Former WHT staff photographer Baron Sekiya left this comment as to possibly why Hunter Bishop has not been blogging lately. I also saw that Baron has landed on his feet after WHT let him go. He has created a new blog, Hawaii247-Hawaii’s news now.It looks like a pretty sharp looking website covering Hawaii County news.
Volcanic Ash has another funny take on events that happened this week. It is definitely not for the faint of heart 
I received an e-mail from someone asking me why his HELCO electric bill remains so high despite the recent drop in the price of oil.
“I was checking past and current bills. In April 05, when oil was about $60pbl, my Energy Cost Adjustment was about $40. Last month, the ECA was $146 (without a increase in consumption)and oil is about the same price. I have done my energy reduction in the house I rent. I understand oil contracts and lag time, but this is getting a little much, especially in the current economic environment.”
HELCO is one beast that I really don’t fully understand. The only aspects I do understand is this. Firstly,as far as I understand, the price HELCO pays IPP’s like PGV and Hamakua Energy Partners is tied to the price of oil.When you add in the cost HELCO pays for oil to run their power plants it doesn’t paint a pretty picture when there is a huge run up in oil prices.
As to why the energy costs passed along to consumers has not dropped I figure HELCO bought contracts for oil when it was high.Exacerbating the latter issue is the fact that they have a state sanctioned monopoly to provide electricity for the State of Hawaii. Thus their prices remain sticky long after the price of oil drops. Its exactly the same situation with the price of gasoline here.The lack of competition, and transportation costs keeps the overall gasoline prices from dropping as quickly as they rise.
This Honolulu Star Bulletin article somewhat supports my previous assessments. Especially since they have monopoly to price electricity HEI can keep their energy prices higher a longer period.
“Profit for HEI’s electric utility operations more than doubled to $25.9 million from $12.9 million a year earlier, when Hawaiian Electric Co. accrued an $8.3 million, or 10 cents a share, net-of-tax refund related to its 2005 test year rate case, Lau said.Utility revenue rose 47 percent to $826.1 million from $561.7 million.”
I’ve e-mailed the Hawaii PUC and the The Division of Consumer Advocacy asking them why HELCO’s energy rates remain so high.
Lastly, there was a letter to the editor in WHT today. Which had some good reasons why Hawaii County should enact a impact fee ordinance.
