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HECO Says Electric Bills Won't Drop Until Fall

Company Says It Must Use Current Fuel Stock Before Price Drop

POSTED: 3:53 pm HST September 17, 2008
UPDATED: 4:46 pm HST September 17, 2008

Hawaii electricity bills have continued to go up even though the price of crude oil is decreasing.

Hawaiian Electric Co. officials said relief is coming, but not for a while.

Pearl City resident Jackie Woodward went to HECO on Wednesday to pay her electricity bill.

"It keeps going higher and higher last month it was about $190 or so this month $200 and something. You know it is so ridiculous," Woodward said.

HECO officials said bills have been soaring for its nearly 300,000 customers since the beginning of the year, rising steadily the cost of fuel used to produce electricity.

Some ask why electric bills continue to climb while the world oil prices have decreased.

"What's happening is there is a bit of a lag between the crude oil market and the price for the petroleum product we use, which is called low sulfur fuel. There is bit of a lag built in there. It will track, but not exactly match crude oil prices," HECO spokesman Darren Pai said.

HECO said another reason is that the company keeps a one-month fuel reserve. That makes any price or increase or reduction gradual.

Hawaiian Electric Co. expects home electricity bills to begin decreasing some time later this fall. That is all the company would commit to.

Meanwhile, customers like Moiliili resident Mei Loo paid her bill on Thursday uncomplainingly.

"I guess maybe Hawaii is behind so they are always going to take longer to do thing you know. Unfortunately, when they go down it takes longer to do things," Loo said.

Woodward was also resigned to the matter.

"I don't know what we are going to do about that. There is nothing we can do," Woodward said.

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