Honolulu electric rate hike being scaled back - Infrastructure a problem again

I read in the Honolulu advertiser today that HECO (Hawaiian electric company) has lowered their requested rate hike from the government. People outside Hawaii often ask me, "How much is an electricity bill in Hawaii?"

The Advertiser says "The typical bill for a HECO residential customer in September was $134.19"

My bill is about $400/ month, but that's because I have a huge house with lots of people. My wife, kids, and now my mom lives in our maid's quarters.

I bring this up because in Hawaii there are 2 things limiting the growth, and therefore, the number of homes available. The first is the amount of land we have, but secondly, and just as importantly, is the available infrastructure.

The electricity on this island is limited, because we only have a limited amount. We can't buy electricity from other states, and also, we can't get water from another place either. We get rain, and when there is no rain, there is no more water.

The amount of water, electricty, and lately - room for trash, limits the number of people that can live in Hawaii. What does all this mean?

It means that there is going to be a day when Oahu officially is closed to development and population growth. We will run out of water, electricity, roads, health care, etc. When will that be? Who knows. But the effect this will have is very simple, yet very terrifying.

It will get more and more and MORE expensive to live in Hawaii. Taxes will go up. New home building will cease. In the end, home prices will rise forever. What happens when you have an island that is maxed out in its capacity, but people still want to live here? Home Prices go up. Prices on the other islands will go up too. It's inevitable. As more and more people retire and want to live in paradise, infrastructure will be maxed out, and we will have to slow the growth.

Perhaps there will be a point when it gets too expensive to live here for many people, and they will leave. Do you know who they will be? Unfortunately, the poorest people probably. The rich will still sit comfortably and watch their real estate prices rise.

The current trash problem is just the beginning.