HECO electric bills are climbing across the islands as higher oil prices flow through to customers, adding to the strain of Hawaiʻi’s already steep cost of living.
For Maui resident Mateo Manzari, the conflict in Iran is showing up not only at the gas pump but also on his utility statement. His June bill hit $273, up from $222 a year earlier, despite efforts to cut usage. “It just doesn’t make sense,” he said.
His experience reflects a challenge facing Hawaiian Electric Co.’s 474,000 customers statewide. Unlike most mainland utilities, HECO relies heavily on oil to generate power. When crude rises, so do household charges, in a state that already pays the nation’s highest electricity rates, nearly three times the U.S. average.
Brent crude has been trading near $90 a barrel amid the Iran war, compared with about $65 to $70 a year ago. That shift has driven average residential bills up 27% on Maui and 30% on Oʻahu from June 2025 to this June. Lānaʻi residents have seen the steepest jump at 55%, averaging more than $100 extra per month.
Frustration has boiled over on neighborhood forums, where residents share stories of soaring balances and few options. Manzari said he is reluctant to publicly criticize the monopoly utility but feels he has little choice. “I figure I’m going to put a target on my back. But I’m going to go out swinging.”
Hawaiian Electric said it recognizes the burden. “We understand the cost of living in Hawaiʻi is already high, and any increases are difficult for our customers,” spokesman Darren Pai said, adding that the company is working to trim costs, add renewable energy and improve affordability.
Bills Reflect Higher Oil Costs for HECO electric bills
Despite growth in solar, wind and battery projects, Hawaiʻi remains far more dependent on oil than any other state. Mainland grids can lean on pipelines supplying lower-cost natural gas, along with nuclear and coal, to support renewables. Those options are not available here.
Fuel now accounts for about half of a typical HECO bill, so price swings show up quickly. In Manzari’s $273 June statement, $160 was listed as “energy cost recovery,” reflecting fuel charges. HECO said it cannot discuss individual accounts due to confidentiality policies, but shared data showing bills eased from June 2024 through June 2025, then spiked as the U.S. entered the conflict with Iran.
State law requires 100% renewable electricity by 2045, and HECO reported renewables at 37% in March, tracking toward an interim 40% by 2030. Earlier this month, the utility finalized contracts for two new solar farms on Oʻahu and Maui and is negotiating seven more. HECO said it also structures oil purchases to blunt price spikes.
The near-term challenge remains. HECO plans to upgrade an existing plant with modern generators that will initially run on a blend of oil and more costly renewable biodiesel, then shift fully to renewables by 2045. The move would cut oil dependence but could raise fuel-related costs in the interim.
What Are The Alternatives?
Gov. Josh Green has floated importing natural gas as a way to stabilize prices on Oʻahu. He entered a nonbinding strategic partnership with Tokyo-based JERA Co., Inc., which proposes a 500-megawatt plant fueled by liquefied natural gas. The company, which develops power plants and trades and ships LNG, says it can lower costs for consumers.
JERA has not yet submitted a formal plan to the Hawaiʻi Public Utilities Commission, including how it would protect customers from volatile LNG prices.
Some energy experts say Hawaiʻi does not need new or upgraded fossil-fueled plants at all. University of Hawaiʻi economist Michael Roberts argued for more solar instead in a widely discussed paper he later withdrew for further review after challenges from HECO and others. He said he plans to republish after reassessing his findings.
For now, residents like Manzari are bracing for higher charges. When he moved into his two-bedroom South Kīhei condo in 2015, he paid about $80 a month. Today it is more than triple, even with laundry habits adjusted and the air conditioner set to 78 degrees.
Years ago he explored photovoltaic panels for his complex, but roof design issues discouraged installers. With few alternatives, he said, HECO’s rates are what he must live with. “At this point, what can we do?”
Debates over LNG in Hawaiʻi have intensified in recent years, echoing concerns raised when Hawaii governor candidates outlined their positions on energy policy.
