Tag Archives: MECO

Peak Oil

Oahu’s Electricity Rates Surpass Other Islands

It used to be that the avoided cost (the part of your electricity bill that is due to oil) was higher on the other islands than on O‘ahu. This Hawaiian Electric (HECO) chart shows the rate on different islands back to 2008.

This past October, though, the avoided cost on O‘ahu, Maui and Hawai‘i Island was roughly the same, at approximately 15 cents per kwhr.

Now, O‘ahu’s avoided cost has about doubled. It’s 29 cents per kwhr now, and actually higher than on the other islands.

This is more proof of what has been clear to me since 2007, when I attended my first Peak Oil conference – that oil prices were going to just keep rising.

Avoided costs for January 2012: 

HECO (O‘ahu)

On Peak 29.167 cents per kwhr

Off Peak 19.060 cents per kwhr

HELCO (Big Island)

On Peak 21.656 cents per kwhr

Off Peak 17.656 cents per kwhr

MECO (Maui)

On Peak 20.240 cents per kwhr

Off Peak 19.194 cents per kwhr

MECO (Lana‘i)

On Peak 34.621 cents per kwhr

Off Peak 29.057 cents per kwhr

MECO (Moloka‘i)

On Peak 29.428 cents per kwhr

Off Peak 26.580 cents per kwhr

Geothermal, Peak Oil, Sustainability

A Quandary At HELCO

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HELCO issued a Request For Information re: geothermal energy this week.

Although in my opinion Hawaiians are overwhelmingly in favor of geothermal, I am finding, as I ask around, that people are conflicted about HELCO’s intentions.

Hawaiian Electric Company (HECO), the parent company that owns Hawaii Electric Light Company (the Big Island’s HELCO) and the Maui Electric Company (MECO), readily acknowledges that it has a duty to protect the interest of its stockholders.

And when the interests of the stockholders and the interests of the people are in conflict, HECO’s loyalty lies with the stockholders.

That is at the heart of the problems they are having on Moloka‘i and Lana‘i. And it’s at the heart of the problems they deal with when facing the unprecedented future of rising oil prices.

Passing the cost and risk of Peak Oil, as a result of decoupling, straight through to the rate payers – the public – is not comforting to the people.

We need a new model here, one that lines up the needs of the people with the needs of the utility. We need a new model that transforms the utility into an economic driver, rather than an economic impediment. A new model that focuses on a better life for future generations.

People are very uncomfortable with the prospect of handing over, to future generations, a diminished life compared to what they had. We must do better.

There are a thousand reasons why no can. We need to find the one reason why CAN!