10

Electricity prices aren't created equal

Waves hit the deserted Waikiki shoreline on March 11, 2011 in Honolulu, Hawaii.

To view this content, Javascript must be enabled and Adobe Flash Player must be installed.

Get Adobe Flash player

Steve Chiotakis: You know what rising oil prices do to how much you pay for gas, right? In Hawaii, high gas prices mean higher electricity bills too. That's because Hawaii gets most of its power from crude oil.

From the Sustainability desk, Marketplace's Adriene Hill reports.


Adriene Hill: A banged-up, very non-electric Kia is parked in front of Hawaii's first public electric-vehicle charging station. Annoying if anyone wanted to charge up, but the old Kia doesn't seem to be much of a problem.

The value of driving an electric car in Hawaii isn't the same as it is in other places, because most of Hawaii's electricity comes from petroleum, and because electricity from petroleum costs a lot. Residents pay about three times as much for power as the rest of the U.S., and prices have been climbing with oil costs -- over 10 percent in the last year.


HTML tutorial

Cathy Carol: We call it kind of the "paradise tax."

Cathy Carol runs an art gallery on the island of Lanai with her husband. She turns off the lights in the gallery when they don't have customers. At home, she uses CFLs, and she uses cold water to wash her clothes.

Carol: I'm definitely a better saver with more expensive power.

Carol says she's heard about a neighbor who saves energy by using only headlamps at night to get around. Truth or rumor, hard to know.

But high electricity costs have people in Hawaii thinking about how and when they use electricity. According to the International Energy Agency, residents of Hawaii use less energy than most of the rest of us. So is higher priced electricity a good way to cut use?

Daniel Kammen: Higher costs alone aren't necessarily a good thing. They may make you conserve some, but they have a disproportionate impact on the poor.

Daniel Kammen works on renewable energy policy at the World Bank. He says by many estimates, electricity in the U.S. is undervalued. But if prices go up, he says you need good policy -- and education to go with it -- that helps people cut their energy use.

Kammen: Higher prices when combined when thoughtful policies have proven to be a real recipe for creative innovation, both financially and environmentally.

Hawaii's high prices and its dependence on petroleum have encouraged it to push for more renewable energy sources. The state is looking to the sun, wind and ocean to produce 40 percent renewable energy by 2030.

I'm Adriene Hill for Marketplace.


Steve Chiotakis: Want to know how your electricity bill stacks up? We've got a map of state-by-state electricity prices.

About the author

Adriene Hill is a multimedia reporter for the Marketplace sustainability desk, with a focus on consumer issues and the individual relationship to sustainability and the environment.
anne green's picture
anne green - May 24, 2011

Great story! It's so important to educate on energy. In Europe, energy prices are much higher and people are much more aware on how to save energy. Did you know that the single largest user of energy is LIGHTING. Everyone can save big on lighting with retrofitting old fixtures to new technology. Check out this website: http://www.luxadd.com and see how anyone can save easy and fast up to 75% energy on lighting and another 15% on a/c.

Matt Berger's picture
Matt Berger - May 23, 2011

Sorry All. I posted the link a little late this morning. If you left a comment looking for the map we sent you an email with the link. Thanks for your interest and sorry for the inconvenience!

Dorothy Zeis's picture
Dorothy Zeis - May 23, 2011

Rate map -- look under RELATED LINKS above comments; click on MAP:America's energy usage

Dani Hale's picture
Dani Hale - May 23, 2011

I am suprised that Hawaii isn't solar. I mean isn't it sunny there most of the time?

Benton Newcome's picture
Benton Newcome - May 23, 2011

OK, where is the map you talk about??

Ev Larsen's picture
Ev Larsen - May 23, 2011

Please post a link to your rate map.

SILVIA TOTH-FERNANDEZ's picture
SILVIA TOTH-FER... - May 23, 2011

Where is the map?

Billy Bennett's picture
Billy Bennett - May 23, 2011

Map? It's great that you have one but it would be even greater if you would share it with us!

Larry Rogers's picture
Larry Rogers - May 23, 2011

So where's the state-by-state electricity rate map?

Perry Noblett's picture
Perry Noblett - May 20, 2011

Let's see, Hawaii. They have a nearly continuous lava flow there. Why hasn't someone built a Geothermal plant there to make electricity with no fuel input needed? I do not believe for one minute that all of this free heat cannot harvested and put to work.