Honolulu water board targets energy resilience as rising power costs squeeze fixed rates

Honolulu water board targets energy resilience as rising power costs squeeze fixed ratesThe Board of Water Supply is exploring new renewable energy technologies to power its 190 pumping sites, aiming to insulate its half-billion-dollar budget from utility rate hikes and grid failures.

The Board of Water Supply (BWS) delivers 140 million gallons per day to nearly 1 million residents, requiring power for over 190 pumping facilities.

Fixed water rates combined with rising electricity costs from local provider HECO have financially squeezed the utility's $500 million annual budget.

A previous energy savings performance contract reduced BWS energy consumption by 8% to 9% and generated 3 megawatts of power.

Grid failures during Hurricane Lala highlighted the need for resilient renewable energy alternatives to supplement emergency diesel generators.

Honolulu's Board of Water Supply (BWS) is facing mounting financial pressure from rising electricity costs, prompting the utility to prioritize energy efficiency and renewable power across its infrastructure. During an August 25, 2026, meeting of the Honolulu City Council’s Energy, Environment & Sustainability Committee, officials highlighted the growing friction between the utility's fixed revenue streams and escalating operating expenses. "Our rates are fixed for the number of years that we set forth," said Na'alehu Anthony, a BWS board member whose reappointment through 2031 was advanced during the meeting. Anthony explained that while BWS had previously paused rate increases due to the COVID-19 pandemic, local power provider HECO continued to raise its rates. As a result, the water utility began "losing more and more money against the rate that had been pegged." The BWS oversees an annual budget of roughly $500 million and delivers 140 million gallons of water per day to nearly 1 million people. Maintaining this daily supply requires powering more than 190 pumping sites across the island. Recent severe weather events have underscored the operational risks of grid dependency. Anthony noted that Hurricane Lala knocked out power for 250,000 customers across the state, impacting hundreds of BWS pumping facilities. "When you lose 911, the phone system, the internet, and then electricity, you don't want to lose water as well," he said, stressing the need to transition beyond emergency diesel generators toward long-term renewable energy solutions to ensure system resilience. BWS Manager and Chief Engineer Ernie Lau confirmed that the utility is actively looking at new technologies to build on past efficiency gains. A previous energy savings performance contract successfully reduced the utility’s energy consumption by 8% to 9% and generated 3 megawatts of power. "The interesting thing about energy savings and energy efficiency is that technology changes over time," Lau told the committee. "I can see us looking at those opportunities as new technologies come out." In addition to energy concerns, utility leadership noted that the response to the November 2021 Red Hill fuel crisis continues to demand significant staff time and resources. As the sole remaining board member from the onset of the crisis, Anthony stated that BWS remains focused on holding the military accountable for locating and cleaning up the contamination while providing subject matter expertise on water quality.