PUC issues interim decision on Hawaiian Electric rate increase
| Contact: | FOR IMMEDIATE RELEASE | | Darren Pai, 808-223-9932 | July 8, 2009 | (Honolulu, Hawaii) The Hawaii Public Utilities Commission (PUC) has issued a decision that will result in an interim electric rate increase for Oahu. The increase will help pay for major capital improvements and increased operating costs over the last several years, such as more frequent inspections of utility lines and poles, increased tree trimming around power lines, and increased servicing of power plants, which have been running harder and longer as power generation reserve margins have narrowed over time. The interim increase is expected to be 4.7%, or $61.1 million annually in net revenues. The PUC must still approve the details of the rate adjustment calculation before it is implemented. If approved as submitted, the impact of the increase will vary by type of customer and actual electricity usage. A typical residential customer using 600 kilowatt-hours a month will see their monthly electric bill increase by $6.48 to $129.06. “We know how difficult a rate increase is in this economy, but it is our responsibility to meet the energy needs of our customers,” said Robbie Alm, Hawaiian Electric executive vice president. “The resources we have requested are needed to maintain our system in good operating condition, invest in our system to provide reliable service to our customers and invest in renewable energy resources that will help us improve service while reducing our dependence on fossil fuels.” The interim decision is one step in the ratemaking process. The PUC will continue to review details of Hawaiian Electric’s full request and will later issue a final decision. Hawaiian Electric will provide additional information to assist with that review. Still outstanding is the timing of a potential increase to help pay for the cost of a new biodiesel generating unit to be placed in service this year at Campbell Industrial Park. The interim increase will cover more than $200 million in investments in new capital projects completed in 2008 and 2009, including: | • | New air quality monitoring stations and a reverse osmosis water line that will allow the Kahe power plant to use non-potable water for its operations; | | • | Replacement of fiber optic cables on Leeward transmission lines, used to send data to operate protective relays and for other operations-related communications; | | • | New or expanded substations and related lines, such as at Ko’Olina and Ocean Pointe, to support growth and improve service; | | • | Transmission and distribution improvements and a new transformer for the Mikilua substation serving the Leeward Coast; | | • | Replacement and upgrading of underground lines, serving part of Waikiki and other parts of Oahu, to improve reliability; | | • | Upgrades to the company’s microwave communications and mobile radio system and upgraded emergency generation for key company facilities; | | • | Power plant control room upgrades, boiler replacements, and other upgrades or replacements to increase reliability of existing aging generating units; and | | • | Investments in overhead and underground cables, as well as transformers, poles, meters, and other facilities to maintain reliable service and fulfill new service requests from customers. | Hawaiian Electric’s original request, filed a year ago, was for a $97 million increase in revenues. The request has gone through extensive review by the State Division of Consumer Advocacy (CA) and the U.S. Department of Defense (DOD), who are parties in the case. Hawaiian Electric earlier reached a settlement agreement with the CA and DOD on most of the issues in the case for an increase of $79.8 million, or 6.2%. Including unsettled items, the company’s total revised request is for $86.8 million, or 6.7%. The PUC will further consider the entire request before issuing its final decision. If a lower final increase is ultimately approved, the difference will be refunded to customers with interest.
# # #
|
