Electric exec gets lit up

HILO — Hawaii Electric Light Co. President Jay Ignacio came before a County Council committee Tuesday to clear the air on what he said were misperceptions about the effects of solar and geothermal energy on electric rates.

“Our present challenge is being dependent on the price of oil. We are aggressively pursuing renewable energy options that will reduce that burden,” Ignacio said. “We feel the pain of our customers. … It’s really that dependence on oil that we have to attack.”

But rather than calming worried residents, Ignacio’s slide presentation brought out a packed house of testifiers, most of them skeptical that HELCO has their best interests in mind. Most members of the council Committee on Agriculture, Water & Energy Sustainability didn’t seem convinced, either.

Concerns about the risks of geothermal and HELCO’s apparent resistance to allowing homeowners to hook up their own photovoltaic systems topped the list. Most of the 30 or so testifiers were Puna residents with many of them opposed to geothermal energy for health reasons.

“There was nothing in their presentation that any of their plans would reduce electric rates,” said James Weatherford, a County Council candidate in the Puna district that’s home to Puna Geothermal Venture, the state’s only geothermal producer, which has a 30-megawatt plant. “No commitment there whatsoever.”

Ignacio said HELCO is looking to increase geothermal power as a way to bring a stable source of energy into the Big Island grid. The company has recently announced it will be seeking proposals for a contractor to produce up to 50 megawatts more at a location in West Hawaii.

“Will taxpayers be left holding the bag to bail out geothermal profiteers when things go wrong, just like the Wall Street bankers scammed the taxpayers?” said longtime geothermal opponent Jim Albertini. “Same ol’ same ol’ — privatize the profits, socialize the costs.”

A number of Native Hawaiians also came out in opposition, saying tapping into volcanic gases violates their First Amendment religious rights to worship Pele, the goddess of the volcano in Hawaiian legend. But other Hawaiians point to early efforts by Hawaiian royalty, such as King David Kalakaua, to change with the times.

“We as Hawaiians own this resource, and we want to have a voice as we go forward,” said Kealoha Estate owner Kuulei Kealoha Cooper, a proponent of geothermal.

The state has set a mandate of 40 percent renewable energy by 2030. HELCO is currently at 36.7 percent, compared to about 12 percent statewide and 11 percent in the nation. HELCO is so intent on converting to renewables, it’s considering retiring some of its oil-burning steam generators in order to bring more renewables into the mix, Ignacio said.

HELCO’s requirement that homeowners pay as much as $15,000 for a study before they can connect their solar system to the grid brought out pointed questions from South Kona Councilwoman Brenda Ford.

HELCO is fourth in the nation in the level of solar wattage to the grid compared to the customer base. HELCO requires the detailed study when an area of the grid reaches 15 percent saturation with solar energy. Ignacio said 15 percent is the industry standard.

“Those of us on the council represent a lot of angry consumers of electricity,” Ford said.

Ignacio’s explanation that studies are needed to ensure there aren’t dangerous fluctuations and spikes in electric current wasn’t enough to satisfy Ford. She pressed Ignacio on how much shareholders gain, saying she’d heard they had recently received 107 percent of net profits.

“Why are we charging people who are trying to put in photovoltaic if the company is paying anything in excess of 100 percent of net profits,” Ford asked. “People out in the community are trying to get their utility bills under control.”

Ignacio dodged the profit questions, other than to say that HELCO sends 60 percent of its net profits to its parent company. HELCO is a subsidiary of Hawaiian Electric Co. on Oahu, which in turn is a subsidiary of Hawaiian Electric Industries Inc.

Ignacio told West Hawaii Today outside the meeting that all rates and shareholder returns on their investments are set after extensive studies by the PUC. He said it wouldn’t be fair to charge the 95 percent of customers who don’t get a savings from individual solar energy systems for the cost of hooking them up for the 5 percent who do.

Kohala Councilman Pete Hoffmann was frustrated as well. He said he’s been hearing the same plans from HELCO for 15 years, with little progress.

“We hear the same litany of things we’re going to change,” Hoffmann said, “year in and year out.”