Ka`u News Briefs April 1, 2011

The Kahuku Unit of Hawai`i Volcanoes National Park is open on weekends and will be the site of Kahuku Junior Ranger Day on Saturday, April 9.  Photo by Stephen Geiger

THE HOUSE FINANCE COMMITTEE has deferred a bill that would allow the Public Utilities Commission to approve a proposal to raise rates on customers in Honolulu and Maui Counties as well as the Big Island to help pay for the development of a biofuels refinery in Pahala.
     After the PUC turned down a proposal from Hawai`i Electric Industries to spread the cost of development of the `Aina Koa Pono biofuel across its customer base by slightly raising rates, `Aina Koa Pono and Hawaiian Electric went to the Legislature to change the law. In testimony on March 30 to the House Finance Committee, `Aina Koa Pono partner Chris Eldridge said the state cannot expect Hawai`i Island rate-payers to shoulder this increase in utility costs by themselves, when the Ka`u refinery “will open a new industry in Hawai`i, will significantly advance the statewide goals of developing clean and independent energy sources and will insulate the state from spikes in the price of petroleum fuels. Accordingly, any short-term rate increase in utility rates as a result of this project should be allocated across the state.” 

Mina Morita, new Director of the Public Utilities Commission.

     Eldridge said the facility in Ka`u “would produce up to 24 million gallons of biodiesel per year and create hundreds of long-term high-paying jobs, will bring outside investment into Hawai`i, will return agricultural lands to productive use and will help Hawai`i toward energy independence.” Most importantly, he said “a plant of this size will lead the way for an entire biofuel industry in Hawai`i.”
     The new director of the Public Utilities Commission, Mina Morita, and the state consumer advocate also testified. They said that parts of the bill, including automatic rate increases, needed to be studied and clarified and recommended amendments. The bill was deferred for study.

MATSON NAVIGATION announced it is raising its shipping charges again. Horizon and Pasha are expected to follow suit. These hikes are all based on their ability to tag charges to the cost of oil. Matson will raise its fuel surcharge to 43 percent on May 1. A letter to customers said that since its last increase in February, “the environment has failed to stabilize, causing the global fuel market to remain at near historic highs. Transportation companies are especially hard hit, with fuel consumption an unavoidable and significant component of operating costs.” Matson is expected to show an operating loss for the first quarter of this year and to tell its investors that fuel costs are the cause. Some farmers say that higher fuel costs can make local produce more competitive price-wise and encourage people to buy food from local farmers rather than driving long distances with gasoline being over $4 a gallon. 

Image from York Common Cents

THE COST OF REGULAR GASOLINE in Ka`u this morning was $4.24 at Kahuku Country Market. Also in Ocean View it was $4.30 at Kahala Gas and $4.40 at Ocean View Market. In Na`alehu it was $4.43 at the 76 Station and in Pahala it was $4.40 at Ka`u Gas. 

CUTTING OIL IMPORTS BY ONE THIRD by 2025 is a goal announced by President Barack Obama. He said today it is “achievable and necessary. A number of nationwide firms said they would seek alternative energies to run their operations and their transportation vehicles. They are UPS, AT&T, FedEx, Pepsi and Verizon. These companies are planning to run vehicles on electricity, ethanol, natural gas, hydrogen, biodiesel and propane.
     Oil from fossil fuel was at a two-year high today.

CATCH THE SPIRIT OF KA`U at the free Kahuku Junior Ranger Day on Saturday, April 9. Hawai`i Volcanoes National Park and the Queen Lili`uokalani Children’s Center invite keiki to bring the families to explore Kahuku and learn about ancient traditions of navigation and modern-day global positioning systems. The program is from 10 a.m. to 2 p.m., and lunch will be provided. Sign up by Monday, April 4 by calling 985-6019.

     The Kahuku Unit is now open to the public on most weekends from 9 a.m. to 3 p.m.