Oahu electric rates hit 9-month low

Residential electricity rates fell on Oahu in November to their lowest level since February, tracking a decline in the price for fuel the utility burns for most of its power generation.

Hawaiian Electric Co. officials said a typical 600-kilowatt-hour bill for Oahu residential customers fell by $10.19 to $200.18 in November from $210.37 in October.

The effective rate for electricity on Oahu is 31.9 cents a kilowatt-hour, down from 33.6 cents a kilowatt-hour last month. The November rate was the lowest since February when it also was 31.9 cents a kilowatt-hour.

The decline in Oahu rates was mainly due to lower prices for low-sulfur fuel oil, which is used to power most of HECO’s generators on the island, utility officials said.

Electric rates on Oahu have been trending lower since hitting their high for the year in June. HECO paid $130.68 a barrel for LSFO in November, down from $144.73 a barrel in June.

However, HECO officials cautioned that fuel prices may start to climb as demand from Asian markets increases because of seasonal demand.

Elsewhere in the state:

» Maui Electric Co. customers saw rates rise to 39.6 cents per kilowatt-hour this month from 36.1 cents in October. The typical Maui bill rose by $20.79 to $245.47.

» Hawaii island residential rates fell to 39.0 cents a kilowatt-hour from last month’s 40.4 cents.

» On Kauai, the rate fell to 43.9 cents per kilowatt-hour from 44.9 cents in October, according to the Kauai Island Utility Cooperative.

HECO and KIUC adjust their rates monthly largely to reflect changes in fuel costs. The utilities generate about 80 percent of their electricity from petroleum, making rates sensitive to swings in oil prices.

Hawaii has the highest electric rates in the nation. The statewide average of 37.04 cents a kilowatt-hour in August was more than triple the national average of 12.17 cents a kilowatt-hour, according to the most recent numbers available from the U.S. Energy Information Administration. Louisiana had the lowest average rate at 8.28 cents a kilowatt-hour.

Correction: A typical 600-kilowatt-hour bill for Oahu residential customers fell by $10.19 to $200.18 in November. An earlier version of this story and the story in the print edition said bills fell by 10.19 cents.