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Tuesday, August 22, 2023 11:52:40 PM
That is ugly. Fitch downgraded debt of HE:(NYSE) to junk and Hawaii Electric aka HECO has hired Guggenheim Partners to find a way forward.
HECO has raised rates 24% since January 2022. HECO asked the State regulator for a much larger rate increase to protect their network from fire, and perhaps make it less likely to start fires. The only way forward is if HECO can find the State liable. Carpetbaggers from San Antonio, Texas-based law firm Watts Guerra has already filed a liability suit.
It going to be increasingly very costly or unaffordable for rural areas to be served with power with lines going underground or other solutions.
In California Gov Pete Wilson, a double-dealing "conservative" mayor from San Diego, came up with the most inane State power plans, forcing utilities to sell off their power generation leaving the power companies as nearly asset-free electric distribution networks, selling electricity from weasels like Enron through the Cal-ISO exchange..
Los Angeles and their DWP (Dept of Water and Power) a city owned organization that supplies water, power and sewage had enough clout to get us excused from joining Wilson's wacky Cal-ISO suicide pact, along with a long list of other non-profit City-owned and municipal utilities. - https://www.publicpower.org/public-power-california
Investor-owed utilities like PG&E, now already bankrupt from rural fires, along with Southern California Edison, San Diego Gas & Electric serving up huge rural areas are going to be serving up massive rate increases to retrofit their network.
Every urban area that doesn't already have their own municipal power company will want to sidestep these rural upgrade costs by setting up their own DWP. The costs will be large enough in urban areas just to increase capacity for electric cars and other appliances currently served by natural gas.
Electrification of farm and rural areas by the Federal government during the Great Depression was a marvel, but it was all implemented using the lowest cost methods available. Only large rural business will be able to afford these coming costs, not isolated consumers.
We had friends, the wife was a commercial and municipal builder, who built a home on the Angeles Crest Highway 2 to commercial standards that was so far from civilization their electricity was unreliable, so they had their luxurious home built with an underground diesel generator as backup.
Todd was a banking attorney who was willing to work from home with a satellite phone, and really bad satellite data, to keep his wife happy. Full air conditioning and heating, double dishwashers, everything you'd want in an isolated home. Then Todd discovered their monthly cost for diesel deliveries during the months their power was out after a wildfire was thousands of Dollars. It costs a lot of money to deliver a truck of diesel in the middle of nowhere.
Plus the first wildfire fire burnt down their Red guest building and part of the Green home while they still had the construction loan. Then the second fire burnt the guest building again. No plants or brush around their home but the intense heat coming up the canyon below started the wood framing on fire behind the fireproof stucco in the guest building. The main home was mostly concrete and glass with aluminum safety shutters to close. The costs of living this way off-grid in a home will all the modern conveniences is not affordable for 98% of Americans. It ultimately wasn't even affordable for them.
They now live in suburban Phoenix after their were able to unload their "rural living dream" on to someone else with a lot of money.
Astounding photos really. I'm glad we got to enjoy it too.
HECO has raised rates 24% since January 2022. HECO asked the State regulator for a much larger rate increase to protect their network from fire, and perhaps make it less likely to start fires. The only way forward is if HECO can find the State liable. Carpetbaggers from San Antonio, Texas-based law firm Watts Guerra has already filed a liability suit.
It going to be increasingly very costly or unaffordable for rural areas to be served with power with lines going underground or other solutions.
In California Gov Pete Wilson, a double-dealing "conservative" mayor from San Diego, came up with the most inane State power plans, forcing utilities to sell off their power generation leaving the power companies as nearly asset-free electric distribution networks, selling electricity from weasels like Enron through the Cal-ISO exchange..
Los Angeles and their DWP (Dept of Water and Power) a city owned organization that supplies water, power and sewage had enough clout to get us excused from joining Wilson's wacky Cal-ISO suicide pact, along with a long list of other non-profit City-owned and municipal utilities. - https://www.publicpower.org/public-power-california
Investor-owed utilities like PG&E, now already bankrupt from rural fires, along with Southern California Edison, San Diego Gas & Electric serving up huge rural areas are going to be serving up massive rate increases to retrofit their network.
Every urban area that doesn't already have their own municipal power company will want to sidestep these rural upgrade costs by setting up their own DWP. The costs will be large enough in urban areas just to increase capacity for electric cars and other appliances currently served by natural gas.
Electrification of farm and rural areas by the Federal government during the Great Depression was a marvel, but it was all implemented using the lowest cost methods available. Only large rural business will be able to afford these coming costs, not isolated consumers.
We had friends, the wife was a commercial and municipal builder, who built a home on the Angeles Crest Highway 2 to commercial standards that was so far from civilization their electricity was unreliable, so they had their luxurious home built with an underground diesel generator as backup.
Todd was a banking attorney who was willing to work from home with a satellite phone, and really bad satellite data, to keep his wife happy. Full air conditioning and heating, double dishwashers, everything you'd want in an isolated home. Then Todd discovered their monthly cost for diesel deliveries during the months their power was out after a wildfire was thousands of Dollars. It costs a lot of money to deliver a truck of diesel in the middle of nowhere.
Plus the first wildfire fire burnt down their Red guest building and part of the Green home while they still had the construction loan. Then the second fire burnt the guest building again. No plants or brush around their home but the intense heat coming up the canyon below started the wood framing on fire behind the fireproof stucco in the guest building. The main home was mostly concrete and glass with aluminum safety shutters to close. The costs of living this way off-grid in a home will all the modern conveniences is not affordable for 98% of Americans. It ultimately wasn't even affordable for them.
They now live in suburban Phoenix after their were able to unload their "rural living dream" on to someone else with a lot of money.
Astounding photos really. I'm glad we got to enjoy it too.
We've run out of other people's Social Security taxes needed to subsidize our low income tax rates.
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