Hawaiian Electric utilities seek "lifeline rates" to help low-income customers

(Honolulu) – To help Hawaii’s low-income families, Hawaiian Electric Company, along with its neighbor island utilities, Hawaii Electric Light Company and Maui Electric Company, today filed with the Hawaii Public Utilities Commission (PUC) an application to offer lifeline rates. The proposal was developed with input from the State Consumer Advocate.

The Lifeline Rates Program would provide a fixed, monthly bill credit to qualifying customers, regardless of family size. The amount of the credit would vary by island.  Proposed credits for qualifying customers would range from $25 for Oahu, $30 for Maui, and $35 for Hawaii, Molokai, and Lanai island customers.

“We started developing this proposal late last year, but it’s especially timely now given the economic challenges our community is facing, and the need to help those most vulnerable,” said Dick Rosenblum, Hawaiian Electric President & CEO.

The monthly credits for each island’s customers would be paid for through a monthly surcharge applied to all electric bills on that island. If approved, the surcharge for a typical monthly residential electric bill is estimated to be up to 31 cents on Oahu; up to 77 cents in Maui County; and up to $1.54 on Hawaii island.

The program requires PUC review and approval before going into effect. It would be open to customers currently enrolled in one of three government assistance programs: Low Income Home Energy Assistance Program (LIHEAP) Medicaid, and Supplemental Security Income.

The monthly fixed bill credit option was recommended to provide some economic support for low-income families without removing the incentive to conserve energy, a concern with some other methods.

The Hawaiian Electric companies committed to develop the program as part of the Energy Agreement signed in October 2008 with the state of Hawaii as part of the Hawaii Clean Energy Initiative.

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