Tag Archives: PUC

Biofuel, Community, Geothermal, Peak Oil, Renewable Energy Sources

Rubbah Slippah Folks Turn Out at Kona PUC Meeting

Richard Ha writes:

The Kona PUC hearing we’ve been talking about here took place on Tuesday evening.

From West Hawaii Today:

Powerful resistance to PUC

By Erin Miller

West Hawaii Today

West Hawaii residents described to the Public Utilities Commission how they have cut back on energy usage, and questioned why Hawaiian Electric Light Co. shouldn’t have to bear the costs of upgrading its own equipment.

The questions continued as the PUC heard comments from residents Tuesday evening on a proposed contract between HELCO, Oahu’s Hawaii Electric Co. and Aina Koa Pono for a biodiesel project in Ka‘u.

Albert Prados, manager of the Fairway Villas at Waikoloa Beach Resort, was one of more than 20 people who testified against HELCO’s rate increase request, which HELCO officials would raise rates 4.2 percent, or about $8 per an average 500 kilowatt hour monthly bill. Prados described the measures he has taken in his own home, including shutting everything off except the refrigerator at night, to lower his electricity bill. Read the rest

Mayor Kenoi took a very strong stand on renewable energy. He
made clear that it is not sufficient that it be renewable; it also needs to be affordable. He is concerned about the most defenseless among us.

He said, This is the kind of project that 20 years from now, we will be asking, “How did we let that happen?” He also said that we are doing this for the benefit of HEI and HECO – but that there is no benefit for the Big Island. The Mayor is very aware that high and rising electricity costs threaten our economy and also the folks on the lowest rungs of the economic ladder.

Rep. Denny Coffman asked, “How is it we are here? This is not even proven technology.” He pointed out that the electric utility is setting the state’s energy policy, and that that should stop while we finish the Integrated Resource Planning process that’s happening right now. Rep. Coffman understands the energy situation worldwide and he knows it’s foolish to be chasing unproven technology. It is both a waste of time and money. In Hawai‘i, we do have proven technology that is affordable.

My testimony:

To answer the Consumer Advocate’s question, “Would we change our minds if all the costs were given to the Oahu rate payers?,” the answer is no! I think that giving AKP a 20-year contract will forego the opportunity of developing lower cost alternatives. And it will take up valuable time. Liquid natural gas is an option. Ocean energy might be ready within the 20-year period. Geothermal is an affordable, proven technology. For instance, there is an 11 cent difference between geothermal and oil today. We could replace liquid fuels with 80MW of geothermal electricity, and apply that savings to pay the remaining debt of the Keahole 80 MW liquid fuel burning plant.

(80 MW is equal to 80,000 kilowatts. That 11 cents/kilowatt hour savings multiplied by 80,000 kilowatt hours equals $8,800 that you save each hour. And the savings per day is $211,200. That times 365 days equals an annual savings of $77 million. That is enough to write off the plant and still give the rate payers a break.)

Jeff Ono

Consumer Advocate Jeff Ono asked: “If O‘ahu rate payers would pay the cost, would you still be against the AKP project?”

Most of the time, making electricity has to do with making steam to turn a turbine. You can burn coal to make steam, or you can burn oil to make steam. You can burn firewood to make steam, or use the steam from underground – that’s geothermal.

AKP takes the long way. They grow plants using fossil fuels,
then they use electricity to make microwaves to vaporize the plants, then take the liquid that rises and convert it to a burnable liquid, and haul it to Keahole, where they burn it to make steam.

It isn’t surprising that it is expensive.

More than a few engineer folks tell me that this process
uses more energy than it makes. And if that is the case, it will always be more expensive than oil. This is not a good bet for us.

Palm oil is the only biofuel today that can compete heads up
with petroleum oil. It produces 600 gallons of oil per acre. AKP strives to produce 16 million gallons per acre, plus another 8 million gallons – or 24 million gallons from 12,000 acres. That is 4 times as productive as palm oil, the only biofuel that competes straight up with petroleum oil. If it works, they don’t need any subsidy from us. If it works, they will all end up billionaires.

We cannot predict the price of oil. But people are hurting right now. And if oil prices reach $200 per barrel, the tourism industry will be devastated and everything connected with it will shrink. We do not have the luxury of time. We need a lower cost alternative right now.

Well-respected Council of Revenues economists Paul Brewbaker, of TZE Economics, and Carl Bonham, Executive Director of the
University of Hawaii Economic Research Organization (UHERO), agree that low-cost energy is a key component of our economic future. 

There are alternatives to $200/barrel biofuel. Geothermal is the equivalent of $57/barrel. Liquid natural gas is low cost now on the
mainland, and maybe ocean energy will be an alternative within the time period of the contract.

We need lower cost electricity, not higher, and AKP is not the answer. The AKP project is wasting valuable time, and we need to put it to bed so we can focus our attention on the next projects.

I agree with the electric utility from here forward. The next PUC hearing will be on the Hu Honua biomass plant at Pepe‘ekeo. They will use wood chips to boil water and make steam. This is proven technology and it looks to be cost effective.

After that will be a proposal for 50MW of geothermal. Geothermal does not have to burn anything. It just uses the steam underground to make electricity and it is cost effective.  

At that time, HELCO with its leverage should be able to successfully renegotiate the old contract that is tied to oil. Then we will be well on our way to protecting ourselves from the volatility of world oil prices. Those two projects will result in a total of 110 MW of stable, affordable electricity using proven technology. 

We need to strive for balance and common sense as we try to make things work for everyone. Hospitals, schools, hotels and businesses need the electric services provided by the grid. Fifty percent of our people rent and so cannot get off the grid. We need to be practical, and help to make sure the electric utility is healthy as we strive for a lower cost to the rate payer.

Biofuel, Community, Peak Oil, Renewable Energy Sources

Hilo PUC Meeting Tonight; Read West Hawaii Today Editorial on Aina Koa Pono

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Richard Ha writes:

Tonight is the Hilo PUC meeting and we encourage you to show up and wear your rubbah slippahs. The Rubbah Slippah Revolution is at 6 p.m. in the Hilo High School cafeteria.

The PUC will be hearing HELCO’s proposal for a 4.2 percent rate hike, as well as Aina Koa Pono’s proposed biofuel project.

http://hahaha.hamakuasprings.com/renewable_energy_sources/Mahalo to West Hawaii Today editor Reed Flickinger for a very insightful, timely and important editorial on the subject of Aina Koa Pono.

HELCO PUC hearing meaningless without more fiscal disclosure

By REED FLICKINGER

West Hawaii Today

There is a fundamental problem with the Public Utilities Commission meetings scheduled on this island next week to discuss an application establishing a biofuel surcharge in HELCO’s energy cost for customers: How can the public comment upon unknown information?

HELCO and sister company HECO are seeking approval to enter into a 20-year contract to purchase biodiesel fuel from Aina Koa Pono, a company that has yet to build its proposed plant in Ka‘u, and pass on to us, the ratepayers, any costs that incurred if the biodiesel costs more than fossil fuel on the open market — over the 20-year term of the contract….

Read the rest

He’s exactly right – we have had a hard time articulating about this issue because of a lack of information.

But we figured out that the oil price Aina Koa Pono (AKP) is using is around $200/barrel. And if they were to predict a high oil price in 2015, then the amount the rate payer would pay could be predicted to be very low – like $1 per month. If the cost of oil were actually much lower than $200 per barrel, we would pay a lot more.

But getting back to the real issue: There is a lot at stake here. If AKP cannot demonstrate positive energy production – and they have not done any tests on the feedstock they will use – their product will always cost more than oil and they will run out of money. This also means that they use more oil than they make. But if AKP is successful at producing biodiesel for $200/barrel and the oil price stays below $200 for a long time, the Big Island’s path to economic survival/prosperity will have been blocked.

If oil rises to more than $200/barrel, the tourist industry and other businesses will be very hard hit. In that case, the Big Island will need the lowest cost solution that it can find. And $200/barrel cost is not it.

The rest of HECO’s plan would work, though.

Hu Honua, w/22MW of biomass-low $100/barrel oil equivalence, plus the 50MW of per-barrel oil equivalence geothermal, is lower cost. And if we can renegotiate the old 25MW geothermal avoided cost contract, that sets us on the right path.

The result would be 88 MW of stable and affordable geothermal, plus 22MW of stable affordable biomass. This would ensure that the Big Island’s electricity rates would be lowest in the state. And that is what we want.

Then if we could safely replace the 80 MW of liquid-fired generation at Keahole with geothermal, or ocean thermal or liquid natural gas – whatever makes economic sense – we could actually be looking toward prosperity for future generations.

The bottom line is that AKP is not in the interest of Big Islanders. And this is the defining battle. Everything else is inconsequential.

Please show your face at tonight’s PUC meeting, East Hawai‘i. Let’s make sure the PUC knows this is not okay with us.

Biofuel, Community, Lowering Electric Rates

It’s the Rubbah Slippah Revolution

Richard Ha writes:

New information:

We encourage you to WEAR YOUR RUBBAH SLIPPAHS when you come to the PUC meeting on Monday (in Hilo), Tuesday (in Kona) or Thursday (in Honolulu) to let the PUC know how its approved increase to your electricity bill would affect you.

rubbah slippahs

The Kona-Kohala Chamber of Commerce came up with this great idea of wearing rubbah slippahs to the PUC meetings, and we’re running with it. So to speak.

We’ll show the PUC that we are the rubbah slippah folks; the ones who are going to be affected by its decisions.

***

WHAT:

The PUC will be hearing HELCO’s proposal for a 4.2 percent rate hike, as well as Aina Koa Pono’s proposed biofuel project.

  • The Big Island Community Coalition opposes both proposals because they would raise, rather than lower, our electricity rates. You’ll see it on your monthly electric bills.

WHEN:

  • Monday, October 29, 2012 at 6 p.m. at the Hilo High School cafeteria
  • Tuesday, October 30, 2012 at 6 p.m. at the Kealakehe High School cafeteria
  • Thursday, November 1, 2012 at 6 p.m. at Farrington High School.

WHY:

The PUC members are caring human beings. But they have to know what the people want. Only two people, I think, showed up at the last PUC hearing in Hilo. We need hundreds!

The Big Island is in trouble. We have one of the highest electricity rates in Hawai‘i – almost 25 percent higher than O‘ahu’s. High electricity rates are like a giant regressive tax, only worse. As people leave the electric grid to escape its high cost, those who cannot afford to do so pay even more.

The Big Island has a robust supply of alternatives to oil. We need to mobilize and make meaningful change.

Lowering Electric Rates, Peak Oil

Our Plan to Lower Electric Bills, Validated

Richard Ha writes:

If you signed up on the website with the Big Island Community Coalition, you recently received the following email from us.

Gail Tverberg received it and she emailed me this:

Thanks! Good for you!
The message about getting lower cost electricity is exactly right. It is hard to be very competitive (except maybe at tourism) with very high energy costs.

It’s hard for me to express how respected a position Gail holds in the world of energy commentary. She is very knowledgeable, highly respected and she holds the starkest possible view.

I look at what she has to say as, “Okay, that’s the worst case possible, and let’s figure out a way around it.” What she emailed me validates our “work-around.” It’s an extremely important validation.

From the Big Island Community Coalition:

Aloha Members!

The PUC is holding two hearings this month, one in Hilo on October 29th, 6:00pm at Hilo High Cafeteria, and the other on October 30th, 6:00pm at Kealakehe High School Cafeteria. They want to hear YOU. Bring your kids, bring the kupuna, and bring your friends. Tell the PUC how rising electricity rates are affecting you and your family. We do not have to accept these rate hikes.

Rising electricity rates act like a giant tax that hurts the most defenseless among us. Seniors on fixed income, single moms, renters, working homeless, and businesses are all hurt by rising electricity rates. Just last month, it was reported that two houses burned down from using candles. One household was using candles for light because they could not afford the electricity bill.

The Big Island has had electricity rates 25% higher than Oahu for as long as anyone can remember. If we were successful in getting the Big Island electricity rate lowest in the state, we would be able to grow and sell more products on Oahu. There would be more jobs here on the Big Island. Instead of leaving for the mainland to find jobs, our children would be able to stay here and work.

If we were successful in getting locally-produced, lower-cost electricity, our school budget would not rise by 25% every two and a half years. That saving would go toward your child’s education instead of oil from a foreign country.

Already your actions are starting to get results. Just a short time ago, no one could imagine talking about lowering electricity rates. But because of the actions of the Big Island Community Coalition, HELCO is running full page ads in the newspaper. They are now focusing on how they can lower your electricity rates. If you show up in large numbers at the PUC hearings, you can change the thinking of the state government as well.

At the last PUC hearing the participants were mostly from Ka’u. This time folks from Ka’u, Kona, Kohala, Puna, Hilo, Waimea — the whole island, will be represented. At the last PUC hearing, the Consumer Advocate was in favor of ‘Aina Koa Pono, dismissing the opposition as NIMBYism. This time when you all show up from all parts of the Big Island, the Consumer Advocate has no choice but to advocate for the consumers — all of us.

    Your beliefs become your thoughts,

    Your thoughts become your words,

    Your words become your actions

    Your actions become your habits,

    Your habits become your values,

    Your values become your destiny.

    – Mahatma Gandhi

When you show up at the PUC hearings in large numbers, your words will become your actions. Then your actions will become your habits — on the way forward, your values will become your destiny. Our values are — taking care of all of us, not just a few of us, for generations to come.

Share Your Story

How has the rising cost of electricity affected you and your family? How would an even higher electricity rate have an impact on your lifestyle? Are you neighbors with the family who spends their evenings by candlelight? We want to know. Every story matters. This issue of costly energy involves all of us. Email us your story to bigislandcc@gmail.com.

Please mark on your calendar the PUC meeting nearest you, and consider attending if you can. Every person in attendance, every story, will make a difference. 

And join us at the Big Island Community Coalition if you haven’t yet. Enter your email address here, and we will send you an occasional newsletter, like the one above, to keep you informed.

Lowering Electric Rates

Front Page News

1 Comment

Richard Ha writes:

Front page news today in the Hawai‘i Tribune-Herald newspaper:

September 28, 2012

Isle’s energy at center of debate

By PETER SUR

Tribune-Herald staff writer

The Public Utilities Commission’s public hearing on Hawaii Electric Light Co.’s rate increase and biofuel surcharge proposals is a month away, and all sides are digging in for what could be an explosive meeting.

The PUC has scheduled public hearings to gather community input on Oct. 29 at the Hilo High cafeteria and Oct. 30 at the Kealakehe High cafeteria. Both meetings start at 6 p.m.

At issue are two proposals by HELCO. One is for a $19.8 million increase in revenue, or 4.2 percent in the coming year. The other, which is being jointly proposed by Hawaiian Electric Co., is the establishment of a biofuel surcharge provision of between 84 cents to $1 per month to support a Ka‘u biodiesel refinery to be built by Aina Koa Pono.

The article goes on to discuss the Big Island Community Coalition and actions we are taking. It also discusses the Aina Koa Pono project.

Both proposals are opposed by the Big Island Community Coalition, formed by a group of prominent citizens who are asking people to come out and tell the PUC the effect of HELCO’s utility prices on their lives. Read the rest here

Did you mark your calendar yet? Come to the PUC meetings (October 29 at Hilo High cafeteria, and October 30 at Kealakehe High cafeteria; both at 6 p.m.) and here’s more on what you can do to help with our mission to make Big Island electricity rates the lowest in the state.

Biofuel, Food Security, Renewable Energy Sources, Sustainability

Kudos to the PUC!

The recent PUC decision denying a HECO/Aina Koa Pono biofuel contract was a landmark decision. Kudos to the PUC for understanding precisely what was at stake. Very impressive!!

See this Big Island Video News story about the decision.

My observations:

  • The process was not transparent, and people had a difficult time understanding the issues.
  • Cellulosic biofuels is not proven technology, so it’s high risk.
  • Filling oil tanks with long term biofuel contracts would block cheaper alternatives, like geothermal, from gaining critical mass.
  • Ratepayers would have financed the risk. And ratepayers are not venture capitalists.
  • Businesses would have seen their electricity rates go higher than they were with electricity generated by oil, making their products even less competitive to mainland competition. And food security would have suffered.
  • Social consequences would have included fewer government services, less charitable giving and more working homeless. It would have put stress on our spirit of aloha.

We can and must do better for our future generations. As Steve Jobs always said, “We need to think different!”

Not, no can, CAN!

Biofuel, Renewable Energy Sources

Compliments to Gov. Abercrombie for Selecting Wise PUC Commissioners

The PUC’s decision Thursday, which denied Aina Koa Pono’s biofuel contract with HELCO, is significant for several reasons.

To me, most significant is that the PUC is not going to let HECO force ratepayers to be the bridge financier.

Hawaii PUC denies HECO, Aina Koa Pono application

September 29, 2011 

HONOLULU, Hawaii: In a decision that was handed down today, the Hawaii Public Utility Commission voted to deny the HECO companies’ application for approval of the biodiesel supply contract with Aina Koa Pono, rendering moot the application to establish a biofuel surcharge to help cover costs. Read the rest

Farmers take the commonsense approach – We look for others that have solved the technical problems, and just copy. Save money, less risk.

Geothermal, Government, Peak Oil

Support HB 1257 By Sending Testimony

We could use your support.

HB 1257 is going to be heard by Rep. Herkes’ Consumer Protection Committee.

Read the bill here. Here is where I discussed the bill.

Send testimony in support of HB 1257 to CPCtestimony@Capitol.hawaii.gov. It should be less than five pages in length; couple sentences plenty.

This bill’s essential elements are simple. It requires the PUC to consider the following three factors when it issues approvals for electricity generation:

  1. Consider the technology as to its effectiveness
  2. Consider the amounts of greenhouse gases emitted
  3. Consider the costs to the rate payers compared to alternatives.

Persons wishing to offer comments should submit testimony at least 24 hours prior to the February 2nd hearing with a transmittal cover indicating:

  • Testifier’s name, with position/title and organization
  • The committee the comments are directed to (the Consumer Protection Committee)
  • The date and time of the hearing (Feb 2, 2011 at 2:05 p.m.)
  • Measure number: HB 1257

Please send this to your friends, too. Mahalo.

Current Affairs, Food Security, Government

Farmers Not In Favor of Pasha Entering Inter-Island Barge Service

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From the Star-Advertiser article:

Pasha gets PUC approval for interisland shipping
By Star-Advertiser staff

POSTED: 01:30 a.m. HST, Sep 21, 2010

The Public Utilities Commission has authorized Pasha [Hawaii Transport Lines LLC] to operate between Honolulu, Kahului, Hilo, Nawiliwili, Barbers Point and Pearl Harbor through Dec. 31, 2013. The commission will then evaluate the effects of the service and make a final decision on the company’s request to operate in the market permanently.

Young Bros. argued that Pasha will only serve the biggest ports and the most lucrative lines such as autos, heavy equipment and construction materials. Young Bros. also said that Pasha will “cherry-pick” the most lucrative routes and could harm local farmers and cattle ranchers who receive discounts subsidized by higher rates on other goods…. Read more

I think that allowing Pasha to operate in the inter-island barge service, without forcing them to provide the same services that Young Brothers provides, will jeopardize Hawai‘i’s food security.

Young Brothers gives locally grown products a 30 percent discount. They are not forced to do it; they worked with farmers to come up with that rate. And Young Brothers services the ports at Moloka‘i, as well as Lana‘i. Pasha will not be servicing those ports, nor moving agricultural products.

Farmers know that food security involves farmers farming. And that if farmers make money, farmers will farm. Young Brothers helps farmers to make money.

It is clear to us that if Young Brothers’ profitability is at stake, they will be forced to rethink the farmers’ discount. That is not good for farmers.

Farmers are not in favor of allowing Pasha to unfairly compete with Young Brothers.