Hawaiian Electric Companies Propose Expanded Time-of-Use Rates
The Hawaiian Electric Companies have proposed to expand their time-of-use rate options.
The proposal is intended to help customers gain more control over their electric bills, support increased use of renewable energy, and promote the adoption of new technologies such as energy storage and electric vehicles.
Here on Maui, the proposed rates include: 20.2 cents/kWh during off-peak hours (12 a.m. to 9 a.m.); 17.1 cents/kWh for mid-day use (9 a.m. to 4 p.m.); and 39 cents/kWh for on-peak use (4 p.m. to 12 a.m.).
Proposed rates on Lānaʻi are: 25.7 for off-peak; 26.5 for mid-day; and 42.3 for on-peak use. On Molokaʻi, proposed rates are: 21.6 for off-peak; 21.6 for mid-day; and 44.8 for on-peak use.
The proposed voluntary time-of-use rates for residential customers are intended to encourage the use of power during times when solar and wind resources are most productive. In addition, the Companies proposed revised time-of-use rates for electric vehicle charging to support the growing EV market.
Company officials say these new options would complement the new, lower day-time electric rates for the Hawaiʻi Department of Education proposed last week by the Hawaiian Electric Companies. The DOE rates are aimed at helping public schools manage their electricity costs as they add more air conditioning and cooling equipment, while also using renewable energy that is available during day-time hours.
“We want to give our customers options to help them manage their bills and encourage the use of more low cost renewable energy,” said Jim Alberts, Hawaiian Electric senior vice president of customer service in a company press release. “Rate options like these can give customers choices and help us collectively achieve our state’s 100% renewable portfolio standards goal.”
Residential time-of-use rates would be most beneficial for customers who are able to use more electricity during the middle of the day until 4 p.m. Next best would be to move some energy usage to after midnight, for example by using timers to do laundry, run dishwashers or to charge an electric vehicle.
Actual savings will depend on how much customers are able to change their use patterns to the middle of the day when the amount of solar power is greatest or to overnight hours when wind farms are typically productive. This will help avoid the need to run additional utility generators to meet the evening peak demand and help to reduce the state’s reliance on oil.
Company officials released the following table to show how proposed rates would look if they went into effect today, based on current fuel prices and other surcharges:
Time-of-use rates –
9 a.m. – 4 p.m.
|13.4 ¢/kWh||17.2 ¢/kWh||17.1 ¢/kWh||21.6 ¢/kWh||26.5 ¢/kWh|
12 a.m. – 9 a.m.
|16.0 ¢/kWh||19.3 ¢/kWh||20.2 ¢/kWh||21.6 ¢/kWh||25.7 ¢/kWh|
4 p.m. – 12 a.m.
|38.5 ¢/kWh||47.9 ¢/kWh||39.0 ¢/kWh||44.8 ¢/kWh||42.3 ¢/kWh|
|24.4 ¢/kWh||30.3 ¢/kWh||26.3 ¢/kWh||30.7 ¢/kWh||32.2 ¢/kWh|
*Chart credit: Hawaiian Electric Company