Hawaii's overhaul of the utility business model- HECO not making progress or significant course correction...
Look at utilitydive website.
The sun is setting on traditional cost-of-service regulation
HECO not making progress or significant course correction...
For most of the U.S., this day is still some ways away. But in Hawaii, it's here.
A year ago, the Hawaii Public Utilities Commission (PUC) warned the Hawaii Electric Company (HECO), the island state's biggest utility: develop a sustainable business model—or else.
If the PUC's concerns—namely, that HECO's current business model did not align with public policy goals and the needs of Hawaii's electricity customers—were not addressed, the PUC said it would be “forced to employ arduous regulatory scrutiny and oversight of utility expenditures, operations and investments to attempt to achieve the desired performance levels and customer satisfaction.”'
The PUC said it would prefer not to do that, "but unfortunately, at the present time, believes the lack of a strategic and sustainable business model would require [arduous regulatory scrutiny and oversight] until there is evidence of an acceptable course correction.”
Last week, the commission indicated this is still the case. The PUC rejected an integrated resource plan (IRP) submitted by HECO for it and its sister companies, the Hawaii Electric Light Company (HELCO) and the Maui Electric Company (MECO).
In rejecting the plan, the PUC said it has not “observed an ‘acceptable course correction’” or “sufficient evidence” of HECO’s "progress toward a sustainable business model. The IRP appears to be “in part, a series of unrelated capital projects without strategic focus on the clear issues facing the utility” while the HECO Companies' proposed capital expenditures for 2014 appear to be "of questionable long-term value," the PUC said.
I am a retiree with one of the most energy and water efficient homes in Hawaii. Net zero free electricity. It was featured in a full half hour TV show in 2011. You can see the video segments online youtube or charleneongreen.
No one is paying me anything. I am fighting for social & economic justice against this crooked and corrupt business. I am a plaintiff in the lawsuit against the company, the PUC, the state of Hawaii, and its worthless governor. Our 2nd hearing is May 29.
The company appears to be running a Ponzi scheme to protect its dividend. The stock is dropping along with the rest of the utility index. "The Street" downgraded it from buy to hold this week.
Off Wall Street sent a strong sell on April 1 with a target price of $15.