KIUC Linemen All Geared Up - Kauai Island Utility Cooperative
KIUC Linemen All Geared Up - Kauai Island Utility Cooperative KIUC Linemen All Geared Up - Kauai Island Utility Cooperative
Statement of Operations For the period 01/01/2011 – 07/31/2011 70 KIUC CURRENTS By Karissa Jonas, CFO We are pleased to report that the KIUC results of operations through July 31, 2011, are strong as the weak economy continues to show measurable signs of recovery. Electricity usage on the island is 2 percent higher than in the prior year. Regardless of the improved sales volume, KIUC is still doing everything it can, while maintaining safety and reliability, to reduce costs in various areas to operate efficiently and effectively, and continue to maintain a strong financial position. Revenues, expenses, and net margins totaled $105.9 million, $98.6 million, and $7.3 million, respectively, for the sevenmonth period ending July 31, 2011. As is the case for all electric utilities, the cost of power generation is the largest expense, totaling $64.5 million or 60.9 percent of revenues. Fuel costs are the largest component of power generation, totals $56.2 million or 53.0 percent of revenues, and represents 87.1 percent of the cost of power generation. The remaining $8.3 million or 7.9 percent of revenues and 12.9 percent of the cost of power generation, represents the cost of operating and maintaining the generating units. Percentage of Total Revenue Taxes 8.4% Depreciation & Amortization 7.3% Administrative & General Net of Non-Operating Margins 6.6% Marketing & Communications 0.5% Interest 4.8% Member Services 1.8% Net Margins 6.9% Transmission & Distribution Operation & Maintenance 2.8% Production Operation & Maintenance 7.9% Fuel & Purchased Power Costs 53% The cost of operating and maintaining the electric lines totaled $3.0 million or 2.8 percent of total revenues. The cost of servicing our members totaled $1.8 million or 1.8 percent of revenues. The cost of keeping our members informed totaled $0.6 million or 0.5 percent of revenues. Administrative and general costs—which include legislative and regulatory expenses, engineering, executive, human resources, safety and facilities, information services, financial and corporate services, and board of director expenses—totaled $7.2 million or 6.8 percent of revenues. Being very capital intensive, depreciation and amortization of the utility plant costs $7.8 million or 7.3 percent of revenues. Although not subject to federal income taxes, state and local taxes amounted to $8.9 million or 8.4 percent of revenues. Interest on longterm debt, at a very favorable sub5percent interest rate, totals $5.1 million or 4.8 percent of revenues. Nonoperating net margins added $0.3 million to overall net margins. Revenues less total expenses equal margins of $7.3 million or 6.9 percent of revenues. Margins are allocated to consumer members and paid when appropriate.
Simple Pleasures “Everybody chases sunsets… sometimes it’s just easier to turn around and look at the moonrise” Juan Lorenzo Parting Shot Congresswoman Mazie Hirono visits the Kapa‘a Solar site with KIUC President and CEO David Bissell, Board Chair Phil Tacbian and Senior Energy Solutions Engineer Steve Rymsha. We are always looking for interesting items to feature in SImple Pleasures and Parting Shot. If you have an item to share with readers, please email currents@kiuc.coop or send it to: KIUC Currents, 4463 Pahe‘e Street, Suite 1, Līhu‘e, HI 967662000. OCTOBER 2011 71
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Statement<br />
of Operations<br />
For the period 01/01/2011 – 07/31/2011<br />
70 <strong>KIUC</strong> CURRENTS<br />
By Karissa Jonas, CFO<br />
We are pleased to report that the <strong>KIUC</strong> results<br />
of operations through July 31, 2011, are strong as<br />
the weak economy continues to show measurable<br />
signs of recovery. Electricity usage on the island is<br />
2 percent higher than in the prior year. Regardless<br />
of the improved sales volume, <strong>KIUC</strong> is still doing<br />
everything it can, while maintaining safety and<br />
reliability, to reduce costs in various areas to<br />
operate efficiently and effectively, and continue to<br />
maintain a strong financial position. Revenues,<br />
expenses, and net margins totaled $105.9 million,<br />
$98.6 million, and $7.3 million, respectively, for<br />
the sevenmonth period ending July 31, 2011.<br />
As is the case for all electric utilities, the cost of<br />
power generation is the largest expense, totaling<br />
$64.5 million or 60.9 percent of revenues. Fuel<br />
costs are the largest component of power<br />
generation, totals $56.2 million or 53.0 percent of<br />
revenues, and represents 87.1 percent of the cost<br />
of power generation. The remaining $8.3 million<br />
or 7.9 percent of revenues and 12.9 percent of<br />
the cost of power generation, represents the cost<br />
of operating and maintaining the generating<br />
units.<br />
Percentage of Total Revenue<br />
Taxes<br />
8.4%<br />
Depreciation &<br />
Amortization<br />
7.3%<br />
Administrative &<br />
General<br />
Net of Non-Operating<br />
Margins<br />
6.6%<br />
Marketing &<br />
Communications<br />
0.5%<br />
Interest<br />
4.8%<br />
Member Services<br />
1.8%<br />
Net Margins<br />
6.9%<br />
Transmission & Distribution<br />
Operation & Maintenance<br />
2.8%<br />
Production Operation &<br />
Maintenance<br />
7.9%<br />
Fuel & Purchased<br />
Power Costs<br />
53%<br />
The cost of operating and maintaining the<br />
electric lines totaled $3.0 million or 2.8 percent of<br />
total revenues. The cost of servicing our members<br />
totaled $1.8 million or 1.8 percent of revenues.<br />
The cost of keeping our members informed<br />
totaled $0.6 million or 0.5 percent of revenues.<br />
Administrative and general costs—which include<br />
legislative and regulatory expenses, engineering,<br />
executive, human resources, safety and facilities,<br />
information services, financial and corporate<br />
services, and board of director expenses—totaled<br />
$7.2 million or 6.8 percent of revenues.<br />
Being very capital intensive, depreciation and<br />
amortization of the utility plant costs $7.8 million<br />
or 7.3 percent of revenues. Although not subject<br />
to federal income taxes, state and local taxes<br />
amounted to $8.9 million or 8.4 percent of<br />
revenues. Interest on longterm debt, at a very<br />
favorable sub5percent interest rate, totals $5.1<br />
million or 4.8 percent of revenues. Nonoperating<br />
net margins added $0.3 million to overall net<br />
margins. Revenues less total expenses equal<br />
margins of $7.3 million or 6.9 percent of<br />
revenues. Margins are allocated to consumer<br />
members and paid when appropriate.