Notices are about to go out to about 15,000 Hawaiʻi residents and 1,700 business customers randomly selected to take part in a one-year pilot project.
“Shift and Save” is the Hawaiian Electric Company's program that will change rates based on the time of day.
It's meant to encourage people to use high-energy appliances during non-peak times, which will allow them to take advantage of cheaper rates.
HECO says time-of-use rates could help customers see rates as low as half their previous amount by shifting energy usage away from the high-demand evening and overnight hours.
Jim Kelly, HECO's vice president of Communications, said similar programs have already worked in other states.
“Ultimately, the idea is that this would be actions on not only saving money, but it would also be stabilizing the grid making it more resilient and also really taking action on climate change,” he explained.
Using electricity during the day, when solar energy is abundant, is better for the electricity grid and for the environment, Kelly told The Conversation.
Participation in the pilot will only involve about 4% of HECO's customers on Oʻahu, Maui and Hawaiʻi Island.
For the first six months of the pilot, Kelly said there will be a cap on how much a customer's electric bill can be affected by the change in rates.
“So nobody’s going to get financially hurt by this,” he said. “You get six months, basically, to practice, try it out, see how it works in your business and in your household. And if it doesn't work for you, then you can opt out.”
Kelly hopes customers will approach the change with an open mind.
The pilot program begins October 1. Shift and Save is expected to be introduced to all customers in the next two years. The pilot will help determine how the program will work.
This interview aired on The Conversation on July 28, 2023. The Conversation airs weekdays at 11 a.m. on HPR-1. This interview was adapted for the web by Emily Tom.
