HECO

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The state last month awarded a four-year contract to a Californi company to take over and expanethe energy-efficiency programs that HECO runs. The program, whicn includes rebates for buying solar hot water systems and EnergyStar appliances, is fundefd by ratepayers through a monthly surcharge. HECO customer still will pay a monthly charge into theincentive program, which has been in placer since the mid-1990s. But instead of HECO handlinvg the money, the surchargee will pass through HECO into a fund at Bank of Hawaiki for the Mainland companyto tap. The Corp.
of San Diego, will be paid about 10 percenft ofthe fund’s revenues annually to run the The contract has an estimatesd value of $38 million for the first two years, which is based on the monthly surcharge paid by HECO (It’s labeled surcharge on bills.) Ray Starling, SAIC’w Hawaii program manager, said the company expects the fund will generatew $19.6 million in its first year, with 70 percent going toward rebates and incentives, about 20 percentg going toward program costs, and less than 10 percent coveringb SAIC’s services.
The idea to get HECO out of the rebatee business had been discussed for the past two yearss as part ofthe state’s push for energy efficiency under the . “In a sense, it is almost unfairf to require the electric utility to promots programs that reduce its electricity sales, when increasing electricity sales generallg increases the company’s profits,” said PUC Chairmanb Carlito Caliboso. “Some would argue that the electridc utility has a conflictg of interest whenimplementing energy-efficiencuy programs. This new structure will addressthat conflict, be it real or The state awarded the contract to Science Applications Internationak Corp.
to begin implementing programs July 1 and run them througbDecember 2013. Starling declinecd to share specific examples of new programs beinyg planned because he said the company still isnegotiatingh deals. HECO’s subsidiaries on Maui and the Big Islane run theirown energy-efficiency programs, but the new contracg will oversee programs for all three services areas. HECO started its incentive programswin 1996, and has paid out more than $70 milliohn in rebates to customers who moderatexd electrical usage and bought energy-efficient systems like solar water heaters. The average residentiakl customer paysabout $1.19 each month into the fund for energh efficiency.
HECO spokesman Darren Pai said the utilitt still is committed to promoting energy even thoughit won’t be runninvg the program. “We developed thesew programs more than a decade ago because we strongly believed in energy efficiency being as importantf as adding renewable energy Pai said. “It’s about helping customerx control theirenergy use, so we will continue to promotse these efforts regardless of who’s running SAIC is a publicly tradex company (NYSE: SAI) that callds itself a “problem solved through technology” with a focuz on national security, health and infrastructure.
It reporte annual revenue of $10 billion for the fiscal year that endedcin January. Handling energy-efficiency programs is not new for the which has also created similar programs in Wisconsinand Illinois.