HANO: Alternative energy rolls out as electric rates climb

Alternative energy rolls out as electric rates climb

Residential utility customers paid more for electricity last month on all islands except Maui. The effective rate for electricity on Oahu rose to 26.4 cents per kilowatt-hour in February from 26.1 cents per kilowatt-hour in January. That boosted the typical bill to $167.47 for customers using 600 kilowatt-hours of electricity a month from $165.51 in January. Rates rise in tandem with fuel costs.

Elsewhere in the state:

Hawaii Island residential rates rose to 36.4 cents per kilowatt-hour from last month's 35.9 cents. The typical bill rose to $229.94 from $226.27.
Kauai residents saw their rate rise to 39.3 cents per kilowatt-hour from 37.8 cents per kilowatt-hour in January. The typical bill increased to $247.69 from $238.25.
Rates for Maui customers dipped to 31.6 cents per kilowatt-hour from January's 32.2 cents. The typical Maui bill fell to $196.84 from $201.87.

Regulators have approved Maui Electric’s plan to buy electricity from the second phase of First Wind’s wind farm on a ridge above Maalaea. The expansion adds 21 megawatts of generating capacity to the 30 megawatts currently produced at the Kaheawa Wind Farm. The structure of the power purchase agreement reduces the rate MECO pays for the electricity as the amount it buys increases. MECO did not disclose the actual price it will pay because it is in negotiations to buy power from another wind farm operator on the island.

With the expansion, the number of wind turbines at Kaheawa expands to 34 from 20. The second phase also includes a 10-megawatt battery storage system that will help smooth out fluctuations in output associated with wind power.

On the Big Island, Hawaii Electric Light Co. has signed an agreement to buy electricity that will be generated from the expansion of Ormat Technologies’ geothermal plant. Ormat is adding an additional eight megawatts of generating capacity to the 30-megawatt plant operated by its subsidiary, Puna Geothermal Venture Inc. The expansion is nearly complete and is expected to begin supplying power to the grid by the third quarter, HELCO said. The agreement is subject to approval by the Public Utilities Commission.

And on Oahu, Hawaiian Electric signed an agreement to buy electricity produced by a 5-megawatt solar farm planned for Campbell Industrial Park from IC Sunshine LLC. Subject to approval by the state Public Utilities Commission, this is the first for a utility-scale solar project on Oahu, the companies said.

HECO said the price for the electricity is competitive with other renewable resources being negotiated by the utility and will be fixed for 20 years, adjusted annually for inflation. IC Sunshine expects to begin producing power by 2012. In addition, Hoku Solar Inc. is moving ahead with a 1.4-megawatt photovoltaic project in Campbell Industrial Park, while Sopogy is pursuing a 4-megawatt concentrated solar project.

HECO is also looking for a company to supply biodiesel, preferably locally produced, to power its recently completed 110-megawatt generating station in Campbell Industrial Park, said to be the largest commercial power plant in the world powered exclusively by biodiesel. The three-year contract is for 3 million to 7 million gallons of biodiesel a year.

Meanwhile, Kauai County has awarded a $379,000 contract to Solar Engineering and Contracting to install a photovoltaic system on the roof of the Piikoi Building at the Lihue Civic Center. The project is expected to be complete at the end of April. The system will include a rooftop solar array, a single inverter and electrical metering and safety equipment. At current electricity rates, the system is expected to save the county more than $41,000 annually.