Energy cost recovery is a mechanism used to recover fuel and purchased energy costs, which can fluctuate monthly depending on changes in the cost of energy purchased from independent energy producers and the price of fuel used in power plants. This system is designed to break the link between revenues and the amount of electricity sold, thus encouraging more clean energy in Hawaii. The basic form of your electric bill will contain common elements regardless of the provider. The money raised through the Renewable Infrastructure Program helps to cover the cost of projects that facilitate the development and integration of renewable energy. The energy cost recovery clause includes what was previously recovered in the basic energy-for-fuel charge on Oahu and the Island of Hawaii.
This clause (which appears as an energy cost adjustment on the bill) reflects the total cost of buying energy from independent energy producers and the price of fuel. The energy cost adjustment reflects increases or decreases in the cost of purchasing energy from independent energy producers and in the price of fuel compared to the levels used to establish the basic energy charge for fuel in the last completed tariff case in Maui County. The Hawaiian Electric Company (HECO) is responsible for providing electricity to customers on Oahu, Maui, Molokai, Lanai, and Hawaii Island. HECO is committed to providing reliable, affordable, and clean electricity to its customers. To achieve this goal, HECO has implemented a number of initiatives, including an Energy Cost Recovery Clause (ECRC).
The ECRC is designed to ensure that customers pay only for their actual usage. It allows HECO to recover costs associated with purchasing electricity from independent energy producers and fuel costs. The ECRC is adjusted monthly based on changes in these costs. This ensures that customers are not overcharged or undercharged for their electricity usage. The ECRC also helps HECO meet its renewable energy goals.
By recovering costs associated with renewable energy projects, HECO can invest more money into developing clean energy sources. This helps reduce Hawaii's dependence on fossil fuels and encourages more sustainable practices. The ECRC is an important part of HECO's commitment to providing reliable, affordable, and clean electricity to its customers. By understanding how it works, customers can better understand their electric bills and make informed decisions about their electricity usage. The benefits of Hawaiian Electric's Energy Cost Recovery Clause are clear: it helps keep electric bills affordable by ensuring that customers only pay for their actual usage; it encourages more clean energy by allowing HECO to invest in renewable energy projects; and it helps customers make informed decisions about their electricity usage. With these benefits in mind, it's easy to see why Hawaiian Electric's Energy Cost Recovery Clause is an important part of its commitment to providing reliable, affordable, and clean electricity.