At $0.35 – $0.40 per kilowatt hour, the state of Hawaii suffers under some of the highest residential electricity rates in the United States. In order to address these challenges, state regulators are exploring policy and regulatory reforms, the benefits of demand response, and options for revising rate design practices. Jim Lazar spoke about Hawaii’s demand response efforts at a meeting of the Pacific Northwest Demand Response Project in Oregon.
Demand response can benefit both utilities and customers by lowering cost and avoiding capital investment, shifting load, managing frequency, and mitigating ramping issues. Simple changes that leverage existing technologies can have great impact in transitioning to a clean energy power system. Mr. Lazar delves into the benefits Hawaii could garner from pairing time-of-use pricing with grid-integrated water heating and water pumps, electric vehicle charging, and the deployment of air conditioning thermal storage.