HECO: January electric bills at 4-year low thanks to oil

You may have noticed, you’re now paying less for electricity, and you can thank the slump in oil prices.

We’re seeing cheaper gas prices at the pump. Costco Iwilei is now selling regular gas for $2.68 a gallon.

Now, we’re also seeing a dip in our electric bills. In fact, Hawaiian Electric Company says bills are at their lowest in four years.

“Oil prices have been falling very steadily and this is good news for our customers, because more than half their electric bill goes to the cost of paying for the fuel that’s used to generate electricity,” said HECO spokesman Darren Pai.

Since September 2014, typical monthly bills on Oahu have fallen by about $32. “This is the lowest we’ve seen since April of 2011,” Pai said.

These estimated bills are for typical residential customers using 600 kilowatt-hours of energy.

  • Oahu: $187.22 at 29.5 cents/kilowatt-hour
  • Hawaii: $227.20 at 35.9 cents/kilowatt-hour
  • Maui: $220.24 at 35.1 cents/kilowatt-hour

“This is good news for now, but we know that historically the price of oil is very volatile. It goes up and it goes down, so if it goes back up again, there will be a corresponding increase in electric bills,” said Pai.

That’s why HECO says it is trying reduce Hawaii’s dependence on oil and use more renewable energy in the future.

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