Electrical Bills Decrease Again in January 2015

Hawaiian Electric Company has announced that electricity rates for Oahu residents have decreased to 29.5 cents per kilowatt hour in January 2015 from 31.2 cents per kilowatt-hour the month prior.  This amounts to a saving of $10.10 for a typical household using 600 kilowatt-hours of electricity. Darren Pai, HECO spokesman, stated, "Generally speaking, the drop has been due to the drop of oil prices. As the cost of oil has gone down, the fuel portion of the bill has shrunk. It's good news for customers, because the cost of the fuel is such a big component of customers' electrical bill, but when the cost of oil goes up, the customer bill goes up. We continue to do whatever we can to break our dependence on oil."

Electrical rates in Hawaii are nearly three times higher than the national average, mainly due to the fact that the majority of Hawaii's electricity comes from burning fuel oil.  The U.S. Energy Information Administration noted that in October, Hawaii residents paid an average of 36.41 cents per kilowatt hour while the national average was just 12.58 cents.

Source: Honolulu Star Advertiser, 1-10-2015, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Electricity Prices Lower in December 2014 Due to Decreasing Fuel Prices

According to report released by Hawaiian Electric Company, the average customer will spend $197.32 for 600 kilowatt-hours in December 2014, which marks the first time since May 2012 that the average bill has been less than $200. Peter Rosegg, HECO spokesman, stated, "Most of the present fall in Oahu electric bills is due to less expensive fuel. A typical Oahu bill has dropped by almost $22 since September. Our goal continues to be lowering electric bills by adding renewable energy, with our commitment to 65 percent renewable energy by 2030. And we plan to use lower-priced, cleaner natural gas to replace imported oil, which remains volatile in price." Oahu residents paid 31.2 cents per kilowatt-hour in December 2014.

Source: Honolulu Star Advertiser, 12-18-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Hawaiian Electric Industries to be Sold for $4.3 Billion

NextEra Energy Inc., which is based out of Juno Beach, Florida, has just announced that they will purchase Hawaiian Electric Industries Inc for $4.3 billion.  NextEra is currently the nation's largest generator of wind and solar power, and has stated that they will help Hawaii reach its goal of becoming less dependent on imported fossil fuels for power generation. Hawaiian Electric will keep its name and will continue to be based in Honolulu.  NextEra also promised that there will be no layoffs for the next two years.

Government officials have been cautiously optimistic about this new development. Governor David Ige commented, "The state of Hawaii will do its due diligence to ensure the sale will be in the best interest for Hawaii ratepayers. Since Hawaiian Electric Company, Inc. was founded by King David Kalakaua, the state will work to maintain the spirit and values that are consistent with the King's legacy and honors our culture for future generations."  U.S. Senator Mazie Hirono added, "The decision to combine with NextEra Energy and spin off ASB deserves careful scrutiny on behalf of Hawaii consumers and residents."

Source: Honolulu Star Advertiser, 12-4-2014, www.staradvertiser.com
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Electrical Rates Dip in October 2014

The Hawaiian Electric Company has announced that electrical rates for the island of Oahu will be 34.2 cents per kilowatt-hour for the month of October 2014, a slight decrease from the 35 cents per kilowatt-hour posted in September 2014.  This means that the bill for a typical household using 600 kilowatt-hours of electricity will be $213.91.  The decrease is attributed to the fact that oil prices worldwide have gone down.  Peter Rosegg, spokesman for HECO stated, "Changes almost always reflect a change in fuel prices. That is the case for October, a welcome and meaningful reduction after months of small increases. However, even with the highest renewable energy percentage use in the nation, Hawaii is still about 80 percent dependent on imported oil for our primary generation fuel. We have little to no control over fuel prices set in world markets, primarily in Asia."

Source: Honolulu Star Advertiser, 10-16-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Electrical Rates Rise on Oahu for September 2014

Accord to a report released by the Hawaiian Electric Company (HECO), Oahu residents will once again be forced to pay more for their electricity in September 2014.  HECO announced that rates increased from 34.9 cents per kilowatt-hour to 35 cents per kilowatt hour.  This was the fourth month of consecutive increase, and many customers are worrying that HECO will continue to raise prices each month for the foreseeable future. Shelee Kimura, HECO's vice president of corporate planning and business development responded by stating, "Our energy environment is changing rapidly, and we must change with it to meet our customers' evolving needs. These plans are about delivering services that our customers value. That means lower costs, better protection of our environment and more options to lower their energy costs, including rooftop solar."

In comparison, customers of Maui paid an average of 37 cents per kilowatt hour.  Big Island of Hawaii customers paid 40.8 cents per kilowatt hour.  Kauai customers paid the most at 41.2 cents per kilowatt hour.  According to the U.S. Energy Information Administration, the national average for electricity for the month of June 2014 was 12.97 cents per kilowatt hour.

Source: Honolulu Star Advertiser, 9-17-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Hawaiian Electric Company Proposes New Energy Plan

The Hawaiian Electric Company has proposed a new energy plan that will help reduce Hawaii's dependency on fossil fuels and transition into using more renewable energy sources.  Under goal is to have HECO generate 65 percent of its energies by 2030, which would mean tripling the amount of solar power currently generated and thereby cutting the avergage bill for customers by 20 percent. However, upon closer review of the 2,731 page plan that was submitted to the state Public Utilities Commission, some local businesses and residents are unhappy with what they are reading.  For example, HECO has proposed a $55 monthly fee for each residential customer starting in 2017 as well as an additional charge of $16 for new photovoltaic customers.  HECO stated that by having the monthly fee of $55, Oahu customer would pay approximately 26 cents per kilowatt-hour, a significant decrease from the 34 cents per kilowatt-hour that they currently pay.  However, many residents do not like the idea of paying this minimum monthly fee.

Below is a summary of the proposal for non-solar customers and solar customers:

FOR NON-SOLAR CUSTOMERS
* 20 percent lower electric bill by 2030.
* $55 charge added to all customers’ monthly bill starting in 2017; but current average charge of 34 cents per kilowatt-hour will drop to 26 cents in 2017.

FOR SOLAR CUSTOMERS
* $55 charge added to monthly bill starting in 2017; current minimum bill is about $17.
* $16 monthly charge added to new solar customers’ bills in 2017.
* 16 cents per kilowatt-hour paid to new solar customers for excess power, down from more than 30 cents paid now.
* One-time installation charge for new solar customers, amount yet to be determined.

The state Public Utilities Commission will be holding hearings open to the public to review HECO's plan.  

Source: Honolulu Star Advertiser, 8-28-2014, www.staradvertiser.com
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Hawaiian Electric Company Offers Ambitions Renewable Energy Plan

The Hawaiian Electric Company has submitted a 2,731-page proposal to the Public Utilities Commission which includes the most ambitious renewable energy plan in the country. The goal is to have 65 percent of its power coming from renewable energy sources by 2030, which would help to cut customer bills by 20 percent.  The remaining power plants would be switched to liquefied natural gas, which is more energy efficient then the current method of burning oil.  The proposal states, "Our vision is to deliver cost-effective, clean, reliable, and innovative energy services to our customers, creating meaningful benefits for Hawaii's economy and environment, and making Hawaii a leader in the nation's energy transformation. Most existing oil-fired generating units will be converted to run on LNG. Older generating units will be deactivated by 2030 as new, more-efficient, quick-starting LNG fueled generators come online."

The state adopted the Hawaii Clean Energy Initiative in 2008 with the goal of getting 40 percent of its energy from renewable sources by 2030.  As of 2013, a total of 18 percent of energy comes from renewable sources.

Source: Honolulu Star Advertiser, 8-27-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Electrical Rates Increase in August 2014

For the third month in a row, electrical rates for the island of Oahu have increased.  Customers will now pay 34.9 cents per killowatt-hour, up from 34.7 cents per kilowatt-hour posted in July. Lynne Unemori, the spokeswoman for the Hawaiian Electric Company stated, "Fuel costs, which currently make up more than 70 percent of the monthly electric rate, are largely the driver for the fluctuation from last month. We know how difficult high bills are for our customers. That's why we are so focused on cutting fuel costs through the use of cleaner, lower cost renewable energy and alternatives to expensive oil like liquefied natural gas."

Source: Honolulu Star Advertiser, 8-23-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Hawaii Electrical Rates Increase in July 2014

The Hawaiian Electric Company has issued a statement that electrical rates will be increasing to 34.7 cents per kilowatt-hour for July 2014.  Peter Rosegg, the company spokesman, stated that the increase was necessary because of additional money earmarked for the public benefits fund that oversees the energy efficiency programs, rebates and other things that Hawaii Energy operates.  Rosegg stated, "This is a percentage of each bill that Hawaiian Electric Cos. collect by order of the Hawaii Public Utilities Commission and pass in total to Hawaii Energy.  Once a year there is (an adjustment) to make sure the proper total amount has been collected (for the previous 12 months)."

Maui residents are paying 37.8 cents per kilowatt-hour.  Big Island of Hawaii residents are paying 41.5 cents per kilowatt-hour.  Kauai residents pay the most of the four major islands at 42.0 cents per kilowatt-hour.  Electrical prices in Hawaii are more than three times the national average primarily because Hawaii uses fuel oil for its power generation. Under the Hawaii Clean Energy Initiative, 40 percent of the state's electricity will have to come from renewable energy sources by 2030.

Source: Honolulu Star Advertiser, 7-22-2014, www.staradvertiser.com
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Residential Electrical Bills Increase on Oahu in June 2014

According to a statement issued by the Hawaiian Electric Company, Oahu residents can expect higher electrical bills in June 2014.  This is due in part to a slight higher electrical rates, 34.5 cents per kilowatt-hour in June as compared to 33.5 cents per kilowatt-hour a month before, and mainly because of a new sales decoupling tariff that was approved by the state Public Utilities Commission.  The decoupling tariff will come out to be about $4 per household and will help HECO cover their fixed cost as they begin to develop and install renewable energy sources.  Darren Pai, the spokesman for the Hawaiian Electric Company, stated, "We are continuing to work on lowering customers' bills by developing more renewable energy, increasing energy efficiency and pursuing liquefied natural gas as a cheaper, cleaner alternative to expensive imported oil."

Maui Electric Company customers will pay 37.6 cents a kilowatt-hour, up from 37.3 cents in May.  Big Island of Hawaii residents will pay 40.0 cents a kilowatt-hour in June, up from 39.8 cents a kilowatt-hour the month before.  Kauai residents will pay 42.2 cents a kilowatt-hour, down from 42.7 cents a kilowatt-hour in May.  As a point of comparison, the national average cost for electricity was 12.3 cents per kilowatt-hour in March 2014, per the U.S. Energy Information Administration.

Source: Honolulu Star Advertiser, 6-13-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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Oahu's Residential Electrical Rates Decrease Slightly in May 2014

According to a report issued by the Hawaiian Electric Company, residents paid 33.5 center per kilowatt-hour in May 2014. This is a slight decrease from the 33.8 cents per kilowatt-hour that HECO charged in April. However, the neighbor islands saw increases in their electrical rates. The Maui Electric Company raised their rates to 37.3 cents per kilowatt-hour, up from 36.5 cents. Hawaii island (Big Island) residents paid 39.8 cents per kilowatt hour, up from 39.1 cents. Kauai residents paid the most at 42.7 cents per kilowatt-hour, up from 41.9 cents the previous month.

Source: Honolulu Star Advertiser, 5-27-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Electrical Rates Increase on Oahu for April 2014

According to the Hawaiian Electric Company, residential electrical rates increased to 33.8 cents per kilowatt-hour in April 2014, from the 33.6 cents per kilowatt-hour posted in March.  In comparison, Maui Electric Co. charged their residents 36.5 cents per kilowatt hour, Big Island residents paid 39.1 cents per kilowatt-hour, and Kauai residents paid 41.8 cents per kilowatt-hour.  According to the U.S. Energy Information Administration, Hawaii resents spent an average of 37.4 cents per kilowatt-hour in January 2014, while the national average was just 11.7 cents per kilowatt-hour.

Source: Honolulu Star Advertiser, 4-19-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Electrical Rates to Increase for February 2014

The Hawaiian Electric Co. announced that residential electrical rates will increase to 34.7 cents per kilowatt-hour for the island of Oahu in February 2014.  This is a 1 cent increase from the 33.7 cents per kilowatt-hour that HECO charged a month prior.  According to officials of the company, the increase is mainly due to the fact that one of the main coal-fired plants located in the Campbell Industrial Park was taken offline for maintenance. Electrical rates should decrease once this plant is back in operation.

In comparison, Maui Electric Co charged their customers 37.2 cents per kilowatt-hour.  The Kauai Island Utility Cooperative charged 42.3 cents per kilowatt hour and Big Island of Hawaii residents paid 40.6 cents per kilowatt-hour.  The national average, as stated by the U.S. Energy Information Administration, was 12.1 cents per kilowatt-hour.

Source: Honolulu Star Advertiser, 2-22-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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Kahuku Wind Project Back at Full Capacity

First Wind has announced that their Kahuku wind energy project is back to working at full capacity after almost a year and a half of being shut down due to a fire that damaged the battery system at the plant.  The damage was repaired back in August 2013, but the energy output was limited to 5 megawatts as the Hawaiian Electric Company and First Wind ran tests to ensure that the new battery system was working properly,  The large turbines are now generating their maximum 30 megawatts of capacity and is being fed into the HECO grid.  This equates to enough energy to provide approximately 7,700 homes with electricity.  HECO will pay First Wind an average of 22.9 cents per kilowatt-hour.

Source: Honolulu Star Advertiser, 2-13-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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Hawaiian Electric Hopes To Create Natural Gas Import Terminal at Pearl Harbor

The Hawaiian Electric Company is currently in discussion with the U.S. Navy to build a liquefied natural gas import terminal at Pearl Harbor.  According to HECO, natural gas burns much cleaner than oil and would provide significant fuel savings over time when compared to oil.  The plan calls for a new-shore floating platform at Pearl Harbor, where the liquefied natural gas (LNG) would be unloaded from ships and converted back to a gas.  It would then be transported through a pipeline to various HECO power plants.

Bill Doughty, a Navy spokes­man, stated that "extensive technical and environmental studies are required before any decision is made on locating a terminal at Pearl Harbor."  Doughty added, "We are aware that such a project could yield significant potential benefits for the Navy and for Hawaii energy security, electricity cost savings and environmental stewardship. Both Navy Region Hawaii and HECO consider the development of the LNG terminal to be a long-term project that would take several years to compete."

Darren Pai, spokesman for HECO, commented, "Since LNG is a cleaner-burning and less expensive fuel, it would be advantageous as a bridge fuel to displace as much of the remaining oil as possible.  Pearl Harbor is protected, has calm waters and good water depths, and is closer to power generating stations."

Source: Honolulu Star Advertiser, 2-10-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Plan to Add 1,200 Acres of Solar Photovolatic Panels on Oahu

The Hawaiian Electric Company has presented a plan to create a huge array of solar photovoltaic panels on Oahu by partnering with several renewable energy developers. According to HECO, the plan calls for panels to cover 1,200 acres of land.  These panels would produce approximately 240 megawatts of electricity, which will provide enough power for approximately 60,000 household.  Officials at the Hawaiian Electric Company have not stated where the panels would be located or who the renewable energy developers would be, stating that they wanted the developers to have the time to do community outreach before the details of the project becomes known.  The plan notes that the Hawaiian Electric Company would purchase the power generated at an average cost of 15.8 cents per kilo-watt hour.  Currently, it costs HECO approximately 23 cents per kilowatt-hour to create electricity from burning fuel oil.

Source: Honolulu Star Advertiser, 1-26-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Electrical Rates on Oahu Increased in January 2014

Oahu residents will see an increase in their electric bills in January 2014 as the Hawaiian Electric Company increases rates to 34.9 cents per kilowatt-hours.   According to the Hawaiian Electric Company, part of the reason why the electrical cost increased was due to the fact that some of the more efficient generators were shut down due for maintenance reasons.  HECO company spokesman, Peter Rosegg, stated, "Maintenance is part of the operation of any piece of machinery, and a generator and its auxiliary equipment are a complex system. We schedule regular maintenance to have as little impact as possible on customer bills. But inevitably there are times when highly efficient generators need work."

Maui residents will pay 35.7 cents per kilowatt-hour.  Hawaii (Big Island of Hawaii) residents will pay 39.5 cents per kilowatt-hour.  Kauai residents will pay 42.3 cents per kilowatt hour.

Source: Honolulu Star Advertiser, 1-24-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Hawaiian Electric Company Hopes to Use Battery Technology to Increase Solar Grid Capacity

Over the past few years, the state of Hawaii has one of the highest percentages of residences that have installed rooftop photovoltaic panels in the country.  However, due to the boom in solar panels, the Hawaiian Electric Company's grid has not been able to accept them all.  The problem lies in the fact that the amount of solar energy absorbed by the photovaltaic panels can vary dramatically day by day.  This can create large swings in voltage and potentially damage electrical appliances and injure utility workers.

Hawaiian Electric Company has announced that they will be working with the Hawaii Natural Energy Insititute are working together to test a new battery technology that may increase the number of homes that can connect to the grid.  The battery will act as a buffer on the circuit, and may be able to release additional power when output decreases as well as absorb power when solar energy spikes.  Initially, HECO and HNEI will try out their new batteries on a few smaller neighborhoods in West Oahu and hopes to evaluate how well they work.


Source: Honolulu Star Advertiser, 1-5-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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Hawaiian Electric Company May Switch to Burning Wood Pellets From Fuel Oil for Energy

The Hawaiian Electric Company is currently in discussion with Zilkha Biomass Energy, a Huston based company, and is considering using Zilkha's compressed wood pellets instead of burning fuel oil to generate electricity.  According to one estimate, HECO would save over 30 percent of its fuel costs by making the switch.  More importantly, the wood pellets are a form of biomass, which would count as a renewable energy source.  HECO has stated that they are committed to generating 40 percent of their electricity from a renewable source by 2030.  Peter Rosegg, spokesman for the Hawaiian Electric Company, stated, "We have met with representatives of Zilkha Biomass. No commitments have been made at this time. It is a promising technology but further study and evaluation are needed to determine whether this option provides a cost benefit to our customers."

The Blue Planet Foundation which has opposed the Hawaiian Electric Company's previous suggestion of burning liquefied natural gas (LNG) has given its support to the burning of wood pellets.  Executive Director for Blue Planet Foundation, Jeff Mikulina, stated, "This is exciting to us because much of the conversation to date has been about how renewables are great, but we need LNG to lower prices long term. To some it is almost fait accompli that LNG is our logical future fuel.  But Zilkha's, and similar companys', offerings can change the conversation. Here's something that not only is renewable and helps HECO comply with RPS (renewable portfolio standards), the EPA regs, and the state (greenhouse emissions) law, but it could be cheaper and available sooner than LNG."

Source: Honolulu Star Advertiser, 1-4-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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Surge in Photovoltaic Panels Overwhelm System

Thousands of homeowners in the state of Hawaii who are hoping in install solar photovoltaic panels to their houses are now realizing that they might be a little late to the party. Several years ago when the solar market was just starting to pick up steam, there were relatively few solar panels attached to the various electrical grids around the islands, and systems could be installed quickly with no extra installation fee from the utility companies.  However, certain neighborhoods are now over saturated with panels which at times has created more solar energy then the current systems are designed to handle, causing both reliability risks and safety risks for consumers.  This has caused some utility officials to place holds on accepting new solar customers until special engineering studies have been completed an new protective systems have been installed.  For example, on certain neighborhoods in Maui and the Big Island of Hawaii, customers hoping to plug in their photovoltaic panels into the system are being asked to wait between 12 to 18 months by to energy companies.

Source: Honolulu Star Advertiser, 10-27-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
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