ASPA pursuing ways to reduce electricity costs Comprehensive rate study now underway by La Poasa Samoa News Staff ASPA chief executive officer and general counsel Mike Keyser said the semi-autonomous agency will be submitting two grant proposals to the U.S. Department of Agriculture (USDA) aimed at reducing electricity costs for residents. Keyser explained that the first proposal is a waste heat recovery and thermal delivery system. (Waste heat recovery uses heat that is otherwise discarded from conventional power generation to produce thermal energy, which is used to provide cooling or heating for industrial facilities and commercial buildings.) "If successful, this project would result in roughly a 10 percent annual savings to all residential customers," he said in a statement on Thursday. The other proposal is a solar power project to help ASPA's low income customers. Keyser said under the project, concentrated solar power (CSP) parabolic troughs would be installed on roughly one acre of land in ASPA's Tafuna compound. ASPA's savings form this renewable resource would be used to lower the electric costs for ASPA's lowest income customers. "The savings aren't significant, which is why we can only pass them onto our lowest income customers," he said. "Renewable energy is the long term solution to reducing the costs of power. So long as we rely on diesel fuel, we are hostages to the world market." The proposals will be submitted at the end of the month to USDA's Rural Utilities Service High Cost of Energy Grant Program. "They are competitive grants, so there is no guarantee they will be funded, but our team has put in a lot of work on the proposals and think they have a good chance of success," Keyser said. He said the ASPA management has been working very hard to reduce the cost of electricity. "If I were to name my top three priorities, this is at the top of the list," he said. ASPA's current cost for electricity per kilowatt hour is hovering around 34-cents for residential customers. In comparison, the cost per kilowatt hour on the island of Kauai, Hawaii is now up to 40 cents. "We monitor KIUC [Kauai Island Utility Cooperative] on a regular basis because we're such similar entities with similar struggles," said ASPA chief operations officer Reno Vivao. "That comparison works." COMPREHENSIVE RATE STUDY Keyser also announced that a comprehensive rate study is now underway and expected to conclude in August. ASPA has retained the services of Economists.com, a well-respected firm with significant experience in the Pacific Island ratemaking, he said. "The study will analyze all of ASPA's costs company-wide and form the basis for revised rates," Keyser added. "We will be looking very hard at removing or reducing the interdivisional subsidy." The chief executive officer said as most people know, our water, sewer and trash divisions do not generate sufficient revenue to cover their costs of service. "If rates better reflected each division's costs of service, we could reduce the electric rates," he said. "We expect to hold multiple public hearings in the coming months to receive input from the public and other leaders." Reach the reporter at la@samoanews.com. © Osini Faleatasi Inc. dba Samoa News reserves all rights.