Community, Lowering Electric Rates

There’s Something In The Air

Richard Ha writes:

There’s something really interesting, and different, about what we’re doing now – about this Big Island Community Coalition campaign to make the Big Island’s electric rates the lowest in the state.

When I ask people to write a letter in support, they are saying, “I’m going to send this around to my email list.” In the past when I’ve been involved in campaigns to get something done, people would write an individual letter. Now they are spreading the word far and wide and getting their own contacts involved. They are volunteering to share it with their people.

This is a big difference compared to anything else I’ve been involved with.

The idea of lowering our electric rates, rather than just letting them rise uncontrollably, really resonates with people across all walks of life. Everyone feels we need to do something. I haven’t heard anyone say, “No, we want our electric rates to be higher!”

Articles, Big Island, Community, Lowering Electric Rates, Renewable Energy Sources

‘HELCO & Your Bill: What’s Wrong With This Picture?’

1 Comment

Richard Ha writes:

This Op-Ed piece just ran at Civil Beat, the Honolulu Star-Advertiser, the Hawaii Tribune-Herald and West Hawaii Today.

HELCO & YOUR BILL: WHAT’S WRONG WITH THIS PICTURE?

By Noelani Kalipi 

Hawaii Electric Light Co. is applying to raise Big Island electricity rates by 4.2 percent — shortly after its parent company announced impressive profits that were 70 percent higher than last year.

What’s wrong with this picture?

We — John E.K. Dill, Rockne Freitas, Richard Ha, Wallace Ishibashi, Ku‘ulei Kealoha Cooper, Noelani Kalipi, Ka‘iu Kimura, Robert Lindsey, H.M. “Monty” Richards, Marcia Sakai, Bill Walter — invite you to join our newly formed group, the Big Island Community Coalition. Our mission is “to work together as an island community for the greater good of Hawai‘i Island and its people.”

Our first priority: To make Big Island electricity rates the lowest in the state by emphasizing the use of our ample local resources.

The proposed HELCO rate increase, coming at a time of record profits, does not sit right with us.

We understand the regulatory system, which is rate-based. Our concern is that we continue to see requests for rate increases at the same time that we read about record profits for the utility.

While we understand the fiduciary duty to maximize profits for the shareholders, we believe the utility’s responsibility to the rate payer is just as important. As part of good corporate business, it should benefit both by investing its profits into a sustainable grid.

The Big Island is one of the few places on the planet where we have robust, renewable energy resources that can be harnessed effectively to provide firm, reliable, low cost electricity for our residents.

One example is geothermal, which costs about half the price of oil. We also have solar, wind and hydroelectric. We have resources right here that can both lower our electricity costs and get us off of imported oils.

Lower rates would mean that when the grid needs repairs, or the cost of oil goes up again, it will not be such a punch-in-the-gut to our electric bills.

If HELCO is allowed to raise its rates by the requested 4.2 percent, plus raise rates again via the Aina Koa Pono project, and then the oil price goes up, that would be a triple whammy price hike on your electric bill.

Big Island Mayor Billy Kenoi has sent a strong message that the county will not support new renewable energy projects — such as Aina Koa Pono, which would add surcharges to every electric customer’s bill — unless they result in cheaper energy. “Unless it has lower rates, we will not support it,” he said recently.

UH-Hilo just had a $5.5 million electric bill — almost $500,000 more than last year — and HELCO’s proposed 4.2 percent rate increase would add another $230,000 to their bill. The same thing is happening at hospitals, hotels and businesses. Farmers’ expenses are going way up, which threatens our food security. Electricity rate increases ripple through every part of our economy. They are already rippling.

People are already struggling with their monthly HELCO bill. Some are having their lights turned off.

As rates continue to increase, more people will leave the grid and fewer will remain to pay for the infrastructure, meaning that those households and businesses that remain (because they cannot afford to get off the grid) will pay even more.

You may think the electric utility is a big powerful entity that you cannot affect, but you can. Pay attention! Show up! Write a letter! Do something! If you leave your name and contact information at www.bigislandcommunitycoalition.com, we will send an occasional email to keep you informed of what’s happening, and how you can help.

‘Nuff already!!

Let’s be clear. This is not about how green the energy is. This is about how much the energy costs. This is not about saving the world. It’s about saving ourselves first, so we are in good condition to help save the world.

We had hoped that HECO would have a balanced approach to solving the problems. There are books written on how corporations can take care of people and the environment as well as their investment. The term is called “triple bottom line.”

From The Triple Bottom Line: How Today’s Best-Run Companies Are Achieving Economic, Social and Environmental Success – and How You Can Too:

Increasingly, businesses are expected to find ways to be part of the solution to the world’s environmental and social problems. The best companies are finding ways to turn this responsibility into opportunity. We believe that when business and societal interests overlap, everyone wins.

Rising electricity costs are like a regressive tax, where the poor pay a disproportionate amount of their income. Only it’s worse. As the price of oil rises, people who are able to, leave the grid. This leaves a diminishing number of people – those who cannot afford to leave – to pay for the grid.

What’s wrong with this picture?!

Articles, Geothermal, Where We Live

Hawaiian Airlines Article about Puna, Geothermal & Richard

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By Leslie Lang

The August/September 2012 issue of Hana Hou! (the Hawaiian
Airlines in-flight magazine) has a good article about Puna and its geothermal energy.

Steam Dreams, by Paul Wood

It’s really an interesting article. Informative and easy to understand. I learned some things about how geothermal works:

To generate electricity, all you need to do is spin a coil of metallic threads inside a magnetic field (or, conversely, spin magnets inside a nest of metallic threads). The real question is: What force is going to do that spinning? The movement of water (cascades and tides) can turn a hydroelectric device. Wind will spin propellers. But most electricity is generated by steam, and to make steam you have to boil water. Oil, gas, coal and nuclear fuel are today’s favored methods for boiling water in power plants, and each comes with risks. But if you find natural steam in the ground, you don’t have to burn a thing because the earth has done it for you….

The article includes this quote by Wally Ishibashi (co-chair of the Geothermal Working Group with Richard), which I find thought-provoking:

What PGV doesn’t have is a huge smokestack—and that absence
is historic because Hawai‘i, though it contains zero natural deposits of fossil fuel, currently depends on oil for a whopping 90 percent of its energy. Last year the Big Island alone spent a billion dollars on oil. Wallace Ishibashi, head of the ILWU Hawai‘i chapter and a longtime proponent of geothermal, asks: “What do you think is our biggest export from Hawai‘i? Bananas? No way. Our biggest export is our own money. That billion dollars we spend on oil, we can keep that here.” Can we?…

And as a reward for reading to the end of the article, you will get to read about Richard:

In a democracy, every thorny problem needs at least one levelheaded farmer to think things through. Richard Ha served on the same Geothermal Working Group as Pat, and he too is a believer in geothermal. His thinking on it is Island-based and practical, and in fact Pat and many others regard Ha as the voice and conscience of geothermal, a citizen who has punched through the boundary between today’s energy crisis and tomorrow’s potential….

Click here to read the whole article

Community, Geothermal

Join the Big Island Community Coalition for Lowest Electricity Rates

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Richard Ha writes:

The Big Island Community Coalition is determined to make Big Island electricity rates the lowest in the state.

Big Island Community Coalition

After all, we have the best combination of renewable resources here on the Big Island. It will proactively weigh in wherever electricity rates are involved.

The fundamental problem with the Hawaii Clean Energy Initiative is that it does not require that the electric utility choose lower cost solutions. It does not take into consideration the rubbah slippah folks.

Two-thirds of our economy is made up of consumer spending. If in place of expensive electricity we had affordable electricity, businesses would grow, farmers would farm and we would not be sending our children to the mainland to look for jobs.

Visit the Big Island Community Coalition website to join the mailing list and support the Big Island Community Coalition’s Priority #1: “Make Big Island electricity rates the lowest in the state by emphasizing the use of local resources.”

Geothermal, Peak Oil

Up, Up & Away: Our Electricity Rates Increase Again

5 Comments

Richard Ha writes:

Front page article in today's Hawaii Tribune-Herald:

HELCO seeks rate increase

By COLIN M. STEWART

Tribune-Herald Staff Writer

Hawaii Electric Light Co. has requested a 4.2 percent rate increase.

The request, which was submitted to the state Public Utilities Commission on Thursday, would generate about $19.8 million in additional revenue, but would not go into effect until 2013, at the earliest, according to a HELCO press release….

Read the rest here

I'm sure there are reasons and justifications for the rate hike. But when will it end?

We need to see a reversal in electricity costs. Why should the Big Island's electricity rates be among the highest in the whole state, when we have all these resources here? 

Geothermal, Peak Oil

My Talk at the Asia Pacific Clean Energy Summit

Richard Ha writes:

At the Asia Pacific Clean Energy Summit yesterday, I gave a bit of history about how the Geothermal Working Group Report evolved. The Big Island Labor Alliance’s geothermal committee was formed four years ago as an off-shoot of the effort to bring the Thirty Meter Telescope to the Big Island. Both projects had the same objective: To help Big Island families have a better life.

I became involved because it was all clear to me, having been to Peak Oil conferences and knowing that oil prices were probably going to keep on climbing until it became unaffordable. I had the same motivation as the Big Island Labor Alliance: To lower electricity rates for Big Island families.

Three years ago, at the request of the geothermal committee of the BILA, Senator Russell Kokubun introduced Senate Concurrent Resolution 99. It asked the question – Could geothermal be used as the primary base load electrical power for the Big Island? In the final report, the answer was yes.

The report is a consensus of all the group’s members.

You can find the final Geothermal Working Group final report on the County of Hawai‘i R & D Department website. Or on my blog.

Here is my talk:

BE IT FURTHER RESOLVED that the working group consist of eleven members with the Mayor of Hawaii County designating the chairperson, including:

The Hawaii County Energy Coordinator, or designee, me; One member designated by Hawaii Electric Light Company, Jay Ignacio; One member designated by the Big Island Labor Alliance, co chair Wally Ishibashi; One member designated by the Hawaii Island Economic Development Board, Inc.,Barry Mizuno; One member designated by the Chairperson of the Public Utilities Commission, Big island rep came to listen; The Hawaii Island Office of Hawaiian Affairs Trustee, or designee, Bob Lindsey; One member designated by the Director of Business, Economic Development, and Tourism, Andrea Gill from the energy office; One member designated by the Chairperson of the Board of Land and Natural Resources, none; One member who is a representative of a non-profit, environmental group to be selected by the President of the Senate, Nelson Ho-Sierra Club; One member who is a representative of a cultural organization to be selected by the Speaker of the House of Representatives, Patrick Kahawaiola’a-pres of the Keaukaha Community Ass’n; and One member representing West Hawaii to be selected by the Mayor of Hawaii County, Jacqui Hoover.;

SCR 99 established the Geothermal Working Group to evaluate geothermal energy as the primary source of baseload power for electricity in the County of Hawaii. An analysis of technical data and of expert testimony provides convincing rationale to develop local renewable energy plants and transition away from the county’s dependence on petroleum-fueled generators for baseload electricity. Each stage of development must consider public safety and environmental concerns. Funding for research is required to ensure that the transition never harms people, property, or wildlife and that a robust and reliable supply of energy is always available. It is critically important to the welfare of all Hawaii residents that we begin to develop local energy immediately.

Advantages of geothermal:

  • It is an indigenous resource
  • It generates revenue for the state
  • It generates community benefits
  • It provides stable power
  • It is less than half the cost of any of the renewable energy alternatives.
  • The Big Island will be over the geothermal “hot spot” for 500,000 to 1 million years

Potential adverse impacts are listed below:

– Interference with worship of the Goddess Pele

– Interference with certain Native Hawaiian practices – Rainforest destruction

– Possible health and safety impacts

– Disruption of the way of life for nearby residents

– Hydrogen sulfide and other air quality issues

– Noise

– Increased strain on an inadequate infrastructure – Impact on native fauna and flora

       IV. Recommended Steps for Hawaii State Legislators

– Make the allocation of geothermal royalties more transparent to show how benefits come back to the community. Designate the records of the allocations to be public domain.

– Establish a community advisory board to offer suggestions to the DLNR about how royalties generated by geothermal power plants are spent. The advisory board should be members of the communities that host existing or future geothermal power plants and/or those who are most impacted by the development of geothermal energy.

– Encourage the DLNR to use geothermal royalties to identify promising geothermal sites and to further develop the resource.

– In light of the probability that oil will reach $200 per barrel (Lloyds of London), the legislature is requested to commission a study to show the economic impact of various prices of oil.

– Facilitate development of geothermal with a critical review of the geothermal permitting process, regulatory capabilities, and possible investment incentives.

The Geothermal Working Group’s principal findings

– Geothermal is a renewable resource indigenous to the island of Hawaii that is dissociated from the price volatility of petroleum fuels.

– Geothermal can be a key component in a diversified energy portfolio for Hawaii County, both for the electrical grid and for transportation.

– In Hawaii, geothermal is a firm-energy resource at lower cost than fossil fuel. – Developing multiple geothermal plants is the most prudent approach.

– Geothermal has the potential to supply baseload electricity; long term reliability and the ability to supply grid management services (currently supplied by conventional fossil-fueled power plants) must be demonstrated in order to consider geothermal as the primary energy resource.

– With geothermal power plants, agricultural fertilizers, hydrogen, oxygen, and business-enterprise power can be produced for off-peak rates during the hours of curtailed electrical demand.

Comment by Robert Rapier

Or a simpler way to put it is this. It may be that the U.S. economy and America’s per capita oil consumption of 23 barrels of oil per person per year can’t grow in the face of $100 oil. But if countries like China and their 2 barrels of oil per person per year continue to grow while buying $100 oil, then we have truly entered a new paradigm. What may happen is that both China and the U.S. end up consuming 5 or 8 barrels per person per year, which could still grow China’s economy, while the U.S. gets there by shrinking ours. China’s growth is probably the most worrisome factor because we will be competing against them for global oil supplies.

In closing: The Big Island is paying some of the highest electricity rates in the state. Our communities are struggling, and yet the Big Island will be sitting over the hot spot for 500,000 to 1 million years.

What is taking us so long?

Geothermal

Speaking at the Asia Pacific Clean Energy Summit

Richard Ha writes:

At the Asia Pacific Clean Energy Summit and Expo 2012, which starts Monday in Honolulu, I’ll be part of a panel discussion where we each give a 10-minute talk, followed by questions and answers.

About the Summit and Expo

The 2012 Asia Pacific Clean Energy Summit and Expo will be held at the Hawai‘i Convention Center, August 13 – 15.

 The event is the preeminent meeting place for international leaders and energy experts at the forefront of the clean energy movement. Securing energy independence and developing a clean energy industry that promotes the vitality of our planet are two reasons why it is critical to reaffirm already established partnerships and build new ones throughout the Asia-Pacific region and the world.  The Asia Pacific Clean Energy Summit and Expo provides a forum for the high-level global networking necessary to advance this emerging clean energy culture. 

I will talk about the Geothermal Working Group, which Wally Ishibashi and I co-chaired, and the group’s Report, which recommends geothermal as the primary base power for the Big Island.
TUESDAY GEOTHERMAL SCHEDULE
10:30-12:00

Power Generation & Management – I

Geothermal: Building to Utility Scale in Hawai‘i & Other Island Communities

Chair and Moderator: Guy Toyama, Friends of NELHA (Natural Energy Laboratory of Hawai‘i Authority)

Geothermal heat is considered one the most energy efficient, environmentally clean, and cost effective systems for electricity production and temperature control. Unlike solar and wind energy, geothermal energy is always available, 24/7 and 365 days a year and the technology is proven and has been used since the Roman Empire. If geothermal energy has so many advantages, why is its use not more widespread? This panel on Geothermal Energy has gathered experts from the industry to provide insights into geothermal development in the Asia Pacific region. The program will highlight geothermal projects, technologies, policies and development and will encourage interaction and discussion about government policies, projects developed and in development, market potential and the challenges/opportunities for a developer.

Richard Ha, Geothermal Working Group
Robert Harris, The Sierra Club
Carty Chang, Hawai’i State Department of Land and Natural Resources
Jon Lorentz, AECOM-New Zealand
Andrew Sabin, Geothermal Program Office, U.S. Navy
Hyung Kee Yoon, Korea Institute of Energy Research, Korea 

Biofuel

Why Aina Koa Pono Biofuels Isn’t In Our Best Interest

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Richard Ha writes:

The Aina Koa Pono (AKP) biofuels experiment will saddle us with expensive electricity costs when there are other, better, alternatives.

  1. It costs way too much. Generating electricity from oil today costs 21 cents/kWh. AKP will charge us the 21 cents/kWh plus a surcharge until oil reaches some target price in the future. In comparison, geothermal costs approximately 10 cents/kWh, according to a 2005 GeothermEx report.
  2. It uses more energy than it generates. An independent third party should do an analysis of the whole Aina Koa Pono process, especially its Energy Return on Energy Invested (EROI). The process uses fossil fuel energy to grow its crops, then uses electricity made from fossil fuel to run its microwaves to get pyrolysis oil. That oil (which is more like vinegar) is then sent through a refinery to make it into a fuel, which will be trucked to Keahole, where it will be burned to make electricity. If the objective were to make electricity with biomass, it would be cheaper to burn the biomass, make steam, turn a turbine and make electricity that way.
  3. It is speculative. Did you know there is no industrial-scale project in the world using this process to produce electricity? We are trying to be first in the world. Very frequently, a better strategy is to copy the first in the world. It greatly reduces the risk of failure.
  4. It will tie us to a 20-year contact, during which rate payers will have a difficult time investing in other alternatives. We need to invest in the smart grid, so we can bring more solar and wind on board.
  5. Rate payers (that’s you) should not be made to be venture capitalists.
Big Island, Biofuel

Aina Koa Pono: Farmers Want To Know About Pay

Richard Ha writes:

Farmers want to know: What can Aina Koa Pono pay farmers to raise the crops they need to make pyrolysis oil?

On the mainland, large cellulosic biofuel projects wanted to pay $45/ton for feedstock. But farmers were getting much more than that – $100/ton – to grow hay. So the biofuel projects got a $45/ton subsidy, and could then offer $90/ton for the farmers' feedstock.

Last year, in a presentation, I heard Chris Eldredge of Aina Koa Pono say that they would pay $75/ton for feedstock. But farmers here in Hawai‘i make $300/ton for their hay!

I just shook my head.

From Big Island Now:

HELCO Proposes New, Cheaper Aina Koa Pono Deal

Posted on August 3rd, 2012 

by Dave Smith

Hawaii Electric Light Co. is asking state regulators to approve a new contract with Aina Koa Pono which the utility says will be cheaper for its customers than the proposal shot down last year.

Like the proposal rejected last year by the Public Utilities Commission, HELCO would buy 16 million gallons of biodiesel produced by Aina Koa Pono on former sugar cane lands in Ka`u.

However, under the latest proposal, Aina Koa Pono would also produce an additional eight million gallons of biofuel for Mansfield Oil Company for sale in Hawai`i and eventually the mainland, the company said in a statement Thursday. Read the rest

Community, Peak Oil

‘Big Island Community Coalition’ for the Island’s & People’s Greater Good

1 Comment

Richard Ha writes:

Did you see yesterday’s Hawaii Tribune-Herald?

The University of Hawaii at Hilo is facing a $5.5 million utility bill, which is an increase of almost $500,000 in just one year – almost completely due to the rise of electricity costs. This shortfall is going to have to come straight out of the university budget.

UH-Hilo utilities cost nearly $5.5M 

By COLIN M. STEWART

Tribune-Herald Staff Writer

…In fiscal year 2011-12, UHH budgeted $5.1 million for its utility costs, with the bulk of that figure being represented by power, said Marcia Sakai, Hilo’s vice chancellor for administrative affairs. 

By spring 2012, the rate of monthly spending had increased such that the school was anticipating a shortfall of approximately $450,000, with anticipated total spending closer to $5.5 million.

…As a result of such jumps in electricity bills, Straney has appointed Sakai as the campus’ sustainability director and charged her with finding ways to cut utility costs and developing an energy management plan, making the university more efficient. He was very up front about his reasons for doing so.

“We’re not being green here. We’re not doing the right thing. This is pure economic necessity,” Straney said. “We’re just doing it to keep the lights on.”

This is exactly what is also happening to families, farmers/ranchers, businesses and everyone else who has a utility bill. 

This is why we have decided to form a coalition. The Big Island Community Coalition’s objective: To work in collaboration for the greater good of Hawai‘i Island and its people.

Our first goal: To make Big Island electricity rates lower than O‘ahu’s rates, which have been 25 percent lower than on the Big Island.

We want to:

  • protect Big Island families from rising electricity rates
  • help Big Island businesses become more competitive in the Oahu market and world wide
  • make the Big Island more food secure
  • become more competitive to the rest of the world as oil prices rise
  • raise our standard of living relative to the rest of the world
  • stop exporting our most precious resource, by having jobs so our children can raise their families on the Big Island