Bill advances proposing electrical rate increases for wildfire mitigation
“People have been very interested in talking about undergrounding, since Lahaina. and that’s something that we’re hearing very consistently from people on every island.” Hawaiian Electric is proposing electrical rate increases for wildfire mitigation, which it estimates will cost hundreds of millions of dollars to prevent another wildfire disaster. A bill in the State Legislature would require the Public Utilities Commission to approve the plan and cost, and how much customers will have to pay for this work. The bill caps the increase at 5%. To fund this, Hawaiian Electric is supporting a state bill that would allow HECO to borrow money at a lower rate through securitization. The Public Utilities Corporation would approve the proposal and rate increases. However, over a thousand Lahaina residents voiced disapproval of the plan.
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HONOLULU (KHON2) — Hawaiian Electric said it will likely cost hundreds of millions of dollars in safety improvements to prevent another wildfire disaster. A bill in the State Legislature would require the Public Utilities Commission to approve the plan, the cost, and how much customers will have to pay for that work.
Electrical pole replacements, video cameras and wildfire risk modeling are some of the proposed wildfire safety measures among other long-term projects.
Hawaiian Electric Spokesperson Jim Kelly said, “People have been very interested in talking about undergrounding, since Lahaina. and that’s something that we’re hearing very consistently from people on every island.”
There is still no set dollar amount for how much the fire mitigation improvements would cost, but it is projected in the hundreds of millions in the span of decades.
To pay for it, Hawaiian Electric is putting its weight behind a state bill that would enable HECO to borrow money at a lower rate through securitization.
Kelly said, “By using securitization we’re able to pay for it at the lowest potential cost to the customers.”
The Public Utilities Commission would approve the plan and rate increases for customers.
The bill caps the increase at 5%.
“That will be up to the PUC to determine,” said Kelly. “Whether it will be called out as a separate line item kind of surcharge or whether it will just be rolled into the rates like the kilowatt hour rate.”
In a statement, a PUC spokesperson said they would like flexibility beyond the 5 percent cap.
“The Commission is committed to ensuring rates are just and reasonable. A hard 5% cap may constrain the Commission’s ability to determine a rate that’s in the best interest of the public and will allow it to balance the utility’s need for funds while minimizing bill impact.”
More than a thousand Lahaina residents voiced their disapproval of the plan. West Maui Representative Elle Cochran was the only no vote during a finance committee hearing.
“As their area representative I am going to stand by their needs,” said Cochran. “I’m going to stand with their voices. that is who I am here for and who I am beholden to.”
Although there is relief that the bill was amended to remove any language that would add litigation costs into the rate increases.
Cochran said, “this is about a mitigation plan and the rolling out of such a plan and having PUC a part of that plan.”
The bill is now headed for the full house for a vote.
Konular: Wildfires