Today, Senate Minority Leader Kurt Fevella (District 19 – ‘Ewa Beach, Ocean Pointe, ‘Ewa by Gentry, Iroquois Point, a portion of ‘Ewa Villages) announced that he has requested Governor David Ige declare a state of emergency considering the escalating electricity rates across the state. The rising costs come as the State turns from using coal to oil as a result of Act 23 (2020) which bans the use of coal for electricity generation after December 31, 2022
The senator cited that under Hawai‘i Revised Statute Chapter 127A-14 the governor is granted the power to “relieve hardships and inequities, or obstructions to the public health, safety, or welfare found by the governor to exist in the laws.” Senator Fevella stated that the governor must deem this an emergency until Hawaiian Electric Company (HECO) can obtain cost-effective renewable energy resources.
“Per HECO, it has had to turn to oil as a result of a delay with renewable energy projects. However, HECO’s reliance on oil results in residential households and businesses left to carry the burden,” wrote Senator Fevella. “The fact that Hawai‘i’s families are already doing what is necessary to reduce their energy uses while still paying the most in the nation for household electricity is unsustainable.”
Senator Fevella called for an emergency suspension on the shutdown of the AES plant until the delays on renewable energy projects are resolved.
“Until renewable energy projects are online to provide cleaner sources of energy and long-term price stability, the continued use of fossil fuels, like oil, does little to support the State’s goal of reducing emissions and improving air quality standards,” noted the senator.
In a separate letter addressed to President Seu, president and CEO of Hawaiian Electric Industries, and President Kimura, president and CEO of Hawaiian Electric Company, Senator Fevella asked for an explanation of specific efforts HECO has taken to bear some of the costs that this delay has caused.
He went on to explain, “While I believe utility companies like HECO can do more to reduce the energy burden passed on to Hawai‘i’s ratepayers, I also believe developers of renewal energy projects should also bear a greater portion of the transmission costs so that electric ratepayers are not on the hook for the entire costs. There are energy subsidies available to renewable producers, such as the federal Production Tax Credit and Investment Tax Credit that reduce developers’ tax burden; yet, there are limited credits passed on to the electrical ratepayer.”
According to “Companiesmarketcap.com,” HECO and AES’ reported earnings before taxes were as follows:
2017: HECO = $340M AES = $3.07B
2018: HECO = $360M AES = $2.05B
2019: HECO = $330M AES = $1.53B
2020: HECO = $400M AES = $150M
2021: HECO = $390M AES = $180M
Senator Fevella concluded by calling for collaboration between HECO and lawmakers to ensure that unsustainable cost increases are not passed on to ratepayers. A portion of HECO and AES’ profit earnings can be used to lighten the burden on Hawai‘i ratepayers as Hawai‘i leads the country on transitioning to renewable energy.
The Senator will work with federal, state and local departments to help Hawai‘i ratepayers take full advantage of the recently enacted Inflation Reduction Act that invests nearly $370 billion nationwide in energy security and climate change.
Letters are Attached Below. (May not be visible on phones)