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Currents<br />

Kaua‘i <strong>Island</strong> <strong>Utility</strong> <strong>Cooperative</strong><br />

Cover Story Page 5<br />

Page 9 Page 28<br />

WE WANT TO HEAR FROM YOU<br />

We welcome your contributions to Currents. Please send us your questions and<br />

your comments about anything related to your cooperative. If it is on your mind,<br />

we want to hear from you.<br />

We’re also looking for story ideas, especially from people who want to talk about<br />

their experiences with photovoltaics, electric cars, solar water heaters and other<br />

energy-saving projects. Share your tips for saving electricity and running your<br />

home or business more efficiently.<br />

Are you a retiree from KIUC or Kaua‘i Electric? Share your stories about the<br />

work, the challenges and the lasting friendships from the old days.<br />

And we’re always looking for new recipes.<br />

Send your comments, suggestions and story ideas to currents@kiuc.coop. And<br />

thank you for reading Currents.<br />

Table of Contents<br />

Three Incumbents Returned to<br />

Board of Directors . . . . . . . . . . . . . . . . . . . . 4<br />

Sunny Times for Solar . . . . . . . . . . . . . . . . . . 5<br />

Kapaa Appliance a One-Man Show . . . . . . . . 9<br />

Construction on Green Energy Team<br />

Biomass Project on Project . . . . . . . . . . . 10<br />

KIUC Receives National Honor for<br />

Growth of Solar . . . . . . . . . . . . . . . . . . . . 10<br />

Construction Begins on Green Energy Team<br />

Biomass Project on Schedule. . . . . . . . . . 10<br />

KIUC Renewable Portfolio Summary . . . . . 11<br />

CFLs and LEDs: Which Bulb Works<br />

for You? . . . . . . . . . . . . . . . . . . . . . . . . . . 12<br />

Kukui Grove Center Installs New LEDs . . . 13<br />

Digital Recorders, Cable Boxes Cost Nearly<br />

$200 a Year in Electricity . . . . . . . . . . . . . 14<br />

Chairman’s Message . . . . . . . . . . . . . . . . . 15<br />

Board Actions . . . . . . . . . . . . . . . . . . . . . . . 15<br />

Strategic Plan Update. . . . . . . . . . . . . . . . . . 17<br />

From the Board: KIUC is Enthusiastic<br />

About PV . . . . . . . . . . . . . . . . . . . . . . . . . 25<br />

Low-Income Home Energy Assistance<br />

Program Offers Help with<br />

<strong>Utility</strong> Bills . . . . . . . . . . . . . . . . . . . . . . . . 26<br />

Easy Summer Picnic Recipes . . . . . . . . . . . 28<br />

Statement of Operations . . . . . . . . . . . . . . 30<br />

Annual Fuel Mix Disclosure . . . . . . . . . . . 31<br />

EDITOR<br />

Jim Kelly<br />

CONTRIBUTORS<br />

Pam Blair, Dawn Cummings, Amy Devitt,<br />

Karissa Jonas, Jim Kelly, Shelley Paik, Allan Smith,<br />

Kathryn Williams<br />

ON THE COVER<br />

Lihue resident Keven Hanano and solar contractor<br />

Nathan Wood.<br />

Only active KIUC members will be mailed KIUC<br />

Currents. KIUC Currents can be found online at<br />

www.kiuc.coop under Member Information and<br />

Currents on the website.<br />

KIUC is an equal opportunity provider and employer.<br />

MAY 2013 3


Members and Community<br />

THREE INCUMBENTS RETURNED<br />

TO BOARD OF DIRECTORS<br />

Carol Bain, Allan Smith and JanTenBruggencate Re-elected by Members<br />

Carol Bain, Allan Smith and Jan<br />

TenBruggencate were re-elected to<br />

the KIUC Board of Directors by the<br />

members on March 23.<br />

The incumbents took the top three<br />

spots to secure their seats on the ninemember<br />

board. Each will serve a<br />

three-year term ending in March 2016.<br />

KIUC received 5,823 ballots in this<br />

election. While there were three<br />

Official results of the 2013<br />

Board of Directors election:<br />

1. Jan TenBruggencate 2,977<br />

2. Carol Bain 2,858<br />

3. Allan A. Smith 2,835<br />

4. Jonathan Jay 2,248<br />

5. Stewart “Stu” Burley 2,016<br />

6. John “Jack” Benzie 1,869<br />

4 KIUC CURRENTS<br />

available director slots to fill, not all<br />

voters chose to exercise all three votes<br />

on their ballot.<br />

Of the 25,068 ballots mailed out to<br />

members, 5,823 members (23.22<br />

percent of the membership) voted.<br />

Votes were counted by the Californiabased<br />

Merriman River Group.<br />

The newly elected board members<br />

were inaugurated on Thursday, March<br />

28, and unanimously elected<br />

Allan A. Smith as chairman<br />

of the board.<br />

Smith succeeds director<br />

Teofilo “Phil” Tacbian, who<br />

has led the board since 2009.<br />

“I look forward to leading<br />

this board to continue<br />

serving the best interests<br />

of the members of the<br />

cooperative,” Smith said.<br />

“It’s important to note that we are here<br />

at this point in time because of the hard<br />

work and leadership of directors like<br />

Phil Tacbian, and I want to continue<br />

their legacy of progress.”<br />

Smith is a Waimea native who<br />

graduated from Kamehameha Schools<br />

and the University of Hawai‘i. He spent<br />

most of his career as a manager at<br />

Kaua‘i sugar plantations, including<br />

Līhu‘e Plantation and Kekaha Sugar, and<br />

was a senior vice president of Grove<br />

Farm Inc. In 2007, he served as interim<br />

director of the state Department of<br />

Land and Natural Resources.<br />

Director Jan TenBruggencate was<br />

elected vice chairman of the board,<br />

Director David Iha was elected secretary<br />

and Director Peter Yukimura was elected<br />

treasurer.


By Jim Kelly<br />

With four kids and a big house filled<br />

with the usual appliances and<br />

electronics, Keven and Cyn-D Hanano<br />

have always been sensitive to the size<br />

of their electric bill.<br />

They have used a solar hot water<br />

system for many years—a big help<br />

when you and your kids are into youth<br />

basketball and the showers and washing<br />

machine seem like they are always<br />

running.<br />

As they have expanded their Lihue<br />

home during the past 18 years, they<br />

designed the windows and ventilation<br />

to make the best use of trade winds,<br />

and installed ceiling fans in nearly every<br />

room. They use compact fluorescent<br />

bulbs and preach the gospel of turning<br />

off lights and electronics when they are<br />

not being used.<br />

To find out how much they could save<br />

by turning off the lights at night, the<br />

family experimented for a month, using<br />

only four camping lanterns. Their bill<br />

dropped by $80.<br />

“It was kind of fun and it was pretty<br />

eye-opening,” Keven said.<br />

But even with the two older children<br />

away at school and aggressive<br />

conservation efforts, the Hananos<br />

found they still were spending more<br />

than $300 to $350 a month on<br />

electricity. So with the help of a savings<br />

bond that had recently matured, they<br />

decided to invest in a photovoltaic<br />

system for their home.<br />

They are among hundreds of Kaua‘i<br />

residents who have chosen to use the<br />

power of the sun to generate electricity.<br />

Helped by a dramatic reduction in the<br />

cost of components and generous<br />

federal and state tax breaks, families<br />

and businesses are embracing PV as a<br />

way to save money and contribute to the<br />

island’s efforts to become energy<br />

independent.<br />

By the end of this year, customers’<br />

solar on Kaua‘i is expected to generate<br />

more than 9 megawatts of electricity,<br />

meeting about 4 percent of the island’s<br />

annual energy needs, or enough to<br />

power about 2,800 homes.<br />

With the cost of an average PV<br />

system $25,000 to $30,000, it’s a big<br />

investment for most families, but there<br />

are big potential savings, too.<br />

For the Hananos, the savings could<br />

knock their monthly bill down to less<br />

than $100.<br />

But the amount of savings depend<br />

on whether a family can adjust its<br />

electricity use to take advantage of the<br />

time when the PV is producing, roughly<br />

between 10 a.m. and 4 p.m. Turning on<br />

lights and TVs and using big appliances<br />

such as washers and dryers at night,<br />

when the PV system isn’t on, will start<br />

running up the electric bill again.<br />

Members and Community<br />

SUNNY TIMES FOR SOLAR<br />

Some Basics to Consider Before Making an Investment<br />

Contractor Nathan Wood says families with PV need to maximize their daytime electrical use to get the<br />

most savings.<br />

“Your time of use is extremely<br />

important,” said Nathan Wood, a<br />

general contractor from Wailua who is<br />

building the Hananos’ system. “You<br />

have to look at your habits. If you’re not<br />

using much electricity during the day<br />

and most of your use is at night, then<br />

having a big PV system probably isn’t<br />

going to make as much of an impact on<br />

your bill as it could.”<br />

Solar contractors usually start with a<br />

detailed review of a customer’s energy<br />

use to determine if PV is the right<br />

choice. Most contractors recommend<br />

an aggressive effort at energy<br />

conservation—replacing old appliances,<br />

using compact fluorescent bulbs and<br />

considering a solar hot water system—<br />

before moving into PV.<br />

MAY 2013 5


SOLAR COSTS, FINANCING OPTIONS<br />

Most Kaua‘i contractors charge between $5 and $7 a watt to install a system, depending on its complexity and whether<br />

any major electrical work is required. Solar panels vary in output and cost, but most produce between 200 and 250<br />

watts. There are also a wide variety of inverters, which convert the direct output current from the PV system to the<br />

utility’s alternating current.<br />

At $6 a watt, a 20-panel system using 250-watt panels and producing 5 kilowatts would cost about $30,000. With a<br />

federal tax deduction worth $9,000 and a state tax deduction worth $5,000, the final cost would be $16,000.<br />

A homeowner has two financing options: buy the system or lease it. With a lease, the leasing company takes the tax<br />

credit. That is factored into the overall cost and monthly payment.<br />

“In general, if you have good home equity and decent credit it makes more sense to buy,” said Mark Duda of<br />

Revolusun. “If you don’t owe any taxes, a tax break doesn’t do you any good, which is why some people find the lease<br />

more appealing.”<br />

Many banks and credit unions offer “green” loans with low-interest financing. Bridge loans can cover the gap between<br />

the purchase of the system and issuance of the tax credits.<br />

Leases are typically for 20 years, with monthly payments calculated according to the amount of electricity the system<br />

produces. Some companies offer prepaid leases. After six years, the point at which the tax credits run out, customers<br />

may have the option to buy the system.<br />

Unlike leasing a car, PV leases are unique to every customer. They also can be complicated, so it is important to make<br />

sure you understand exactly what you will be paying. You also need to be clear about what happens if you sell your house.<br />

“I try to help people reduce their<br />

energy use first,” said Charlie Cowden, a<br />

longtime Kaua‘i solar installer. “PV<br />

should be the last thing you do, not the<br />

first thing. Most people can still make a<br />

lot of headway on efficiency.”<br />

For some customers, especially small<br />

households with relatively low electric<br />

bills, the payback on the investment in<br />

PV will be longer.<br />

For Paul D. Jones, an engineer who<br />

lives in Wailua Homesteads, the choice<br />

to install a small PV system was driven<br />

not only by the potential savings, but by<br />

the knowledge he was reducing his<br />

carbon footprint.<br />

He uses a propane-fired, on-demand<br />

water heater and does without many<br />

large appliances, such as a dishwasher<br />

and a dryer. Before having a PV system<br />

6 KIUC CURRENTS<br />

installed, his monthly bill ranged<br />

between $85 and $110. Now it is usually<br />

less than $20.<br />

But even with a relatively light load,<br />

Jones figures his investment in PV will<br />

pay for itself in about four and a half<br />

years.<br />

“As far as modifying personal habits, I<br />

do notice my attempt to run the vacuum<br />

cleaner when the sun is shining,” he<br />

said. “We have a KIUC-provided In-<br />

Home Display to monitor our electric<br />

consumption in real time. It’s fun to see<br />

how consumption is affected by using<br />

various appliances. Whenever the sun<br />

shines, it makes me smile; I can feel and<br />

see the money falling from the sky. The<br />

IHD turns green and displays the<br />

windmill icon, letting us know we are<br />

feeding power back into the utility grid.”<br />

The ‘zero’ utility bill<br />

Siting of the PV system is extremely<br />

important. A wide expanse of southfacing<br />

roof is ideal, especially if it is in<br />

an area of the island where there isn’t a<br />

lot of heavy cloud cover.<br />

Wood uses a device called a Solmetric<br />

SunEye on the roof of a house. This<br />

instrument, along with a complex<br />

software program, is used to measure<br />

how much sunlight is hitting it at<br />

various times of the day and in different<br />

seasons. This helps determine how big a<br />

system is needed and whether there are<br />

shadows from trees, a neighbor’s house<br />

or any other obstructions. Even the<br />

shadow cast by a vent pipe can affect a<br />

system’s efficiency.<br />

Then it is up to the homeowner to<br />

decide how large a system to install.<br />

An average customer using about 450<br />

kilowatt-hours per month could see<br />

significant savings by installing a<br />

relatively small system of 10 panels that<br />

would supply most of the household’s<br />

daytime energy needs. This would work<br />

especially well for someone who is home<br />

during the day and can run electronics<br />

and other appliances then.<br />

But most customers want to “zero<br />

out” their electric bills, which means<br />

generating excess electricity to sell to<br />

KIUC—although the zero bill is a myth,<br />

since all customers pay a minimum<br />

charge. That also means installing a<br />

larger system that will produce


sufficient electricity to cover the<br />

amount used during peak hours at<br />

night, when most families are using<br />

lights, electronics and appliances.<br />

“If they’re expecting a zero utility bill<br />

I tell them that’s going to be a longer<br />

return on their investment,” Wood said.<br />

“You’re basically having to double your<br />

daytime production in order to offset<br />

your nighttime load, and that means<br />

more panels.”<br />

Many customers also consider<br />

leasing, which involves minimal upfront<br />

costs and monthly payments<br />

based on the amount of power the<br />

system is producing. Some leases are<br />

prepaid up front. Most leases also<br />

include maintenance and repair.<br />

The main components of a system<br />

are the panels, the racks that attach the<br />

panels to the roof and the inverters.<br />

Inverters, which convert the power<br />

created by the PV panels into electricity<br />

for the grid, are the key to the efficiency<br />

and durability of the system. They<br />

come in a range of prices.<br />

“You don’t have to become an expert,<br />

but we try to talk people credibly<br />

through the discussion on why they<br />

don’t want to skimp on the inverter,”<br />

said Mark Duda, the founder of<br />

Revolusun in Honolulu and head of the<br />

Hawai‘i PV Coalition.<br />

Choose the contractor<br />

carefully<br />

Choosing a qualified contractor is<br />

important—especially since the<br />

number of businesses offering PV<br />

services has quadrupled in the last<br />

several years.<br />

“You’re buying something that is<br />

attached by drilling holes into your<br />

prized possession, your house, so that<br />

reality ought to drive you to do a really<br />

close look at who will be doing the<br />

work,” Duda said. “You don’t necessarily<br />

want the cheapest person to do the work<br />

because some corner they would cut<br />

could start shaving time off that 25-year<br />

investment you’re making.”<br />

Some contractors work with a roofing<br />

contractor to attach the PV racks to the<br />

house. Those roofers may offer a<br />

separate warranty on their work.<br />

In addition to being bonded and<br />

having the appropriate licenses, ask<br />

your contractor for references and find<br />

out how long they have been in the<br />

business of installing PV systems.<br />

And realize that the PV business is<br />

extremely competitive.<br />

Some companies employ the “hard<br />

sell,” warning that time is running out<br />

on tax benefits or the utility’s PV<br />

capacity. Dozens of jobs for solar<br />

salespeople are posted on Craigslist,<br />

offering potential commissions of<br />

$100,000 with no experience necessary.<br />

Keven Hanano said he interviewed<br />

several contractors before deciding to<br />

hire Wood. He said it was important to<br />

him to support a local business and to<br />

know he would stand behind his work.<br />

“That’s probably one of the biggest<br />

things: to know that they will be<br />

around,” Hanano said.<br />

THE SCOOP ON<br />

SCHEDULE Q<br />

There are two ways KIUC pays<br />

customers for excess power<br />

generated by PV systems.<br />

One is called Schedule Q . It<br />

reflects the amount KIUC would<br />

have had to pay to generate the<br />

power if the co-op did not buy it<br />

from you. Because KIUC generates<br />

most of its electricity by burning<br />

oil, this so-called “avoided cost”<br />

calculation is tied to the price of<br />

oil.<br />

The Schedule Q payment<br />

changes monthly. During the past<br />

four years, it has fluctuated<br />

significantly—from 10 cents to 29<br />

cents.<br />

As more renewables come on<br />

line and KIUC burns less oil, the<br />

amount paid under Schedule Q is<br />

expected to drop.<br />

The way Schedule Q is calculated<br />

also may change. The Public<br />

Utilities Commission is in the<br />

process of reviewing the<br />

methodology of the Schedule Q<br />

rate for all Hawai‘i utilities.<br />

Keep in mind the PUC, not<br />

KIUC, determines the way<br />

Schedule Q payments are set.<br />

The bottom line for customers:<br />

As you calculate the potential<br />

return on your PV investment,<br />

don’t assume the Schedule Q rate<br />

will stay constant.<br />

The second way KIUC pays for<br />

excess PV power is through the<br />

Net Energy Metering Pilot. Under<br />

the NEM program, KIUC<br />

purchases excess power from you<br />

at a fixed rate with fixed terms: 20<br />

cents per kilowatt-hour for 20<br />

years.<br />

The NEM Pilot is available only<br />

to owners of systems producing<br />

less than 50 kilowatts, so it is<br />

available to most homeowners. A<br />

NEM program for larger systems is<br />

already fully subscribed.<br />

Participation in NEM will be<br />

available until June 3, 2014, or<br />

until the program is fully<br />

subscribed, whichever comes first.<br />

MAY 2013 7


FAQ ON PV<br />

I’ve decided to put in a PV<br />

system. What is the first step?<br />

Go to www.kiuc.coop and download<br />

an interconnection request application,<br />

or have your contractor do it. The<br />

application can be found under<br />

About Us and Tariffs. Look for Tariff<br />

No. 2 – Distributed Generation –<br />

Interconnection Policies and<br />

Procedures.<br />

If your system is going to be 10<br />

kilowatts or less—which is the case<br />

with most residential systems—look<br />

for Tariff No. 2, Attachment 5. If your<br />

system is greater than 10 kW, look<br />

for Tariff No. 2, Attachment 2.<br />

Applications also are available at the<br />

co-op office.<br />

Why do I need to submit an<br />

application?<br />

The Hawai‘i Public Utilities<br />

Commission requires customers to<br />

submit an application to KIUC for an<br />

engineering review. This step is<br />

extremely important and ensures the<br />

PV system can be safely and reliably<br />

tied into the utility grid. This step also<br />

allows KIUC to tell you whether you<br />

will have to pay any interconnection<br />

costs. For example, the size of your<br />

system may require the co-op to install<br />

a larger transformer. The engineering<br />

review will describe the interconnection<br />

costs, if any. KIUC can recommend<br />

ways to reduce your costs by changing<br />

the size of your proposed system.<br />

How much does the application<br />

cost?<br />

Most residential systems are below<br />

10 kW, so there is no cost for the<br />

application. There is a $100 nonrefundable<br />

processing fee if the<br />

interconnection request is for a system<br />

greater than 10 kW.<br />

How long does the application<br />

process take?<br />

For systems producing less than 10<br />

kW, which are most residential systems,<br />

KIUC will acknowledge receipt of the<br />

application within five business days.<br />

KIUC then will evaluate the application<br />

and notify you within 15 days of the<br />

receipt of the application whether<br />

additional information is needed or if<br />

the application is complete.<br />

8 KIUC CURRENTS<br />

For systems larger than 10 kW, KIUC<br />

has 20 business days to acknowledge<br />

receipt of the application. KIUC then<br />

has 30 business days to review the<br />

application.<br />

If the application is approved, KIUC<br />

will send an interconnection agreement<br />

and the customer has 30 business days<br />

to sign and return the agreement. If the<br />

application is not approved, KIUC has<br />

10 business days to schedule a meeting<br />

with the customer to discuss their<br />

options.<br />

Will KIUC always buy the extra<br />

energy my PV system produces?<br />

There is a limit to how much PV the<br />

co-op’s system can take. On a sunny<br />

afternoon when all of the PV systems<br />

on the island are at their maximum<br />

output, there may be more power being<br />

generated than there is demand. So<br />

there may be times KIUC’s system<br />

won’t accept all of the solar power<br />

available. That is known as curtailment.<br />

Will my system provide electricity<br />

when there is a power outage?<br />

No. The electricity you generate goes<br />

directly into the grid. When the grid is<br />

down, that means there is no power.<br />

Residential battery storage systems and<br />

generators are available, but they are<br />

expensive.<br />

I heard KIUC’s circuits are filling<br />

up and you may not approve my<br />

interconnection application if the<br />

PV rush continues. Is that true?<br />

There is still plenty of room for new<br />

PV on our circuits. We work closely<br />

with PV contractors. They will get<br />

plenty of notice if any of our circuits<br />

are getting close to saturation. Don’t<br />

get rushed into buying a system<br />

because you are worried there is a<br />

deadline.<br />

THE PV ‘GOLD RUSH’<br />

Does a PV system require a<br />

special kind of meter?<br />

KIUC requires smart meters for new<br />

PV systems. The smart meter supplies<br />

KIUC with precise measurements of the<br />

output of your PV system. This<br />

provides the data needed to maintain<br />

system stability. Since 2008, KIUC has<br />

gone from having 50 PV systems to<br />

more than 2,000 expected by the end of<br />

this year. The co-op simply cannot<br />

guess how much power they are adding<br />

to the grid at any one time. The output<br />

of PV systems is affected by cloud<br />

cover, time of day and even the time of<br />

year, making system stability even<br />

more critical.<br />

Do you have any suggestions on<br />

who I should select to install my PV?<br />

It is up to you. There are big<br />

differences in pricing, depending<br />

on the quality and durability of the<br />

components. Ask friends and neighbors<br />

for recommendations. The PV business<br />

is extremely competitive, so get several<br />

bids before deciding.<br />

If I have additional questions<br />

regarding the interconnection<br />

process, who do I call?<br />

If your system is 10 kW or less, call<br />

246.4300. If your system is greater<br />

than 10 kW, call 246.8287. And you can<br />

always email info@kiuc.coop.<br />

The number of PV systems installed on Kaua‘i nearly doubled<br />

from 2011 to 2012.<br />

2500<br />

2000<br />

1500<br />

1000<br />

500<br />

0<br />

2009 2010 2011 2012 2013*<br />

*Projected


By Shelley Paik<br />

The faded sign that hangs in the front<br />

window of Kapaa Electric and Appliance<br />

is an indication the business has been<br />

around a long time.<br />

What the sign doesn’t show is the<br />

continued commitment to provide a<br />

personalized level of service reminiscent<br />

of a time long ago.<br />

The store has been owned by the<br />

Kuboyama family since the 1940s, when<br />

Haven Kuboyama’s father bought the<br />

building.<br />

Today, Kapaa Electric is a one-man<br />

show—and Haven does it all: from sales<br />

to delivery, installation and ongoing<br />

service of appliances.<br />

Open Mondays through Saturdays<br />

from 9 a.m. to 2:30 p.m., Kapaa Electric<br />

carries a limited supply of refrigerators,<br />

stoves, washers and dryers.<br />

“Many companies don’t stock<br />

appliances anymore,” Haven says,<br />

describing the shop as being “just like a<br />

warehouse.”<br />

Haven speaks briskly while talking on<br />

the phone to a potential customer. By<br />

the end of the call, he has sold a washer<br />

to a woman, and scheduled delivery and<br />

installation.<br />

On Mondays, Fridays and Saturdays,<br />

he delivers and installs appliances.<br />

“I try to help customers as much as<br />

possible, so delivery and installation is<br />

included in the price,” Haven says,<br />

noting he also services their appliances.<br />

Kapaa Electric also participates in the<br />

KIUC appliance rebate program, saving<br />

customers even more money.<br />

Normally, he says, customers don’t<br />

even ask him about the rebate.<br />

“They just tell me to bring it,”<br />

Haven says, noting he mentions the<br />

promotion.<br />

In addition to phone orders and<br />

special orders from contractors, much of<br />

Haven’s business comes from repeat<br />

customers.<br />

Haven attended Coyne Electronics<br />

Institute in Chicago, and when he came<br />

back he began working at the store. He<br />

learned about TV, radio and record<br />

players.<br />

Members and Community<br />

APPLIANCE STORE A ONE-MAN SHOW<br />

He has a morning ritual. After coffee<br />

with the boys, he opens his shop. He<br />

helps walk-in customers or some who<br />

call and need to replace existing<br />

appliances.<br />

Because Haven is his mother’s<br />

primary caregiver, he keeps his hours<br />

shorter. He cares for her before a day<br />

nurse comes in. The nurse stays until he<br />

finishes work.<br />

If Haven isn’t in his shop during<br />

business hours, you might see him<br />

waiting to cross the street at the<br />

intersection of Niu Street and Kuhio<br />

Highway. He has storage space next to<br />

his brother’s liquor store.<br />

He eventually plans to move the store<br />

across the street next to his brother’s<br />

business.<br />

MAY 2013 9


Inside KIUC<br />

CONSTRUCTION ON GREEN ENERGY TEAM<br />

BIOMASS PROJECT ON SCHEDULE<br />

Construction of the Green Energy<br />

Team biomass plant near Koloa is on<br />

schedule, helped by relatively dry spring<br />

weather.<br />

Concrete for the foundation of the<br />

boiler structure was poured the week of<br />

April 8. Steel erection started the week<br />

of April 15 and is scheduled to be<br />

finished by June.<br />

About 50 construction workers and<br />

dozens of subcontractors are at work on<br />

the site, which is mauka of Kaumualii<br />

Highway, about a half-mile east of the<br />

intersection with Maluhia Road.<br />

Construction is scheduled to be<br />

finished by the spring of 2014, with<br />

operation that summer.<br />

The 6.7-megawatt biomass-to-energy<br />

facility will be the first of its kind in the<br />

United States. The plant is a state-ofthe-art<br />

facility that will burn wood chips<br />

from trees grown and harvested on<br />

KIUC RECEIVES NATIONAL HONOR<br />

FOR GROWTH OF SOLAR<br />

Kaua‘i <strong>Island</strong> <strong>Utility</strong> <strong>Cooperative</strong> was<br />

named one of the nation’s top 10<br />

utilities for delivery of solar energy to<br />

its customers by the Solar Electric Power<br />

Association.<br />

KIUC was ranked second in the list of<br />

electric utilities that have added the<br />

most new solar power to their systems<br />

on a watts-per-customer basis in 2012.<br />

This annual ranking, which identifies<br />

the companies that are most quickly<br />

integrating solar into the nation’s power<br />

grid, is part of the sixth annual <strong>Utility</strong><br />

Solar Rankings report.<br />

KIUC is ranked highest among electric<br />

utilities in Hawai‘i for adding new solar<br />

on a watts-per-customer basis. It is first<br />

among U.S. electrical cooperatives<br />

included in the SEPA rankings for<br />

adding new solar.<br />

With the addition of the 6-megawatt<br />

10 KIUC CURRENTS<br />

Kaua‘i. The plant will<br />

provide more than 11<br />

percent of Kaua‘i’s<br />

energy needs.<br />

Once in operation,<br />

the plant will replace<br />

about 3.7 million<br />

gallons of imported oil<br />

a year. Power will be<br />

sold to KIUC under a<br />

contract approved by<br />

the Hawai‘i Public<br />

Utilities Commission<br />

in October 2011.<br />

Pricing of energy from the plant is<br />

less than the current cost for generating<br />

power by burning fossil fuels, and will<br />

not be subject to the volatility of oil<br />

prices during the 20-year term of the<br />

agreement.<br />

“This is especially important for<br />

Kaua‘i because this plant will provide<br />

McBryde solar facility at Port Allen in<br />

2012 and nearly 7 MW of customersited<br />

photovoltaic systems on its<br />

system, KIUC now has 282 watts of<br />

solar per customer on the grid. That is<br />

the equivalent of about one solar panel<br />

installed last year for each one of the<br />

cooperative’s 28,000 residential<br />

customers.<br />

“We’re gratified to be recognized as<br />

industry leaders in the development of<br />

solar,” said David Bissell, president and<br />

CEO of KIUC. “Our team is still hard at<br />

work getting us to our next milestone,<br />

which is using solar energy to meet<br />

nearly 40 percent of our daytime<br />

demand.”<br />

Hawaiian Electric Co. ranked fourth<br />

for new solar watts per customer. Maui<br />

Electric Co. ranked sixth and Hawai‘i<br />

Electric Light Co. ranked 12th.<br />

firm power from a renewable source,”<br />

said David Bissell, president and CEO<br />

of KIUC. “This means the power is<br />

available when we need it, and will<br />

allow KIUC to avoid spending money<br />

on additional fossil fuel-based<br />

generating capacity and instead<br />

invest in renewables, such as solar<br />

and hydropower.”<br />

“In 2012, new installations resulted in<br />

almost 1,500 megawatts of additional<br />

new solar connected to the grid—a<br />

doubling in new solar capacity from two<br />

years ago,” said Julia Hamm, president<br />

and CEO of SEPA. “Both the number of<br />

systems and the amount of new capacity<br />

make solar electricity the fastestgrowing<br />

electric source in the U.S. in<br />

2012.”<br />

SEPA is an educational nonprofit<br />

organization based in Washington and<br />

dedicated to helping utilities integrate<br />

solar power into their energy portfolios.<br />

The SEPA Top 10 <strong>Utility</strong> Solar Rankings<br />

report is one of many market<br />

intelligence, utility interaction and<br />

educational services SEPA provides to<br />

its utility and solar industry members.<br />

For more information about SEPA, visit<br />

www.solarelectricpower.org.


KIUC RENEWABLE<br />

PORTFOLIO SUMMARY<br />

Toward the Goal of 50% Renewable<br />

Inside KIUC<br />

EXISTING RESOURCES TYPE MW % OF SALES<br />

KIUC Waiahi Hydro 1.3 1.8%<br />

McBryde, Wainiha & Kalaheo Hydro 4.8 5.0%<br />

Gay & Robinson, Olokele Hydro 1.0 1.2%<br />

ADC/KAA, Waimea & Kekaha Hydro 1.5 1.3%<br />

Kapaa Solar Solar 1.0 0.4%<br />

McBryde, Port Allen Solar 6.0 2.7%<br />

MP2, Omao Solar 0.3 0.1%<br />

Customer solar Solar 6.8 2.7%<br />

UNDER DEVELOPMENT<br />

Total 22.7 15.2%<br />

KIUC-Grove Farm, Koloa Solar Solar 12.0 5.4%<br />

KIUC-HCDC, Anahola Solar 12.0 5.4%<br />

Green Energy, Koloa Biomass 6.7 12.0%<br />

Customer solar Solar 9.0 3.6%<br />

UNDER CONSIDERATION<br />

Total 39.7 26.4%<br />

Puu Opae, Kekaha Hydro 8.3 9.1%<br />

Kekaha Ditch Hydro 1.5 1.5%<br />

Kalepa Hydro 4.0 3.4%<br />

Gay & Robinson, Olokele Hydro 4.0 5.2%<br />

Hanalei River Hydro 3.0 3.3%<br />

Total 20.8 22.5%<br />

Total resources identified 83.2 64.1%<br />

2015 PROJECTION 62.4 41.6%<br />

MAY 2013 11


Issues and Ideas<br />

CFLS AND LEDS:<br />

WHICH BULB WORKS FOR YOU?<br />

By Shelley Paik<br />

Thousands of Kaua‘i residents have<br />

taken advantage of Kaua‘i <strong>Island</strong> <strong>Utility</strong><br />

<strong>Cooperative</strong>’s bulb exchange program,<br />

trading in their old incandescent bulbs for<br />

energy-efficient compact fluorescent<br />

lights. Since 2005, KIUC has given away<br />

more than 100,000 CFLs as part of its<br />

efforts to help members reduce their<br />

electric use.<br />

In an effort to wring more efficiency<br />

out of lighting, the federal government<br />

tightened standards for light bulbs in<br />

2012, requiring bulbs to use 25 percent<br />

less energy. CFLs use significantly less<br />

electricity than traditional incandescent<br />

bulbs and reduce the demand for<br />

electricity, which means less greenhouse<br />

gas emissions.<br />

At one time CFLs were much more<br />

expensive than standard bulbs, but in<br />

recent years prices have dropped. The<br />

annual savings in electricity more than<br />

make up for any price difference.<br />

And now there are light emitting<br />

diodes, which use up to 80 percent less<br />

12 KIUC CURRENTS<br />

energy than standard bulbs. They are still<br />

fairly expensive, and the difference in<br />

energy consumption between a CFL and<br />

LED is not dramatic.<br />

Here are the three kinds of bulbs<br />

available to consumers:<br />

• Energy-saving incandescents: About<br />

25 percent energy savings from<br />

traditional incandescent bulbs. These<br />

energy-saving incandescent bulbs can<br />

last up to three times longer than<br />

traditional incandescent bulbs and can<br />

be used with dimmers. They are<br />

usually the least expensive to buy.<br />

• CFLs: About 75 percent more energy<br />

efficient than traditional incandescent<br />

bulbs. An Energy Star CFL uses about<br />

one-fourth the energy and lasts 10<br />

times longer than incandescent bulbs.<br />

Some CFLs are dimmable, but not all<br />

are compatible with all dimmers.<br />

• LEDs: About 75 to 80 percent more<br />

energy efficient than traditional<br />

incandescent bulbs. An Energy Star<br />

LED can last up to 25 times longer<br />

than incandescent bulbs.<br />

Some people have concerns about<br />

the small amount of mercury CFLs<br />

contain—about 4 milligrams sealed in<br />

glass tubing. This is an essential part of<br />

CFLs that allows the bulb to be an<br />

efficient light source. According to the<br />

U.S. Environmental Protection Agency,<br />

by comparison, older thermometers<br />

contain about 500 milligrams of<br />

mercury—an amount equal to the<br />

mercury in more than 100 CFLs.<br />

Although no mercury is released when<br />

the bulbs are intact, it still is important to<br />

properly dispose of used or damaged<br />

CFLs. They can be recycled at Home<br />

Depot in Lihue. Residents also can<br />

dispose of their fluorescent tubes at the<br />

County of Kaua‘i’s annual household<br />

hazardous waste collection event. Call<br />

241.4841 to be notified of the next event.<br />

While more expensive, LEDs will still<br />

save money because of their long life. Like<br />

CFLs, their price is expected to drop as<br />

they gain popular use.<br />

If a CFL or fluorescent light tube breaks in your home, the U.S.<br />

Environmental Protection Agency recommends taking the following<br />

steps to reduce exposure to mercury vapor from a broken bulb:<br />

1. Before cleanup<br />

• Have people and pets leave the room, and avoid the breakage area on the way out.<br />

• Air out the room for 5 to 10 minutes by opening a window or door to the outdoors.<br />

• Shut off central air or air conditioning.<br />

• Collect materials you will need to clean up the broken bulb: stiff paper or cardboard, sticky tape (e.g., duct tape), damp<br />

paper towels or disposable wet wipes (for hard surfaces), a glass jar with a metal lid (such as a canning jar) or a sealable<br />

plastic bag.<br />

2. During cleanup<br />

• Do not vacuum. Vacuuming is not recommended unless broken glass remains after all other cleanup steps have been<br />

taken. Vacuuming could spread mercury‐containing powder or mercury vapor.<br />

— Be thorough in collecting broken glass and visible powder.<br />

— Place cleanup materials in a sealable container.<br />

3. After cleanup<br />

• Promptly place all bulb debris and cleanup materials outdoors in a trash container or protected area until materials can<br />

be disposed of properly. Avoid leaving any bulb fragments or cleanup materials indoors.<br />

• Hold debris for the next county hazardous cleanup event.<br />

• Continue to air out the room where the bulb was broken and leave the air-conditioning system off for several hours.


In an effort to go greener, Kukui Grove<br />

Center and Kukui Marketplace recently<br />

installed new LED parking lot fixtures.<br />

This project upgraded 187 460-watt<br />

high-pressure sodium lights to 120-watt<br />

LEDs for the two shopping centers.<br />

The LED lights have a 10-year<br />

warranty and a life expectancy of 25<br />

years.<br />

“As a business leader, I’m happy about<br />

the return on investment Kukui Grove<br />

Center and Kukui Marketplace is<br />

expected to receive from this project,”<br />

said Wade Lord, vice president of<br />

consulting and investment services of<br />

CBRE and general manager of Kukui<br />

Grove Center. “But I’m even prouder<br />

about how committed everyone here is<br />

at reducing our carbon footprint. Plus,<br />

the white LED lighting looks better and<br />

adds a nicer atmosphere to both<br />

centers.”<br />

The new LED fixtures have a netLiNK<br />

system that controls, monitors and<br />

reports on each new pole-mounted<br />

fixture via the internet. It has the<br />

capability to adjust lighting levels<br />

remotely at any time.<br />

Members and Community<br />

KUKUI GROVE CENTER INSTALLS<br />

NEW LED FIXTURES<br />

Michael Buono of Kukui Grove; Wayne Medeiros of Hawaiian Building Maintenance; John Dreisch of Advanced Electrical Solutions; Paul Daniels of KIUC;<br />

and Kevin Fletcher of WLS Lighting.<br />

The total cost of the project was<br />

about $510,000. Kukui Grove received<br />

a $166,000 rebate through KIUC’s<br />

Commercial Energy Services Program<br />

over two years.<br />

MAY 2013 13


Issues and Ideas<br />

DIGITAL RECORDERS,<br />

CABLE BOXES COST NEARLY<br />

$200 A YEAR IN ELECTRICITY<br />

By Jim Kelly<br />

Those set-top boxes used for homeentertainment<br />

systems have quickly<br />

become one of the biggest users of<br />

electricity in the average household,<br />

sucking up more power than even the<br />

refrigerator.<br />

A 2011 study by the Natural<br />

Resources Defense Council found the<br />

typical high-definition, cable-digital<br />

video recorder set-up used 446 kilowatthours<br />

a year. At 44 cents a kWh on<br />

Kaua‘i, that comes out to $196.24 a<br />

year, or about $16 a month.<br />

Add in a 42-inch flat screen TV at 181<br />

kWh and that’s another $80 a year.<br />

And if you have a couple of these setups<br />

in your house, well, you can figure it<br />

out.<br />

The problem with DVRs is they are on<br />

all of the time, busily searching for and<br />

recording shows even when your TV<br />

isn’t on.<br />

And unlike many other home<br />

electronics that can be shut off when<br />

not in use, turning off the DVR defeats<br />

its purpose, which is to record shows<br />

when you’re not around. If you do turn<br />

them off, they can be a hassle to reset<br />

and take a long time to reboot.<br />

In its 2011 report, the NRDC found<br />

that more than 80 percent of U.S. homes<br />

14 KIUC CURRENTS<br />

subscribe to some form of pay TV<br />

service, with nearly 160 million set-top<br />

boxes in use. The report found those<br />

boxes consumed 27 billion kWh of<br />

electricity in 2010—enough to power<br />

the entire state of Maryland.<br />

Producing that power releases 16<br />

million metric tons of carbon dioxide<br />

(CO 2 ) into the air—the equivalent of<br />

the output of nine coal-fired power<br />

plants, the NRDC said.<br />

Because of the high cost of electricity<br />

in Europe, The New York Times<br />

reported in June 2011 that cable TV<br />

providers and box manufacturers there<br />

have moved quickly to design systems<br />

that can operate in a “deep-sleep” mode<br />

that uses far less power than U.S.<br />

systems. But they still can take a minute<br />

or two to reboot—something<br />

unappealing to American TV watchers.<br />

And cable and<br />

satellite TV providers<br />

have resisted adding<br />

anything to the boxes<br />

that will make them<br />

more expensive or<br />

complex.<br />

But there is some<br />

good news. Stricter<br />

Energy Star standards<br />

for set-top boxes are<br />

set to take effect this year, and the U.S.<br />

Environmental Protection Agency is<br />

tightening the requirements for home<br />

entertainment systems to be qualified as<br />

Energy Star products.<br />

Cable companies also are looking at<br />

ways to use one main DVR for an entire<br />

household connected to smaller boxes<br />

that can be powered down in separate<br />

rooms. The increasing use of streaming<br />

video is expected to drive energy<br />

efficiency in TVs and DVRs.<br />

For now, consider whether your<br />

household needs multiple cable-DVR<br />

set-ups, or if you can get by with one.<br />

And for all other electronics, use<br />

power strips to turn them off when they<br />

are not in use. This includes computers,<br />

printers, DVD players and TVs with<br />

“instant-on” features.<br />

Annual energy use of set-top<br />

boxes and other appliances<br />

Typical HD-DVR and cable box set-up 446<br />

New 21-cubic-foot Energy Star refrigerator 415<br />

Energy Star 42-inch LCD TV 181<br />

Compact fluorescent bulb (in kWh) 17<br />

Source: Natural Resource Defense Council


CHAIRMAN’S MESSAGE<br />

By Allan Smith<br />

Thank you for your participation<br />

and support in the board election.<br />

Congratulations to Carol Bain and<br />

Jan TenBruggencate on their successful<br />

re-election efforts.<br />

I thank Stu Burley, Jonathan Jay and<br />

Jack Benzie for their unselfish<br />

willingness to engage in the election<br />

process as candidates. There was a<br />

healthy exchange of ideas on the very<br />

pertinent issues facing our cooperative.<br />

Your elected board members will<br />

continue to serve with your best<br />

interests in mind. You deserve for us to<br />

use your money and Kaua‘i’s natural<br />

resources wisely, and we are working<br />

especially hard to keep electricity<br />

affordable.<br />

Let us keep talking to each other. If<br />

you think about all the ways we can<br />

communicate now versus even 10 years<br />

ago, it's amazing. As members, you<br />

deserve to hear from us, and we want to<br />

hear from you.<br />

The board is looking forward to<br />

further improving member engagement.<br />

Events hosted by organizations or by<br />

the board are being discussed. We<br />

recently set the date for our annual<br />

membership meeting, so please mark<br />

July 18 at 6 p.m. on your calendar.<br />

As board members, we regularly ask<br />

ourselves, how can I be a better<br />

director? One answer is that we need to<br />

always be open, committed to<br />

considering different ideas along with<br />

what we think is important.<br />

We must keep our eyes on our mission<br />

to reduce KIUC’s use of fossil fuels and<br />

to combat weapons of mass distraction.<br />

We want to engage in conversation with<br />

Inside KIUC<br />

our community, not confrontation.<br />

I look forward to our board work<br />

being more fun and fulfilling. We will<br />

take our cooperative and our members<br />

very seriously, but not ourselves.<br />

BOARD ACTIONS<br />

Below is a summary of some of the actions taken by the KIUC board in February and March 2013.<br />

Agendas and minutes of board meetings are available at www.kiuc.coop.<br />

February 26 meeting<br />

Board unanimously approved 2012 Corporate Performance Results and Incentive program for staff.<br />

Board unanimously approved 2013 Corporate Performance goals for staff.<br />

Board set the annual membership meeting for July 18 at 6 p.m. at Kaua‘i Community College.<br />

March 28 meeting<br />

Board elected Allan A. Smith chairman, Jan TenBruggencate vice chairman, David Iha secretary and Peter Yukimura<br />

treasurer.<br />

Board unanimously voted to increase the rebate for solar hot water systems from $800 to $1,000.<br />

Board unanimously voted to authorize CEO David Bissell to proceed with the next phase of work with consultant Free<br />

Flow Power Corp., which is studying the feasibility of various hydroelectric projects.<br />

MAY 2013 15


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60-Month1 (current rate is 6.99% APR<br />

to 7.49% APR)<br />

1 Based on a loan amount of $10,000 with a 18-month initial term and 0.00% initial interest rate, there are no monthly payments for six<br />

months, followed by 12 monthly principal-only payments of $50.00 with an outstanding balance due. After the end of the initial term, if the<br />

balance is not paid off, there will be 60 monthly principal and interest payments of $187.08 based on the current rate of 6.99% APR<br />

beginning in the 19th month. Loan amount cannot exceed contract amount for the PV or solar system. Installer must be a participating<br />

contractor. Current interest rate in effect as of 4/12/13. This program is subject to change or discontinue at anytime, without notice.<br />

2 The Fixed Rate Equity Loan Option (FRELO) is a feature of our Equity Express SM Home Equity Line of Credit (HELOC) and is subject to<br />

underwriting and credit approval. Offer is not available for a second lien request on an investor line. Based on a 10-year fixed rate loan of<br />

$20,000 at 3.75% (3.75% APR), there will be 120 monthly principal and interest payments of $200.15. The minimum loan amount is<br />

$20,000 and the maximum loan amount is $100,000. Current interest rate in effect as of 4/12/13.<br />

None<br />

Monthly Principal-Only<br />

Payments<br />

108-Month 2<br />

(current rate is 3.75% APR)<br />

To apply, visit any branch or call 800-272-2566. For a list of participating<br />

contractors or an online application, go to asbhawaii.com/clean-energy-loan.


STRATEGIC<br />

PLAN<br />

UPDATE<br />

2013-2025<br />

(Draft)<br />

The board of directors and senior staff of KIUC<br />

recently completed a draft of the cooperative’s updated<br />

strategic plan for 2013 through 2025.<br />

This document updates the plan that was adopted<br />

by the board at the end of 2009 and reflects KIUC’s<br />

progress in reaching its goal of using renewable energy<br />

to generate 50 percent of electricity by 2023.<br />

The draft emphasizes the importance of reducing<br />

members’ costs, while increasing their satisfaction.<br />

It also contains new language that describes the<br />

challenge of integrating residential photovoltaic<br />

systems safely and efficiently into the existing utility<br />

grid. The last time the strategic plan was updated,<br />

there were fewer than 300 PV systems in use on<br />

Kaua‘i; today, there are more than 1,200.<br />

Now it is your turn to weigh in. KIUC board<br />

members will hold three simultaneous public briefings<br />

on the plan on <strong>May</strong> 30 at 6:30 p.m. so members can<br />

offer feedback on the proposed plan.<br />

The meetings will be held at:<br />

Waimea Theatre<br />

Kaua‘i Community College, room TBA<br />

Princeville Community Center<br />

We also welcome emailed comments and<br />

suggestions on the strategic plan. Send them to<br />

currents@kiuc.coop.


THE STRATEGIC CONTEXT<br />

The isolation of Kaua‘i and its dependence on<br />

imported oil was never more apparent as the global<br />

economic recession took hold in late 2007. This<br />

dependence exposed Kaua‘i <strong>Island</strong> <strong>Utility</strong> <strong>Cooperative</strong><br />

and its members to a record surge in the price of oil at<br />

the same time the economic free-fall battered the<br />

budgets of island businesses and families.<br />

These events brought urgency to the mission of the<br />

KIUC Board of Directors to decrease reliance on fossil<br />

fuels and to strengthen the Kaua‘i economy by keeping<br />

on-island the millions of dollars paid annually for<br />

foreign oil.<br />

In 2008, the board of directors adopted an ambitious<br />

goal that would be embedded within nearly every<br />

aspect of its strategic planning. That goal is to use<br />

renewable resources to generate at least 50 percent of<br />

Kaua‘i’s energy by 2023.<br />

2 2013 STRATEGIC PLAN<br />

This goal exceeds the requirements established by Act<br />

234, the 2007 law establishing the framework to reduce<br />

greenhouse gas emissions emitted in 2020 to the 1990<br />

emission level. It also surpasses the requirements set by<br />

Act 73 in 2010, the Hawai‘i Clean Energy Initiative,<br />

which calls for 70 percent clean energy by 2030, with<br />

40 percent of that amount coming from renewable<br />

sources.<br />

KIUC is making rapid progress toward its goal, with<br />

renewables accounting for 15 percent of sales today, up<br />

from 5 percent in 2008. By 2015, renewable generation<br />

is projected to be at 42 percent, with a mix of solar,<br />

biomass and hydropower on line.<br />

Having proven that it has the will and the expertise<br />

to develop utility-scale renewable energy projects, the<br />

challenge for KIUC moving forward is to efficiently<br />

incorporate renewables into the grid and onto its<br />

balance sheet.<br />

Among the unanticipated changes since the strategic<br />

plan was last revised in December 2009 is the boom in<br />

commercial and residential photovoltaic installations.<br />

Once only an option for the wealthy, generous state<br />

and federal tax incentives and plummeting material<br />

costs have made PV more affordable. By the end of<br />

2012, more than 1,200 PV systems had been installed<br />

on Kaua‘i, generating nearly 7 megawatts. In 2013, an<br />

additional 9 megawatts are expected to come on line.<br />

These PV systems only generate during a few hours of<br />

the day, contributing little or nothing to the grid the<br />

rest of the time. Management of this intermittent<br />

resource requires engineering expertise and a robust<br />

grid, the cost of which is substantial.<br />

This rapid expansion of PV is not only eroding<br />

KIUC’s ability to recover fixed costs, but has the<br />

potential to exceed load demand, forcing KIUC to<br />

consider curtailment, essentially shutting off PVgenerated<br />

electricity before it comes into the grid.<br />

This is not only a technological challenge, but a<br />

financial one that must be addressed soon through rate<br />

redesign that recognizes the changing nature of electric<br />

utilities and ensures the costs of running the utility are<br />

fairly allocated among members.


Since the strategic plan was last updated, KIUC also<br />

has adjusted its forecasts of load growth and its<br />

assumptions about how the economic revival will<br />

impact sales. It is no longer a given that a robust<br />

tourism economy will generate increased demand,<br />

especially as large hotel customers turn to PV and<br />

cogeneration.<br />

While Kaua‘i experienced a record year in tourism in<br />

2012, up 7.3 percent from 2011 to 1.08 million visitors,<br />

electricity sales were essentially flat. Sales are expected<br />

to stay flat for the next several years, with slight<br />

increases seen only toward the end of the decade.<br />

Our members are reducing their energy<br />

consumption. Average residential use has fallen 10<br />

percent since 2007 to about 465 kilowatt-hours a<br />

month, the lowest of any Hawai‘i utility. The<br />

introduction of new technologies will enable members<br />

to monitor their consumption on a nearly real-time<br />

basis, potentially leading to further conservation.<br />

The latest member survey in 2012 revealed a<br />

hardening of attitudes toward the cooperative, with<br />

more members moving to the extremes of total<br />

satisfaction or total dissatisfaction. Fewer are left in the<br />

middle.<br />

Concern about rates continued to be a key driver of<br />

satisfaction, and 19 percent said their average bill was<br />

more than $300 a month, up 10 points from the<br />

previous survey in 2009.<br />

As more renewables come on line, there is a clear<br />

expectation by members that their bills will go down.<br />

That desire is shared by the board of directors and staff<br />

members, who are committed to aggressive cost<br />

controls and intelligent deployment of the co-op’s<br />

resources. Effective education and consistent<br />

communication are imperative in this area.<br />

An adequate supply of energy would have no<br />

meaning without a means to reliably deliver that<br />

energy to KIUC’s members and customers. The shift to<br />

local, sustainable sources of energy also affects KIUC’s<br />

transmission and distribution infrastructure. This<br />

network must be maintained and upgraded to ensure<br />

that its high standards for safety and reliability<br />

continue to be met.<br />

This Strategic Plan is an update and expansion of the<br />

Strategic Plan 2008-2023, which was last updated in<br />

December 2009. The goal remains the same: to<br />

faithfully serve KIUC’s members with reliable,<br />

reasonably priced electricity and to improve the quality<br />

of their lives.<br />

This plan identifies the key issues KIUC will face in<br />

the next five years, and provides a common framework<br />

for the strategic direction of KIUC now and in the<br />

future.<br />

2013 STRATEGIC PLAN 3


KEY ISSUES<br />

KIUC board members and key staff (see Attachment C) have identified the issues that will need to be addressed<br />

during the next five years, 2013-2018:<br />

Continue to build on KIUC’s strong record of safety<br />

Reduce member costs<br />

Enhance member satisfaction<br />

Maintain reliability<br />

Ensure the fairness of the rate structure<br />

Continue implementing sustainable and diverse energy solutions<br />

Improve organizational/employee development<br />

The Strategic Plan deals with these key issues and is described in more detail in the following sections.<br />

VISION, MISSION AND CULTURE<br />

Vision<br />

Improve the quality of life for KIUC’s members and<br />

Kaua’i<br />

Mission<br />

To be an energy solutions leader by:<br />

Safely providing reliable power that is fairly and<br />

competitively priced<br />

Practicing conservation and efficient use of<br />

energy resources<br />

Increasing sustainable power supply and<br />

environmental stewardship<br />

Statement<br />

Empowering Kaua‘i<br />

Culture<br />

The culture is shaped by several elements, all critical<br />

to its success. KIUC embraces the seven principles of a<br />

cooperative, as shown in Attachment A. Ho‘oka‘ana<br />

Waiwai is an agreed-upon set of Hawaiian-based values<br />

that provide a guiding statement and is shown in<br />

Attachment B.<br />

4 2013 STRATEGIC PLAN<br />

Core Values<br />

Core values that are to be tied to work performance,<br />

practiced daily, promoted without compromise and<br />

communicated through actions are:<br />

Respect (Kupono): treating everyone with fairness,<br />

integrity and honesty<br />

Teamwork (Laulima): looking out for each other<br />

and working together as one team toward common<br />

goals<br />

Excellence (Ho‘okela): striving to provide the best<br />

professional service to our members by producing<br />

high-quality work and excelling in everything one<br />

does<br />

Responsibility (Kuleana): practicing stewardship<br />

and the privilege of doing the right thing for our<br />

members in a responsive manner


STRATEGIC GOALS AND ACTIONS<br />

Strategic Goal A: Implement energy solutions,<br />

including diversification of power supply and<br />

reduced dependency on fossil fuel<br />

Actions<br />

A1: Achieve 50 percent renewables by 2023<br />

A2: Enhance existing energy-efficiency programs and<br />

incentives<br />

A3: Collaborate with others on energy-efficient<br />

solutions<br />

A4: Efficiently manage end-user generation<br />

A5: Optimize smart grid<br />

A6: Manage local fuel sources, self-sufficiency and<br />

storage<br />

Strategic Goal B: Enhance member satisfaction<br />

and support<br />

Actions<br />

B1: Work diligently to help reduce members’ utility<br />

bills<br />

B2: Utilize technology to improve the quality of<br />

member engagement<br />

B3: Maintain a reliability standard better than the<br />

average of Hawai‘i utilities, while controlling<br />

costs<br />

B4: Keep members informed<br />

Strategic Goal C: Improve employee development<br />

and workforce excellence<br />

Actions<br />

C1: Improve safety culture<br />

C2: Help employees achieve professional excellence<br />

C3: Embrace diversity, acknowledge its power and<br />

integrate training that builds a respectful and<br />

collaborative workforce<br />

C4: Develop employment opportunities for Kaua‘i<br />

residents<br />

C5: Maintain effective board/staff team by<br />

strengthening trust and confidence among<br />

directors, staff and employees<br />

Strategic Goal D: Ensure financial stability<br />

Actions<br />

D1: Ensure fair and competitive rates<br />

D2: Maintain and improve lender relations<br />

D3: Keep costs at or below the rate of inflation<br />

D4: Utilize effective risk management tools to reduce<br />

the cooperative’s financial exposure<br />

2013 STRATEGIC PLAN 5


IMPLEMENTATION<br />

The Strategic Plan goals and actions will be implemented effectively upon approval by<br />

the KIUC Board of Directors according to the following guidelines:<br />

1. The Strategic Plan will be implemented by an<br />

Agenda for Action that will cover a two-year<br />

period. The KIUC leadership team will review the<br />

Strategic Plan every year and develop a “rolling”<br />

Agenda for Action that covers the following two<br />

years.<br />

2. The Agenda for Action will be developed by the<br />

KIUC Management Team through collaboration<br />

with the Board Strategic Planning Committee.<br />

Together, they will identify the outcomes for each<br />

action and the time line. Management will be<br />

responsible for carrying out the specific actions,<br />

and periodically will provide a status report of<br />

progress and achievement of actions and<br />

outcomes. The BSPC will have oversight of the AFA<br />

to ensure the Strategic Plan is implemented in a<br />

timely manner.<br />

6 2013 STRATEGIC PLAN<br />

3. The Strategic Plan will be reviewed monthly by the<br />

responsible units/individuals to keep on target or<br />

to make adjustments to the plan.<br />

4. The KIUC CEO will make quarterly and annual<br />

reports to the KIUC Board of Directors through the<br />

BSPC.<br />

5. The BSPC will be responsible for initiating<br />

development of the next Strategic Plan at an<br />

appropriate time.<br />

The Strategic Plan sets the overall direction of KIUC<br />

and intends to benefit members, directors and all<br />

employees of KIUC.


ATTACHMENT A<br />

SEVEN COOPERATIVE PRINCIPLES<br />

Why cooperatives are special. All cooperative businesses adhere to these seven guiding principles:<br />

Voluntary and Open Membership<br />

<strong>Cooperative</strong>s are voluntary organizations, open to all persons able to use their services and willing to accept<br />

the responsibilities of membership, without gender, social, racial, political or religious discrimination.<br />

Democratic Member Control<br />

<strong>Cooperative</strong>s are democratic organizations controlled by their members, who actively participate in setting<br />

policies and making decisions. The elected representatives are accountable to the membership. In primary<br />

cooperatives, members have equal voting rights (one member, one vote) and cooperatives at other levels are<br />

organized in a democratic manner.<br />

Members’ Economic Participation<br />

Members contribute equitably to, and democratically control, the capital of their cooperative. At least part of<br />

that capital is usually the common property of the cooperative. Members usually receive limited<br />

compensation, if any, on capital subscribed as a condition of membership.<br />

Members allocate surpluses for any or all of the following purposes: developing the cooperative, possibly by<br />

setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their<br />

transactions with the cooperative; and supporting other activities approved by the membership.<br />

Autonomy and Independence<br />

<strong>Cooperative</strong>s are autonomous, self-help organizations controlled by their members. If they enter into<br />

agreements with other organizations, including governments, or raise capital from external sources, they do<br />

so on terms that ensure democratic control by their members and maintain their cooperative autonomy.<br />

Education, Training and Information<br />

<strong>Cooperative</strong>s provide education and training for their members, elected representatives, managers and<br />

employees so they can contribute effectively to the development of their cooperatives. They inform the<br />

general public, particularly young people and opinion leaders, about the nature and benefits of cooperation.<br />

Cooperation Among <strong>Cooperative</strong>s<br />

<strong>Cooperative</strong>s serve their members most effectively and strengthen the cooperative movement by working<br />

together through local, national, regional and international structures.<br />

Concern for Community<br />

While focusing on member needs, cooperatives work for the sustainable development of their communities<br />

through policies accepted by their members.<br />

2013 STRATEGIC PLAN 7


ATTACHMENT B<br />

HO‘OKA‘ANA WAIWAI (SHARED VALUES)<br />

Preamble: We, as a company and as individuals, accept these shared values as a guide to<br />

making ethical decisions and promoting harmony with KIUC and our island community.<br />

Aloha<br />

We welcome our members with respect, sincerity and graciousness.<br />

I will seek to be trustworthy, to share, respect and be kind to my KIUC brothers and sisters,<br />

and members.<br />

Ho‘ohiki<br />

We are committed to keeping our promises to each other and our community.<br />

I am accountable for what I say and do.<br />

Ho‘okela<br />

We strive to provide the best service to our members.<br />

I will contribute my best to attain the highest level of achievement.<br />

Ho‘omau<br />

We will persevere in our journey together toward member satisfaction.<br />

I will not waiver from the path.<br />

Kuleana<br />

We accept our responsibility to our island community as a privilege.<br />

To do the right thing is a privilege I accept.<br />

Kupono<br />

We will treat members with fairness, integrity and honesty.<br />

I am committed to treat others the way I like to be treated.<br />

Laulima<br />

We will work together toward common goals where one person’s success is everyone’s success.<br />

I will combine my best efforts with others.<br />

‘Ohana<br />

Community and co-workers, everyone is part of the KIUC family.<br />

ATTACHMENT C<br />

KIUC LEADERSHIP TEAM THAT UPDATED STRATEGIC PLAN 2013-2025<br />

2013 Board of Directors<br />

Carol Bain<br />

Karen Baldwin<br />

David Iha (Secretary)<br />

Patrick Gegen<br />

Calvin Murashige<br />

Allan A. Smith (Chairman)<br />

Teofilo “Phil” Tacbian (Chairman Emeritus)<br />

Jan TenBruggencate (Vice Chairman)<br />

Peter Yukimura (Treasurer)<br />

8 2013 STRATEGIC PLAN<br />

KIUC Management and Staff<br />

David Bissell, President and Chief Executive Officer<br />

Karissa Jonas, Financial Vice President and Chief Financial<br />

Officer<br />

Kathleen “Pua” Chin, Executive Administrator to the Board<br />

and CEO<br />

Tim Blume, Regulatory Affairs Manager<br />

Jim Kelly, Communications Manager<br />

Carey Koide, Transmission and Distribution Manager<br />

Laurel Loo, General Counsel<br />

Barbara Nagamine, Member Services Manager<br />

Edwin Nakaya, Key Accounts Executive<br />

Brad Rockwell, Power Supply Manager<br />

Lisa Ubay, Human Resources Manager<br />

Michael Yamane, Chief of Operations


With hundreds of photovoltaic<br />

systems being installed across Kaua‘i,<br />

some people have asked us about KIUC’s<br />

position on PV.<br />

After all, they say, PV is taking money<br />

away from the utility by enabling<br />

customers to essentially make their own<br />

electricity. So KIUC must be trying to<br />

discourage people from buying PV<br />

systems, right?<br />

Wrong.<br />

We want to be clear: We support any<br />

choices our members make to help lower<br />

their electricity bills. We would rather<br />

people use the sun to make electricity<br />

than for KIUC to import one more<br />

barrel of oil than necessary.<br />

The co-op’s staff recently reorganized<br />

to devote more resources into the<br />

processing and review of PV applications<br />

so members and their contractors get all<br />

of the information they need to<br />

determine if PV is right for them.<br />

We also are developing two large PV<br />

projects that will be owned by the<br />

cooperative and that will benefit all<br />

of KIUC’s members. Other than<br />

hydropower, these projects will be the<br />

cooperative’s lowest-cost source of<br />

power.<br />

Between KIUC’s investment in large<br />

systems and our members putting<br />

in their own systems, Kaua‘i soon<br />

will lead the nation in the use of<br />

solar.<br />

Our board recently voted to<br />

increase the amount of the rebate<br />

KIUC pays to members who install<br />

solar hot water systems. Using the<br />

$1,000 rebate and state and federal<br />

tax incentives, members can reduce<br />

the cost of installing a solar hot<br />

water system to about $2,000.<br />

A typical family can save $100 or<br />

more a month on their electric bill by<br />

using a solar hot water system, so the<br />

investment will pay for itself in less<br />

than two years.<br />

We believe solar hot water is the<br />

easiest, most cost-effective way for most<br />

members to achieve real savings by<br />

using renewable energy.<br />

We also encourage members who want<br />

to invest in a PV system. These systems<br />

can provide even bigger savings and help<br />

reduce Kaua‘i’s dependence on imported<br />

oil. By the end of this year, we estimate<br />

there will be more than 2,100 residential<br />

and commercial PV systems at work on<br />

Kaua‘i.<br />

So what’s the impact on KIUC? Don’t<br />

we care about losing revenue?<br />

As a member-owned cooperative,<br />

KIUC does not need to “grow the<br />

business” through increased revenue.<br />

We don’t have to answer to shareholders<br />

or investors who need to earn a return.<br />

But we need to cover the costs of<br />

providing electrical service to our<br />

customers, pay our debts and have<br />

enough left over to keep our financial<br />

position solid.<br />

We are analyzing what our<br />

finances could look like if thousands<br />

of customers—including big commercial<br />

customers like the county and the state<br />

Department of Education—aren’t<br />

buying as much electricity as they used<br />

to, maybe 20 percent less.<br />

Our rates include not only the cost of<br />

Members and Inside Community KIUC<br />

FROM THE BOARD:<br />

KIUC IS ENTHUSIASTIC ABOUT PV<br />

fuel, but the fixed costs of running power<br />

plants and maintaining connections to<br />

more than 26,000 business and<br />

residential customers 24 hours a day.<br />

Even if a customer installs PV, they<br />

are still connected to the KIUC grid,<br />

drawing power for the 18 hours when<br />

the sun isn’t high in the sky. But now<br />

they are paying a smaller share of the<br />

fixed costs than their neighbor who<br />

doesn’t have PV.<br />

One of the issues for this board and<br />

our staff is to determine the most<br />

equitable way for rates to be designed so<br />

the cost of providing electricity is spread<br />

fairly among members.<br />

This isn’t just a KIUC issue. Utilities<br />

across Hawai‘i, in Alaska and on the<br />

Mainland are grappling with it. The<br />

issue is more pressing for Kaua‘i because<br />

of the large amount of solar that will be<br />

coming onto our system by 2015.<br />

In the meantime, this board and our<br />

staff remain committed to helping our<br />

members reduce their bills through<br />

conservation and the use of new<br />

technology.<br />

Mahalo for your support. If you have<br />

any questions, please email us at<br />

kiucbod@hawaii.rr.com.<br />

MAY 2013 25


Inside KIUC<br />

DID YOU MISPLACE OR<br />

FORGET TO CASH A CHECK?<br />

Below is a list of co-op members who have uncashed checks. These checks were issued<br />

to return credit deposits, overpayments, etc. If you see your name, please complete<br />

the attached application to have the check reissued. A copy of your picture ID needs<br />

to accompany the application. This will confirm the refund is being returned to the<br />

correct account holder.<br />

ARAKAKI, MICHELE S<br />

BANQUEL JR, BUENAVENTURA<br />

BOLLMANN, KARLA G P<br />

BROWN, AMANDA L<br />

CARGILL, MATTHEW REED<br />

CHAPA, GONSALO J<br />

COLE, JOEY SEVERO<br />

CONNIFF, LAURIE<br />

CONWAY, KATHLEEN MARIE<br />

CRAIG, BENJAMIN A<br />

DOSS, EDWARD T<br />

EVANS, SIAN MCINTYRE<br />

FERGUSON JR, ALLEN HAROLD<br />

FOUST, JOHANN P<br />

GIB, TRACIE F<br />

GONZALEZ, JAIME S<br />

GRAFF, JOHN S<br />

Please Print:<br />

26 KIUC CURRENTS<br />

GRAY, SIMON<br />

HAMADA, MARLO<br />

HIRANI, ALY M<br />

HOFFMANN, CHRISTOPHER LEE<br />

HUDDY, WILLIAM L F<br />

ISHIDA, EMILY C<br />

JOHNSON, KEOLALANI L A<br />

KAAI, KEONI D<br />

KAWAMURA, KEITH<br />

KEALOHA, FRANK<br />

KUKUI INTEGRATIVE CARE LLC<br />

LIMA, JOLENE M<br />

LONGLEY, MICHAEL<br />

LOPES, LIANA L<br />

MAKRIDAKIS, ALEXIS<br />

MARTIN, ALEXIS K<br />

MONTEJO 3RD, OSCAR A<br />

ODA, AARIES<br />

OLSON, KAREN ELIZABETH<br />

PAHUKULA JR, JOEL L<br />

PELLETIER, ROBERT<br />

PEPE, PHILIP J<br />

PICKETT, MATTHEW<br />

RIDENOUR, RICHELLE M<br />

THAKUR, BAHADUR S<br />

THOMPSON, RYAN A<br />

THOMPSON, STEVEN<br />

TRADEMARK & LICENSING<br />

TRINIDAD, SANTOS<br />

TRUBIA, MATTHEW C<br />

UNDERWATER INC<br />

WEISS, ELISA A<br />

WHITTLESEY, SONIA M<br />

YASAY, ROY<br />

Name: _______________________________________________________________________________________<br />

Mailing Address: _____________________________________________________________________________<br />

City: __________________________________________ State: ______________ Zip: ______________________<br />

Telephone Number: ______________________________ Email: _____________________________________<br />

KIUC Account No. ____________________________ Social Security Number: ________________________<br />

______________________________________________________ ___________________<br />

Signature of Applicant Date<br />

Select method of refund:<br />

■ Apply refund to account ____________________________________ ■ Request check refund<br />

Mail to: Member Services – Patronage Capital<br />

Kaua‘i <strong>Island</strong> <strong>Utility</strong> <strong>Cooperative</strong><br />

4463 Pahee St., Suite 1, Līhu‘e, HI 96766-2000<br />

Office use only:Received ___________ Check # ________________ Amount $ ____________<br />

Date Issued ____________ Initial ______ ID: _____


By Kathryn Williams<br />

LIHEAP is a federally funded block<br />

grant that provides money to help lowincome<br />

households with energy costs.<br />

Applications for assistance may be made<br />

each June.<br />

The state of Hawai‘i administers<br />

the funds received from the federal<br />

government. On Kaua‘i, Kaua‘i<br />

Economic Opportunity has been<br />

designated as the state’s representative<br />

to accept applications.<br />

Two programs are available:<br />

1. Energy crisis – assists with up to<br />

$200 to restore power to the<br />

residence of a household whose<br />

electricity or gas has been shut off<br />

or whose service is about to be<br />

terminated<br />

2. Energy credit – provides households<br />

not in crisis with a one-time<br />

payment deposited directly into<br />

the utility account in the latter<br />

part of the year<br />

Required documents to<br />

apply for either program:<br />

1. Current energy bill – electric or gas<br />

bill<br />

2. Proof of residence –proof of address<br />

listed on any of the following bills:<br />

energy, cable, water or medical<br />

3. Proof of birth date – proof of birth<br />

date for children under the age of 6<br />

and adults 60 and older<br />

4. Proof of income – pay stubs from<br />

January 2013 to June 2013, Social<br />

Security, SSI, unemployment, TDI,<br />

pension, workers’ compensation or,<br />

if self-employed, you must provide<br />

license and most recent monthly/<br />

quarterly/semi-annual reports; you<br />

must provide all documents that are<br />

applicable for the entire household<br />

Members Members and and Community<br />

Community<br />

LOW-INCOME HOME ENERGY<br />

ASSISTANCE PROGRAM<br />

OFFERS HELP WITH UTILITY BILLS<br />

MEMBERSHIP MEETING SET<br />

FOR JULY 18 AT KCC<br />

5. Household assets –statements for<br />

savings accounts, checking<br />

accounts, Christmas savings<br />

accounts, credit union accounts,<br />

stocks, bonds, cash, etc.<br />

6. Picture identification for all adult<br />

household members – driver’s<br />

license, state identification card,<br />

passport, etc.<br />

7. Social Security numbers – required<br />

for all household members older<br />

than 1 year of age<br />

All adults age 18 and older must sign<br />

the application.<br />

KEO will accept applications June 3<br />

through June 28.<br />

If you have any questions or need<br />

additional information, please contact<br />

KEO at 245.4077.<br />

The annual membership meeting of Kaua‘i <strong>Island</strong> <strong>Utility</strong> <strong>Cooperative</strong> will<br />

be Thursday, July 18, at 6 p.m. in the Performing Arts Center at Kaua‘i<br />

Community College.<br />

All members of the cooperative are invited.<br />

The annual report on the activities of the cooperative will be distributed,<br />

and members of the board of directors and the CEO will provide an<br />

overview of KIUC’s finances and operations.<br />

The progress of KIUC’s renewable energy efforts will be discussed.<br />

Members are encouraged to ask questions and offer comments to the<br />

board.<br />

Please mark your calendar now and watch for announcements this<br />

summer with details about the annual meeting.<br />

MAY 2013 27


Recipes<br />

EASY SUMMER PICNIC RECIPES<br />

Sausage and Kale Stuffed Portobello<br />

4 Portobello mushrooms, cleaned with stems removed<br />

2 Italian sausages, casings removed and crumbled to look like ground hamburger<br />

4 oz. goat cheese<br />

1 cup chopped kale<br />

½ cup bread crumbs<br />

¼ cup Parmesan cheese<br />

1 tsp. sea salt<br />

Saute Italian sausage in a pan until cooked through. Remove from heat and place in a mixing bowl. Add chopped kale, bread<br />

crumbs, goat cheese and sea salt. Mix with cooked sausage. Place mixture into Portobello caps and sprinkle with Parmesan<br />

cheese. Grease a pan with olive oil and bake at 350 degrees for 20 minutes.<br />

28 KIUC CURRENTS<br />

Furikake Salmon Poke<br />

3 pounds frozen or fresh king salmon<br />

(preferred)<br />

¼ cup shoyu (Aloha)<br />

½ cup sesame oil<br />

¼ cup Nori Komi Furikake<br />

½ cup chopped green onions<br />

1 tsp. salt<br />

1 tsp. Ichimi Togarashi (adjust to taste)<br />

1 medium sweet onion (adjust to preference)<br />

Salmon should be kept in the refrigerator<br />

prior to preparing to ensure dish is cold. Cube<br />

salmon into ¾-inch pieces. Combine above<br />

ingredients and serve promptly to ensure onion<br />

doesn’t wilt.


Fruit Dip<br />

8 oz. strawberry cream cheese<br />

2 Tbsp. strawberry preserves<br />

8 oz. Cool Whip<br />

7 oz. marshmallow crème<br />

In a mixing bowl, beat cream cheese and preserves<br />

until blended. Fold in whipped topping and<br />

marshmallow crème. Cover and refrigerate until<br />

serving.<br />

Quinoa<br />

2 cups quinoa<br />

4 cups chicken broth<br />

1 cup diced carrots<br />

1 cup diced mushrooms<br />

½ cup diced celery<br />

1 tsp. sea salt<br />

¼ cup shredded parmesan cheese<br />

Combine quinoa, chicken broth, carrots,<br />

mushrooms, celery and sea salt in a pot and bring<br />

to a boil. Cover pot and lower heat. Simmer for 15<br />

minutes, or until liquid is absorbed. Add cheese<br />

and fluff quinoa.<br />

Grilled Sun-Kissed<br />

Orange Chicken<br />

3 pounds chicken<br />

¾ cup freshly squeezed orange juice (approximately 3 oranges)<br />

Zest of 1½ oranges<br />

⅔ cup extra virgin olive oil<br />

2 Tbsp. stoneground mustard<br />

½ cup sugar<br />

1 tsp. salt<br />

1 Tbsp. onion powder<br />

7 large cloves of garlic, minced<br />

14 10-inch skewers<br />

Cube chicken into bite-size pieces. Combine above ingredients<br />

and marinade chicken for at least 12 hours. Place chicken on the<br />

skewers and grill until cooked.<br />

MAY 2013 29


Inside KIUC<br />

STATEMENT OF OPERATIONS<br />

For the period January 1, 2013, to March 31, 2013<br />

By Karissa Jonas<br />

We are pleased to report KIUC’s<br />

results of operations through March 31,<br />

2013, are favorable. However, year-todate<br />

electricity use on the island is 4<br />

percent lower than last year. Despite the<br />

reduction in sales volume, KIUC is still<br />

doing everything it can, while<br />

maintaining safety and reliability, to<br />

reduce costs and operate efficiently and<br />

effectively, while continuing to maintain<br />

a strong financial position.<br />

Revenues, expenses and net margins<br />

totaled $45.4 million, $41.5 million and<br />

$3.9 million, respectively, for the threemonth<br />

period ending March 31, 2013.<br />

As is the case for all electric utilities,<br />

the cost of power generation is the<br />

largest expense, totaling $27.8 million,<br />

or 61.2 percent of revenues.<br />

Commodities—fuel and purchased<br />

power costs—are the largest component<br />

of power generation, totaling $24.4<br />

million, or 53.7 percent of revenues.<br />

Currently, fossil fuel is the largest<br />

component of commodities, totaling<br />

$22.0 million, or 48.4 percent of<br />

revenues. Other commodities include<br />

hydropower, totaling $1.4 million, or 3.1<br />

percent of revenues, and solar power,<br />

totaling $1.0 million, or 2.2 percent of<br />

revenues. The remaining $3.4 million,<br />

or 7.5 percent of revenues, represents<br />

the cost of operating and maintaining<br />

the generating units.<br />

The cost of operating and maintaining<br />

the electric lines totaled $1.2 million, or<br />

2.8 percent of total revenues. The cost<br />

of servicing our members totaled $0.8<br />

million, or 1.7 percent of revenues. The<br />

cost of keeping our members informed<br />

30 KIUC CURRENTS<br />

Depreciation and<br />

Amortization<br />

7.7%<br />

Administrative and<br />

General Net of<br />

Nonoperating Margins<br />

5.0%<br />

Communications<br />

0.5%<br />

PERCENTAGE OF TOTAL REVENUE<br />

Taxes 8.4%<br />

Member Services<br />

1.7%<br />

Transmission and<br />

Distribution Operation<br />

and Maintenance<br />

2.8%<br />

Interest 4.2%<br />

Net Margins 8.5%<br />

Production Operation<br />

and Maintenance<br />

7.5%<br />

totaled $0.2 million, or 0.5 percent of<br />

revenues. Administrative and general<br />

costs—which include legislative and<br />

regulatory expenses, engineering,<br />

executive, human resources, safety and<br />

facilities, information services, financial<br />

and corporate services, and board of<br />

director expenses—totaled $2.4 million,<br />

or 5.2 percent of revenues.<br />

Being very capital intensive,<br />

depreciation and amortization of the<br />

utility plant costs $3.5 million, or 7.7<br />

percent of revenues. Although not<br />

Commodities —<br />

Solar<br />

2.2%<br />

Commodities —<br />

Hydro<br />

3.1%<br />

Commodities —<br />

Fossil Fuel<br />

48.4%<br />

subject to federal income taxes, state<br />

and local taxes amounted to $3.8<br />

million, or 8.4 percent of revenues.<br />

Interest on long-term debt, at a<br />

favorable sub-5% interest rate—totals<br />

$1.9 million, or 4.2 percent of revenues.<br />

Non-operating net margins added $0.1<br />

million to overall net margins. Revenues<br />

less total expenses equal margins of<br />

$3.9 million, or 8.5 percent of revenues.<br />

Margins are allocated to consumer<br />

members and paid when appropriate.


Every year, KIUC is required by law to provide our ratepayers annual fuel mix and average Members electric and cost Community<br />

information.<br />

HRS [§269-16.4] annual fuel mix disclosure<br />

(a) Beginning June 1, 2004, and every June 1 thereafter, each retail supplier of electricity shall disclose fuel mix information by generation category to its<br />

existing and new retail electricity customers for the prior calendar year.<br />

(b) Beginning June 1, 2004, and every June 1 thereafter, each retail supplier of electricity shall state the average retail price of electricity (per kilowatt-hour) for<br />

each rate class of service for the prior calendar year. The average retail price of electricity for each rate class of service shall be determined by dividing the<br />

total electric revenues for each rate class of service by the total kilowatt-hours sold to each respective rate class.<br />

(c) The disclosure required by this section shall be:<br />

(1) Printed either on the customer’s bill or as a bill insert; provided that this disclosure requirement shall not result in increased costs to ratepayers; and<br />

(2) Posted and updated on the suppliers Internet website, if any.<br />

(d) As used in this section, the term “fuel mix” means the electricity sold to retail electricity customers expressed in terms of percentage contribution by<br />

generation category. The total fuel mix included in each disclosure shall total 100 percent. [L 2003, c 147, §2]<br />

Rate Class of Service Schedule 2008 2009 2010 2011 2012<br />

Residential D $67,521,772 $48,759,892 $58,599,648 $69,031,915 $70,785,142<br />

General Lighting Service G $27,098,626 $18,738,834 $22,536,553 $26,468,791 $27,353,872<br />

General Lighting Service J $23,757,990 $15,861,517 $18,708,703 $21,485,166 $22,168,732<br />

Large Power P $48,260,251 $32,715,713 $38,937,220 $46,579,473 $47,797,928<br />

Large Power L $20,939,501 $11,999,215 $14,896,041 $17,238,659 $18,487,842<br />

Streetlight SL $1,457,504 $1,160,789 $1,381,050 $1,573,722 $1,647,004<br />

Irrigation $415,411 $264,087 $35,886 $33,626 $58,037<br />

Total Revenue $189,451,055 $129,500,047 $155,095,101 $182,411,352 $188,298,557<br />

Rate Class of Service Schedule 2008 2009 2010 2011 2012<br />

Residential D 160,479,367 161,946,254 159,425,808 159,071,128 157,278,152<br />

General Lighting Service G 61,762,667 58,775,630 59,481,202 59,790,431 59,663,973<br />

General Lighting Service J 57,561,387 54,387,913 53,235,877 51,859,338 51,607,028<br />

Large Power P 118,083,102 114,413,017 114,521,985 116,823,510 115,389,124<br />

Large Power L 52,082,601 42,638,562 44,990,571 44,379,446 46,285,546<br />

Streetlight SL 2,637,376 2,702,271 2,729,677 2,716,421 2,759,910<br />

Irrigation 1,184,017 1,409,589 148,199 104,788 175,336<br />

Total KWH Sold 453,790,517 436,273,236 434,533,319 434,745,062 433,159,069<br />

Rate Class of Service Schedule 2008 2009 2010 2011 2012<br />

Residential D $0.421 $0.301 $0.368 $0.434 $0.450<br />

General Lighting Service G $0.439 $0.319 $0.379 $0.443 $0.458<br />

General Lighting Service J $0.413 $0.292 $0.351 $0.414 $0.430<br />

Large Power P $0.409 $0.286 $0.340 $0.399 $0.414<br />

Large Power L $0.402 $0.281 $0.331 $0.388 $0.399<br />

Streetlight SL $0.553 $0.430 $0.506 $0.579 $0.597<br />

Irrigation $0.351 $0.187 $0.242 $0.321 $0.331<br />

*All-in cost including customer charge, applicable demand charges and surcharges.<br />

REVENUE<br />

KWH SALES<br />

AVERAGE RETAIL PRICE*<br />

Fuel Mix Generation* 2008 2009 2010 2011 2012<br />

Biomass 1,095,193 2,219,370 0 0 0<br />

Fossil Fuel 437,828,184 417,228,747 417,117,412 409,392,106 405,945,791<br />

Hydro 36,253,752 36,364,756 35,640,977 40,573,700 40,587,648<br />

Photovoltaic** 274,893 612,058 902,194 3,293,242 5,284,135<br />

Total 475,452,022 456,424,931 453,660,583 453,259,048 451,817,574<br />

* Gross Generation kWh<br />

** Prior reports included own-use from customer-sited generation. Starting from the 2012 calendar year report, prior and current data revised to include only surplus energy<br />

from customer-sited generation.<br />

Fuel Mix Percentage 2008 2009 2010 2011 2012<br />

Biomass 0.2% 0.5% 0.0% 0.0% 0.0%<br />

Fossil Fuel 92.1% 91.4% 91.9% 90.3% 89.8%<br />

Hydro 7.6% 8.0% 7.9% 9.0% 9.0%<br />

Photovoltaic 0.1% 0.1% 0.2% 0.7% 1.2%<br />

Total 100.0% 100.0% 100.0% 100.0% 100.0%<br />

MAY 2013 31


<strong>May</strong> 2013<br />

Volume 10, Number 2<br />

David Bissell<br />

President and CEO<br />

2013-2014 KIUC Board of Directors<br />

Chairman: Allan Smith<br />

Vice Chairman: Jan TenBruggencate<br />

Treasurer: Peter Yukimura<br />

Secretary: David Iha<br />

Board: Carol Bain, Karen Baldwin, Pat Gegen,<br />

Calvin K. Murashige and Teofilo “Phil” Tacbian<br />

Finance & Audit<br />

Chairman: Peter Yukimura<br />

Members: Karen Baldwin, Pat Gegen<br />

Government Relations/Legislative Affairs<br />

Chairman: Teofilo “Phil” Tacbian<br />

Members: David Iha, Peter Yukimura<br />

Member Relations<br />

Chairman: Jan TenBruggencate<br />

Members: Karen Baldwin, Teofilo “Phil” Tacbian<br />

Policy<br />

Chairman: Carol Bain<br />

Members: Calvin K. Murashige,<br />

Jan TenBruggencate<br />

Strategic Planning<br />

Chairman: David Iha<br />

Members: Carol Bain, Pat Gegen,<br />

Calvin K. Murashige<br />

4463 Pahe‘e Street, Suite 1<br />

Līhu‘e, Hawai‘i 96766-2000<br />

808.246.4300 ■ www.kiuc.coop<br />

currents@kiuc.coop<br />

HI-130<br />

You don’t have to be<br />

rich to save money<br />

Not everyone needs a $25,000 photovoltaic system to cut their utility bill.<br />

Water heaters use more electricity than any other appliance in your house.<br />

So use Kaua‘i’s abundant sunshine to heat your water instead of buying<br />

electricity to do it.<br />

KIUC is offering a $1,000 rebate toward the purchase and installation of a<br />

solar hot water system. With the rebate and state and federal tax credits, your<br />

cost could be around $2,000.<br />

And many banks and credit unions will finance your system with low or nointerest<br />

loans.<br />

Using solar hot water, most families can cut $100 or more from their<br />

monthly electric bills. That is a fast return on your investment.<br />

Call 246.4300 or go to www.kiuc.coop for a list of approved contractors<br />

and information about how you can start saving.<br />

KIUC is an equal opportunity provider and employer.

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