii.puc@hawaii.gov.

It’s in the interest of the utility, as well as in the interest of the people, that we all seek lower electricity rates.

To: hawaii.puc@hawaii.gov
Subject: HELCO RATE INCREASE OF 4.2% – Docket 2012 – 0099

Commissioners,

Thank you for the opportunity to write you on this subject. At some point, the questions before you on various rate increases proposed by HELCO/HECO are simple:

•How much is enough? and

•When do we draw the line on increases?

We understand that while the questions are essentially fairly simple, finding answers can seem very difficult. Those wanting the rates to increase run through myriad statistics, data, logic and come up with apparently compelling reason. These answers come in an age old context of how we, as a society that is primarily market based, handle a monopoly supplier of an essential ingredient of our modern life. Over the generations the solution has typically revolved around ensuring a reasonable return on company (hence, stockholder) assets while providing a level of service that ensures quality to the community. While in a general case over the last 75 years that may have been reasonable, we suggest questioning that – at least for this community at this time. Please note the following:

• As it is, Hawaii Island rate payers pay four times the US national average for electric power. We pay a 25% premium compared to Oahu – today.

• Hawaii Island residents include among the most economically challenged in the State of Hawaii. While certainly not the only reason, the high cost of power works to keep our residents economically challenged. Why?

The cost of operating any business with more than a marginal energy input on the Island experiences higher energy costs than competition from most other locations. When you add to this the cost of getting our product to market (or the market to our product in the case of tourism) the competitive hurdle can become prohibitive to overcome. This increase will only add to that hurdle.

• Because of the integral nature of electric power to our way of life, the cost of electricity is little different in effect from the most regressive of taxes. If you look at this simile several issues jump at you:

In the last four years governments across the country have been highly reticent to raise taxes understanding the negative impact higher taxes would have on the economy and on those most economically challenged. This relates back to the point above – namely that higher electric power costs have a depressing affect on the economy of the Island of Hawaii, at their current level.

Local governments – including ours here on the Island of Hawaii – have taken extraordinary steps to reduce the cost of government services while retaining government service levels. On this island that has included furloughs of County workers, layoffs, employment freezes, job sharing, looking for efficiencies that allow for reduced expenses across the board, reductions in executive staff salaries, suspension or reduction in non essential services – and the list goes on. It is common place to hear of businesses on this island taking similar – and in some cases more radical steps to reduce expenses. It is uncomfortable, but notable that we have heard of no such steps taken by our utilities in order to try to pass on to the community reduced costs that may be helpful in these difficult times. In fact, what we have heard is like this – requests for higher prices. Somehow that difference is hard to take.

•The long term reality is that power generation is moving to dis-integration much as phone service has rapidly moved in that direction. It would be wise for both the Commission and the companies to ask if it is not time to consider this coming dis-integration. The only way for the current system to survive in the long run is to be in a price reduction, not price increase mode. The cost of standalone competition is inexorably being reduced. Sooner than later only those who cannot afford to get off the grid will have departed it – how will that work and will the commission have been a part of that scenario?

So my short answer to these questions is that “enough is already enough” and the line needs to be drawn now – for the survival both of the island economy and for the survival of the utility.

My personal response has been to join the Big Island Community Coalition looking for ways to reduce power costs. I am becoming proactive in this direction. We ask that the commission and, indeed, HELCO/HECO become proactive in this direction as well. Better that we spend our efforts looking for cost reducing solutions than for cost increasing reasons.

Thank you for your consideration.

Bill Walter

Graphic Opposition to Aina Koa Pono & 4.2% HELCO Rate Increase

Richard Ha writes:

More PUC testimony from a Big Island resident opposing the Aina Koa Pono biofuels project and the proposed 4.2 percent HECO rate increase.

See below where he charted the price of crude oil over the past two years, as well as how much his HELCO bill increased over the same period of time, and didn’t find much correlation.

Dear Chair Morita & Commissioners:
 
I want to express my most sincere opposition both to the Aina Koa Pono Biofuel project and the Helco 4.2% rate hike. 
 
In today’s day and age it is inconceivable that while we are living in one of the most privileged locations on the planet with regards to renewable energy resources availability we still depend on a single utility company that holds a true monopoly on the power generation and that continues to ignore what would be the most efficient path towards energy independence. 
 
South Puna seats on a rich geothermal zone that could provide enough power for the entire Big Island. South Kona & Kohala areas have enough sun radiation to produce a significant supplement to the grid, and South Point and Saddle Road areas provide some of the most reliable wind patterns for wind generation. Yet, here we are debating on whether we should lock in a $200/barrel deal with a biofuel company. Who in its right mind would opt for this option!?
 
As for the rate hike, the following graph shows my cost per kWh at my home for the past two year (since Jan 2010)


Graph1

As you can see from the graph, my price has increased from $0.36/kWh to $0.42/kWh, that is a 16.7% increase in just two years. Now they want an additional 4% increase? under what justification? meanwhile, HELCO continues to report record profits year after year. 
 
And do you know what the real kicker is? look at the following graph, that shows the price per barrel of crude oil (WTI) between January 2010 and November 2012 (source: http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=RWTC&f=D). 

Graph2

Notice any discrepancy between the two graphs? In Jan 2010 the price per barrel of crude oil was $82.00, in November 2012 the price is $87.50 an increase of 6.7%. Helco has increased their rates 2.5 times the net increase of the price of oil, and now they want another increase.
 
Sincerely, 

Rodrigo F.V. Romo, Ch.E., MBA, LEED AP

VP Engineering


Zeta Corporation

 

How Much HECO Is Spending On Those Ads, & More PUC Testimony

Richard Ha writes:

You’ve probably seen the slick newspaper and TV ads. Hawaii Electric Company (HECO) has spent more than half a million dollars recently to convince us they are trying their hardest to do the right thing. The company is very good at public relations.

For example, the ads say HECO has increased geothermal energy on the Big Island by 25 percent. That sounds wonderful – but that is from a base of only 30 MW. It also says that Aina Koa Pono will only result in $1 per month difference to a typical rate payer.

The big picture is that HECO has resisted closing down its oil-fired plants for years. But now, people are saying enough is enough.

Here is another concerned community member’s testimony against Aina Koa Pono and the proposed 4.2 percent rate increase. Send yours to hawaii.puc@hawaii.gov by tomorrow.

To: ‘Hawaii.PUC@hawaii.gov’
Subject: Dockets Docket # 2012-0185 & 2012-0099

Aloha Chair Morita and commissioners:

I am strongly against the AKP biofuel supply contract and the increase in the Helco electricity rates.

I have lived here on the Big Island in Puna, close to Pahoa for the last 14 years and am the owner of a bed & breakfast operation in Leilani Estates. I have a family with two children and two acres of property. If any of the two dockets go through it will increase the cost of doing business for me and infringe on the viability of my operation. The nature of my business requires for electricity to be available to our guests and there are many times, when I cannot control the use of it, because guests staying at my B&B may not be as conscientious in preserving energy as I am: fans, lights, radios or TVs are left on even though the visitors are not in their rooms. In order to cover additional operational cost my only option would be to increase our B&B rates, however, with the current economy this will result in a decrease of bookings, as people traveling always look for bargains and are not willing to pay higher accommodation rates, if they can get a “beat-the-price” online offer for some of the hotels as package deal with much better conditions.

On the Big Island, electricity rates have been 25 percent higher than Oahu’s rate for as long as people can remember. It has contributed to the Big Island having one of the lowest median family incomes in the state and the attendant social problems that come with a struggling economy. As a family this affects our children and the way we are able to give back into the economy and our communities.

Rising electricity rates act like a regressive tax – people at the bottom of the economic ladder suffer the most. But it is worse; as electricity prices rise, folks that can afford to leave the grid will do so, leaving the folks unable to leave to assume more of the grid infrastructure cost. It is a catch 22. For me with my business depending on consistent electricity supply, it would be impossible to leave the grid and I would be directly impacted by the increased rates and future consumer decisions.

1.       Aina Koa Pono Biofuel Project – Docket 2012-0185: Rate payers will subsidize the difference between the actual oil price and the $200 that AKP will be guaranteed for 20 years. It is more than possible that actual oil prices would be substantially below $200 for the whole contract period. That will result in a heavy subsidy that rate payers must bear. The $200 per barrel rate is much too high. And the cost differential that is anticipated to be passed through to the rate payer is unconscionable. The PUC should not approve as just and reasonable that the utility should be allowed to establish a Biofuel Surcharge provision that will allow the pass through of the cost differential to the consumer as well as the actual cost pass through itself.

2.      HELCO Rate Increase – Docket 2012-0099: HELCO states in its full page newspaper advertisement that only 3% of its revenue goes to profits. In 2011 HELCO reported $138.2 million in net earnings. Most small businesses in Hawaii do not have a 3% profit margin, most net earnings are much lower and that includes my Bed & Breakfast business. Increased electricity rates would narrow this margin even more. I am entirely opposed to an increase in electricity rates. As a business owner it is HELCO’s responsibility to keep the grid in operating condition. This is not the responsibility of the end users nor should we be charged for it. It is a crucial part of the operating expenses and investments in the future, that a business has to strategically make. It is the same for my business, if I let my rooms fall into disrepair or do not invest in new mattresses every few years, people will stop coming. It is in my best interest to make these investments as I am wanting to stay in business. It is the same for a utility company. Not all investments can be directly compensated by increased rates. The market and consumers will only bare so much – and as consumers, we are saying – no more! Profits will go up and down, depending on what investments have to be made – and that is true for all businesses. But as a business owner we all know that these investments are long term and also mean decreases in the company’s corporate taxes. Also, how much do you think the HELCO advertising campaign costs? Without knowing exact figures I am sure it is in the millions. As end consumers, we are paying for that, too! What a waste of good money…

Petra Wiesenbauer

 

UH’s Greenwood Holds Positive ‘Listening Session’ at UHH

Richard Ha writes:

President M.R.C. Greenwood of the University of Hawai‘i just had another of her listening sessions; this one at the University of Hawai‘i at Hilo.

MRC Greenwood with other UH, UHH and HCC heads

Left to right: Joni Onishi, Hawai‘i Community College Vice Chancellor for Academic Affairs; Don Straney, Chancellor, UH Hilo; Linda Johnrud, Provost, UH System; M.R.C. Greenwood, President, UH; Carl Carlson, UH Regent; Barry Mizuno, UH Regent. (Not pictured: Noreen Yamane, Chancellor of HCC, who arrived shortly after photo was taken)
This picture illustrates the collaborative style that tells the community this is about all of us. UH Hilo and Hawaii Community College are being treated as part of the whole University of Hawai‘i system. Students are moving seamlessly from HCC to UHH and UH Manoa. Comments from the audience reinforced what was being said in the front of the room.

I came away with a really good feeling. The things taking place on the ground that affect our community are moving in the right direction.