Oahu Residents to Get Small Refund From Hawaiian Electric Company (HECO)

Hawaiian Electric Company (HECO), subsidiary of Hawaiian Electric Industries, Inc. announced today that electric customers on Oahu will receive a small refund as the result of the Hawaii Public Utilities Commission’s (PUC) final decision in Hawaiian Electric Company’s 2011 rate case.

The total estimated refund is approximately $800,000 including interest, although Hawaiian Electric must still finalize and submit to the PUC for review the detailed calculations. The company estimates a typical residential customer using 600 kilowatt-hours a month will receive a refund of 85 cents, which includes interest since July 2011 when the original interim increase was approved.

The refund will be issued in the form of a credit on customer electric bills. The timing will depend on the customer’s normal billing cycle. The refund credit is expected to start showing up in bills sent out in August.

Aside from the refund, the PUC’s ruling will not have any further impact on the amount Oahu customers currently pay for electricity. This is because the decision finalizes the remaining interim rates which are already reflected on customers’ bills.

The majority of the final 3.4% increase was approved by the PUC and included in rates almost a year ago in July 2011, with the remainder effective in April 2012.

Department of Health Cites Five Companies with Air Permit Violations

The Hawai‘i State Department of Health (DOH) Clean Air Branch has issued notices of violations and orders against five companies located on Hawai‘i, Kaua‘i, Maui and O‘ahu for air permit violations.

The violations were either self-reported, or discovered during an inspection.

The following companies were cited:

  • Tesoro Hawai‘i Corporation (Tesoro) for various opacity violations on the vacuum unit charge heater, package boiler, and crude heater No. 1 and 2. Tesoro is a crude oil distillation facility with a capacity of 95,000 barrel per day and is located in Campbell Industrial Park, O‘ahu. The violation was self-reported and a penalty of $26,700 has been assessed. Currently, negotiations are being conducted regarding a consent order.
  • Hawaiian Electric Company, Inc. Waiau unit 8 for an opacity exceedence on September 1, 2011. The six-minute opacity average was 68 percent during an unscheduled equipment shut down, which exceeded the opacity permit limit of 60 percent. The Waiau generating station is located in Pearl City, O‘ahu. The violation was self-reported and a penalty of $6,000 has been assessed. Currently, negotiations are being conducted regarding a consent order.
  • O. Thronas, Inc., dba Kaua‘i Aggregates for failing to conduct the 2010 annual performance tests for opacity on the 700 ton per hour stone quarrying and processing plant located at Halewili Road, Wahiawa, Kaua‘i. The violation was discovered during an annual inspection, and a penalty of $5,100 has been paid for the violation.
  • Kohala Coast Concrete and Precast, LLC. for various permit violations on the 170 cubic yards per hour concrete batch plant located at Kawaihae, Hawai‘i. The violation was discovered during a complaint investigation and a penalty of $5,300 has been assessed.
  • Hawaiian Commercial & Sugar Company (HC&S) for burning approximately 25 acres of Field 716 on November 4, 2011 without prior DOH written approval. HC&S operates a sugar refinery located at Puunene, Maui and has an agricultural burning permit (AGP) with the DOH.  Field 76 was not a field allowed to be burned on the AGP and the violation was self-reported. A penalty of $2,400 has been assessed for the violation.

The DOH Clean Air Branch (CAB) protects the people and environment of Hawai‘i by monitoring air quality and regulating businesses that release pollutants into the air. The CAB reviews and approves air permits, evaluates and enforces state and federal air standards, conducts inspections, and investigates reported incidents related to outdoor air quality. Through the air permit process, the DOH ensures companies comply with state and federal emission standards to minimize air pollution impacts on the public.

In general, penalties are assessed on violators to remove any economic benefit they may have gained from their noncompliance and put them in a worse situation than those who comply with the law. All fines are paid into a revolving special fund used to prevent or minimize damage to the environment. Parties have the right to request a hearing to contest DOH orders.

Statement from Governor Neil Abercrombie on Power Situation

From the Governors Office:

“I have spoken with leaders of Hawaiian Electric Company and the union.  My thought is that they can set aside their respective positions during this emergency situation until the public’s safety is taken care of.

“The most important thing right now is restoring electric services for residents and ensuring their health and security then resume negotiations.”

Governor Neil Abercrombie

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