Electric Rates to Drop
Hawaiian Electric News Release
Hawaiian Electric shared good news last week. Customers on Molokai, Maui, Lanai and Hawaii Island will see lower rates in September that reflect the first significant drop in oil prices since spring. Oahu customers will see a smaller rate increase than expected with the shutdown of the AES coal-fired power plant.
Hawaiian Electric is forecasting a typical residential bill on Molokai to be down by 14 percent, or about $34, for electricity used in September, which will be included in bills most customers receive in October. Molokai will see the greatest reduction, followed by Lanai down nine percent, Hawaii Island down six percent, and Maui down five percent.
Oahu average bills will be up four percent or about $9. This is an improvement over the earlier forecast that projected bills would increase seven percent or about $15 after the coal plant ends operations, which is scheduled for today. Commercial customers will see kilowatt-hour rates up about 2 cents, lower than the 3 cents forecast.
The rates for Oahu are the result of lower oil prices and the addition of the Clearway Mililani I 39-megawatt solar project to the grid. Its contracted price of 9 cents per kilowatt-hour is less than a third the cost of oil used for power generation.
Even with the lower rates, typical bills on all islands are still higher than in March before oil prices began to surge. Hawaiian Electric continue to offer options to help customers manage their energy bills. Go to hawaiianelectric.com/paymentarrangement to review payment plan options. For information on available financial assistance, go to hawaiianelectric.com/COVID19.
Reducing energy use is also a practical way to further reduce electric bills. Links to resources are available at hawaiianelectric.com. Hawaii Energy is an expert resource that offers rebates and practical energy conservation tips at hawaiienergy.com.