Hawaiian Electric customers be warned — higher bills are headed your way.
The utility this week said it anticipates that typical residential bills may rise between 20% and 30% in the coming months. The increases are driven by rising global oil prices linked to "escalating geopolitical tensions," including the current conflict in Iran, an announcement on Wednesday noted.
"As an island state that relies heavily on imported fuel for electricity generation and transportation, Hawai‘i is particularly sensitive to global fossil fuel price fluctuations," HECO says. "These increases will affect electric bills, fuel prices and other commodities."
Customers on O‘ahu will begin seeing higher bills in April, while Hawai‘i Island and Maui County customers will see increases in May and June, the announcement noted.
The formula for rates is regulated by the Public Utilities Commission, and "includes fuel costs that fluctuate with world markets," according to the utility, which also notes that it makes no profit on the fuel used to generate electricity.
A HECO spokesperson told Aloha State Daily that increases for commercial customers are expected to be in the same ballpark as residential customers.
"Retailers operate on very thin margins, so rising energy costs remain a key concern," Dave Erdman, interim president and CEO of Retail Merchants of Hawai‘i, told Aloha State Daily in an email. "Our members are sharing practical suggestions to reduce in-store energy use and manage higher electric bills, such as using LED lighting, adjusting air-conditioning settings, turning off lights when not in use, and maintaining refrigeration and air filters for efficiency.
"We will continue to monitor the situation, and gain and share feedback from members on impacts to their retail businesses, shopping centers/malls, dining establishments [and] our allied businesses in professional services and logistics," he continued. "The impact reaches our stores, centers, small businesses and at the homes of our retail employees.”
How to combat rising energy costs
Those looking for ways to manage their energy bills can find HECO resources here.
Other tips:
- Reduce the use of anything that generates heat, like the water heater, oven, clothes dryer or stove.
- Turn off the air conditioning or set it at 78 degrees.
- Use smart plugs or unplug electronics when not in use, including computers, printers, cable boxes, game devices or chargers.
- Consider rooftop solar. Find more about HECO's Smart Renewable Energy programs here.
Hawai‘i Energy, the state's energy conservation program, also offers tips, programs and rebates for both residents and businesses looking to offset rising energy costs.
Its Energy Advantage program, for example provides qualifying businesses and nonprofits with light upgrades at a "significantly reduced" prices.
And rebates help both businesses and residents lower the cost of energy-efficient upgrades, Hawai‘i Energy says.
"Instead of bearing the full expense of new equipment, participants receive financial incentives that reduce the initial investment, making it much easier to move forward with improvements that deliver long-term savings on energy bills," the organization told ASD.
For businesses, rebates are typically tied to specific equipment upgrades like high-efficiency lighting, refrigeration systems, HVAC equipment and controls, and in many cases, the incentives can cover a "meaningful portion of the project cost," Hawai‘i Energy says. The organization also offers technical support to help find the most cost-effective upgrades. See a list of commercial rebates here.
Residents, meanwhile, can get rebates for things like energy-efficient appliances, water heating systems and regular maintenance services. Depending on the product, the rebate may be applied instantly when purchased through participating retailers or contractor, or customers can submit a rebate application after purchase, Hawai‘i Energy says. See a list of residential rebates here.
Find more information at hawaiienergy.com.
As for businesses, Hawai‘i Energy says to:
- Assess your current operations and energy usage. Establishing a baseline is a critical step in understanding where to go next and what to prioritize. Hawai‘i Energy provides this type of service for free.
- Upgrade to LED lighting. Moving from halogen, HID or fluorescent to LEDs is the "biggest bang for a businesses' buck." The upside? Such upgrades can usually be done in a couple of days, LEDs will reduce ongoing maintenance and replacement work, and the new lighting is typically paid off by savings on electric bills in less than five years.
- Operate equipment according to occupancy hours. Don't run — or at least scale back — lights, HVAC systems and water heaters if no one is in the business overnight or on weekends. Timers or controls can automate ramp-up and ramp-down times.
Rising gas prices
Oil prices increased after the Iran conflict began on Feb. 28 and rose about 50% in March.
In addition to rising electric costs, drivers are seeing higher prices at the gas pumps.
With an average gas price of $5.41, Hawai‘i joins California ($5.82) and Washington ($5.27) as the states with the highest average prices, as of March 30, according to data from GasBuddy.
Those three states also have the highest average diesel prices in the country: California at $7.30, Hawaiʻi at $6.67, and Washington at $6.50.
Hawai‘i was also led the states that saw the biggest weekly change in gas prices, up 18.8 cents, according to GasBuddy.
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Stephanie Salmons can be reached at stephanie@alohastatedaily.com.
