Big Isle power
dispute ended
Helco will buy electricity
By Rod Thompson
from an independent company's plant
on the Hamakua Coast
Star-BulletinHILO -- Hawaii Electric Light Co. has signed an agreement to buy electricity from an independent Hamakua Coast power plant, ending four years of wrangling and uncertainty. The power will come from a 60-megawatt plant to be built by Encogen Hawaii, a newly formed limited partnership which includes Enserch Development Corp. Enserch's new partner is Jones Capital Corp.
"After long and challenging negotiations, this agreement makes it possible for Helco to buy power from Encogen at a price which is fair for our Big Island customers," Helco President Warren Lee said.
During the negotiations, Helco has been trying to get permission to build its own power plant of a similar size at Keahole, North Kona. The company had said that Enserch's power price was too high.
Helco and Enserch reached an agreement in June, but state consumer advocate Charles Totto noted that only Enserch signed it. Helco officials have now added their signatures.
Besides electricity, Enserch project manager Jody Allione said the Encogen plant will produce "thermal energy" for several agricultural companies. That was earlier described as meaning warm water for aquaculture and heated air for drying macadamia nuts.
Houston-based Enserch Corp., the parent of Enserch Development, was acquired by Texas Utilities Co. in 1996. Jones Capital is a subsidiary of J.A. Jones Inc. of North Carolina, a construction contractor.
Construction of the Encogen plant is expected to begin next year and be completed in 1999.
Helco said it will continue to "pursue additional generation" at Keahole.
The electric company said that if the new plant is delayed for any reason, the additional Keahole generators will be on track to meet the immediate power needs of the Big Island.
