HECO cleared to run more EV stations, lower charging costs

Hawaiian Electric Co. is pushing ahead with two initiatives to boost the use of plug-in electric vehicles by reducing charging costs and increasing the availability of charging stations.

The state Public Utilities Commission recently approved the programs, one of which will waive the "demand charge" HECO and its subsidiaries normally assess commercial customers when their electricity consumption spikes above a certain level, HECO announced Wednesday.

HECO and its subsidiaries are rolling out the programs in the utility’s service areas on Oahu, Hawaii island and the islands of Maui County.

The waiver is designed to encourage businesses to install direct current fast-charging stations, which can bring an empty EV battery up to an 80 percent charge in about 30 minutes.

The waiver removes any uncertainty among commercial customers that increased electricity usage from the installation of one or more fast chargers might trigger the demand charge, according to the utility. The amount of the demand charge varies depending on the size of the customer, but can run as high as $24 per kilowatt for those with the highest loads.

The program is available to commercial customers who have installed separate meters dedicated to EV charging. The new program is in addition to HECO’s existing time-of-use rates that provide a lower rate for EV charging done during off-peak hours.

The second program approved by the PUC will allow HECO to install and operate up to 25 publicly accessible fast-charging stations across Oahu, Maui County and Hawaii island where drivers will be able to recharge their vehicles for a per-session fee. The program also will allow HECO to work with the EV industry to manage vehicle charging more effectively and gather data on electricity supply and demand, according to the utility.

"Plug-in electric vehicles continue to increase, and we want to make it easier for our customers to own and use them," said Jim Alberts, HECO’s senior vice president for customer service.

"While most electric vehicle owners will continue to charge overnight from home, more charge spots across the islands will provide assurance to EV drivers that they won’t run out of juice while away from home," Alberts said in a prepared statement.

The fact that the range of most electric vehicle models is limited to 100 miles or less on a single charge is less of an issue in Hawaii, where driving distances are generally shorter than in other states. However, Hawaii’s high electricity rates add to the cost of operating an EV here when using power supplied by the utility.

The U.S. Department of Energy estimates it costs the equivalent of $3.69 per gallon to drive an electric car in Hawaii, the highest by far of any state. No. 2 is New York at $1.80, and the national average is just $1.14, according to the department.