Sustaining Hawai'i

We're all riding this bright blue marble together; if we don't take care of it, it's gonna break. Irrevocably. With each passing year this fact becomes even more screamingly obvious. Yet we've still got many people at the highest levels of political and economic power continuing to deny fundamental truths: Global warming is real. Americans cannot continue to consume the earth's resources with the ferocity we've come to expect as our birthright. We live on a tiny group of islands in the middle of the world's biggest ocean, yet many of us behave as though we can continually pillage resources without regard. Another golf course? More tourists paying higher prices to get here, and draining more irreplaceable resources while here?
Can we change course? Harrumph. Last year was supposed to be the Sustainability Legislature, said Senate President Colleen Hanabusa. That fizzled big time. This year the Lege gutted the 2050 sustainability plan.
So is it all hopeless? Do we just throw in the towel and ride the Oblivion Express until we flame out? Nah. Everywhere we look there are glimmers of hope-from small farmers to school kids to big corporations. Caring for Mother Earth and Father Sky who make life possible-that notion has gone mainstream to a surprising extent. An ever-increasing number of big companies are beginning to realize that acting in an environmentally responsible manner isn't just a nice thing to do-it's also good business. For example, the Kona Costco is a model of energy efficiency (as are some mainland Walmarts). And we give a special tip of the had to HELCO, our corporate sponsor again for this year's Sustainability Issue.
Here in the land where all of us are guests of Madame Pele, we're delighted to spotlight some hopeful trends, and humbly suggest some small-kine ways to go further.

Local Harvest
Organic growers for
healthier grinds

by Diane Koerner & Roger Harris

It's official-a new UK study found that organically grown fruits and vegetables are more nutritious than those grown conventionally. The preliminary results of a large, four-year research project, on a 725-acre farm connected to Britain's Newcastle University, showed that organic crops grown adjacent to conventionally grown crops con-tained as much as 40 percent more antioxidants, the nutrients heralded by scientists to cut the risk of cancer, heart disease, stroke and other health problems.
While the next phase of the UK study will research how the nutritional quality of the food is affected by agricultural methods, local organic advocates say they already have some answers.
"It comes down to the health of the soil and the microorganisms in it, which enable the plant to express its genetic urge for disease prevention through antioxidant pro-duction," explains Bob Schaffer, a coffee and mac nut farmer in South Kona and co-founder of Soil Culture Consulting. "The levels of protective vitamins, the antioxidants that the plants produce for their own benefit-such as Vitamin C, E, and thiamine-are higher in plants not damaged by pesticides and excessive fertilizer. When we eat those plants, every nutrient in the food literally becomes a medicine for us too."
In the US, studies have come out for many years showing a decline in the nutrients in the soil and in vegetables such as broccoli since the industrialization of farming and application of chemicals to agriculture, says Nancy Redfeather, owner of Kawanui Farm in Honalo. Returning to natural farming methods can restore the integrity of the soil.
With organic farming, explains Shekinah Carrillo of Milk and Honey Farm in Pahoa, no chemical fertilizers or pesticides are used to detract from the balance of the dynamic universe of the earth.
"We have a very intimate relationship with the soil, working diligently to create balanced trace minerals," she says. "At the same time, we're using our own farm compost to nurture the hundreds of beneficial microorganisms that are working steadily to create a fertile, successful garden. We work with nature's way-if a plant is unhealthy, that's when bugs will come. If that happens, we work on the imbalance rather than fight the bugs."
Lucky we live Hawai'i
"The Big Island has the highest number of certified organic farms in the state," according to Mairie Hamilton of the Hawai'i Organic Farmers Association (HOFA),
"Fifty four on the west side and 24 on the east side." In addition, there are 41 small organic farms with a certification exemption as they earn less than $5,000 per year. A list of all these resources can be found in HOFA's recently released "Organic Products Directory."
In Hawai'i Island's sustainability movement, which gained momentum with the recent Hawai'i Island Food Summit, local gardens are an integral part of the vision. With the plans being put in place now, the coming years should provide even more school gardens, community gardens, and easier access to local farmers' fresh produce.
Localvore
Schaffer cites another benefit to Hawai'i-grown produce. He noticed that local avocados, unlike California imports, almost never turn brown when cut, and determined that, "Being closer to the equator, Hawai'i has stronger sunlight and the avocados need to put a lot of light-blocking pigment or antioxidants in their skin." He postulates that Hawai'i avocados are extremely high in vitamin E and other antioxidants.
"When we consume them, those antioxidants are carried into our blood and give us the same protection," he says.
Your money's worth
If the quality of your food sustains your health as well as the health of your environment and the economy, the premium for locally grown, organic food seems well worth it. HOFA notes that buying locally-grown organic produce provides many benefits: better tasting, higher quality food; consumer dollars stay in the local community; oil con-sumption falls; pollution and soil erosion are reduced; pastoral rural landscapes are preserved and small family farms thrive.
The way to the most affordable fruits and vegetables is to have your own garden, advises Nancy Redfeather. "If you have a backyard-even 10x10 ft.-you can grow your own. Start small with what you like to eat," she suggests.
Redfeather's 1.2 acre organic, experimental and educational mini-farm in South Kona produces around 500 pounds of vegetables, coffee, fruit, nuts and spices each month, much of which she and her husband share with other families. In her role as the Hawai'i Island School Garden Network Coordinator, Redfeather is working to foster school gardening projects that teach students to grow their own vegetables using traditional, organic methods.
Besides growing your own, how can you get produce from local organic farmers on your table at the most affordable price? Their harvests are sold at the island's many farmers markets, health food stores, KTA and Sack N Save supermarkets.
"There is definitely a growing market for local organic produce and we're actively looking for more vendors for our Mountain Apple program," says KTA's Derek Kurisu. Interested farmers should contact KTA.
Buying direct
You can also cut out the middleman by joining a Community Supported Agriculture program. CSAs allow members of the community to support sustainable agriculture at a local farm in exchange for a portion of their harvest.
One CSA is through Milk and Honey Farm in Pahoa. Shekinah Carrillo and Britton Price sell shares of their 15 acres of orchards and vegetable gardens before each 12-week growing season. This gives them the money to buy fertilizers, seeds and equipment, and gives shareholders a portion of the harvest. The benefit is knowing you're part of local sustainable farming while reaping the harvest of freshly-picked salad and cooking greens such as kale, bok choi and chard each Saturday morning for $20/week (enough to feed a family of four) or 1/2 share for $10/week.
Organic produce is usually more expensive than buying from large corporate farms, explains Shekinah, because it takes more hands to cultivate the soil, make compost and mulch, than to just spray chemicals. "It is our prayer that people will start valuing food more. It is our medicine."
If you'd like to get even more involved in the production of your food, while learning organic farming methods, you can show up for volunteer mornings at Milk and Honey-Tuesdays and Thursdays, 8:30 a.m. to 12:30 p.m.
"We educate while we work," says Shekinah, "and we work on everything from the garden to the goats to the orchard... ending with a delicious farm lunch."
The off-grid Milk and Honey is working toward self-sufficient, sustainable farming with goats, chickens and eventually sheep in addition to the produce.
Adaptations Farm in Kealakekua currently runs a CSA that also serves as a clearinghouse for a number of small farms on the Kona side. Their "Fresh Feast" program lets you pick up a gourmet selection of locally grown vegetables, fruit and herbs on Wednesdays at one of four locations in Kona and Waimea.
The recent Hawai'i Food Summit looked toward what would be healthiest for our island's economy, environment and people.
Among the visions and solutions identified at the Summit are to create better marketing and distribution of locally produced food and educational opportunities for school and home gardeners.
"The time has come on this island that a large group of people are interested and moving as a culture toward a more sustainable, ecological system," says Redfeather, the Summit coordinator.

Community Gardens
No need to grow it alone

by Roger Harris & Diane Koerner

Need to dig up gardening advice? Gather with other gardeners at the Kaiao Community Garden in Hilo or join a support group such as Know Your Farmer Alliance to learn from others who also have a vision of food sustainability for Hawai'i Island.
Even if you don't have your own patch of dirt, you can join in the harvest at the Kaiao Garden at the Hilo Boys & Girls Club. Every Saturday from 9-11:30 am, the garden is open to everyone to help work the land, share ideas and the bounty of vegetables, and even plant your own plot of seeds.
"The more people who come, the stronger our garden and the community will be," says Bodhi Searles, co-facilitator with Dr. Manu Meyer of UH-Hilo. "We started out with rocks and grass just over a year ago, now it's a lush Eden for the entire community to share."
Volunteers are also welcome to join the children who tend the garden Mondays, Wednesdays, and Fridays from 3:30-5 pm, taking home fruit and vegetables ripe from the garden.
Know Your Farmer Alliance (KYFA) is another organization open to anyone interested in ecological food production and local self-sufficiency. On a recent Saturday night, members recently held a potluck at a 2.5-acre eco-farm in Puna Makai that demonstrates the amount of food a small area can produce. There was a sharing of seeds, pepper and squash plants, and information on everything from the progress of GMO taro legislation and natural gardening tips (including "the perfect compost tea"), to the best cover crops and how to produce green manure.
"We know that a strong community is as self-sufficient as possible, and cares for its land and people with a passion," says the KYFA mission statement. "Pure, fresh, local and naturally grown food is our birthright and our vision. There is much to learn from each other and all are welcome."
The Alliance promotes natural growing practices with workshops on topics like soil health and citrus tree pruning, farm tours, demonstrations, meetings, networking, newsletters and events such as the 6th Annual Hawai'i Island Seed Exchange at Amy Greenwell Ethnobotanical Garden in South Kona on June 21.
More educational opportunities are available in organic home vegetable production at the AGEG, which offers free instructional tours of its traditional Hawaiian vegetable gardens the second Saturday of every month as well as frequent horticulture workshops.
For a complete picture of sustainable living, consider a work exchange at a sustainable farm near you, for instance, at the La'akea Community, a permaculture farm in Pahoa. During La'akea's Summer '08 Intern Program, work exchangers will have the opportunity for a full immersion in sustainable food and fiber production including tropical fruit orchards, vegetable gardens, greenhouses, animal systems, coconut tree climbing and harvesting, bamboo and other timber crops, natural building structures, biodiesel/veggie oil fuel projects, landscape design and solar energy projects.

Freecycle!
Giveaways keep it out of the landfill

by Alan D. McNarie

On May 1, 2003 Deron Beal of Tucson, Arizona, sent an e-mail to about 40 friends, mentioning that he had some items to give away. Little did he know that he'd just started a worldwide phenomenon.
Beal's e-mail worked so well that he decided to form a Yahoo club with the goal of keeping usable items out of the local landfill. Members who had things to give away in the Tucson area could post an "offer" on the site, and other members could accept and pick it up. Members who needed something could post a "Wanted" notice, and anyone who had one could pass it on. When a wish was fulfilled, the wisher would post a "Received" notice. When an offered item had found a home, the offerer would post a "Taken" notice. No trades or exchanges of currency are allowed; this is strictly a giving organization.
This simple structure proved amazingly popular. Today, there are 4,271 local chapters of Freecycle spread across over 75 countries. In Hawai'i, chapters serve Hawai'i Island, Kaua'i, Maui, Honolulu and Schofield Barracks.
Local Largesse
Freecycle Big Island currently has nearly 1700 members. Seven months ago Beal told Sonia Martinez-founder of the 1700-member Freecycle Big Island (and HIJ food writer)-that her group had kept an estimated 300 tons of items out of the local landfills. Worldwide, Freecycle's over 4,597,000 members give and receive about 300 tons of stuff each day.
Local members have given and received everything from TVs to pets, from egg cartons to dressmakers' dummies, from boats to baby furniture, from a Jacuzzi to a truckload of dirt. Children's clothing and books, and tools and building supplies, are popular items. One woman is building a house almost entirely out of recycled materials, many of them from other Freecycle members. She posts regular photographs of the project's progress on the group's Web page.
"There's a lot of people that are crafters. They will ask for things like old costume jewelry or ribbons or holiday cards," says Martinez. "Somebody collects prom dresses because she makes items out of them, and she got a whole pile of them."
Meet People,
Save the World
Martinez started the local group in the year after the national organization was founded.
"I was reading about the Freecycle group in another area, and I decided to do a search and see if there were any in the islands," she said. "I found out that there were none, I decided to start one."
She says the group takes "a lot" of her time. Members often post 20-30 messages per day, and new members must be moderated until she's certain that they know the rules. But there are compensations: the pride of "saving the world, one gift at a time," for one. And, Martinez observes, "You really meet a lot of interesting people."
One of those friends is computer consultant Bill Martin, one of the group's most senior members. Shortly after the Freecycle Big Island Web page opened, Martin got the microwave Martinez was giving away.
Over the years, he's picked up books, scrapbooks, photo albums and tools. He even got "a brand new Sears Craftsman chain saw from a guy who discovered he couldn't operate it."
He owns a small farm and gives away a lot of fruit, often letting Freecycle members come out and pick their own.
His latest post is an offer of a "dog back-pack for medium-sized dog."
"I think the main concept here is that your unwanted item may be something that someone else can use, and to keep it out of the landfills," he says.
Membership is free and the system is easy to use. To give away an item, log onto the Web page and click "Post." To post a message, the member simply needs to go to the Web page and click "Post." A standard E-mail form appears. Type a Subject line with one of the four key words-OFFER, TAKEN, WANTED, FOUND-plus a short description and the general location of the post (e.g., "WANTED: didgeridoo, Pahala) and any additional relevant information in the Message box ("Travel regularly to Hilo; can pick up there.")
The message then goes out to the other members, who can either opt to receive all posts in their e-mail or to read them on the Freecycle Big Island Web page.
There are few other rules: no drugs, medications, alcohol, guns or ammunition, invasive species, food in opened containers, or "anything R-rated." No trading or exchanges; everything must be a gift.
Aside from that, it's a matter of etiquette and social pressure. Members are encouraged to start by posting an Offer, and to post approximately the same number of Offers as Wanteds. It's bad form to post mostly Wanteds, or accept lots of stuff but never offer anything. Big ticket items such as boats and cars occasionally show up, but giant "Wish list" wanteds such as these are frowned upon.
"The people that are real greedy-right away, the other members start recognizing the name," observes Martinez. But on April 1, she did allow an e-mail for a "two bedroom house" to be posted.
"APRIL FOOL!" the post concluded.
People who give away spare kittens or puppies are encouraged to make sure the animals go to good homes. Spamming or flaming will get a member banned.
Occasionally, someone comes up with a fun variation on the basic process. Last year members circulated a surprise "treasure chest"-a grab bag of objects.
"As it traveled around the island, each person took what they needed out of it, and replaced them with exactly the same number of items," explains Martinez, who plans to start a new "treasure chest" again this year. She's also hoping to set up a social event or two, so that Freecycle members have a chance to meet face to face.
"We hope, maybe sometime this summer, to have two events, one on the East side, one on the West side, like a swap meet for Freecycle members only," she says.

Not "No Can"-Can!

Interview by Sonia Martinez

Richard Ha is one of the most forward thinking farmers on Hawai'i Island-one who really walks the sustainability talk. He started in the 1970s on several acres of Hamakua land and capital from a credit card with a $300 limit. Today the family-run, hydroponic Hamakua Springs Country Farm is a working model of a sustainable local ag operation.
But all is not smooth sailing. On April 4 (just after this interview was conducted), Ha announced he was closing his Mauna Kea Banana operation, which had been operating for three decades, citing the high cost of inputs, especially fertilizer. He will lease the former banana land to local farmers.

You started out in the banana business. Why did you expand several years ago into growing tomatoes and other vegetables?
In the face of a devastating banana virus and a changing marketing environment, we wanted to spread our risks. The characteristic of the banana business is that it is a commodity. Commodity business implies large volumes and thin margins with very little room for error. We developed a hydroponic vegetable business to enter a high end niche market. We wanted to have at least 50 percent of our revenues in this new venture. And, this year we have succeeded.

You have a van to pick up employees. Obviously, this idea would cut absenteeism. Would you advise this for other farmers?
I believe that each situation has its particular solution to problems. But, it is true that gasoline cost is a major concern for agricultural workers. For each ag endeavor the owners should do the cost benefit analysis. Certainly, providing a ride does help workers get to work. And, the higher energy costs rise the more attractive this alternative becomes.

Hawai'i Island shoppers are recognizing the Hamakua Springs Country Farm label. How many other islands are you shipping to now?
We supply the Big Island, O'ahu, Maui and Kaua'i.

We have seen you manning your booth at the Kino'ole Farmers Market with your grandson Kapono. How is that working out for you?
This is one of the best things we ever did. Kapono runs the booth and I assist him. He makes the pricing decisions within the parameters we set. Who knows, maybe he'll represent the fourth generation.
I love to talk to the people. It is so interesting to meet people who used to come to my Mom and Dad's chicken farm to buy eggs. I get to meet Pop's friends from the "old days." If the produce is "junk" I have to take the heat and then improve it. Nothing like talking to the people to be grounded in what we are providing to the people. We want to do a good job and there is no substitute to talking to the people to find out if we are succeeding or not.

Your farm is going to be operating with hydro-electric power. How did this come about? What do you advise other farmers who have springs and streams on their land?
Everyone knows that energy costs will be rising. And, since I attended the Association for the Study of Peak Oil conference in Houston last year, I realize that the cost of oil will probably rise faster rather than slower.
So, we have been looking for ways to avoid fossil fuel-related costs. With 140 inches of rain annually and three streams running thorough our property, it was natural to see if we could develop hydro power. So, we are in the midst of developing it. I would say to other farmers: "plan for the worst." We have developed favorable ag loans for this purpose and the tide is running toward alternate energy projects. I advise other farmers to ride the wave any way that they can.

Hamakua Springs Farm has a close relationship with Chef Alan Wong. How can other farmers find "their chef" to promote their product(s)?
There are many things to consider when deciding on who one can work with. Anticipate the chef's needs and match it up with your production flow. It needs to be a win-win situation. The best thing to do is actually talk to the chef, to get an idea of his needs. From there, it will be evident what you can or cannot do. But, I do recommend that farmers team up with chefs. It makes the whole better than the individual pieces. I highly recommend that farmers work with chefs. It's a great thing!

In many farms, the children don't seem to be interested and leave for greener pastures-but your whole family is involved in the farm. How does it feel to have your mother, wife, daughter and son-in-law and even your grandchildren working with you?
It is great to have everyone working with us. I know that every person must reach fulfillment. My job is to develop the farm so that it is positioned to have unfulfilled possibilities in the future. If those possibilities are sufficiently attractive, I won't have to worry about future generations wanting to work at the farm. I think that our farm has these potentials and possibilities.

We have some of the most productive land in the islands. What do you foresee for this island relating to farming?
I really don't think that it has to do with productive land in the conventional sense, i.e. flat land and deep soil. I think that it revolves around something more basic-sunlight and water. I think that the Big Island has an abundance of both. The basic energy for agriculture is not oil-it's sunlight. We have that in abundance all year long-together with water, we are able to feed ourselves.

What does Hamakua Springs Country Farm do to recycle waste?
I think that the most important thing we can do with waste is to use it for fertilizer. We are in the process of developing aquaponics. This is where we grow fish and crops and use the waste of one as fertilizer for the other.

What can you say about the rampant agricultural theft? What do you advise farmers do to protect their crops and machinery?
We've been farming for more than 30 years so we know what the bare minimum of security is today. But, that level may not be enough when energy prices rise high enough to make people desperate.
At the minimum, we have persons living on our property. We secure our equipment in steel containers with difficult to cut locks.

Can Hawai'i Island really become sustainable before the year 2050?
Absolutely. If we are talking about sufficient calories to survive, there is no doubt. But, will we have the variety to which we have become accustomed? That is another question.
I believe that food will form the basis for our entertainment in the future, much as the Hawaiians had it at the center of their social structure. Food was prominent. Why? Because nothing is more basic and more important.

In the event that the islands are ever "cut off" from the mainland, what do you recommend? How can our island's people survive?
Right now people are starting to come together because they know this is a serious subject. I think that the old Hawaiian model is the model that we should emulate. Make more friends, value your family-be good to each other. That is key to our survival. Plant some fruit trees in your yard, trade with your friends and neighbors. The more friends you have the more you can trade. It's not complicated.
That is why the Hawaiians have the aloha spirit. The Hawaiians accepted people passing through as they walked from district to district... into their homes. Why? They did not have money or bed and breakfast's. But, what they had worked. It's not rocket science.

Grocery prices are going up every day due to transportation and fuel costs. Do you suggest people plant small gardens and fruit trees at home to supplement their food purchases?
Absolutely! There are people thinking about this and things are coming together. It's very hopeful.

What advice can you give other small farmers who want to "make it big" in agriculture?
Big Agriculture is all about conventional economics, accounting, marketing, etc. I would advise small farmers to think hard about where they really want to position themselves. Sometimes small is big.

I know you have received help and ideas from the College of Agriculture at UH-Hilo as a resource. Do you recommend this to other farmers?
I absolutely recommend that small farmers use this resource. This will save much time and money. This is a way for small farmers to avoid trial and error learning.

As one of the leading farmers, what do you suggest other Hawai'i Island farmers do to find their market?
Farmers are the most resourceful people. They were thinking outside the box before people even developed that term. I say, work with your individual environment on your particular farm. We never did blindly follow studies that were developed in different parts of the world. We went to learn, with the idea that we would adapt what we could to our particular circumstance. That is the best advice I can give.

You recently sponsored the 2nd Annual Tomato Recipe Contest. What gave you the idea?
I don't recall. But, I knew if I could receive recipes over the Internet and if the HCC students could prepare them, it would be doable. The value to the students would be great. And, so it is proving to be a great success. It really makes me feel good to see what the students can do with brand new recipes.
This year's Grand Prize winner was an 11th grade student. The interesting story is her support system-her teachers. Everyone knows how much I respect teachers!
Now, I get to meet each one and give them a tour of the farm-and talk about all of our roles in sustainability.
We are all doing the things we need to do to survive in a future of oil shortage. I am sure we can do this. Not, no can. CAN!!

What's it Mean?
Decoding your electric bill

by Linda Copman

Reading the fine print on a nutrition label might help you to avoid loading up on unwanted calories. Likewise, reading the fine print on your monthly electric bill can potentially save you money, by helping you to understand what you are being charged for and how your home energy usage affects your bill.
Your monthly electric bill contains four sections: Amounts, Bill Period, Bill Detail, and Usage Profile. The Amounts section shows past billing amounts paid and current charges. Bill Period lists service dates and meter data. Bill Detail provides an itemized break-down of your bill. The Usage Profile is a useful graphical profile of your electric consumption over a twelve month period. This graph is a great way to track changes in your electric usage due to the purchase of a new appliance or seasonal use of heaters or air conditioners, or to evaluate the effectiveness of any energy conservation measures you recently implemented.
The basic unit of power on an electrical bill is the kilowatt/hour, or kWh. If you turn ten 100-watt bulbs on in your house for one hour, they will consume one kilowatt-hour of energy.
The "meat" of your electric bill lists the number of kWh you used during the billing period, according to your meter reading. That number varies each month due to differences in the number of days in the billing period, the number of people in the household, and changes in your appliance usage. In the example below, John Doe's household used 650 kWh during his billing cycle.
A line-by-line breakdown of each numbered item in the Bill Detail portion:
11. From (Date) to (Date) Days. The start and end dates of the billing period and the total number of days for which your current electricity usage was measured.
12. Meter Reading. The actual meter readings taken at the start and end of the billing period. If the utility estimated your bill, the phrase "EST. CURRENT READING" is printed here.
13. Usage. The number of kilowatt-hours used during the billing period.
14. Breakdown of electric charges:
Customer Charge: includes the utility's fixed costs for maintaining service to your home (reading your meter, processing your bill, etc). You are billed this customer charge even if you use no electricity during the billing period.
Non-fuel Energy: the utility's non-fuel costs, such as the costs of operating power plants and maintaining the electric distribution system, including power lines.
Base Fuel Energy: based on the cost of fuel used by the utility's power plants and those of independent producers who sell power to the utility. The amount of this charge is calculated based on the fuel prices approved by the PUC in the utility's last rate case. Together, the Non-fuel energy and Base Fuel Energy charges comprise the utility's "base rates."
Energy Cost Adjustment: a surcharge that reflects increases or decreases in the price of fuel from the time the Base Fuel Energy Charge was set in the utility's last rate case. As the cost of fuel rises, the ECAC rises correspondingly. As a rule of thumb, for each $1 increase in the price of a barrel of fuel oil, the ECAC will increase by approximately .151 cents per kilowatt-hour.
IRP Cost Recovery includes are three surcharges:
IRP Cost Adjustment: covers the costs of the utility's Integrated Resource Planning (IRP) programs, 20-year planning documents that the utilities prepare according to a framework established by the PUC. HELCO is required to conduct a major review of its IRP every 3 years, and is allowed to recover their IRP costs, including interest and taxes, through this surcharge.
DSM Cost Adjustment: for Demand-Side Management (DSM), or energy-efficiency programs, including administrative and marketing costs, customer incentives, and any utility incentives. HELCO customers currently pay .2354 cents per kWh for the DSM Adjustment, to reimburse HELCO $962,309 for the 2007 DSM residential program costs and revenue taxes, for 2006 shareholder incentives, and for the reconciliation of the 2006 DSM residential program costs.
In February 2007, the PUC approved a non-utility market structure for administering energy efficiency programs in the State of Hawaii, to be implemented by January 2009. Presumably, a third party could provide more effective and aggressive DSM programs to ratepayers, since a third party would have more incentives to save energy than the utilities might have.
SolarSaver Adjustment: a separate surcharge allowing the utility to recover its costs for implementing the SolarSaver Program, a new, no-interest loan available to residential customers on O'ahu, Maui, and Hawai'i Islands to pay for the cost of installing a solar water heating system on their residence. The three-year pilot program started in July 2007, and is limited to 100 customers per year on O'ahu, 50 per year on Maui, and 50 per year on Hawai'i Island. This charge is applied across the board to HELCO residential customers, regardless of whether they participate in the SolarSaver program.
Other charges may be temporarily included in your electric bill. For example, the PUC (Public Utilities Commission) may grant the utility an interim rate increase to allow for increases in fuel costs since the utility's last rate case was approved.
With the price of oil at over $100 per barrel, the Energy Cost Adjustment Charge now represents at least one-third of your entire bill. This was not always the case. In 2004, the ECAC was as low as one cent per Kwh. With today's oil prices, it is now over 15 cents per Kwh.
According to the PUC (Public Utilities Commission) Decision and Order No. 18365 effective February 15, 2001, the authorizing document for the ECAC, "The (Energy Cost) Adjustment shall be effective on the date of the cost. When a cost change occurs during a customer's billing period, the Adjustment will be prorated for the number of days each cost was in effect." In 2006, the administrative rule was backed up by state law when Act 162 was passed by the State Legislature and signed by Governor Linda Lingle. This law allows the PUC to "fairly share the risk of fuel cost changes between the public utility and its customers." "Risk sharing" means that the utility limits the risk associated with oil price volatility.
The ECAC, as it is currently structured, thus allows the utilities to pass along increased fuel prices to their customers, so there is no pricing incentive for the utilities to close inefficient generating plants or develop renewable energy. In short, the price of oil goes up right in tandem with your electric bill, The old fossil fuel plants have been fully depreciated and require minimal capital investments to operate. Meanwhile we, the consumers, watch our electric bills skyrocket.
"It isn't in the utilities' interest to move away from oil," Governor Lingle told the Kona-Kohala Chamber of Commerce on March 13. "They have a 100 percent pass through. That's the situation we have here because of the regulatory structure." Lingle said the PUC and the electric utilities would need to change their current practices if the State is to succeed in reducing its dependency on imported oil.
While it will take systemic changes to influence the price of oil, taking measures to reduce the energy consumption in your home can significantly reduce your bill. Simple changes like replacing incandescent light bulbs with compact fluorescent bulbs, using fans instead of air conditioning, and installing a solar water heating system can result in significant monthly savings, especially when electric prices at an all-time high.
For more information about your Hawaiian Electric Light Company (HELCO) bill, call 969-6999 (Hilo), 329-3584 (Kona), or 885-4605 (Waimea), or check the Web sites below. n
This is the first in a series of articles that the Kohala Center and HIJ are presenting to help families and businesses to reduce energy costs. The Hawai'i Island Energy Sustainability Plan (see link below) is funded by grants from Councilmen Pete Hoffman, Bob Jacobson and Angel Pilago through the Hawai'i County Department of Research and Development.

Click Here
Hawaii Electric Light Co. HELCO
helcohi.com
Hawaii Electric Co. (HELCO's parent)
heco.com
Kohala Center
kohalacenter.org
Hawaii Island Energy Sustainability Plan
learning.kohalacenter.org/news/8311/Hawaii-Island-Energy-Sustainability-Plan.htm

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