With so much press coverage of the Public Utilities Commission鈥檚 Sept. 4聽鈥渓istening session鈥 on Maui on the proposed NextEra/Hawaiian Electric merger, I was certain one or two reporters would ferry over to Lanai the next morning to hear what we had to say. Alas, they all went home, I guess giving up one day of the Labor Day weekend was enough.
Actually there were two meetings here on Lanai the first week in September, and the one that took place three days before the PUC arrived was by far the most interesting. But first, let鈥檚 compare the two initial PUC sessions.
Reports said about 200 people showed up at Lihikai Elementary School Friday night on Maui, and 49 actually spoke (35 were against the merger, 11 favored it, and three individuals posed comments/concerns). This is out of a population of about 144,000 (2010 census) so those 49 speakers equal about .0003 percent of the total Maui Island population.
Only 30-something souls walked into Lanai High and Elementary鈥檚 cafeteria the next day, and just 10 had something to say. But Lanai鈥檚 population is only +/- 3,200, so those 10 speakers work out to be .003 percent of all of us. This was not bad, given a memorial service for a much-beloved member of the community was taking place at the same time on the other side of the island.
About half of Lanai鈥檚 30 attendees were, in fact, either PUC staff or NextEra or Maui Electric (MECO) employees. Four Lanai residents attended but didn鈥檛 speak, and two of these represent Friends of Lanai; we (I am one) were prohibited by PUC Order from saying anything, because FOL is one of 28 intervening parties to the merger docket.
So what did our 10 Lanaians have to say?
Maui County Council Member Riki Hokama informed the PUC that he did not support the merger, and would be introducing a resolution to the full Council to that effect shortly. He said each island has its own energy needs to be addressed and it鈥檚 time to be looking at a new business model.
Seven other Lanai residents also opposed joining the two corporations, here鈥檚 what they told the PUC:
- 鈥淲e always seem to be left behind on Lanai. What NextEra has on the table does not guarantee energy efficiency efforts or lower rates.鈥
- 鈥淭he HECO Companies would be only one of over 700 subsidiaries. NextEra appears to be only 鈥榩rofit-centered鈥 and you (PUC) should be looking at other models, like the Green Mountain Power model in Vermont.鈥
- 鈥淭wenty-two cents a day in savings is not impressive. What are NextEra鈥檚 plans for upgrading Lanai鈥檚 grid? How will NextEra make Lanai 100 percent renewable? Why can鈥檛 we see NextEra鈥檚 plans up front?鈥
- 鈥淟anai faces significant costs for electricity, and we get savings of only $0.22 cents a day? This doesn鈥檛 even cover the cost of one kWh! How can a Florida-based corporation understand Hawaii鈥檚 culture and communities?鈥
- 鈥淲e can do better than trading one monopoly for another, where stockholders take no risks. I applaud the legislators who want to look into the possibility of a public utility.鈥
- 鈥淚鈥檓 concerned (NextEra) is not willing to share details. They seem arrogant and only interested in waving around money. Pardon my paranoia, but my big questions are: what鈥檚 in it for them? And why here?鈥
- 鈥淣extEra hasn鈥檛 earned our trust yet. They talk about 鈥榗entralized generation鈥 and 鈥榚nergy sharing.鈥 Does 鈥榗entralized generation鈥 mean one big generation plant someplace on Oahu? Does 鈥榚nergy sharing鈥 include windmills on Lanai plus an undersea cable? I am opposed to both windmills on Lanai and the cable. Will NextEra listen to us after the proposed merger, if they don鈥檛 listen to us now?鈥
- One individual spoke for his full three minutes but was unclear enough on what he thought about the takeover that PUC Chair Randall Iwase was forced to ask, 鈥淪o what really is your position? Do you support or oppose?鈥
There was only one person who fully supported the NextEra takeover, and she said that 鈥淣extEra has expertise throughout Canada and the U.S. 聽鈥 what will we do without them? We don鈥檛 have the expertise here in our state, so just let NextEra do what it wants to do!!鈥
This NextEra supporter rates a special shout-out, not only for her interesting comments on the State of Hawaii鈥檚 perceived deficiencies in the expertise area, but because she organized the far more interesting special session with NextEra鈥檚 President, Eric Gleason, three days before the PUC arrived on Sept. 5. She even emailed invitees a CV of Gleason and offered refreshments. The PUC did not.
I was not invited, but I went anyway.
I was elated to see more than 50 individuals appear at the ILWU hall on Wednesday, Sept. 2. 鈥淭his is great!鈥 I thought. Look at all these people interested in who鈥檚 going to provide their electricity! But straight away one young woman asked me, 鈥淎unty, do you know why we are here?鈥
Soon after, another asked me, 鈥淚s this the meeting about the hospital sale?鈥
Being quick on the uptake, I then started asking others why they thought they were in the ILWU hall at 9 a.m. on a Wednesday. I soon learned that most of the attendees were being paid for their time, having been told to attend a 鈥渕andatory鈥 meeting that morning when they clocked in for work.
But they were here and hopefully listening to Mr. Gleason鈥檚 presentation. Which was quite polished and readily responsive to the few questions posed by residents, most of which were asked by those who were not on anyone鈥檚 clock.
Here are some of the highlights:
- In response to a question on what, exactly, was net metering, Gleason said the utility pays those of us with PV systems the retail rate of 40 cents per kWh for energy we produce but don鈥檛 use, while utility-scale projects on Maui can come in at 12 cents a kWh. He said this was why Florida has so few PV systems: natural gas (albeit another fossil fuel) and nuclear power are so much cheaper, few Floridians elect to install PV. Unfortunately Gleason left out the fact that every current net-metering PV customer here in Hawaii is zeroed out at the end of each year, forfeiting any payment for exported solar they don鈥檛 consume 鈥 which the utility then sells to someone else for 40 cents per kWh. So this is power the utility gets for free, and sells for a profit.
- In response to a question on whether Big Wind and an undersea cable would resurface, based on the need to reach 100 percent by 2045, Mr. Gleason assured Lanaians that NextEra 鈥渄idn鈥檛 think the Big Wind project makes sense鈥 and pointed out that interconnecting Maui-Molokai-Lanai is technically feasible, but expensive. 鈥淚f customers on Molokai and Lanai had to pay for those cables, you would not be happy, you鈥檇 want to run us out of town.鈥
- When asked what he thought about Maui County hiring a consultant to explore whether a municipal or cooperative utility format would be doable, Gleason said he was 鈥減ersonally skeptical that this would be a great path for Maui County鈥 since munis and coops in Florida all have higher rates than Florida Power & Light offers. I鈥檓 not sure what this has to do with us, but never mind.
- He said that even though he couldn鈥檛 tell us what NextEra had specifically planned, for anywhere here in Hawaii, once the merger was approved NextEra has 鈥渃ommitted to filing new resource plans鈥 and 鈥渃ommitted to collaborating with communities in developing those plans.鈥 (Let鈥檚 remember this one, people.)
- One of the immediate benefits of the merger he could explain is that each Lanai residential customer paying an average monthly bill of $200 might save $400 over the first five years. Asked if this was $400 each year, Gleason took great pains to explain that the $400 in savings was not each year, but $400 over five years or about, well, 22 cents per day as it turns out. This was good information, I鈥檓 glad we straightened that out.
I鈥檓 sure that many at the ILWU hall gathering learned something new. Unfortunately, even though Mr. Gleason (and the newly hired Jennifer Sabas) encouraged everyone to attend the PUC session the following Saturday — presumably to show support for the merger — pretty much everyone opted out, except for the ILWU-hall meeting organizer who thinks we have no expertise here in Hawaii.
But after all, it was Labor Day weekend.
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