MEET KAUA'I'S CONSERVATION CHAMPIONS - Kauai Island Utility ...

Currents
Kaua‘i Island Utility Cooperative
FEBRUARY 2013
MEET KAUA‘I’S
CONSERVATION
CHAMPIONS
Inside:
Renewables Update Energy Ripoffs

KamĀmalu Condominiums in Lihue
Beautiful, New 2 Bedroom, 2 Full Bath condominiums!
No restrictions on resale. Opportunity available now for
Owner occupants AND Investors! Very spacious floor plan
with wonderful features. Solar Hot Water! Pets Allowed.
End Units starting at $219,000(fs). Call: Aloha Island
Properties 246-0334 or Karen Agudong(R) 652-0677.
4333 Naulu Place, Omao
Welcome to “Mango’s”! The Main House has 3
bedrooms and 3 baths as well as bonus rooms located
downstairs PLUS an adorable 1 bedroom 1 bathroom
Guest House located in beautiful Omao. Over 2300 sf of
living area located on over a half acre. Call: Charlotte
Barefoot® 651-4627. $799,999(fs).
2339 Wiliko Street, Lihue
Gorgeous newly built Custom home in the Pikake
Subdivision with professional resort quality landscaping.
3 Bed, 2.5 bath Vantage Smart House with vaulted
ceilings, top of the line antique vanities, Stainless Steel
appliances, Travertine flooring and numerous custom
finishes. Because you Deserve to be Spoiled! $995,000(fs).
Call: Karen Agudong® 652-0677 or 246-0334.
Aloha Island Properties
EXCEEDING YOUR EXPECTATIONS
(808) 246-0334
Beautiful Pikake Lots in Lihue
#1638 – Gorgeous Golf Course corner lot with Mountain
Views! $279,000(fs)
#1739 – Golf Course, Lake & Mountain Views. 11,513 sf.
$249,000(fs)
#1727 – 14,335 sq ft allows guest house. Golf course,
lake & mtn. views. $319,000(fs)
#1726 – 9,895 sq ft lot located toward the back of Pikake.
Great views. $248,500(fs)
#1669 – 11,307 sf large corner lot on Kauila Street.
$289,900(fs)
6704-B KIPAPA RD, #A, Wailua
Homesteads
Beautiful 2 story home located in a Gorgeous country
setting on over 1.5 acres w/ beautiful Makaleha Mtn. &
Waterfall views! 4 Bedrooms, 3 baths with a 2 car
enclosed garage and a covered Lanai. Numerous fruit
trees: orange, lemon, guava, mountain apple & banana.
$750,000(fs) Call: Karen Agudong® 652-0677.
Mikala Place, Haena
North shore gem, within walking distance of the beach
located on a small private road only one mile from
Tunnels. 2-bedroom / 2 bath home enhanced with a
covered lanai, large loft, and an extra game room. Nicely
landscaped yard with gravel walkways to the two sheds,
and surrounded by beds of flowers, bushes and trees.
Sold fully furnished. $279,000 leasehold. Call: Kay
Leonard(RA) 634-8697.
5727 Wailaau Road, Koloa
Charming 3 bedroom home in a rural country setting just
outside the charm of Koloa town. Beautiful hardwood
floors. Wonderful fenced yard with lush landscaping.
Great opportunity for an investment or for first time home
buyers. Just minutes from Poipu and just a few blocks to
Koloa town. $388,000(fs) Call: Karen Agudong®
652-0677.
Poipu Shores B201
Ground floor, end unit boasting amazing Oceanfront
living. Well maintained, fully furnished walk up unit has
2 bedrooms and 1 1/2 bathrooms, and approx. 628 sq. ft.
of living area. Single owner since 1987 with pride in
ownership. Very popular unit in the vacation rental
program with excellent rental history. $695,000(fs)
Call: Charlotte Barefoot(R) 651-4627.
Ali‘i Kai
This Princeville Condominium's Bluff location offers
immense ocean and beautiful coastline views. Fully
furnished 2 bedroom 2 bathroom at Alii Kai is situated in
the desired location on the ground floor, it is an end unit
that has two lanais. Being offered at $675,000(fs). Call:
Charlotte Barefoot® 651-4627
Aloha Island Properties 3-3359 Kuhio Highway, Lihue, HI 96766
808-246-0334 fax: 808-246-0771 www.alohaisland.com email: karen@alohaisland.com

Cover Story Page 5
Page 10
Page 20
WE WANT TO HEAR FROM YOU
We welcome your contributions to Currents. Please send us your questions and
your comments about anything related to your cooperative. If it is on your mind,
we want to hear from you.
We’re also looking for story ideas, especially from people who want to talk
about their experiences with photovoltaics, electric cars, solar water heaters and
other energy-saving projects. Share your tips for saving electricity and running
your home or business more efficiently.
Are you a retiree from KIUC or Kauai Electric? Share your stories about the
work, the challenges and the lasting friendships from the old days.
And we’re always looking for new recipes.
Send your comments, suggestions and story ideas to currents@kiuc.coop. And
thank you for reading Currents.
Table of Contents
From the Editor . . . . . . . . . . . . . . . . . . . . . . . . 4
Conservation Champions . . . . . . . . . . . . . . . 5
Customers Cut Use 10% Since 2007 . . . . . . . 7
In-Home Display ‘Gets Your Attention’ . . . . 8
Energy Use By Appliance . . . . . . . . . . . . . . . . 9
Construction Begins on Green
Energy Biomass Project . . . . . . . . . . . . . . 10
MP2/Kaneshiro Solar Array in Lawai
Powers 190 Houses . . . . . . . . . . . . . . . . 10
Largest Solar Facility in Hawai‘i
Comes Online . . . . . . . . . . . . . . . . . . . . . . 11
KIUC Renewable Portfolio Summary . . . . . 11
Chairman’s Message . . . . . . . . . . . . . . . . . 12
Board Actions . . . . . . . . . . . . . . . . . . . . . . . 12
Democratic Member Control . . . . . . . . . . . 13
Statement of Non-Discrimination . . . . . . 13
David Proudfoot Honored for 12 Years
of Service to KIUC . . . . . . . . . . . . . . . . . 14
From the Board of Directors . . . . . . . . . . . 15
Report Says Natural Gas Could Bring
Major Cost Savings to Hawai‘i . . . . . . . 16
Don’t Fall for Energy-Saving Scams . . . . 18
Eating Healthy for the New Year . . . . . . . 20
Statement of Operations . . . . . . . . . . . . . . 22
EDITOR
Jim Kelly
CONTRIBUTORS
Anne Barnes, Pam Blair, Sophie Cocke, Amy Devitt,
Karissa Jonas, Jim Kelly, Maile Moriguchi, Shelley
Paik, Brian Sloboda, Teofilo “Phil” Tacbian
Only active KIUC members will be mailed KIUC
Currents. KIUC Currents can be found online at
www.kiuc.coop under Member Information and
Currents on the website.
KIUC is an equal opportunity provider FEBRUARY and employer. 2013 3

From the Editor
With the new year comes a new look
for Currents—a design we hope gets
your attention by being bolder, cleaner
and easier to read. We also have made
some changes to the way the content is
organized. But don’t worry, we’ve kept
the recipes.
According to our most recent member
survey, 38 percent say Currents is the
way they get most of their information
about KIUC. That is well above any
other communication we use, including
bill inserts, newspapers, radio, email
and our website.
In developing a plan for improving not
only the look of Currents, but its
content, we first established what
purpose the magazine serves for KIUC
and its members. There are three
primary elements:
Education: Currents informs the
members and the community about the
role and benefits of the cooperative
structure, as well as the nuts and bolts
of power generation and distribution.
This encompasses everything from
safety to economic development.
4 KIUC CURRENTS
Community: Currents reflects the
unique nature of life on Kaua‘i and
celebrates the contributions of
businesses, nonprofits, volunteer
organizations, individuals and KIUC
employees. We want our coverage to be
Kaua‘i-centric, not KIUC-centric.
Advocacy: Currents helps to explain
and advance the board’s strategic plan
and keep members informed about
KIUC’s most significant initiatives. Our
stories should engage members by
answering the question, “What is KIUC
doing for me?”
Currents aims to be a conversation
starter, to give you information about
how your electricity is created and
delivered. Our cover story on members
who have successfully cut their utility
bills is an example of how Currents will
offer ideas and concepts about
renewable energy, sustainability,
conservation and how KIUC is
contributing to Hawai‘i’s ambitious
clean energy goals.
Speaking of sustainability, you can
sign up for a link to the online version of
Currents and we will stop sending a
print copy. You will save the co-op some
money and also save a few trees. Just
send a note to currents@kiuc.coop.
I also hope you will contribute to
Currents by sending your questions or
comments about anything related to the
cooperative. If it is on your mind, we
want to hear from you.
And we’re always looking for new
recipes.
Thank you for reading Currents and
for supporting the work of your
cooperative.
—Jim Kelly, communications
manager
LETTERS
Success isn’t just about cost
We appreciate your efforts to keep us informed on the latest developments with respect to island energy. We would like to
comment on your recent email update. The quote below, while apparently innocuous and probably accurate, sets a goal that falls
short of where we need to be:
“While all of this is good news for Kaua‘i, we know that unless our work translates into savings on your bill, it’s hard to get excited.”
We believe that public expectations need to be reset, especially if we are to meet our energy needs in a responsible, clean way.
While costs are obviously a practical limitation for both KIUC and consumers, the sooner you can get the public to appreciate that
lower (or even flat) energy costs are unrealistic, the sooner we will get to a clean, sustainable energy solution.
We don’t measure KIUC’s success just on cost. We place a much higher premium on saving our island from the continued energy
insanity that we see around the world. Many would argue that higher energy costs are inevitable as global supplies dwindle.
Long-term affordability is almost certainly best achieved by getting to our energy goals sooner, not later.
Pete and Sue Wolcott, Hanalei
Look to the ocean for power
Suggestion: We have heard of power generation from devices anchored to the sea floor, which on an island should be easy to install,
versus, say, damming streams.
I was also told they are really powerful generators due to wave and undersea flows, but have been overlooked in the rush to solar,
EVP and hydro.
What does the board think?
Tom Rice, Princeville

Story and photos by Shelley Paik
Many people know the Silva family
from Kalaheo.
Linda teaches first grade at Kalaheo
School and works part time at the A+
afterschool program.
Keith, who owns Lawai Valley Nursery
and Lawai Valley Mushrooms, also runs
a yard service. You might see him
driving his Toyota Prius with an
attached trailer containing his
landscaping equipment.
Zack, 17, and Keri, 15, attend Kaua‘i
High School and are active in the Kaua‘i
Performing Arts Center and are
interested in music. Zack and his group,
Paradox Lockdown, have produced CDs.
Keri has been writing her own music to
record.
Typical in many ways, the Silvas stand
out in their commitment to leave a
smaller footprint on the island by
reducing their consumption of
electricity and fuel, growing some of
their own food and aggressively
recycling.
During the past decade, the Silvas
have adjusted their habits and reduced
their monthly power consumption to an
average of 167 kilowatt-hours a month,
about 300 kWh below the residential
average on Kaua‘i. Since installing a
photovoltaic system, they have reduced
even more.
Other families and businesses are
finding similar success in conserving
energy and saving money by following
simple steps to cut waste. Since 2007,
the average residential KIUC customer’s
monthly kWh consumption has fallen
by 9 percent.
The Silvas are your typical family, with
plenty of electric appliances and
electronic gadgets, including two TVs,
two computers, a microwave oven, a
dryer and cell phones all around.
They started their conservation
efforts in 1999 by calling what was then
Kauai Electric to request an energy
audit.
An energy expert went to their home
and helped them replace incandescent
bulbs with CFLs.
Following the audit’s recommendations,
the Silvas also installed kitchen and
bathroom aerators and switched from
an electric water heater to a solar water
heater.
“The changes did not happen
overnight,” Keith said.
Like other Kaua‘i homes built in the
1970s, their three-bedroom house
wasn’t built to be energy efficient.
Rather than installing an air
conditioner, the Silvas added a solarpowered
fan in their attic and vented
both ends of their house.
Members and Community
CONSERVATION CHAMPIONS
For the Silva family, using less doesn’t mean doing without
Keith Silva with two weeks’ worth of trash.
“It helped drop the temperature inside
the home 3 to 5 degrees in the summer,”
Linda said.
Over time, they replaced big-ticket
items and bought Energy Star
appliances, looking for models that use
the least electricity. They also put power
control strips around their home. Once
they are done using the TV or computer,
they turn the power strip off.
“The biggest thing we got rid of was
the ‘phantom’ power,” Keith said.
Phantom power is the energy used
when an electronic device is left plugged
into a wall when it is not being used or
charged. It can be anything that is
drawing electricity even when not in
FEBRUARY 2013 5

Line-drying “has to be a family effort,” Linda Silva says.
Tips from the Silvas
• Plant a tree on the hot side of
your house to shade it.
• Hang your laundry to dry; it’s
really not that hard.
• Use power strips on everything:
TVs, computers, electronic
games.
• Turn off lights.
• Set monthly, measurable goals.
Don’t get discouraged if you
have a bad month.
use, such as a computer, laptop, printer,
digital alarm clock, the clock on a
microwave, a DVD player or DVR cable
box.
“We made the changes over time, but
the single biggest drop was unplugging
phone chargers,” Linda said. “The bill
dropped about $25 a month.”
Keith stressed the importance of
being vigilant.
“Many people start things and if it
doesn’t go well, they don’t keep it up,”
he said. “You need to be consistent. If
it’s not being used, turn it off.”
‘It has to be a family effort’
The Silvas were encouraged by their
first steps at reducing their power
consumption, but were determined to
do more. They installed a clothes line in
their garage and committed to using it.
“I heard it costs about $1.50-$2 per
load to use the dryer,” said Linda, “but if
6 KIUC CURRENTS
you hang clothes out, it lasts longer and
makes the kids aware of what’s getting
dirty. The kids hang up and put away
their own clothes. It doesn’t take a lot
longer, but it has to be a family effort.”
They replaced some of their compact
fluorescent bulbs with new lightemitting
diodes. The CFLs used 12 watts
of power. Though still significantly more
expensive than CFLs, LEDs only use
about 4 watts.
Even with that improved efficiency, it is
important to remember to turn off the
lights and not waste energy, Linda said.
“Laziness is not turning off lights,” she
said. “Don’t leave unnecessary lights on.”
Through their diligence, the Silvas
managed to drop their monthly bill from
an average of $250 to about $100.
In November 2010, they made their
Linda Silva likens saving energy to tending a garden.
biggest energy investment yet, installing
10 photovoltaic panels on their roof.
Federal and state tax credits made the
project especially cost-effective.
But they’re not finished. The Silvas
plan to install a wind turbine on their
nursery and cool their mushrooms with
solar fans.
Since installing the system, their
summer power bill has dropped to
almost nothing. In the winter, it is a bit
more because of shorter daylight hours
and more cloudy days.
The Silvas are especially committed to
recycling and putting very little waste in
the landfill.
“For two weeks of garbage, we fill up
maybe a grocery bag of trash,” Keith
said, proudly holding up a small bag that
illustrated how little waste the family
generates.
Linda noted the importance of setting
monthly goals.
“You don’t have to do everything at
once,” she said. “Set a goal for a month
and make small changes.”
The Silvas keep a routine. They charge
their phones during dinner and make
sure everything is unplugged before
going to bed.
“Making energy conservation a
priority is like a garden,” Linda said. “It’s
about consistency; plant a small section
at a time and go out to work on it in
small sections. You can’t go out and
plant your entire garden in the same day
because all of your vegetables will be
ready at the same time, and once it’s
gone, you won’t have any left.”

CUSTOMERS CUT USE 10% SINCE 2007
By Jim Kelly
Residential customers of Kaua‘i
Island Utility Cooperative have cut
their monthly electrical use by nearly
10 percent during the past five years.
With the exception of 1992, when
Hurricane Iniki shut down Kaua‘i’s grid
for weeks, the average residential use in
2012 was at its lowest level since 1987.
The conservation trend accelerated
with the surge in oil prices in 2008 and
the onset of the recession. From 2007
to 2012, residential power
consumption fell from 515 kilowatthours
a month to 465, a 9.7 percent
decrease.
(The record for residential demand
was set in 2004, when customers used
518 kWh per month).
By using less energy, customers have
offset the effects of rising oil prices. Oil
stayed high as the economic recovery
continued and customers on Kaua‘i paid
about 43 cents per kWh in 2012 for an
average monthly bill of $200.
If customers were still consuming
electricity at the same level as 2007,
their average monthly bill would have
been about $221.
A big contributor to the drop in
residential demand is the increase in
the number of solar hot water and
photovoltaic systems installed on
homes.
By the end of 2012, there were about
1,200 residential PV systems installed
or under construction on Kaua‘i.
Combined with commercial PV on big
stores and office buildings, PV systems
produced about 4 megawatts of power
in 2012, or roughly 2 percent of the
total amount consumed.
But new technology and the energyconservation
habits that are becoming
ingrained in Kaua‘i families still
Members and Community
account for the most significant
reductions in power use.
For example, simply switching to
compact fluorescent bulbs is saving
households real money every month.
Since 1998, more than 104,000 CFLs
have been distributed by Kauai Electric
and KIUC.
Those bulbs are cutting power
consumption by an estimated 6.7
million kWh a year and
saving customers about $3 million
annually.
Average Annual Residential kWh/Month Average Annual kWh/Month
600.0
500.0
400.0
300.0
200.0
100.0
0.0
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
FEBRUARY 2013 7

IN-HOME DISPLAY ‘GETS YOUR ATTENTION’
By Maile Moriguchi
Leon and Arlette Osowski of Lawai prided
themselves on their energy conservation
efforts.
They don’t have a TV and had replaced all
of their light bulbs with compact fluorescents.
But when they started using the in-home
display monitor they received from KIUC last
fall, they were shocked to see how their
energy use spiked when they would turn on
the stove, the microwave, the coffee pot and
even the curling iron.
“Something goes on and the unit turns red.
It really gets your attention,” said Arlette.
They found that turning off the power strip
Arlette’s sewing machine was plugged into
and unplugging their printer and paper
shredder had an effect on their monthly bill.
The display also made clear how much
electricity their old refrigerator was using. Taking advantage of KIUC’s $50 appliance rebate program, the Osowskis
bought a new energy-efficient refrigerator and freezer.
Overall, with the new appliances and the other small changes the Osowskis made, they reduced their energy
consumption by about 1 kilowatt-hour per day, saving about $13 a month.
“We pay more for electricity than most places so it goes without saying that we need to be more cognizant of how
we use electricity,” Leon said.
Save the Date...
Passion
4th Annual
for Purses
A Benefit for
Hale `Opio Kaua`i, Inc.
8 KIUC CURRENTS
High Tea & Auction
Sunday, May 5, 2013
1 to 4 p.m.
Kaua`i Beach Resort
Tickets are $40
Reserve a table for 10
Call 245-2873 ext. 8200
or go online to
www.haleopio.org

ENERGY USE BY APPLIANCE
APPLIANCE
ESTIMATED
ENERGY USE
ESTIMATED
ENERGY COST
Water Heating (Includes all uses)
Electric 300-400 kWh/mo $129-$172/mo
Heat Pump
Water Heater
Kitchen
100-135 kWh/mo $43-$58/mo
Refrigerator; Pre-1993 Models
Frost-free, 16 cu. ft. 100-150 kWh/mo $43-$64/mo
Frost-free, 20 cu. ft. 115-180 kWh/mo $50-$77/mo
Manual defrost,
10 cu. ft.
35-60 kWh/mo $15-$26/mo
Refrigerator; Post-1993 Models
Frost-free, 16 cu. ft. 40-50 kWh/mo $17-$22/mo
Frost-free, 20 cu. ft.
Freezer
45-60 kWh/mo $19-$26/mo
Frost-free, 10 cu. ft.
Range
70-150 kWh/mo $30-$64/mo
Oven 2 kWh/hr $0.86/hr
Surface 1.25 kWh/hr $0.54/h
Self-cleaning feature 6 kWh/cleaning $2.60/cleaning
Microwave Oven .10 kWh/5 min $0.05/5 min
Rice Cooker
20 min/day
5 kWh/mo
$2.15/mo
Deep Fryer 1 kWh/hr $0.43/hr
Toaster oven 1 kWh/hr $0.43/hr
Toaster .08 kWh/hr $0.03/use
Coffee maker .12 kWh/hr $0.05/brew
Warm setting
Laundry
.40 kWh/hr $0.17/brew
Clothes Dryer: Electric
Washing Machine
3.3 kWh/
40 min/load
$1.92/load
Cold water wash .25 kWh/load $0.11/load
Warm wash,
cold rinse
1.35 kWh/load $0.60/load
Hot wash,
warm rinse
3.55 kWh/load $1.66/load
Steam Iron 1 kWh/hr $0.43/hr
APPLIANCE
ESTIMATED
ENERGY USE
ESTIMATED
ENERGY COST
General Household
Lighting 50-200 kWh/mo $21-$86/mo
60-watt bulb, 3 hrs/day .18 kWh/3 hrs $0.08/3 hrs
Clock 2 kWh/mo $0.86/mo
Portable Fan .10 kWh/hr $0.04/hr
Ceiling Fan .10 kWh/hr $0.04/hr
Night Light, 8 hrs/night 1.80 kWh/mo $0.77/mo
Vacuum Cleaner .75 kWh/hr $0.32/hr
Hair Dryer, 1200 watt 1.20 kWh/hr $0.51/hr
Computer with disk
.20 kWh/hr $0.09/hr
drive and monitor
Computer laser printer,
15 min/day
Entertainment
1.9 kWh/mo $0.82/mo
VCR, 2 hr/day
(excluding TV)
1.5 kWh/mo $0.64/mo
Stereo .30 kWh/3 hr use $3.86/mo
Radio .03 kWh/3 hr use $0.39/mo
Color TV 19 to 27” .15 kWh/hr $0.06/hr
Big Screen TV 30 to 50” .30 kWh/hr $0.13/hr
Plasma TV 30 to 50” .45 kWh/hr $0.20/hr
Residential Energy Consumption
Air Conditioner: room and small split systems
* These figures are approximate. Your own energy use may vary due to factors such as the age of your appliances and the differences
between brands and styles. The estimated costs shown here are based on $0.42901 per kWh.
SIZE
ENERGY
EFFICIENCY
RATIO
WATTAGE
ESTIMATED
ENERGY USE
ESTIMATED
ENERGY COST
5000 BTU EER 8.0 625 8 hrs/day $2.15/day
8000 BTU EER 8.0 1000 8 hrs/day $3.43/day
12000 BTU EER 9.0 1330 8 hrs/day $4.56/day
18000 BTU EER 9.0 2000 8 hrs/day $6.86/day
24000 BTU EER 9.0 2675 8 hrs/day $9.18/day
24000 BTU EER 10.0 2400 8 hrs/day $8.24/day
FEBRUARY 2013 9

Inside KIUC
CONSTRUCTION BEGINS ON
GREEN ENERGY BIOMASS PROJECT
Two years ago, the ravine along
Kaumualii Highway near Lawai was an
eyesore, filled with the rusting hulks of
abandoned cars and trucks, piles of car
parts and overgrown with invasive
albizia trees.
The land, situated on the northwest
portion of Omao Ranch Lands, is now
the site of a 300-kilowatt solar array
built for MP2 Hawai‘i Partners. The
contractor on the project was REC Solar.
“It’s been satisfying to take that land,
clean it up and do something really
productive for the island,” said Daryl
Kaneshiro of Omao Ranch Lands, a
former Kaua‘i County council member.
MP2 is selling electricity to KIUC
under a 20-year contract. The project
generates enough electricity to power
190 houses and annually represents
10 KIUC CURRENTS
A blessing and groundbreaking for the
Green Energy 6.7-megawatt biomass-toenergy
facility near Koloa were held Jan.
13.
U.S. Rep. Tulsi Gabbard, state Rep.
Dee Morikawa and Mayor Bernard
Carvalho Jr. were among the dignitaries
who gathered for the blessing by kumu
Sabra Kauka and hosted by Green
Energy principal Eric Knutzen.
The clearing of land near Knudsen
Gap for construction began in January.
The plant is expected to be operational
in 2014. Work on the project is expected
to create nearly 200 construction jobs,
39 permanent jobs, and work for dozens
of subcontractors and service providers.
The $90-million state-of-the-art
facility will burn woodchips from trees
grown and harvested on Kaua‘i. The
plant will provide more than 11 percent
of Kaua‘i’s electricity, contributing
about 40,000 gallons of diesel that KIUC
won’t have to buy.
The hillside array began providing
significantly to KIUC’s efforts to
generate 50 percent of its power from
renewable resources by 2023.
Green Energy will provide enough
electricity to power 8,500 households,
annually replacing about 3.7 million
gallons of imported oil. Power will be
sold to KIUC under a contract approved
by the Hawai‘i Public Utilities
Commission in October 2011.
The plant will be designed by
Standardkessel Baumgarte Contracting
GmbH of Germany, an international
leader in high-efficiency boiler
technology.
“The idea behind the project was that
it would help accomplish three
objectives: to lower Kaua‘i energy costs,
to keep more money in the local
economy and create jobs, and to
contribute to sustainability efforts,”
Knutzen said.
MP2/KANESHIRO SOLAR ARRAY
IN LAWAI POWERS 190 HOUSES
Before
After
Photos courtesy of Drew Bradley, REC Solar
power to Kaua‘i’s grid at the end of
December. A blessing and dedication
were on Jan. 4.

LARGEST SOLAR FACILITY IN
HAWAI‘I COMES ONLINE
On Dec. 7, the 6-megawatt solar farm at Port Allen began delivering power to the grid.
Built by the McBryde Sugar Co. subsidiary of Alexander & Baldwin, the project is now the largest solar generation facility in
the state.
It will generate about 3 percent of the power used on Kaua‘i annually, or enough electricity for 1,900 homes. A&B sells the
power to KIUC under a 20-year contract.
Originally announced in July 2011, the project was built in less than nine months. The array is integrated with a 3-MW
battery energy storage system installed by KIUC at the point of interconnection to the grid. The battery system smoothes out
the flow of power from the solar array to the grid.
KIUC RENEWABLE PORTFOLIO SUMMARY
Toward the Goal of 50% Renewable
EXISTING RESOURCES TYPE MW 2012 SALES %
KIUC Waiahi Hydro 1.3 1.8%
McBryde, Wainiha & Kalaheo Hydro 4.8 5.0%
Gay & Robinson, Olokele Hydro 1.0 1.2%
ADC/KAA, Waimea & Kekaha Hydro 1.5 1.3%
Kapaa Solar Solar 1.0 0.4%
McBryde, Port Allen Solar 6.0 2.7%*
MP2, Omao Solar 0.3 0.1%
Customer solar Solar 4.0 1.6%
Total 19.9 14.1%
UNDER DEVELOPMENT
KIUC-Grove Farm, Koloa Solar Solar 12.0 5.1%
KIUC-HCDC, Anahola Solar 12.0 5.1%
Green Energy, Koloa Biomass 6.7 11.6%
Total 30.7 21.8%
UNDER CONSIDERATION
Puu Opae, Kekaha Hydro 8.3 9.1%
Kekaha Ditch Hydro 1.5 1.5%
Kalepa Hydro 4.0 3.4%
Gay & Robinson, Olokele Hydro 6.0 4.6%
Hanalei River Hydro 3.0 3.3%
Total 22.8 21.9%
Total resources identified 73.4 57.8%
RENEWABLE
GWH
SALES %
2015 projection (pre-hydro) 161.0 34.9%
2020 projection (including 24.3 MW hydro) 244.5 49.3%
FEBRUARY 2013 11

Inside KIUC
CHAIRMAN’S MESSAGE
By Teofilo “Phil” Tacbian
I am happy to
report that your
board of directors
has been actively
pursuing the goals
described in
KIUC’s strategic
plan. Big solar
projects are
starting to come online, starting with
the completion of Alexander &
Baldwin’s McBryde project, which is now
contributing 6 megawatts. The project
was connected to the grid in December.
On Jan. 4, I had the privilege of
participating in the dedication of the
MP2 solar farm built on land in Omao
owned by former councilman Daryl
Kaneshiro. This project is another
contributor to KIUC’s energy mix that
will help the co-op meet its goal of being
50 percent or more renewable by 2023.
Green Energy’s project broke ground
on Jan. 13 and construction is under
way. The biomass plant will contribute
6.7 MW to KIUC’s grid.
12 KIUC CURRENTS
With the passing of Sen. Daniel K.
Inouye, there have been a lot of changes
at every level of Hawai‘i government. To
that end, we are committed to building
productive relationships with all of our
elected officials—those with whom we
have worked for years and those who are
new to their jobs.
Our government relations committee
is chaired by our vice chairman, Jan
TenBruggencate. Board members David
Iha and Pat Gegen and Chief of
Operations Mike Yamane are also on the
committee. Their task is to keep all of
our public officials informed about the
needs of KIUC in the areas of legislation
and regulation.
Members of this committee and other
board members attended the opening
day of the legislative session and will
continue to engage our officials.
Board members and staff of the
Cooperative Finance Corp. held
meetings on Kaua‘i in early January, and
we were proud to show them our
facilities. They are one of the lenders
that financed the creation of the co-op
and enabled KIUC to purchase Kauai
Electric in 2002.
In this, our 10th year in business, the
CEO Sheldon Petersen of CFC noted
how KIUC went from zero equity in
2002 to 25 percent equity—a
remarkable accomplishment. He stated
how pleased CFC is with our progress.
The election for our board of directors
is March 23. This is the democratic
process that is adhered to by all
cooperatives and described in our seven
cooperative principles.
Our staff has made it easier than ever
to vote this year. You can do it by mail,
by phone, on the Internet and even on a
mobile device. Please exercise your right
as a member and vote for the people you
want to represent you on the board.
BOARD ACTIONS
Below is a summary of some of the actions taken by the KIUC board in November and December 2012.
Agendas and minutes of board meetings are available at www.kiuc.coop.
November 27 meeting
Board unanimously voted to retain attorney Laurel Loo of the firm Shiramizu Loo & Nakamura, LLLP, as general counsel.
Board unanimously voted to terminate power purchase agreement with AES Solar for 3-megawatt solar project near
Poipu. The contract between AES and KIUC was ended by mutual agreement.
Board unanimously approved 2013 meeting dates. See www.kiuc.coop for dates.
December 18 meeting
Board unanimously approved 2013 operating budget of $166.1 million, down 7 percent from 2012. Budget reflects
continued decline in electric sales and anticipated reduction in consumption of oil for power generation.
Board unanimously approved $24.9 million capital budget.
Board unanimously approved $70 million line of credit agreement with the National Rural Utilities Cooperative Finance
Corp. for the Anahola solar project.
Board unanimously approved recognition of service by general counsel David W. Proudfoot.
Wanda Shibata, Dorsa Kaneshiro
Asing and George Keoki Rapozo at
the Kaneshiro solar dedication.

By Anne Barnes
While KIUC staff climbs the poles,
answers the phones, pays the bills, runs
the programs, fixes the wires, runs the
generators and publishes this magazine,
our elected directors accept the legal
obligation to “prudently represent the
interests of the cooperative and the
interests of the members as a group, as
the owners of the enterprise in directing
the business and affairs of the cooperative
within the law”—what is legally known as
doing their fiduciary duty.
Most importantly, directors are
advocates for KIUC members. Their
decisions must reflect the interests,
needs and concerns of the membership
as a whole. To that end, directors are
active in the community.
Each year three director’s positions are
up for election. These directors are the
connection between you, the member/
owners of KIUC, and the management
and staff who operate KIUC.
Democratic member control is one of
the seven cooperative principles KIUC
members will exercise during the 2013
board of director’s election March 23.
Members will have three ways to vote
again this year: paper ballot, phone or
online. To make voting even easier, this
year you can vote from your mobile
device.
If you choose online voting this year,
you will have a chance to discontinue
receiving a paper ballot beginning with
the 2014 election.
In early March, members will receive a
ballot in the mail. Members may fill out
the ballot and mail it back or, as in the
past few years, members may choose to
vote electronically. The ballot mailing
package will include an access code that
will allow you to cast your vote online or
by telephone.
When you receive your ballot package
in the mail, please examine it carefully.
It will contain a candidate guide, a paper
ballot with instructions, a secret ballot
envelope and a business reply envelope.
To vote by mail, study the candidate
guide and vote for up to three
candidates of your choice by filling in
the bubbles next to the candidates’
names. Insert your ballot into the secret
ballot envelope to ensure your privacy,
and place the secret ballot envelope
inside the business reply envelope. Drop
the envelope in the mail. The postage is
already paid. Please do not obscure your
name and address information printed
on the reply envelope. That information
is needed to verify your eligibility to
vote. All secret ballot envelopes are
separated prior to opening, so the
privacy of your vote is assured.
The web address for voting online is
printed along with your access code on
your business reply envelope. To vote,
go to the voting website. It will prompt
you to enter your access code and will
verify your identity. Our system then
will create an anonymous ballot for you
to vote for the candidates of your choice.
We record that you voted, but not how
you voted. After casting your vote, you
will be issued a confirmation number
that will allow you to review how you
voted. Make sure you write down the
Inside KIUC
DEMOCRATIC MEMBER CONTROL
March 23 deadline set for director election
number. Because your ballot is
anonymous, there is no way for us to
retrieve the number for you later.
To vote by telephone, please examine
your business reply envelope. The tollfree
number for voting is printed along
with your access code. To vote, please
call the number provided. When you
vote by phone, our automated attendant
will read the names of all the candidates.
You then may make your first choice.
The attendant will list the remaining
candidates and allow you to make a
second selection. After your second
selection, the attendant will list all
remaining candidates and allow you to
make a third selection.
Remember you are only allowed to vote
once. Our electronic system will only
allow you to vote once, whether by paper
ballot, online or via phone. If you cast a
vote electronically and also vote by mail,
your mail ballot will be voided.
You trust your co-op directors with a
big job. It is a lot of work. At the heart of
it, it is all about doing the right thing for
you.
The deadline to vote in the 2013
board elections is noon March 23.
STATEMENT OF
NONDISCRIMINATION
Kaua`i Island Utility Cooperative is the recipient of federal financial assistance
from the U.S. Department of Agriculture. The USDA prohibits discrimination in
all its programs and activities on the basis of race, color, national origin, age,
disability and, where applicable, sex, marital status, familial status, parental
status, religion, sexual orientation, genetic information, political beliefs, reprisal
or because all or part of an individual’s income is derived from any public
assistance program. (Not all prohibited bases apply to all programs.) Persons with
disabilities who require alternative means for communication of program
information (Braille, large print, audiotape, etc.) should contact USDA’s TARGET
Center at (202) 720-2600 (voice and TDD).
To file a complaint of discrimination, write to USDA, Director, Office of Civil
Rights, 1400 Independence Ave., SW, Washington, D.C. 20250-9410, or call (800)
795-3272 (voice) or (202) 720-6382 (TDD). USDA is an equal opportunity
provider and employer.
FEBRUARY 2013 13

Inside KIUC
DAVID PROUDFOOT HONORED
FOR SERVICE TO KIUC
Attorney David W. Proudfoot of Lihue
played a key role in the creation of
Kaua‘i Island Utility Cooperative. He
even initially offered his services for free
to the group of local businesspeople who
created the cooperative in 1999 and
began the effort to buy Kauai Electric.
After the sale closed in 2002,
Proudfoot continued to provide his
expertise to the board of directors as the
cooperative’s first and only general
counsel.
As part of a gradual step toward
retirement, Proudfoot told the board he
planned to step down as general counsel
to KIUC at the end of 2012. Laurel Loo
of the firm Shiramizu Loo & Nakamura
of Lihue was appointed general counsel,
effective Jan. 1, 2013.
Although Proudfoot no longer will act
as KIUC’s general counsel, he will
continue his active practice with the
firm Belles Graham Proudfoot Wilson &
Chun with his other clients and as a
consultant for KIUC on certain matters.
In December, the board unanimously
passed a resolution commending
Proudfoot for his service to the
cooperative.
14 KIUC CURRENTS
RESOLUTION 20-12 OF THE
BOARD OF DIRECTORS OF
KAUA‘I ISLAND UTILITY COOPERATIVE
WHEREAS, the community motivated initiative of converting the
Kaua`i Electric Division of Citizens Communications Company
(“KE”) to a community-owned cooperative formally began on
November 15, 1999, with the formation of the Kaua`i Island
Utility Cooperative (“KIUC”), and ended on November 1, 2002,
with the closing of the purchase of KE by KIUC thereby completing
the process of returning ownership of Kaua`i’s electric system to
its people; and
WHEREAS, KIUC recognizes that David W. Proudfoot played an
integral part in serving as General Counsel for KIUC over the past
12 years; and
WHEREAS, David W. Proudfoot has over the years gone beyond the
call in advising KIUC and its directors on nearly every important
legal issue that has arisen; and
WHEREAS, David W. Proudfoot has now decided to retire after 12
years of acting as General Counsel to KIUC; and
WHEREAS, the board of directors desires to honor and commend
David W. Proudfoot for his contribution and dedication in serving
KIUC;
NOW, THEREFORE, be it hereby resolved by the board of directors of
KIUC as follows:
1. The board of directors of Kaua`i Island Utility Cooperative
hereby honors and commends David W. Proudfoot for the
faithful, competent and diligent discharge of his duties as
general counsel, always having the best interests of KIUC and
its directors and staff and at the same time serving as informal
historian to those who have come after him.
2. The board of directors of Kaua`i Island Utility Cooperative
hereby requests that its president and chief executive officer
cause an appropriately framed copy of this resolution to be
prepared and presented to David W. Proudfoot in recognition of
his efforts and achievement.

We have shared a lot of good news
lately about our work in developing solar
energy and biomass projects, but we
haven’t talked much about
hydroelectricity. So we thought now
would be a good time to update you on
our progress.
For almost a year, staff of Kaua‘i Island
Utility Cooperative and its consultants
have been walking through fields,
observing stream flows, reviewing old
maps and new satellite surveys, and
talking with farmers, landowners and
users of Kaua‘i’s water resources.
We also have been meeting regularly
with the state agencies that oversee the
public land and water resources that
would be used for hydropower.
It is slow work that involves many
conversations with various agencies and
interest groups. But we’re moving
forward.
For more than a century, hydroelectric
plants have been used to provide
inexpensive, renewable energy to Kaua‘i.
Eight of these plants are still in use,
including two owned and operated by
KIUC at Waiahi.
KIUC has identified five sites suitable
for hydroelectric projects, ranging in size
from 1.5 to 8.3 megawatts. Together with
existing plants, these projects could
produce 32 MW of power daily—nearly
half our peak load.
Unlike solar projects, which produce
power only when the sun is shining,
hydroelectric plants run 24 hours a day.
That is why KIUC is pursuing a strategy
that depends on a mix of renewable
energy resources: solar, water and
biomass. Each brings a unique value to
our effort to draw at least 50 percent of
our energy from renewable sources.
We are especially excited about the
potential of hydropower because of its
reliability, efficiency and durability.
And once new projects are paid for,
hydropower can provide electricity well
into the next century at little cost to
future generations. For example, our
Waiahi plants produced power for $53
per megawatt-hour in 2011—80 percent
less than the cost of our legacy fossil-
Inside KIUC
FROM THE BOARD OF DIRECTORS
Conversations and research current focus of hydropower
work; Waiahi improvements planned
fuel generation.
In the meantime, this board recently
approved spending $4 million this year to
improve our two facilities at Waiahi. The
investment in those facilities will increase
their efficiency and output, and ensure
their productivity for the next 50 years.
An overview of our hydro plans is at
www.kiucrenewablesolutions.coop,
along with maps and project
descriptions. In the coming months, we
plan to provide you with more details
about our ideas for hydroelectric power
so you can offer your opinions.
We have said all along that we are
approaching each of these projects with
an open mind and will only move
forward with plans that make good
sense economically, technically,
environmentally and culturally.
Thank you for your questions, your
suggestions and your support.
Carol Bain, Karen Baldwin,
Patrick Gegen, David Iha,
Calvin Murashige, Allan Smith,
Teofilo “Phil” Tacbian,
Jan TenBruggencate,
Peter Yukimura
FEBRUARY 2013 15

Issues and Ideas
REPORT SAYS NATURAL GAS
COULD BRING COST SAVINGS
By Sophie Cocke
Honolulu Civil Beat
Importing liquefied natural gas to
Hawai‘i could provide residents with
“huge” savings over oil, according to a
recently released University of Hawai‘i
study designed to help chart a path for
importing the fuel.
On O‘ahu, the cost of natural gas could
be about half that of oil through 2030,
according to the report conducted by
Honolulu-based FACTS Global Energy.
On the Neighbor Islands, savings also
could be significant, ranging from 22
percent to 44 percent.
The study was conducted for the
Hawai‘i Natural Energy Institute. John
Cole, a specialist at HNEI, said the study
was competitively bid, with one other
company, New York-based NERA
Economic Consulting, submitting a
proposal. FACTS Global Energy was paid
about $150,000 for the study, according
to Cole.
Environmental groups, who are
increasingly opposed to importing LNG to
Hawai‘i, raised questions about the
impartiality of the study.
Jeff Mikulina, executive director of Blue
Planet Foundation, pointed out that
Hawai‘i Gas is a client of FACTS Global
Energy, as the report discloses.
“Although FACTS takes great pains to
claim that they don’t have any vested
16 KIUC CURRENTS
interests in whether or not Hawai‘i
imports LNG, there is a clear, unavoidable
conflict of interest: FACTS works for
Hawai‘i Gas, who has petitioned (federal
regulators) to import LNG to Hawai‘i,”
wrote Mikulina by email.
FACTS Global Energy was founded by
Fereidun Fesharaki, an international oil
expert and former president of the
International Association for Energy
Economics. He is also a member of the
Council on Foreign Relations. The study
was led by his son Shahriar Fesharaki, also
an expert on oil and natural gas.
“FGE undertook the present study with
the intent of providing a fair and
independent analysis with respect to the
potential introduction of LNG into the
state,” the report says. “Beyond payment
for this study, FGE will receive no
compensation whatsoever whether the
state decides to import LNG or not, and
no matter under what terms it is
imported.”
Shahriar Fesharaki disagreed there was
any conflict.
“We have never compromised our
independence to satisfy a particular desire
of any client. In this case none of the
parties asked us in any way to take any
particular stance on the study,” he said in
an email to Civil Beat after this story was
published. “Moreover, whether the state
goes ahead with the LNG or not has no
financial implications for FGE, particularly
as 99 percent of our business is outside
the state and often outside the USA. We
don’t construct LNG terminals nor do we
supply oil or gas.”
Gov. Neil Abercrombie’s administration
announced last year that it was moving
toward importing LNG to Hawai‘i to
provide relief to the local economy and
residents who pay triple the national
average for electricity.
The study was conducted to help
develop a working plan for liquefied
natural gas. Currently, Hawai‘i is almost
completely dependent on oil for its energy
needs.
In addition to a cost analysis, the study
provides a better picture of the best
sources and infrastructure for LNG, and
evaluates the potential impacts the new
fuel source could have on Hawai‘i’s two oil
refineries and the renewable energy sector.
Shipping Location is Key
To maximize savings, Hawai‘i should
import LNG from either the West Coast or
the U.S. Gulf Coast, according to the
report. Compared to low-sulfur fuel oil,
natural gas from the West Coast is
projected to cost 43 percent less in 2030.
LNG from the U.S. Gulf Coast is expected
to be 31 percent cheaper.
The report also analyzed imports from
Alaska, Australia and Canada, but warns
these areas carry a much greater risk.
Projected savings are significantly less—
about 8 percent for Alaska, 4 percent for
Australia and 16 percent for Canada.
Given that price forecasts are uncertain,
the report advises that major LNG
imports not be undertaken unless the
expected savings are substantial.
“Expected savings of, say, 10 to 15
percent, are probably not enough to
warrant the large investments and longterm
commitments required for bulk LNG
imports; such savings could easily be
wiped away by market fluctuations,”
according to the report.

Natural gas prices have plummeted on
the Mainland, aided by hydraulic
fracturing technology, which has opened
up new reserves of the gas.
Critics say Hawai‘i won’t realize these
savings because LNG will be linked to the
Asia-Pacific market, where prices are
substantially tied to oil. But the report
says LNG coming from the United States
will be in line with domestic natural gas
prices.
Jeff Kissel, CEO of Hawai‘i Gas, the
state’s only gas company, is helping the
push for importing LNG. He said that the
report backs up the company’s belief that
it can get good prices for LNG that are not
linked to Asian crude. He said it all comes
down to direct negotiation with suppliers.
“There are people that say, ‘No, that is
not the case,’ ” he said. “What I can tell you
for sure is that our company, when we did
all this work, determined that there are
ways we can get it to Hawai‘i at a price that
is not crude linked. And it provides very
favorable economics, compared to what is
going on with crude oil.”
Mikulina, of Blue Planet Foundation,
whose focus is on eliminating fossil fuel
use, isn’t convinced.
He called the report’s cost estimates
“highly questionable” and says neither the
West Coast nor the Gulf Coast have export
facilities. The argument that domestic
exports to Hawai‘i would be tied to the
U.S. market undercuts the business
rationale for U.S. export facilities—that
exporters will be able to tap into the
lucrative prices of the international
market, he says.
Supplier is Not a Problem
While there are currently no companies
exporting LNG from the Mainland, except
in Alaska, the report says that finding a
supplier is not a problem, at least when it
comes to investors.
“Would someone invest the money to
build such a project? The answer is
certainly yes, and the number of possible
sponsors is much larger than the number
of companies that can develop major LNG
export projects,” according to the report.
The report recommends that Hawai‘i
contract with two ships to import LNG in
case there is any disruption in supply. And
it says that finding a supplier, and
negotiating a fuel price, should start early
to get the best prices.
“The LNG business is not a
supermarket. LNG buyers who get decent
prices strike their deals before the projects
are finalized; they do not wander the aisles
looking at price tags,” the report states.
Impact on Renewables
The state’s clean energy policy
mandates a switch to 40 percent
renewable energy sources by 2030 and a
30 percent reduction in electricity use.
Regardless of Hawai‘i’s clean energy
goals, the state will still have to rely on
non-renewable sources for years to come
for at least some portion of its energy
needs. And diversifying with natural gas
makes economic sense, the Abercrombie
administration has argued.
The administration has instructed
electric utilities and state regulators to
continue the aggressive push for
renewables, while also exploring natural
gas options.
The FACTS Global Energy report
concludes that importing LNG will not
hurt Hawai‘i’s push for renewables, except
maybe in the transportation sector, where
natural gas-powered cars could compete
more favorably than biofuels. The report
notes it is doubtful that biofuels will be as
cheap as natural gas used in vehicles.
But groups such as Blue Planet
Foundation and the Hawai‘i Sierra Club
disagree and say that switching attention
to natural gas could derail the state’s push
for renewables and make Hawai‘i
dependent on another fossil fuel source.
“We don’t stop smoking by switching
from cigarettes to cigars. Similarly, we
don’t wean ourselves off of fossil fuels by
simply switching to a different fossil fuel,”
Robert Harris, executive director of the
Sierra Club, said in an email.
The Sierra Club’s national chapter is
working to stop mainland companies from
exporting natural gas, including to
Hawai‘i. The group has grown increasingly
concerned about the environmental
impacts of hydraulic fracturing, or
fracking, which has been tied to water
contamination and has raised concerns
that some earthquakes may be caused by
drilling.
Building a regasification plant in
Hawai‘i, upgrading ports, and adding
pipelines and other infrastructure for
distribution will also cost hundreds of
millions of dollars in capital investment,
according to the FACTS report. The study
notes this cost needs to be kept in
perspective—Hawai‘i spends about $6
billion a year on oil.
But Mikulina worries these
expenditures will detract from the largescale
investments needed for the switch to
renewables. And lower LNG prices also
could make it more difficult for
renewables to compete.
This is a condensed version of a story
that originally appeared on Civil Beat on
Jan. 7 and is reprinted with permission.
KIUC’S POSITION ON LNG
Even with its aggressive effort to get at least 50 percent of its electricity from renewable sources, fossil fuels will still play a
big role in Kaua‘i’s energy future, which makes the potential use of a cheaper fuel like LNG appealing.
But LNG isn’t a quick or cheap fix.
KIUC staff members already have done preliminary work looking at how LNG could work on Kaua‘i. Some of our generators
could be modified to burn LNG. The bigger challenges are the cost and logistics involved in shipping LNG to Kaua‘i,
transporting it to the power plants at Port Allen and Kapaia, and converting the fuel from a liquid into gas.
The question for KIUC and its members is whether the savings would be sufficient to justify the cost of shipping and storing
the fuel and retrofitting power-generation equipment. There also would be significant regulatory issues.
The FACTS Global Energy report concludes that unless O‘ahu goes forward with the importation of LNG, the market on the
Neighbor Islands isn’t big enough to justify bringing it to Hawai‘i. So KIUC’s options depend on whether Hawaiian Electric Co.
moves ahead with using LNG.
Read the report. Go to www.hnei.hawaii.edu
FEBRUARY 2013 17

Issues and Ideas
DON’T FALL FOR
ENERGY-SAVING SCAMS
Beware of phony technical jargon and
‘little boxes’ promising big savings
By Brian Sloboda
Most of us think we are too smart to
fall for a scam. Yet every year thousands
of people are separated from their hardearned
dollars by putting their faith and
trust in another person’s sales pitch.
There is no shortage of hucksters
pretending to help consumers save
energy and some of them are working
on Kaua‘i. These types of scams
generally center on misstatements of
science or confusion about an electric
utility’s energy-efficiency programs.
The most popular scam right now
involves a device that promises to save
energy without requiring you to make
any changes in behavior. People who sell
these “little boxes” often claim
outrageous energy savings—sometimes
30 percent or more—and they toss
around legitimate utility terms such as
power conditioning, capacitors and
18 KIUC CURRENTS
What’s
Power Factor?
Power factor is the ratio between
the electricity we use (real power)
and the amount of electricity a
utility provides (apparent power),
expressed as a fraction between
0 and 1. The average home has
a power factor of 0.9, or 90
percent. This means even if an
electrical system isn’t performing at its best,
utilities deliver extra power to make sure that
consumers get what they pay for. When power
factors come in below 1, special equipment, such
as capacitors, are used to keep an electrical
system in balance.
Real World Example:
You buy a soda. The soda jerk
may pour a bit extra in the glass to
make sure it is full. You are not
charged for any soda that spills
over the rim.
Source: NRECA
power factor.
The marketing spiel usually goes
something like this: The model being
sold will control alternating current
power factor and reduce electric bills. It
will “condition” your power and make
appliances last longer. It uses no power
and has no moving parts. It will make
motors in your home run better.
Accompanying materials often
caution, “Your utility doesn’t want you
to know about this device.” That part is
true, because the boxes are a rip-off.
So what’s the reality? While KIUC uses
various components to correct power
factor for commercial and industrial
consumers, power factor correction is
not a concern within homes.
Engineers at the University of Texas-
Austin concluded that one of the units
could produce no more than a 0.06percent
reduction in electric use in an
average house.
The Electric Power Research
Institute, a Palo Alto, Calif.-
based nonprofit research
consortium made up of
electric utilities, tested one of
the most popular residential
power factor correction
products. The test found it
generated average power
savings of 0.23 percent, far
from the 30 percent claimed
by its manufacturer.
At that rate, it would take a
typical homeowner more than
70 years to recoup his or her
investment.
In short, these devices are
nothing more than ordinary
capacitors employed in
electronic circuits to store
energy or differentiate
between high- and lowfrequency
signals.
Companies selling these products
change names quickly and often, and
move from town to town looking for
new victims. And some are set up as
pyramid schemes in which salespeople
make their money by recruiting other
salespeople.
Consider these questions if you hear a
pitch for a power-saving product:
• Does the product violate the laws of
science? For example, does it claim to
be capable of “changing the molecular
structure … to release never-before
tapped power.” If true, the invention
would quickly be sold in every store
across the nation, not marketed
through fliers or websites.
• Was the product tested by an
independent group? If the
performance of the product was not
tested and certified by a lab or entity
not connected to the company selling
it, be skeptical.
• Is it too good to be true? If so, it
probably is. A video getting play on the
Internet shows a consumer reporter
for a television station testing one of
these little boxes. By looking at electric
bills before and after installation, he
concludes the device is a good buy.
However, an excessively hot or
unusually cool day on the Mainland
can cause one month’s electric bill to
run significantly higher or lower than
the previous month.
Remember, changing your own habits
is the best way to cut your utility bill.
Switching to LED light bulbs would be a
better investment than buying a “magic
box.”
Brian Sloboda is senior
program manager specializing in energy
efficiency for the Cooperative Research
Network, a service of the Arlington, Va.based
National Rural Electric Cooperative
Association.

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FEBRUARY 2013 19

Recipes
EATING HEALTHY
FOR THE NEW YEAR
Turkey Burgers
2 pounds ground turkey
Garlic salt
Allspice
Lemon pepper
Jalapeno peppers, finely chopped
(optional)
Onions, finely chopped (optional)
Season ground turkey with spices.
Add jalapenos and onions. Shape turkey
into patties. Grill or fry on medium heat
until cooked through.
20 KIUC CURRENTS
Chicken and
Asparagus
1 bunch asparagus, cut into 1½-inch
pieces
3 boneless chicken breasts, cut into
1- to 2-inch pieces
2 tablespoons flour
4 cloves garlic, minced
4 tablespoons olive oil
Salt
Pepper
Sprinkle sliced chicken breasts with
salt and pepper (to taste); coat with
flour.
In a nonstick skillet, add olive oil and
sauté chicken pieces with garlic. When
chicken is almost done, add asparagus
and cook for 3 minutes.

Miso Salmon
4 8-ounce salmon fillets
⅔ cup white miso
⅔ cup mirin
3 teaspoons sesame oil
3 tablespoons rice vinegar
3 tablespoons soy sauce
2 tablespoons green onions, minced
2 tablespoons ginger, minced
Salt and pepper
Mix miso, mirin, rice vinegar, soy
sauce, green onions, ginger and sesame
oil in a small bowl. Place the salmon in a
baking dish. Pour the mixture over the
salmon, turning to cover both sides.
Chill to marinate for 30 minutes.
Heat skillet on high. Remove salmon
from the marinade and season with salt
and pepper. Cook the salmon, skin side
down, covered, until golden brown and a
crust has formed. Turn the salmon over
and continue cooking.
Thai Vegetable Quinoa Salad
2 cups quinoa
2 cans coconut milk
1 15-ounce can organic tomato sauce
1 15-ounce can organic diced tomatoes
1 cup water
2 tablespoons Thai red curry paste
1 onion, chopped
1 zucchini, chopped
1 red bell pepper, chopped
1 green bell pepper, chopped
3 garlic cloves, minced
Olive oil
In a bowl, combine curry paste and
coconut milk; mix well.
In a pan, sauté zucchini and peppers in
olive oil; set aside.
In a pot, sauté onions and garlic in
olive oil. Add quinoa, coconut milk
mixture, tomato sauce, diced tomatoes
and water; bring to a boil. Lower heat
and simmer for about 30 minutes,
stirring occasionally. When done, add
sautéed vegetables to cooked quinoa.
*Add more vegetables if you like.
FEBRUARY 2013 21

Inside KIUC
STATEMENT OF OPERATIONS
For the period January 1, 2012, to November 30, 2012
By Karissa Jonas
We are pleased to report KIUC’s
results of operations through
November 30, 2012, are favorable.
However, year-to-date electricity use
on the island is 1 percent lower than
last year. Despite the reduction in
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 $171.8 million, $161.1 million
and $10.7 million, respectively, for the
11-month period ending November
30, 2012.
As is the case for all electric utilities,
the cost of power generation is the
largest expense, totaling $107.8
million or 62.8 percent of revenues.
Fuel costs are the largest component
of power generation, totaling $93.6
million or 54.5 percent of revenues,
and representing 86.8 percent of the
cost of power generation.
The remaining $14.2 million or 8.3
percent of revenues and 13.2 percent
of the cost of power generation
represents the cost of operating and
22 KIUC CURRENTS
one day...
all babies will be born healthy
maintaining the
generating units.
The cost of
operating and
maintaining the
electric lines
totaled $4.7 million
or 2.7 percent of
total revenues. The
cost of servicing
our members
totaled $3.0 million
or 1.8 percent of
revenues. The cost
of keeping our
members informed
totaled $1.0 million
or 0.6 percent of
revenues.
Administrative and General
Net of Nonoperating Margins
8.4%
Administrative and General
Net of Nonoperating Margins
8.4%
Marketing and Communications
0.6%
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 $10.5 million or 6.1
percent of revenues.
Being capital intensive, depreciation
and amortization of the utility plant
costs $12.3 million or 7.1 percent of
revenues. Although not subject to
PERCENTAGE OF TOTAL REVENUE
Taxes 8.4%
Member Services
1.8%
Transmission and Distribution
Operation and Maintenance
2.7%
Interest 4.5%
Net Margins 6.2%
Production Operation and
Maintenance
8.3%
Fuel and Purchased
Power Costs
54.5%
federal income taxes, state and local
taxes amounted to $14.4 million or
8.4 percent of revenues. Interest on
long-term debt, at a favorable sub-5
percent interest rate, totals $7.7
million or 4.5 percent of revenues.
Non-operating net margins added
$0.3 million to overall net margins.
Revenues less total expenses equal
margins of $10.7 million or 6.2
percent of revenues. Margins are
allocated to consumer members and
paid when appropriate.
March 23, 2013
Lydgate Park - Main Pavilion
Registration at 6:45 a.m. • Walk at 8 a.m.
Walkers will enjoy about a 1-mile walk around Lydgate Park, ending in fun
activities for the whole family, including games, prizes, food and lots of fun.
Help us help Kaua‘i babies
Register at www.marchforbabies.org or contact Event Coordinator Molly McGrath
kauai.marchforbabies@yahoo.com 808.268.7262 1.800.272.5240

FEBRUARY 2013 23

February 2013
Volume 10, Number 1
David Bissell
President and CEO
2012-2013 KIUC Board of Directors
Chairman: Teofilo “Phil” Tacbian
Vice Chairman: Jan TenBruggencate
Treasurer: Allan Smith
Secretary: David Iha
Board: Carol Bain, Karen Baldwin, Pat Gegen,
Calvin K. Murashige and Peter Yukimura
Finance & Audit
Chairman: Allan Smith
Members: Carol Bain, Peter Yukimura
Government Relations/Legislative Affairs
Chairman: Jan TenBruggencate
Members: David Iha, Pat Gegen
Member Relations
Chairman: Carol Bain
Members: Karen Baldwin, Allan Smith
Policy
Chairman: Peter Yukimura
Members: Karen Baldwin, Calvin K. Murashige
Strategic Planning
Chairman: David Iha
Members: Pat Gegen, Calvin K. Murashige
4463 Pahe‘e Street, Suite 1
Līhu‘e, Hawai‘i 96766-2000
808.246.4300
24 KIUC CURRENTS
■ www.kiuc.coop
currents@kiuc.coop
HI-130
KIUC Planner Juan Lorenzo Jr., teaches students at King Kaumualii
Elementary School about latitude and longitude before taking them
on a GPS field exercise. Juan and fellow planners Bart Garcia and Grace
Sahagun have been volunteering at the school for the past three years
eaching students how to use GPS.