Kailua-Kona HELCO pricing ADVERTISING A ‘unique’ commodity based upon pricing Why is the pricing of electricity different than other commodities? Last year, on Jan. 14, HELCO changed the way it calculates a residential bill. What was a simple constant rate
HELCO pricing
A ‘unique’ commodity based upon pricing
Why is the pricing of electricity different than other commodities? Last year, on Jan. 14, HELCO changed the way it calculates a residential bill. What was a simple constant rate for each kWh consumed became a tiered price structure.
What is the result of this? As your consumption (kWh) increases, the rate at which you are billed also changes; a type of energy pricing not restricted to HELCO or the other investor-owned electric utilities in Hawaii. A considerable number of electric suppliers in other states also have adopted this type of rate structure.
So, what’s the “issue”?
As you exceed 300 kWh (per billing period), your cost per kWh increases by 5 percent; and above 1,000 kWh, the cost is an additional 2 percent.
Trying to recall another product where the more you buy, the more you pay per unit, I’m at a loss to think of any. How long would any merchant survive if, as an example, they would charge $3 for a half-gallon of milk, but price a full gallon at $7? But we’re not trying to reduce milk consumption, one could argue. True, but why with petroleum (which we are attempting to reduce demand for) can you buy a five-quart container of motor oil for $18 when the cost of a quart container of the identical product is $5?
Another interesting observation: For other than residential usage, either there is no tier, or it is an inverse tiered structure; the higher the consumption, the less the rate per unit.
My intent is not to chastise the utility for formulating a different way of billing; I have no knowledge as to what, if any, Public Utilities Commission mandate was followed to accomplish it. I know what the situation is with regard to my electric usage; the more I use, the higher my per-unit cost. Then I decide if I really need the extra power.
Michael L. Last
Naalehu
Differences in importance
Politics or problems
We in Hawaii and elsewhere are faced with impending disaster from humongous concentrations in our oceans of disintegrating, toxic plastic debris equal in size to Texas. It is breaking down and getting into our marine food supply and ecosystem. The massive accumulation of debris (equal in size to California) from Japan’s tsunami is heading for our Hawaii in very near future.
Should we be listening to the top issues being debated and discussed by our jousting presidential candidates? Should people of the same gender be allowed to marry each other? Who has “flip flopped” the most or who can trace their political acumen back to the original (Boston) “Tea Party? And should we deny or provide health care coverage to needy uninsured unfortunates. Should we spend multi-millions of dollars on attack ads and terribly troubling questions such as: Is Obama really a U.S. citizen or, worse yet, a socialistic, corrupt, former Chicago insider?
These questions cause me many hours of fitful sleep. If a gay person is allowed to marry, is my marriage actually threatened? Can Sarah Palin see the plastic gyre from her house? Did Newt really have an epiphany and check his ego at the door?
Stan Boren
Kailua-Kona
