Hawaii's Tiered Rate Structure Rewards Energy Conservation

January 14, 2011

In a move designed to encourage energy conservation, the Hawaii Electric Light Co. has begun using a lower price per kilowatt hour (kWh) when billing residential customers who use less electricity. The Hawaii Public Utilities Commission recently approved the new three-tiered rate structure, and as of January 14, the structure was in effect on Maui, the Big Island, Molokai, and Lanai. The utility company also has permission to extend the new incentives to Oahu customers. The company said that most electricity users would be in the first two tiers. The lowest tier provides the most savings, though rates vary from island to island. For example, on the Big Island, customers in the lowest tier would pay about 20% less per kWh than those whose usage puts them in the highest category. See the Hawaii Electric Co. press releasePDF.