HECO Taken to Task by Hawaii Resident's Complaint to Federal Trade Commission
Hawaii has the highest electric rates in the nation and has had a state-sponsored utility monopoly for most of Hawaiian Electric’s (HECO) 100+ year existence. The utility has become a dinosaur with a status-quo mentality and continues to obstruct progress toward independence from foreign oil. It must be removed from its god-like pedestal if Hawaii is to move forward to a renewable energy future.
Please reference my personal complaint in this matter, # 32340030, as well as the attached petition complaint.
Federal Trade Commission, Bureau of Consumer Protection, Office of the Director, 600 Pennsylvania Avenue, NW, Washington DC 20580
Dear Mr. Leibowitz,
Hawaii has the highest electric rates in the nation and has had a state-sponsored utility monopoly for most of Hawaiian Electric’s (HECO) 100+ year existence. The utility has become a dinosaur with a status-quo mentality and continues to obstruct progress toward independence from foreign oil. It must be removed from its god-like pedestal if Hawaii is to move forward to a renewable energy future. Please reference my personal complaint in this matter, # 32340030, as well as the attached petition complaint.
HECO’s stock price is up and its profits are soaring, not because it is a well managed, ethical company, but because of its rate increases. Its entire infrastructure is crumbling beneath our roads, with many island electrical companies sub-contracted by HECO to perform dangerous repairs and upgrades to deteriorated 7,200 V exposed underground wiring ( no conduit to protect wiring) because HECO doesn't have the manpower or the skilled management to deal with its own failed policies over the past 50 years. It seems that not a day goes by without having one or more localized power failures on Oahu. The last power failure on my street lasted 10 hours on December 11, 2011. When President Obama was here for Christmas 2008, the entire island was without power overnight. Last year, much of the windward side of Oahu was without power for many hours.
Hawaii ratepayers are tired of being held hostage by HECO, including its Maui Electric ( MECO), and Hawaiian Electric Light Company ( HELCO ) subsidiaries while they constantly stand in the way of our progress toward an energy efficient future. Hawaii’s Energy Plan, based upon HECO profit requirements, is to become only 70% free of foreign oil in 20 years, with only 40% coming from renewables and 30% from efficiency. Yet, we can be 100% free of our dependence on foreign oil within 10 years if we set our minds to it, by using our most abundant renewable energy source, geothermal energy, for our base load energy, sun, wind, and ocean, but HECO keeps stifling these technologies, especially geothermal energy, so it can continue burning oil and bi-oil for another 20 years to preserve its profits at the expense of our environment, our residents, our communities, and our planet.
HECO owns this town like an outlaw gang from an Old Western town in a TV show. Everyone, including energy-related businesses, are afraid of the Big Bad Wolf, and politicians, news media, and others bow before their false energy god in idolatrous worship with unwavering commitment and allegiance to the rich and powerful instead of serving the needs of the people and future generations and being better stewards of the planet. So many people are beholden to HECO’s money that they are afraid to speak out against the company’s manipulative, stonewalling tactics and its abuse of power.
HECO’s new TV commercial bluntly warns ratepayers of higher rates to come, claiming innocence and blaming rising oil prices for those increases. The commercial promotes solar and wind but ignores geothermal energy. Yet, Hawaii has enough geothermal energy potential to power the entire state if we end this abusive monopoly. Shortly after airing this commercial, MECO denied a long time Maui resident connection of a modest 2.9 Kv PV system to the grid and insisted on a minimum $3,000 fee to do a feasibility study. HECO is a wolf in sheep’s clothing, and tries in another TV ad to offer minimalistic energy-saving tips in its ongoing efforts to deceive & manipulate ratepayers into thinking that HECO is their angelic friend instead of their sworn devilish enemy.
A USDOJ attorney stated that section 2 of the Sherman Anti-Trust Act does not apply because HECO is not guilty of exclusionary conduct as a state-mandated utility, and that the only way to end this abusive monopoly with its stranglehold on our electric rates and our energy future is for the Hawaii State Legislature to deregulate the retail utility to open it up to competition. He also suggested that the FTC has very broad powers to protect consumers, and an FTC representative told me that if it sees a pattern of complaints, the FTC will file a class action lawsuit on behalf of the consumer.
On January 25, Hawaii Representative Denny Coffman of the Big Island introduced a long overdue, history-making, landmark piece of legislation, HB2400, to deregulate our electric utility industry. He also introduced numerous other bills related to geothermal energy to move Hawaii toward more geothermal energy and make implementation of HB2400 a successful endeavor. Other legislators have introduced a plethora of other energy bills. Our local Star*Advertiser covered these bills in its Monday edition Money story, “Breaking Down HECO”.
http://www.capitol.hawaii.gov/session2012/bills/HB2400_.pdf
It has already been alleged on the street that HECO plans to spend lots of money like Washington lobbyists do on members of Congress to crush this bill to maintain its power, control, and influence over the people, businesses, and politicians of Hawaii.
I urge you to hear our plea for help to put pressure on our Legislature and Governor to pass and sign this strongly worded HB2400 bill and all of its companion geothermal bills into law without delay and without HECO interference to weaken the bill(s) and add loopholes benefiting HECO’s continuing obsessive, compulsive lust for profits at the expense of our future. Help us end this 100+ year old monopoly.
Do not be like our know-nothing, see-nothing, do-nothing Congress that can’t solve the simplest of problems in our country. Do not allow our plea to fall on death ears or pass the torch to someone else in Washington because you don’t want to get involved any more than our local DOJ, Ethics Commission, or Consumer Advocacy will get involved.
Enclosed is a petition complaint requesting that your office file a class action lawsuit on behalf of Hawaii’s ratepayers against HECO and other “co-conspirators” in their failed efforts to rip off ratepayers on Oahu and the Big Island to the tune of a half billion dollars over 20 years to fund a private company’s lab experiment with unproven technology so it would be 100% risk-free to its investors. Petition signatures continue to come in to this on-line petition since:
http://www.change.org/petitions/end-hawaiis-electric-utility-monopoly-for-lower-rates-clean-energy
Most folks feel hopeless, helpless & powerless, but are not petition signers, including small energy businesses afraid of the Big Bad Wolf. Some out-of-state signers may have lived in Hawaii and were forced out by high living costs, or are otherwise familiar with the HECO monopoly because friends or family live here. Out-of country signatures are important because of the international trade infringement issues involved in the subject of the petition complaint.
The last statement of Lincoln’s Gettysburg address - this government of the people, by the people, for the people, shall not perish from the earth - has yet to become a reality in this country because our government is by the rich and powerful for the rich and powerful, and those rich and powerful are destroying our country, and our planet.
It is time for those rich and powerful people, HECO management included, to step aside and for the voices of the people to be heard. It is time to stop this insane, insidious, obsessive, compulsive lusting for money, power, and control in this country and start focusing on the betterment of the human condition and better stewardship of Spaceship Earth. The playing field must be leveled, with everyone playing by the same set of rules of ethical conduct, honesty and integrity, openness and transparency, fair and honest profits, not dishonest, obscene profits. It is time for more common sense to prevail and for a bold new vision for our future to be implemented.
Sincerely Yours,
Ed Wagner
Mililani, HI
Cc: President Obama, Senate Subcommittee on Energy, USDOJ, USDOE, Hawaii State Legislature, www.Charleneongreen.org, news media, & more
Comments
On Friday, Honolulu City Councilman Tom Berg introduced a resolution, 12-062 supporting the end of our 100 year old electric utility monopoly and supporting HB2400 and SB2982 that have gone nowhere in the legislature because of Hawaiian Electric Industries ( HECO ) oppressive, monopolistic, dictatorial power, control, and stranglehold over politicians and businesses in Hawaii. The senate bills never even got a public hearing, but those bills can be resurrected by a Gut & Replace tactic and passed into law with enough pressure from the public, the FTC, and the USDOJ.
A PDF copy of the resolution is attached and can be viewed on line here:
http://www4.honolulu.gov/docushare/dsweb/Get/Document-122834/6rz6c65-.pdf
He has scheduled a town hall meeting about this resolution for his constituents at Ewa Makai Middle School on May 29 at 6-8-8:30pm.
These bills / resolutions were introduced by courageous legislators who deserve your support for truly serving the people of Hawaii instead of serving themselves, the greedy, lustful rich and powerful, and most of all, Hawaii's very own false god, the Big Bad Wolf itself, HECO. These visionary leaders stuck their neck out on a limb for the people of Hawaii so now it is your turn to support them.
Councilman Tom Berg - tberg@honolulu .gov - 808-768-5001
Representative Denny Coffman - repcoffman@cap itol.hawaii.gov - 808- 586-9605
Senator Malama Solomon - sensolomon@cap itol.hawaii.gov - 808- 586-7335
Senator Slom also introduced a deregulation bill, SB2613, that has gone nowhere for the same reason.
Senator Sam Slom - senslom@capit ol.hawaii.gov - 808- 586-8420
The April 4 City Council hearing for Councilman Berg's 12-062 resolution will be up to Public Works chairman, Stanley Chang. He has refused to hear his previous resolutions so he needs a little persuasion to hear this resolution on April 4. You may call or email him here:
Council Member Stanley Chang - ccldistrict4@ho nolulu.gov - (808) 768-5004
For outer island residents, please pass this attached resolution on to city council members on your islands and encourage them to introduce and pass a similar resolution. Outer island folks pay substantially more for electricity than Oahu residents as shown in the attached Dec 06 through Dec 11 chart from Dec 2011 PUC report or the chart at bottom of this message.
http://www4.honolulu.gov/docushare/dsweb/Get/Document-122834/6rz6c65-.pdf
It is time for all politicians to stop serving themselves and the rich and powerful. It is time for them to start listening to and acting upon the wishes of Hawaii's people, especially members of our host culture, Native Hawaiians, many of whom support ending this monopoly, and support using geothermal energy as Hawaii's base load energy source.
It is time for these private servants to get on the right side of history by crossing that line in the sand to support the people. They must end this 100 year old state-sponsored abusive utility monopoly this year, not next year or a generation from now, and force it to divest of its power generation holdings, as well as American Savings Bank, and to become a power transmission company only.
it can then focus on fixing the crumbling infrastructure beneath our streets and sidewalks and focus on building a smart grid with funding from DOE and investor capital instead of putting the burden on the backs of already overburdened ratepayers until they are forced into poverty or forced out of Hawaii by our high cost of living.
HECO just raised its rates again this week, claiming that the increase is the result of oil price increases. Yet, its profits are souring into the stratosphere just as oil company profits have soared with gasoline price increases.
It is time to stop this insidious, insane lust for more and more money and power and control and start focusing on betterment of the human condition and better stewardship of Spaceship Earth.
The Association of Hawaiian Civic Clubs adopted a resolution against big wind projects on the outer islands during their annual conference at Turtle Bay Resort, Oahu North Shore.
A PDF copy of the resolution is attached and can be viewed on line here:
http://friendsoflanai.org/wp-content/uploads/2011/12/Civic-Club-Reso-Alternative_Energy.pdf
The only "wind" is that coming from politicians speaking with the proverbial forked tongue, telling the people what they want to hear to get elected and then doing whatever they want once elected, including nothing, to support themselves and their next election prospects by being cozy with and doing what the rich and powerful, including HECO, persuades them to do or else suffer the consequences of their wrath. These politicians are too childish and immature, like most Washington bureaucrats, to even have an open public hearing on critical issues like utility deregulation. They are like spoiled brats who whine if they don't get their own way.
I ask that the Association as a whole or as individual chapters, adopt a resolution similar to Councilman Tom Berg's resolution against HECO by May 1.
I also ask OHA to adopt a similar resolution against our HECO monopoly by May 1.
Don't forget to review this YOUTUBE slide presentation that provides step by step instructions to file individual complaints against HECO with the Federal Trade Commission ( FTC ) on-line or by phone.
http://www.youtube.com/watch?v=iF-cWfubFao
Don't forget to sign the FTC petition against HECO here:
http://www.change.org/petitions/end-hawaiis-electric-utility-monopoly-for-lower-rates-clean-energy
The FTC is listening to our plea for help attentively so let's keep up the pressure on them also.
Remember, Hawaii residents are being price gouged into poverty, especially outer island residents, paying over 3 times the average US cost of electricity on Oahu alone.
As a publicly traded company, HECO has no incentive to lower rates, and the more you save energy, the more HECO will raise rates to preserve its profits for shareholders. The company needs to be taken private to solve this problem.
Oahu residents pay 36.56 / kWh while outer islands pay 40-45 / kWh while the average mainland cost is only 11.88 / kWh.
http://www.eia.gov/state/state-energy-profiles-print.cfm?sid=HI
Malama Pono,
Mr. Ed
http://www.youtube.com/watch?v=iF-cWfubFao
Suggested text for your comments in the complaint follows:
Hawaii has the highest electric rates in the nation as a result of having a state-sponsored utility monopoly for most of Hawaiian Electric’s (HECO) 100+ year existence, and its entire infrastructure is crumbling beneath our roads.
HECO has repeatedly refused to facilitate production and transmission of abundant, more affordable energy from other sources, especially geothermal, and has repeatedly acted to prevent development of such energy to maintain its monopoly on energy production and transmission and to secure biofuel-biomass fuel for its plants to preserve profits for another 20 years.
Ratepayers like myself are tired of being held hostage by this monopoly. I feel helpless and powerless to do something about my electric bill spiraling out of control despite every effort to conserve energy. The more energy saved, the more HECO raises rates to offset losses.
Many Big Island folks are priced-gouged at 40-45 cents a KWh for electricity generated at 8 cents a KWh by geothermal energy.
Governor Abercrombie calls out our utility monopoly, stating that “the utility was built for a time and public purpose that are in the past, that Hawaii’s boundless renewable energy potential is bottlenecked in our archaic utility structure, and that their monopolistic control is often at odds with the public interest in the world beyond fossil fuels.”
HECO bluntly warns ratepayers of and blames rising oil prices for higher rates to come. It promotes solar and wind but ignores geothermal energy’s potential to power the entire state, and even denied a Maui resident connection of a modest PV system to the grid. It is a wolf in sheep’s clothing.
Many residents and businesses are so beholden to HECO’s money and power that they are either afraid to speak out against its manipulative, controlling, stonewalling tactics, or they are consumed with unwavering commitment and allegiance to the monopoly and its stranglehold on our electric rates.
Please encourage our Legislature to pass deregulation bills, HB2400 and SB2982, without HECO’s interference, by helping us end this monopoly.
Please investigate the conduct and activities of HECO, Aina Koa Pono (AKP), Tekgar, Bionic Fuel Technology (BFT), and the Department of Consumer Advocacy (DCA) for their blatant attempt to bilk ratepayers for a half billion dollars over 20 years to fund a private business venture’s unproven biofuel technology that is not even commercially available in its country of origin.
HECO’s application contained numerous representations which are inconsistent & deceptive & which were purposefully and almost fraudulently made to the PUC, seeking its approval for an open-ended ratepayer surcharge for the costs of the biofuel facility planned by AKP on behalf of HECO.
The data used as the basis for the application appears to have been fabricated. AKP's business license should therefore be revoked because it was submitted and approved under false pretenses.
The Department of Consumer Advocacy (DCA) ignored all the red warning flags, as did everyone, and supported the application to the very end, prior to its rejection.
I support and include as part of my complaint, the letter and complaint submitted to the FTC under Ref # 34830756 and referenced here:
http://ecoeffecttv.org/news/812-heco-taken-to-task-by-hawaii-residents-complaint-to-federal-trade-commission.html
http://ecoeffecttv.org/news/787-proposed-federal-trade-commission-complaint-against-hawaiian-electric.html
Your correspondence to Chairman Jon Leibowitz regarding a utility monopoly in the State of Hawaii and the lack of renewable energy opportunities was referred to the Consumer Response Center for a reply.
The Federal Trade Commission acts in the public interest to stop business practices that violate the laws it enforces. Contacts from consumers and businesses are very important to the work of the Commission. They are often the first indication of a problem in the marketplace and may provide the initial evidence to begin an investigation.
The Commission does not resolve individual complaints. The Commission can, however, act when it sees a pattern of possible violations developing.
The information you have provided will be recorded in our secure online database that is used by thousands of civil and criminal law enforcement authorities worldwide. This database enables law enforcement to identify questionable business practices that may lead to investigations and prosecutions.
Tha nk you for providing information that may be used to develop or support Commission enforcement initiatives.
Sincerely,
Consumer Response Center
Rate increase blamed on sun power
Customers with solar panels will cause higher bills for those without,HECO says
By Alan Yonan Jr.
POSTED: 01:30 a.m. HST, Feb 06, 2012
Hawaiian Electric Co. customers installed a record amount of solar power generating capacity on their rooftops last year, causing a reduction in utility revenue that HECO says it will have to make up with an increase in rates.
Customers on Oahu, Hawaii island, Maui, Molokai and Lanai installed enough photovoltaic (solar) panels connected to HECO's grid to generate a maximum 30 megawatts of electricity, the same generating capacity as the new wind farm in Kahuku. That was nearly triple the 11.5 megawatts of capacity installed in 2010.
http://www.capitol.hawaii.gov/session2012/Testimony/HB2400_TESTIMONY_EEP_02-02-12_.PDF
Most of the testimony was in favor of the bill, but as expected, HECO and the Department of Consumer Advocacy ( DCA ) are against the bill. The DCA should be dissolved as a useless, taxpayer wasteful entity whose allegiance is obviously with big business like HECO time and time again instead of with the public.
Unfortunately, the PUC was against the bill too so maybe its rejection of the HECO-AKP biofuel deal last year was a fluke.
HECO is called a "Public" utility, and yet, the monopoly only serves the corporate shareholders.
HECO, I do believe, recorded a 26% increase in profits in 2011 and promptly launches into a PR campaign on TV to deflect the fact - and blames the Japanese for driving up oil price. How dumb do they think we are?
HB2400 and ALL geothermal bills must be passed and signed into law promptly without interference from HECO so Hawaii can become 100% free of our dependence on foreign oil in 10 years just like we landed a man on the moon in 10 years. What we are doing here is not rocket science. Much of it is basic common sense.
Many of you may have seen Alan Yonan’s Star*Advertiser story, “Breaking Down HECO” in Monday’s paper. An excerpt of the story is here unless you have paid access to the paper on-line:
http://www.staradvertiser.com/s?action=login&f=y&id=138307504
The article is all about HB2400, the deregulation bill that will finally end HECO’s stranglehold on our electric rates and our energy future after 100 years in existence, level the playing field, stabilize, and eventually lower electric rates across all islands.
http://www.capitol.hawaii.gov/session2012/bills/HB2400_.pdf
The bill is scheduled to be heard on Thursday, 02-02-12 10:00 AM in conference room 325. Other related bills pertaining to geothermal energy, HB2689, HB2690, and HB2691 will be heard at 9 A.M.
Please note that on-line testimony must be received a full 24 hours prior to the hearing at http://www.capitol.hawaii.gov/
You must first register by clicking on the Register link in the upper right corner of the page. Registration is simple. It required your name, email address, and a password. You will receive an email message with a link to confirm registration. You can then Sign In at the top right corner of the page by entering your email address and password.
Once signed in, just click the orange Submit Testimony button, enter HB2400 in the box, and press the Submit button. Fill in requested information and press Submit Testimony button below the privacy statement.
Many thanks to those who signed the change.org petition against HECO. The petition was mailed to the FTC today, along with a cover letter that will be on www.charleneongreen.org later tonight or tomorrow and will be submitted as testimony in favor of HB2400.
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