The company rolled out a three-tiered rate structure that took effect this month; the 1.74 percent rate increase was approved Jan. 7.
“This gives them the opportunity, they can examine their energy usage,” HELCO’s Energy Services Department Manager Curt Beck said. “This gives them a little more motivation.”
The tiers are split at less than 300 kilowatt-hours, 301 to 700 kilowatt-hours and 701 or more kilowatt-hours. The rates are 12.3 cents per kilowatt-hour for the lowest tier, 14.5 cents per kilowatt-hour for the middle tier and 15.3 cents per kilowatt-hour for the highest-usage tier.
Qualifying low-income customers, those getting assistance through the federal Low Income Home Energy Assistance Program, will pay the rate for the lowest tier, regardless of usage, Beck added.
In a Jan. 7 interim decision, the Public Utilities Commission also approved HELCO’s 2010 rate request increase. HELCO had requested an overall 6 percent increase, which would have raised $20.9 million. The approved 1.74 percent rate will bring in about $6 million, HELCO officials said. The increase will be used to pay for system upgrade projects, including a steam generating unit at Keahole placed in service in 2009, two completed West Hawaii transmission line upgrades and increasing operations and maintenance costs islandwide.
The PUC also approved a request to begin a voluntary, time-of-use rate program for residential customers. The PUC gave HELCO permission to enroll up to 300 customers in the program, which reduces the customer’s base per kilowatt-hour rate by 5 cents per kilowatt-hour used in the off-peak period, which is 9 p.m. to 7 a.m., Beck said. Customers in the program would pay 2.5 cents above the base rate in midpeak hours, which are 7 a.m. to 5 p.m. on weekdays and 7 a.m. to 9 p.m. on weekends. They would pay 5 cents above the base rate per kilowatt-hour used in a priority peak time period, which is 5 p.m. to 9 p.m. weekdays.
