A recent report by Honolulu Civil Beat details a lawsuit filed by Hawaiian Electric against Par Hawaiʻi, the state's only petroleum refinery. The utility claims that faulty naphtha fuel, a gasoline-like byproduct, supplied by Par Hawaiʻi, caused "catastrophic damage" to turbines at power plants on the Big Island and Kauaʻi. The lawsuit alleges the fuel contained excessive levels of alkali metals, leading to significant corrosion and operational disruptions.
The damage at the Hāmākua power plant on the Big Island, which provides a substantial portion of the island's electricity, resulted in the failure of two gas turbines. According to the Civil Beat article, the plant was unable to produce power for several months, necessitating the purchase of a new turbine at a cost of $8.27 million, along with additional expenses. The lawsuit also notes similar corrosion issues at a Kauaʻi facility, highlighting the widespread impact of the alleged fuel quality issues.
This legal dispute has significant implications for Hawaii's business community, particularly for industries reliant on a stable and affordable energy supply. Increased operating costs for Hawaiian Electric could potentially translate into higher electricity rates for businesses, affecting profitability and competitiveness. Moreover, the reliability of the power grid, a critical factor for tourism, hospitality, and other sectors, is directly tied to the performance of these power plants. Any prolonged outages or disruptions due to faulty equipment can severely impact operational efficiency and lead to significant financial losses.
The implications extend beyond immediate financial considerations. The lawsuit also raises questions about the quality control measures employed by Par Hawaiʻi and the regulatory oversight of fuel standards in the state. Hawaii Free Press has reported on various lawsuits related to the Hawaiian Electric, including the wildfires, underscoring the importance of rigorous adherence to safety and quality standards by all players in the energy sector. As the case unfolds, businesses and investors in Hawaii will be closely monitoring developments for their impact on the local economy and the future of energy production in the islands.
