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<strong>Working</strong> on Behalf of
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2009 Annual Report Inside
June 2010

Aloha Island Properties
EXCEEDING YOUR EXPECTATIONS
(808) 246-0334
2099-A Kelikoli Street,
Hale Malu at Puhi #3, Lihue
Spacious town home, end unit with fenced yard;
Central AC; newly painted & bamboo hardwood
flooring. Some furnishings included.
$375,000(fs). Karen Agudong(R) 652-0677 or
Co-Listor: Rebecca "Becky" Supon(R) with Pacific
Ocean Properties 651-9271.
975 Kamalu Road, Wailua
Breathtaking Custom home located on nearly 3
acres of level land surrounded by Views of Mt
Waialeale, Makaleha and Sleeping Giant. High
End Custom Features. Separate attached guest
quarters and a Salt water swimming pool.
$1,798,000(fs). Call: Karen Agudong(R) 652-0677
or 246-0334
4195 Omao Road, Omao
Completely remodeled and upgraded 4 bed, 3 bath
home. Gourmet Kitchen, Bamboo Flooring, Mature
Landscaping and Lava Rock Wall. $795,000(fs).
Call: Charlotte Barefoot(R) 651-4627.
Wiliko Street,
Pikake Subdivision
Custom Home to begin construction in June.
Single Story with an Open Floor plan and Custom
features. House Plans and 1/4 inch scale model
available for preview by appt. $945,000(fs).
2326 Wiliko Street,
Lihue (Pikake Subdivision)-
Golf Course Frontage
BRAND NEW Gorgeous Custom Home with Central
AC, Cumaru Hard Wood Floors and High end
features throughout. Beautiful Mountain and Golf
Course Views. $959,000(fs). Call: Karen
Agudong(R) 652-0677
Halelani Village #X-102
Corner ground floor condominium with fenced
yard. Nicely renovated 2 bed, 1.5 bath with low
maintenance laminate flooring. $154,900(fs).
Short sale. Charlotte Barefoot(R) 651-4627 or
Karen Agudong(R) 652-0677
2347 Niumalu Road, Lihue
Stunning 4,000 sf Home, consisting of TWO
LEGAL DWELLINGS on over one quarter acre of
land. High end features. Designed with "Smart
House Lighting System". $1,495,000(fs).
4930 Hauaala Road, Kapaa -
2 HOMES for the Price of 1!
PRICE REDUCED! ONLY $390,000(fs). 2 Homes.
Each with 3 Bedrooms, 1 Bath. Make offer! Call:
Kay Leonard(RA) 634-8697
4164 Awela Place, Lihue
On the Market soon! Over 3200 s.f. in Puako.
Beautiful Custom home with Large Bedrooms and
Great Curb Appeal! Tranquil Indoor Garden.
Must see! Call: Karen Agudong(R) 652-0677 or
246-0334.
Aloha Island Properties 3-3359 Kuhio Highway, Lihue, HI 96766
808-246-0334 fax: 808-246-0771 www.alohaisland.com email: karen@alohaisland.com

June 2010
Volume 7, Number 3
Table of Contents
99­Cent Compact Flourescent Lights
From Your Co­op . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
A Picture’s Worth . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Energy Services Round Up for 2010 . . . . . . . . . . . . . 6
Replace! Recycle! Save! . . . . . . . . . . . . . . . . . . . . . . . . . . 8
KIUC Holds Quarterly Update . . . . . . . . . . . . . . . . . 10
Transformers and Poles . . . . . . . . . . . . . . . . . . . . . . 12
KIUC 2009 Annual Report . . . . . . . . . . . . . . . . . . . . 13
Annual Fuel Mix Disclosure . . . . . . . . . . . . . . . . . . . 29
A Director’s Spotlight . . . . . . . . . . . . . . . . . . . . . . . . 30
A Message From the Chairman . . . . . . . . . . . . . . . . 30
Division of Authority: A Director’s Job . . . . . . . . . . 31
Public Attendance and Procedures . . . . . . . . . . . . . 32
Board Actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Co­op Connections . . . . . . . . . . . . . . . . . . . . . . . . . 34
Leadership Kaua‘i . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
KIUC’s Renewable Trailer . . . . . . . . . . . . . . . . . . . . . 37
It’s a Piece of Cake . . . . . . . . . . . . . . . . . . . . . . . . . . 38
KIUC Charitable Foundation Releases Funds for
Scholarships for KCC Students . . . . . . . . . . . . . . . 40
Economic Development Loans Available . . . . . . . . 41
LIHEAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
KIUC Volunteers . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Storm Sense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
KIUC’s 2010 Membership Meeting . . . . . . . . . . . . . 50
County of Kaua‘i Refuse Collection Service . . . . . . 51
Patronage Capital and Patronage
Capital Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Statement of Operations . . . . . . . . . . . . . . . . . . . . . 54
Simple Pleasures. . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Parting Shot. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Powerlines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
KIUC is an equal opportunity provider and employer.
On the cover: Board Chairman Phil
Tacbian visits Sears during the recent
Replace, Recycle, Save refrigerator
replacement program.
Photo by Maile Moriguchi
4463 Pahe‘e Street, Suite 1, Līhu‘e, Hawai‘i 96766­2000
808.246.4300 ◼ www.kiuc.coop ◼ currents@kiuc.coop
KIUC BOARD MEMBERS
Teofilo “Phil” Tacbian,
Chairman
Peter Yukimura, Vice Chair
David Iha, Secretary
Allan A. Smith, Treasurer
Carol Bain
Stu Burley
Steve Rapozo
Ben Sullivan
Jan TenBruggencate
PRESIDENT & CEO
Randall J. Hee
EDITOR
Anne Barnes
Marketing,
Communications
& Public Affairs
ASSISTANT EDITORS
Maile Moriguchi
Shelley Paik
Marketing,
Communications
& Public Affairs
Pam Blair
Ruralite Services
CONTRIBUTING WRITERS
Anne Barnes
Paul Daniels
Randall J. Hee
Ray Mierta
Maile Moriguchi
Shelley Paik
Teofilo “Phil” Tacbian
Kathy Williams
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.

By Ray Mierta
ENERGY WISE
99-Cent Compact Fluorescent Lights
From Your Co-op
4 KIUC CURRENTS
Inclu d des
a d nd 3
m m i d
Includ
way e l b a
des
and
3 - -way
bul
b bs
ENERGY
STAR®
and
the
ENERGY
STAR®
logo
are
registered
U. S. m marks.
© 2010
General
Electri
c C Company.
The Program
Beginning in June, residential customers of KIUC
will be able to purchase compact fluorescent
lights (CFLs) from most Ace Hardware stores on
Kaua‘i for as little as 99 cents each. Ace will sell
20­ and 26­watt Energy Star­compliant GE CFLs for
99 cents each. Those replace standard
incandescent 75­ and 100­watt bulbs. Dimmable
bulbs and three­way bulbs also will be marked
down from their regular price. The cost for
dimmable and three­way bulbs will range
between $7 and $10 each.
KIUC has arranged to discount these bulbs
directly to Ace for co­op members. Buying down
the price on the retail level eliminates the
administrative expense to KIUC for processing
coupons and the hassle factor for members.
“This is extremely cost effective for KIUC,” said
KIUC Chief Executive Officer and President
Randall Hee.
KIUC has used many delivery methods in the
past to gain greater acceptance for compact
fluorescent lighting. The co­op has installed them
in homes, mailed them to homes and currently
provide free bulbs in exchange for food donations
Di D Di s sc o oun t ted
d p pr i c e es
b br o ou g h t t o y yoou u bby
b
Ka K g aua g o y y
a’ i I s sland
d
U Util K ity C
a K y C a u a i I
y Co a op s i I pe a l s ra d nd U Utilit y CCo
C o p pera t i v e e.
Offe r v alid
while
supplies
last.
to the Kaua‘i Food Bank annual food drives.
“This is a new type of approach for KIUC, and
we hope all members take advantage of this
opportunity,” said Randy.
Supplies are limited. If this first year is
successful, it is hoped the program will be funded
on an annual basis.
This offer is available to only residential
accounts and limited to five bulbs per account.
Call Paul Daniels at 246.8275 to inquire about
lighting rebates for commercial accounts.
The bulbs will be in a special location in each
store, so look for signs identifying bulbs that are
discounted for the KIUC program.
Efficiency
Fluorescent lighting is efficient. Ninety percent
of the electricity consumed by a standard bulb is
turned into heat. Only 10 percent is used to create
light. CFLs produce little heat, with 90 percent of
the electricity used to produce light.
A standard 75­watt bulb used three hours a day
costs $27 a year. A 20­watt CFL costs only $7.65 a
year used for the same amount of time.

On Kaua‘i, about 13 percent of residential
energy use is associated with lighting, and about 9
percent of energy use associated with residential
lighting coincides with KIUC’s peak demand. As a
result, savings from programs directed toward
reducing lighting electricity use can be beneficial
for the KIUC system and result in direct energy
savings to the member. The average home on
Kaua‘i uses about three hours of light a day. On
the mainland, lighting is a much larger portion of
the monthly bill.
Target the highest use fixtures in your home for
compact fluorescent lights. However, at the lower
prices, fixtures used as little as half an hour a day
will produce savings.
While there is no data on CFL adoption in
Kaua‘i, at the national level, sales have declined
25 percent since peaking in 2007, and only one in
four lamps are using CFLs.
A Picture’s Worth...
Located just behind Kong Lung store, adjacent
to Lighthouse Road in Kilauea, you will find Lotus
Gallery. The talented owner team of Tsajon von
Lixfeld and wife Kamalia can certainly dazzle you
with their exotic jewelry.
Longevity
Standard bulbs last about 1,000 hours.
Fluorescent bulbs last 8,000 to 10,000 hours.
The longevity of a CFL depends on a number of
factors. They are designed to be installed in table
lamps with the base below the glass. Installing the
bulbs upside down in ceiling fixtures or in
recessed fixtures will shorten their life. They
should not be used with dimmer switches unless
designed to be dimmed, and they should not be
used with photocells.
Bottom Line
Installing energy­efficient lighting in your home
cannot get any easier. The new program removes
most of the expense and all of the hassle. If you
have questions about the program, call 246.8280.
By Paul Daniels
With graduate degrees in design and gemology
from the Gemological Institute of America in
Santa Monica, California, these talented artists fell
in love with Hawai‘i and Kaua‘i over many years of
personal sales visits to the islands.
Opening their first gallery in Kilauea in
November 1999, Tsajon and Kamalia have built a
reputation on quality fine Asian art and custom
jewelry pieces that can be viewed in both Kilauea
and a second gallery (opened in 2002) at Poipu,
located next to the Beach House Restaurant.
Both galleries are furnished with personally
customized rosewood furniture, caringly restored
and modified for their current use by Tsajon.
Speaking of the furnishings, Tsajon shared how,
out of necessity, he restored and adapted his
beautiful rosewood cabinets into display cases,
including their accent lighting. Not totally
satisfied, Tsajon recently improved the display
lighting by transitioning to light­emitting diodes
(LEDs). These highly efficient light sources not
only save energy, but eliminated the intense heat
from the previous halogen lamps. That reduction
in heat actually preserves the displays from
discoloration, while adding life to the cabinets.
We thank Tsajon and Kamalia for their
continued interest in energy savings, and KIUC
looks forward to participating with Lotus Gallery
in future energy projects.
If you have a
business, large or
small, and want to
participate in the
Commercial Energy
Wise Program, call
Paul Daniels at
246.8275.
JUNE 2010 5

6 KIUC CURRENTS
By Ray Mierta
Energy Services Round Up for 2010
Here is a look at the residential energy
service programs KIUC has planned for 2010.
Remember: Incentives are available on a
first­come, first­served basis. Since funding is
limited, it is best to participate as soon as you
hear about program availability.
KIUC will do its best to let you know Watts Up
and coming for the year to help you plan ahead.
Appliance Efficiency
New appliances use less energy than older ones.
Appliances with the Energy Star label save the
most money because they exceed government
efficiency standards. Although the savings from
replacing any one appliance doesn’t seem like
much, consider that you will be living with that
appliance for 10 to 15 years. And the number of
different appliances you replace with new ones
will help the savings add up quicker.
Efficient Appliance Replacement
Refrigerator Rebates
It is often best to plan for large purchases such
as appliances. KIUC wants you to know it will be
offering appliance rebates for different appliances
throughout the year.
Through July 31, KIUC offers a $50 rebate for
members replacing an existing refrigerator with a
new one. All makes, models and sizes qualify. This
is a replacement program, which means rebates
are not available for purchasing a second
refrigerator for your home or for a home you may
be building. Multiple refrigerators will increase
your monthly consumption. KIUC wants you to
remove an older model and replace it with one
that will use less electricity.
Clothes Washer
A $50 rebate for clothes washers will be
available until June 30, 2010. Front­loading
clothes washers use less energy than toploading
models, but any new washer will use
less energy and water than older ones. If you
have a clothes washer that is approaching 10
years of age, look for KIUC rebates for this
appliance right away.
Dishwasher Rebates
Most homes on Kaua‘i do not have automatic
dishwashers. But if you do, KIUC wants you to
change out your old one and save. Energy Star
dishwashers use 25 percent less energy than a
standard model, but any new dishwasher will
be more efficient than your older one.
Rebates for dishwasher replacement will be
available from August 1, 2010, to September 30,
2010, so plan ahead.
Appliance rebate applications and program
details are available at all appliance dealers on
Kaua‘i or by calling 246.8280.
Light Up A Life
KIUC will offer a free 20­watt compact
fluorescent light with every $5 food donation
made at the KIUC office in Līhu‘e. Food
donations will be accepted in conjunction with
the Kaua‘i Food Bank’s annual food drives. KIUC
also will accept checks made out to the Kaua‘i
Food Bank for amounts of $5 or more. No cash
is accepted. Please call 246.8284 for
information, or stop by our lobby to see the
display and make your contribution.
KIUC would like to hear from owners of single­family detached dwellings, with
a minimum month­to­month rental agreement and household size of more than two.
Hot water must be supplied with electricity (no solar, no gas). Electric bill must be in
tenant’s name. Please call 246.8280 or 246.8284.

FREE Refrigerator for
Qualifying Seniors
That’s right: KIUC is offering to replace older
refrigerators for qualifying seniors at no cost.
Applicants must meet age and income
requirements, and the existing refrigerator must
be at least 11 years old.
For more information about this program for
someone you know or for yourself, call the County
Agency on Elderly Affairs at 241.4487. It will
determine if you meet age and income
requirements. If you do, KIUC will be notified and
will determine the age of the refrigerator and
arrange for a new one to be installed.
Refrigerators can be the second­highest
electricity user in the home after water heating.
Solar water heating might not make sense for
a one­ or two­person household, so replacing
the refrigerator is a cost­effective option.
Solar Water Heating
Most homes on Kaua‘i heat their water
with electricity. For these homes, 40 percent
to 50 percent of the monthly electric bill
results from heating water. Heating water
with the sun costs a lot less, but because of
its high purchase cost, solar water heating
may be out of reach for a lot of members.
Did You Know?
The state of Hawai‘i has made tax credits
available for the installation of
solar water heaters. The
Hawai‘i tax credit is 35 percent
of the installed cost, with a
cap of $2,250. The state solar
tax credit expires at the end of
2010. The federal government
is offering a 30­percent tax
credit with no cap.
Consult the person who
prepares your taxes to see
how these credits might apply
to you.
Solar Incentives From KIUC
KIUC has two programs available for residential
members to help with the cost of installing solar
water heating.
The KIUC solar rebate program is 10 years old.
To obtain the rebate, the solar system must
replace an existing electric water heater or an
existing solar water heater that is 15 years old
and not functional. The rebate is $800.
An Energy Wise participating contractor must
install the system. Detailed information about
the solar rebate program is available by calling
KIUC at 246.8280.
JUNE 2010 7

8 KIUC CURRENTS
By Ray Mierta
Replace!
Recycle!
Save!
Hawai‘i Refrigerator
Replacement Program
The federally funded Hawai‘i Refrigerator
Replacement Rebate Program called “Replace,
Recycle, Save,” was a huge success on Kaua‘i.
It took less than a week to issue 384 rebate
applications to people who purchased Energy Star
refrigerators and met program requirements.
Once all of the applications are received and
processed, KIUC will issue rebate checks to
participants. Since many of the refrigerators had
to be ordered, it could take as long as two months
to process all of the applications and get the
checks in the mail.
If you are a program participant and are waiting
for delivery of your refrigerator, remember that
KIUC needs to receive your completed application
with the receipt showing the refrigerator purchase
and verification that your old refrigerator has
been removed from service by July 31, 2010.
Energy Wise Appliance Rebates
Funding was limited, so if you missed out on the
federally funded program, you still can qualify for
a $50 rebate directly from KIUC for the purchase
of a new refrigerator. The KIUC Energy Wise
Efficient Appliance Replacement Program for
refrigerators will be available until July 31, 2010,
and does not require that the old one be removed
from service.
The KIUC Efficient Appliance Replacement
Program is designed to raise awareness of the
energy­saving benefits of new appliances.
New refrigerators need to meet federal efficiency
standards, which require them to use less
electricity than their older counterparts.
Energy Star models use up to 50 percent less
energy than conventional refrigerators sold
as recently as 2001.

Left: Home Depot employee Shannon.
Below: The Sears Blue Appliance Crew, from left: Brenda, Judy,
Margo, Florencia, Myka, Jen and Dave
In addition, through the Efficient Appliance
Replacement Program, KIUC is offering a $50
rebate for the purchase of a new clothes washer
until June 30, 2010. The average American family
washes almost 400 loads of laundry each year.
Families can cut their energy costs by more than
a third and water costs by more than half just by
purchasing a clothes washer with the
Energy Star label.
Rebates for dishwashers will be available from
August 1 to September 30.
Energy Wise appliance rebates are intended for
the early retirement of existing operational
appliances. New construction does not qualify,
and the appliance needs to be in working order.
Only residential accounts are eligible.
This is a great time to consider the purchase of
new appliances and save electricity, water and
money all at the same time. Appliance dealers on
Kaua‘i will have the applications for the $50
Energy Wise rebates available at the time of
purchase. Questions? Call KIUC at 246.8280 or
246.4300.
JUNE 2010 9

10 KIUC CURRENTS
By Maile Moriguchi
KIUC OUTLOOK
KIUC Holds Quarterly Update
The rate case, seabirds, the “smart grid” project,
an energy storage project, a legislative barrel tax
and renewable projects were discussed at KIUC’s
quarterly update May 20. It was an opportunity
for the co­op to share information and hear
thoughts from members.
Chief Financial Officer David Bissell reported on
the status of KIUC’s rate case.
“Interveners in the rate case reached a settlement
and the PUC issued an interim order,” said Bissell.
KIUC expects new rates to go into effect this
month, with a final rate order from the Public Utility
Committee sometime after that. In addressing
member concerns about how the rate case will
affect customers, Bissell pointed out the estimated
increase on a residential customer’s bill will be about
$8 a month. It will be less if fuel costs increase.
Like virtually all utilities, KIUC will continue to pass
on fuel cost changes to customers through an Energy
Rate Adjustment Clause (ERAC). However, KIUC’s
margins and customer bills will not be as dependent
on this adjustment under the new rates, since the
operating efficiency adder will be much lower.
Support Services Manager Carey Koide presented
the final 2009 Save Our Shearwater (SOS) numbers.
Of the 265 Newell’s Shearwater recovered, 231 were
released; of the 15 Hawaiian Petrel recovered, 10
were released; of the two Band­Rumped Storm
Petrel recovered, one was released.
KIUC is pleased the cooperative’s partnership with
the Kaua‘i Humane Society since 2008 has ensured
the program’s continued success.

Koide also updated the audience on KIUC’s
Habitat Conservation Plan (HCP). KIUC submitted
its proposed HCP as well as applications for
incidental take permit and license to the U.S. Fish
and Wildlife Services (USFWS) and the Hawai‘i
Department of Land and Natural Resources –
Division of Forestry and Wildlife (DOFAW) in
October 2007. In December 2008, USFWS and
DOFAW concluded they were unable to approve a
long­term HCP and incidental take permit and
license for the species. By recommendation of the
agencies, KIUC modified its HCP to cover a five­year
period in April 2009. KIUC is awaiting DOFAW’s
response to comments during its public review
process that closed in December. USFWS has yet to
announce its own public review process.
Koide discussed KIUC’s commitment and future
plans for mitigation and additional studies of the
species. To date, KIUC has spent more than $4
million for voluntary mitigation, development of
the HCP, and to defend against threatened criminal
and civil enforcement actions. KIUC also has
committed more than $3.6 million in mitigation
and minimization measures, including additional
studies that will directly benefit the protected
species once an incidental take permit and license
are issued.
In 2003, when DOFAW no longer was able to
fund SOS, KIUC seized the opportunity to partner
with the agency, providing funding and technical
support for the ongoing program, thereby saving
hundreds of seabirds.
Despite these mitigation efforts, the U.S.
Department of Justice obtained an indictment of the
co­op for violations of the Migratory Bird Treaty Act
and Endangered Species Act on May 20.
KIUC’s smart grid project, presented by
Engineering Manager Michael Yamane, will bring
many benefits to the co­op and members: greater
accuracy, fewer estimated bills, no meter readers on
private property, billing date flexibility, a way to
monitor energy consumption, improved power
quality, faster outage restoration and potential
energy savings for members.
Through the smart grid project, 33,000 smart
meters will be installed, along with an island­wide
communications infrastructure and associated
hardware and software. The demonstration project,
funded by the American Recovery and Reinvestment
Act, will span a five­year period, with two years of
installation and three years of data sharing, as
required by the grant.
Yamane also spoke about KIUC’s energy storage
project. KIUC has about 4 megawatts (MW) of
customer­sited photovoltaics (PV) throughout the
island, with the largest system being 800 kilowatts
(KW). So far, no technical issues have been noticed.
KIUC is looking at adding utility­scale PV ranging
between 1 and 3 MW in size. Response to cloud
cover, voltage variations on feeders and system
frequency excursions will be issues on a small island
system, Yamane noted. He said those technical
issues can be mitigated with energy storage. The coop
applied for grants and funding with the National
Rural Electric Cooperative Association and the
Cooperative Research Network, but was
unsuccessful. KIUC also has been working with
Hawai‘i Natural Energy Institute (HNEI) for funding.
The co­op has approved $5 million in its 2010­11
capital budget for the project.
The last issue Yamane addressed was the impact
the legislative barrel tax will have on KIUC and its
members. Yamane estimated a 2.5­cent per gallon
additional tax on fuel would equate to about a
$700,000 impact on the co­op’s margins and a 77cent
a month increase on residential members’ bills.
President and CEO Randy Hee wrapped up the
meeting with an update on renewable energy
projects the co­op is working on or discussing with
potential developers. The projects include solar,
biomass, landfill gas and hydro.
KIUC continues to work with a developer on a 10
to 15 MW solar thermal energy project in the
Kekaha/Waimea area. KIUC also is working with
developers on three separate PV projects that total 5
MW in Kapaa, Koloa and Kilauea.
Talks continue with Green Energy for a 6.4­MW
biomass project using albezia and other tree crops
on Knudsen Lands. A possible 20­MW biomass
project also is being studied.
Landfill gas remains an option as a joint project
between the Pacific Missile Range Facility and the
county that could generate 1.6 MW of power.
Hydro continues to play a large part in KIUC’s
renewable portfolio. The co­op is completing a
cultural study for long­term lease and evaluating the
upgrade potential for the Upper Waiahi Hydro
system. Improvements to existing equipment could
increase output by 300 KW. Other potential projects
include 8.0 MW for the Kekaha/Kokee ditch system;
4 to 10 MW for the Olokele ditch; 4 MW for the
Upper Wainiha; and 6.6 MW at Wailua Falls.
Increasing end­user efficiency is a goal of KIUC.
The Replace, Recycle, Save Energy Star Efficient
Appliance Rebate that began on May 24 will help
360 members through $250 rebates for replacing
existing refrigerators with new Energy Star
refrigerators. Once those rebates are gone, KIUC will
offer $50 refrigerator rebates in addition to the $50
clothes washer rebate available through June 30,
and existing solar programs offered through KIUC’s
Energy Services.
A copy of the presentation can be found online at
KIUC’s website, www.kiuc.coop.
JUNE 2010 11

12 KIUC CURRENTS
By Shelley Paik
COOPERATIVE TECHNOLOGY
Transformers and Poles
The poles and wires seen on roadsides around
the island play an important part in providing KIUC
members with electricity. KIUC’s Transmission and
Distribution construction personnel have been busy
replacing poles, anchors, transformers and
transformer brackets to maintain and harden the
co­op’s electrical system.
“We’re replacing the older plastic brackets that
kept transformers insulated from each other with
new steel units,” said Transmission and Distribution
Manager Jack Leavitt. “Insulated brackets were
required by State of Hawai‘i General Order 6.
However, G.O.­6 was replaced with the National
Electrical Safety Code (NESC) in 2008, which no
longer required such separation. The new steel
brackets are much safer, as they provide a much
better loading capability.”
Some of the work is being done at night and on
the weekends to accommodate commercial
members who cannot be without power during
normal business hours. You may see crews working
to change these brackets at night to accommodate
these members.
Recently, KIUC’s construction crews have been
working along Kuhio Highway by the Wailua Golf
Course and the entrance to Lydgate Park. The
project involves installing a shield wire above the
transmission lines between Kapaia and Kapaa. The
grounded conductor at pole top­level will protect
the transmission lines, cables and substation from
lightning strikes.
“The Kapaia to Kapaa stretch is the only section
of transmission that did not have a shield wire,” said
Leavitt. “The shield wire is necessary within onehalf
mile of Lydgate Substation to protect both the
high­voltage transmission cables and lines, as well
as the substation, which was rebuilt and restored to
service in December 2009.”

TOGETHER WE POWER KAUA‘I
NAVIGATING A
CHALLENGING ENVIRONMENT
KAUA’I ISLAND UTILITY COOPERATIVE 2009
ANNUAL REPORT

We are in the middle of a green revolution in America,
with bright solar arrays, towering wind turbines,
hydro and biomass dominating headlines as the future
of electric generation. No doubt, those technologies will
certainly take on a bigger role in “keeping the lights on.”
But despite media hype, they won’t totally
replace “conventional” sources for producing
electricity in the near future.

My goal is for KIUC to act as one unit,
navigating in unison, reprioritizing projects,
and working together to accomplish
much, much more.
RANDALL J. HEE / PRESIDENT & CHIEF EXECUTIVE OFFICER
Our relationship with our members sets the context
for our successful operations and we treasure our
legacy of engagement with our community.
KIUC believes our mutual concerns will help
to build a better future. To that end we will
continue toward a mix of generation resources to
meet demand, finding the best ways to balance
environmental concerns while ensuring
delivery of affordable and reliable power.
TEOFILO “PHIL” TACBIAN / CHAIRMAN OF THE BOARD
KIUC 2009 ANNUAL REPORT 3

2010 - 2011 BOARD OF DIRECTORS
Board Member
Carol Bain
Chairman
of the Board
Teofilo “Phil” Tacbian
The KIUC Board of Directors gives hundreds of hours each year on behalf of the
member-owners to direct the cooperative. They approve annual operating
budgets, construction work plans and capital expenditure budgets; and ensure
the development of plans for a long-term supply of reliable, economical
electricity and the development of long-term sources of operating capital. It is
also the board’s duty to approve plans for management of member equity, and
to select KIUC’s independent auditors and engage them for an annual financial
audit. The board hires a Chief Executive Officer to manage the company and its
employees, and evaluates his or her performance. The board works with the
CEO to develop policies to ensure members’ concerns are addressed promptly
and fairly, and to promote good member relations.
4 TOGETHER WE POWER KAUA‘I
Board Member
Stu Burley
Board Vice Chair
Peter Yukimura
Board Member
Steve M. Rapozo
Board Treasurer
Allan Smith
Board Member
Ben Sullivan
Board Secretary
David Iha
Board Member
Jan TenBruggencate

STRATEGIC PLAN
The Strategic Plan
The island of Kaua‘i is highly dependent on imported energy sources. This dependence exposes KIUC and its
members to energy costs that are easily influenced by national and international market fluctuations which have
shown extreme variability in recent years. KIUC’s existing energy mix is heavily dependent on petroleum sources that
must be sourced from outside of Hawai‘i requiring the export of Hawai‘i dollars. Petroleum resources must also be
considered finite and KIUC will need to shift away from that finite supply to ensure its long-term energy supply.
ACT 234, Session of Laws of Hawai‘i 2007, established a framework to reduce green house gas emission levels to
levels emitted during 1990 by 2020. KIUC leads with aggressive strategic targets that will meet the 1990 green
house gas emission goals and result in more than 50% renewable energy supply. The State of Hawai‘i is also
working on a Hawai‘i Clean Energy Initiative that targets 70% clean energy by 2030 (40% renewable energy
supply). KIUC voluntarily participates in the
Hawai‘i Clean Energy Initiative (HCEI). KIUC also recognizes the added benefit of not exporting Hawaii dollars in
exchange for energy supplies and favors keeping those dollars in Hawai‘i and especially on Kaua‘i.
In recent years, KIUC has experienced average annual growth of 1.5% in its customer base. KIUC currently serves
nearly 36,000 customers, three fourths of whom are residential customers. While the next few years will
undoubtedly be influenced by the global economic downturn, KIUC projects a continued growth of its customer
base largely due to increased population of the island and added infrastructure serving visitors. KIUC also
expects that increased end user efficiency will temper Kaua‘i’s energy needs, however, growth and the likely shift
of transportation from petroleum fueled to electric vehicles will lead to increased electrical capacity
requirements.
An adequate supply of energy would have no meaning without a means to reliably deliver that energy to KIUC’s
members and customers. The shift to local, sustainable sources of energy also impacts KIUC’s transmission and
distribution infrastructure as sustainable energy sources do not necessarily coincide with the location of Kaua‘i’s
higher population and higher energy use areas. Intermittent resources like photovoltaic solar generators will
need some mitigation effort to ensure that the circuits that they tie into remain stable.
The latest member surveys in 2008 and 2009 continued to indicate that charging reasonable rates and delivering
good value are the more significant drivers of overall satisfaction among KIUC members. Today’s context
requires further attention to these drivers as well as supporting the members’ best interests at heart through
effective and timely communications.
KIUC maintains an electrical network on Kaua‘i that is truly an islanded system which means that it is not
connected to any other outside utility. No current technologies or technologies in the foreseeable future will
enable economical transmission of electricity across the deep ocean channel separating Kaua‘i from the other
major Hawaiian Islands. KIUC must therefore maintain an adequate supply of firm, reliable generation to meet its
customer needs and maintain sufficient reserves to allow maintenance of its generation equipment. This Strategic
Plan intends to provide the planning foundation to ensure that an adequate firm, reliable power supply is
maintained.
KIUC 2009 ANNUAL REPORT 5

STRATEGIC PLAN
Key Issues
6 TOGETHER WE POWER KAUA‘I
This Strategic Plan is an update and expansion of the Strategic
Plan 2008-2023 with the ultimate goal of serving the KIUC’s
members well. It identifies the key issues KIUC will face in the
next 15 years and provides a common framework for the strategic
direction of KIUC now and in the future.
KIUC Board members and key staff addressed many issues that
face KIUC and concluded the following:
1. Attention to Members. One of the more important
components of the strategy is to continue striving to ensure
the satisfaction of the membership with responsive and
value-driven services. Communication between KIUC and
members is a critical element in maintaining a positive
relationship through clear and consistent two-way
understanding.
2. Workforce Excellence. It is acknowledged that a skilled,
well-trained, and competent workforce is a necessary
ingredient in achieving quality outcomes. Providing
excellence in services is essential for KIUC to carry out its
vision, mission, and strategic goals. This means that paying
attention to and caring for its employees is essential for
KIUC to serve its members.
3. Diverse Energy Solutions. It is clear that simply providing
electric service to members will not accomplish KIUC’s
vision and mission. KIUC must meet its own sustainable
energy goals, requirements set by the State of Hawai‘i’s
Renewable energy Portfolio Standards (RPS), and work with
the State to accomplish the HCEI goals.
4. Financial Stability. Above all, KIUC must remain financially
stable. KIUC must meet its current and future debt
obligations. The shift to sustainable resources and the
incorporation of energy solutions to handle growth and
ensure grid stability will require capitalization that must be
balanced against fair and competitive rates
5. Reliability. There is no substitute for reliability of service.
The Strategic Plan deals with these issues and is described in
more detail in the following sections.

The KIUC Vision
The vision of KIUC is:
To be an energy solutions leader.
The KIUC Mission
The mission of KIUC is to:
Provide reliable power safely that is fairly and
competitively priced;
Practice conservation and efficient use of energy
resources;
Increase sustainable power supply and
environmental stewardship; and
Improve the quality of life for members and Kaua‘i
TOGETHER WE POWER KAUA‘I!
The KIUC Culture
The KIUC culture is shaped by several elements, all critical
to its success. The first is that KIUC embraces the seven
principles of a cooperative as shown in Attachment B.
Second, KIUC Board and employees embrace
“Ho‘oka‘ana Waiwai”, an agreed upon set of
Hawaiian-based values that provides a guiding statement.
Ho‘oka‘ana Waiwai reads as follows:
Aloha - we welcome our members with respect,
sincerity, and graciousness. I will seek to be
trustworthy, to share, respect and be kind to my
KIUC brothers and sisters, and members.
Ho‘ohiki - we are committed to keeping our
promises to each other and our community. I am
accountable for what I say and do.
Ho‘okela – we strive to provide the best service to
our members. I will contribute my best to attain the
highest level of achievement.
Ho‘omau – we will persevere in our journey
together towards member satisfaction. I will not
waiver from the path.
Kuleana – we accept our responsibility to our island
community as a privilege. To do the right thing is a
privilege I accept.
Kupono – we will treat members with fairness,
integrity and honesty. I am committed to treat
others the way I like to be treated.
Laulima – we will work together toward common
goals where one person’s success is everyone’s
success.
STRATEGIC PLAN
Vision, Mission and KIUC Culture
‘Ohana – community and coworkers, everyone is
part of the KIUC family.
Finally, within these principles and values, the KIUC
leadership team identified the central core values that are
to be tied to work performance, practiced daily,
promoted without compromise, and communicated
through actions. These core values tell how you treat
each other, how you treat your members, how you treat
external stakeholders, and how you go about doing your
tasks all of the time; not just when you feel like it. The
central core values are:
Respect (Kupono): treating everyone with fairness,
integrity, and honesty.
Teamwork (Laulima): looking out for each other and
working together as One Team toward common
goals.
Excellence (Ho‘okela): striving to provide the best
professional service to our members by producing
high quality work and excelling in everything one
does.
Responsibility (Kuleana): practicing stewardship
and the privilege of doing the right thing for our
members in a responsive manner.
Previous KIUC strategic plans and the more recent
Strategic Plan for 2008-2023 focused upon an overall
strategy for delivering safe and reliable electrical service;
achieving a high standard of sustainability with regard to
power supply; and providing fair and competitivelyvalued
rates. In addition, it was recognized that these
strategies would need to be balanced and required
effective communication and alignment among KIUC
members, directors, and employees.
The grand strategy for “Strategic Plan: 2010-2025” is to
continue to carry out this general direction while
concurrently ramping up and enhancing the KIUC mission
by serving members well through useful energy solutions
along with diverse electrical power and services. In
addition, the grand strategy addresses the efforts of KIUC
to move toward energy independence by harnessing
renewal energy resources and fostering demand side
interactivity.
To accomplish this grand strategy, the leadership team
identified key Strategic Goals and the specific Actions as
noted in the following pages:
KIUC 2009 ANNUAL REPORT 7

STRATEGIC PLAN
Strategic Goals and Actions
Strategic Goal A: Implement increased energy solutions, including diversification
of power supply and reduced dependency.
Actions Start Date/ Completion Date:
A.1: Enhance existing energy efficiency programs and
incentives by increasing conservation and demandside
management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .ongoing
A.2: Collaborate with others on energy efficient solutions. . . . . . . . . . . . . . . . . . . . . . . . .2010/ongoing
A.3: Create Renewable Energy Action Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .ongoing
A.4: Explore opportunities for expanded member-owned PV. . . . . . . . . . . . . . . . . . . . . . .2010/ongoing
A.5: Increase sustainable power supply.
A.5.1: Meet or exceed Hawai`i Renewable
Portfolio Standard (RPS). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2008/annually
A.5.2: Reduce electric power generation sector
Greenhouse Gas (GHG) emissions to 1990 levels. . . . . . . . . . . . . . . . . . . . . . .2008/annually
A.5.3: Increase energy diversity so that no one source
amounts to 50% or more of total energy supply. . . . . . . . . . . . . . . . . . . . . . . .2008/annually
Strategic Goal B: Develop and implement new and/or replacement generation
and related infrastructure.
Actions Start Date/ Completion Date:
B.1: Implement Smart Grid and AMI technology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2010/2011
B.2: Consider firm capacity for efficiency and reliability. . . . . . . . . . . . . . . . . . . . . . . . . . . .2008/annually
B.3: Install renewable generation PV at Port Allen rooftops. . . . . . . . . . . . . . . . . . . . . . . . .2009/2010
B.4: Investigate and support local fuel sources that promote
self-sufficiency, including storage systems. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2009/ongoing
B.5: Increase hydro capacity at Waiahi Stream. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Q2, 2011/2012
Strategic Goal C: Improve member satisfaction and support.
Actions Start Date/ Completion Date:
C.1: Establish Communications Committee that will be
responsible for developing Communications Plan,
identify audience, improve technical/website, and focus
upon both internal and external issues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Nov.2009/ongoing
C.2: Improve trouble call process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .review annually
C.3: Improve outage communications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .review annually
C.4: Improve reliability.
C.4.1: Achieve better than average of Hawai`i utilities
in outage frequency and duration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2008/annually
C.4.2: Maintain sufficient firm, reliable generation
to meet member demand. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2008/annually
8 TOGETHER WE POWER KAUA‘I

Strategic Goal D: Improve and enhance employee satisfaction and support.
STRATEGIC PLAN
Actions Start Date/ Completion Date:
D.1: Address employee needs, i.e., compensation/benefits,
working conditions, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .annually
D.2: Support employees to attain workforce excellence
by developing a professional development plan and
conducting performance evaluations that include
ratings for implementing core values. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2009/2010
D.3: Improve results in employee satisfaction measures. . . . . . . . . . . . . . . . . . . . . . . . . .annually/ongoing
D.4: Improve safety culture.
D.4.1: Achieve better than average of industry-specific
national safety incident rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .annually
D.4.2: Meet the standards of the Rural Electric Safety
Accreditation Program (RESAP). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2008/2013
D.5: Cultivate an effective Board/Staff team by improving
trust and confidence among Board directors, staff,
and employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .ongoing
Strategic Goal E: Ensure Financial Stability.
Actions Start Date/ Completion Date:
E.1: Review current PatCap rotation policy and equity
ratios and develop Board policy for setting future
equity ratios and PatCap rotation targets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .ASAP/2025
E.2: Maintain and improve lender relations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2009/ongoing
E.3: Establish 10-year financial forecast and update annually. . . . . . . . . . . . . . . . . . . . . . .annual update
E.4: Review and update Equity Management Plan (EMP)
every three years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2009/2012
E.5: Review and annually update, as required, the
Construction Work Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .annually
E.6: Maintain capabilities and readiness of rate-related
studies as appropriate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .annually
E.7: Move forward with Simplified Rate initiatives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2009/ongoing
E.8: Conduct Enterprise Risk Assessments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2009/2010
E.9: Evaluate financial products to mitigate rate
volatility/stability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .ongoing
E.10: Ensure fair and competitive rates.
E.10.1: Maintain reasonable, comparable rates with
other Hawai`i utilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2008/monthly
E.10.2: Maintain costs at or below inflation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2008/
KIUC 2009 ANNUAL REPORT 9

STRATEGIC PLAN
Implementation Guidelines
10 TOGETHER WE POWER KAUA‘I
The Strategic Plan will be implemented effectively upon
approval by the KIUC Board of Directors according to the
following guidelines:
1.The Strategic Plan will be implemented by an Agenda
for Action (AFA) that will cover two-year increments
with the first one covering 2010-2012.
2.The Agenda for Action will be developed by the KIUC
Management Team through collaboration with the
Board Strategic Planning Committee (BSPC). Together,
they will identify the “Outcome Measurement” and the
“Start Date/Completion Date.” Management will be
responsible for assigning the “Responsible Office,”
deriving an “Estimated Budget” for each year,
implementing each “Action,” and recording the
“Actual Outcome.” In addition, at each review session,
a “Current Status” of each action, as appropriate, will
be provided by the responsible office. The BSCP will
have oversight of the AFA to ensure that the Strategic
Plan is timely implemented.
3.The Strategic Plan will be reviewed monthly by the
responsible units/individuals to keep on target or to
make adjustments to improve the Plan.
4.The KIUC CEO will make a quarterly and annual report
to the KIUC Board of Directors through the BSPC.
5.The KIUC leadership team will review the Strategic
Plan every year and develop the Agenda for Action for
the next two rolling two years.
6.The BSPC will be responsible for initiating the
development of the next Strategic Plan at an
appropriate time.
As developed by the KIUC Leadership Team, the Strategic
Plan sets the overall direction of KIUC and intends to
benefit members, directors, and all employees of KIUC.

For the period 01/01/2009 through 12/31/2009
FINANCIALS
Summary of Operations
The KIUC results of operations through December 31, 2009 were satisfactory. Total revenues, expenses, and net
margins totaled $129.7 million, $124.1 million, and $5.6 million, respectively, for the twelve-month period ending
December 31, 2009.
As is the case for all electric utilities, the cost of power generation is the largest expense, totaling $68.6 million or
52.9% of revenues. Fuel costs are the largest component of power generation, totaling $55.8 million or 43.0% of
revenues, and representing 81.4% of the cost of power generation. The remaining $12.8 million or 9.9% of revenues
and 18.6% of the cost of power generation, represents the cost of operating and maintaining the generating units.
The cost of operating and maintaining the electric lines totaled $4.7 million or 3.6% of total revenues. The cost of
servicing our members totaled $3.2 million or 2.5% of revenues. Administrative and general costs, which include
marketing and communications, legislative and regulatory expenses, engineering, executive, human resources, safety
and facilities, information services, financial and corporate services, and board of director expenses, totaled $11.3
million or 8.7% of revenues.
Being very capital intensive, depreciation and amortization of the utility plant costs $16.7 million or 12.9% of
revenues. Although not subject to federal income taxes, state and local taxes amounted to $10.9 million or 8.4% of
revenues. Interest on long-term debt, at a very favorable sub-5% interest rate, totals $9.5 million or 7.3% of revenues.
Non-operating net margins added $0.8 million to overall net margins. Revenues less total expenses equal margins of
$5.6 million or 4.3% of total revenue. Margins are allocated to consumer members and paid when appropriate.
The financial benefit (direct and indirect) to KIUC members is significant. Since 2002, KIUC has returned $23.1 million
to members in the form of Patronage Capital Retirements and billing credits.
In addition, the indirect financial benefits (i.e., ownership) include patronage capital that is held by KIUC on behalf of
its members to potentially be distributed at future dates as determined by the KIUC Board of Directors. This amounts
to $51.3 million in indirect financial benefits to KIUC members as of December 31, 2009.
KIUC 2009 ANNUAL REPORT 11

FINANCIALS
BALANCE SHEET
DECEMBER 31, 2009 AND 2008
12 TOGETHER WE POWER KAUA‘I
ASSETS
December 31,
2009 2008
UTILITY PLANT
Electric Plant in Service $ 385,098,649 $ 369,219,726
Electric Plant Acquisition Cost 54,852,453 54,852,453
Accumulated Depreciation and Amortization (211,674,481) (198,671,933)
Net Electric Plant in Service 228,276,621 225,400,246
Construction Work in Progress 13,463,888 14,632,361
Net Utility Plant 241,740,509 240,032,607
OTHER PROPERTY AND INVESTMENTS
Investments in Associated Organizations 577,573 307,029
Rural Economic Development Loans 683,911 693,173
Other Investments 0 2,324,455
1,261,484 3,324,657
CURRENT ASSETS
Cash and Cash Equivalents 2,493,692 23,262,767
Restricted Cash and Cash Equivalents
Accounts and Notes Receivable (Less allowance for doubtful accounts
415,117 404,007
of $1,176,683 in 2009 and $1,164,541 in 2008) 10,371,736 9,607,001
Accrued Unbilled Revenue 7,275,331 7,270,482
Energy Rate Adjustment Clause 476,962 0
Inventories 13,320,441 13,156,810
Other Current and Accrued Assets 1,205,932 1,119,244
35,559,211 54,820,311
DEFERRED DEBITS 5,889,530 4,420,580
TOTAL ASSETS $ 284,450,734 $ 302,598,155
EQUITIES AND LIABILITIES
EQUITIES AND MARGINS
Memberships $ 391 $ 371
Patronage Capital 51,316,308 48,191,014
Other Equity 61,044 41,340
Unrealized Gain (Loss) on Available-For-Sale Investments 0 55,742
Post-Retirement Benefit Obligation Gain (Loss) 890,634 (1,620,700)
52,268,377 46,667,767
LONG -TERM DEBT, less Current Maturities 192,820,610 207,450,282
POST-RETIREMENT BENEFIT OBLIGATION
CURRENT LIABILITIES
2,383,566 5,028,600
Current Maturities of Long-Term Debt 8,875,500 8,487,400
Line of Credit 2,000,000 0
Accounts Payable 7,438,615 5,665,381
Energy Rate Adjustment Clause 0 2,963,597
Consumer Deposits 1,137,879 884,009
Accrued Employee Compensation 2,074,421 1,841,802
Accrued Taxes 4,947,846 10,454,884
Other Current and Accrued Liabilities 123,618 90,809
26,597,879 30,387,882
DEFERRED CREDITS 10,380,302 13,063,624
TOTAL EQUITIES AND LIABILITIES $ 284,450,734 $ 302,598,155

Statement of Income and Patronage Capital
For the years ended December 31, 2009 and 2008
Years Ended December 31,
2009 2008 Increase
Amount % Amount % (Decrease)
OPERATING REVENUES
Residential $ 48,759,893 37.6 $ 67,521,772 35.6 $(18,761,879)
Irrigation 264,087 0.2 415,411 0.2 (151,324)
Commercial and Industrial 79,315,279 61.2 120,056,369 63.3 (40,741,090)
Public Street and Highway Lighting 1,160,789 0.9 1,457,504 0.8 (296,715)
Other Operating Revenues 161,387 0.1 174,072 0.1 (12,685)
Total Operating Revenues 129,661,435 100.0 189,625,128 100.0 (59,963,693)
OPERATING EXPENSES
Power Cost 68,593,626 52.9 118,523,236 62.5 (49,929,610)
Transmission - Operation 345,432 0.3 325,224 0.2 20,208
Transmission - Maintenance 684,509 0.5 621,943 0.3 62,566
Distribution - Operation 1,350,684 1.0 1,361,894 0.7 (11,210)
Distribution - Maintenance 2,294,719 1.8 2,280,171 1.2 14,548
Customer Accounts 2,307,997 1.8 2,375,458 1.3 (67,461)
Customer Service and Information 888,082 0.7 944,753 0.5 (56,671)
Administrative and General 11,267,733 8.7 12,186,795 6.4 (919,062)
Depreciation and Amortization 16,736,333 12.9 16,450,486 8.7 285,847
Taxes 10,938,606 8.4 16,026,840 8.5 (5,088,234)
Other Interest Expense 81,679 0.1 64,683 0.0 16,996
Total Operating Expenses 115,489,400 89.1 171,161,483 90.3 (55,672,083)
OPERATING MARGINS - Before Interest 14,172,035 10.9 18,463,645 9.7 (4,291,610)
INTEREST ON LONG-TERM DEBT 9,502,337 7.3 9,940,742 5.2 (438,405)
OPERATING MARGINS 4,669,698 3.6 8,522,903 4.5 (3,853,205)
NONOPERATING MARGINS
Interest Income 785,863 0.6 909,234 0.5 (123,371)
Capital Credits 39,725 0.0 58,688 0.0 (18,963)
Other Nonoperating Income (Expense) 78,471 0.1 62,772 0.0 15,699
Total Nonoperating Margins 904,059 0.7 1,030,694 0.5 (126,635
NET MARGINS
COMPREHENSIVE INCOME
Unrealized Gain (Loss) on
$ 5,573,757 4.3 $ 9,553,597 5.0 $ (3,979,840)
Available-for-Sale Securities (55,742) 20,607
Post-Retirement Benefit Obligation Gain (Loss) 2,511,334 (1,217,500)
COMPREHENSIVE INCOME $ 8,029,349 $ 8,356,704
PATRONAGE CAPITAL - BEGINNING OF YEAR 48,191,014 41,674,804
Allocation of Net Margins 5,573,757 9,553,597
Patronage Capital Retired (2,448,463) (3,037,387)
PATRONAGE CAPITAL - END OF YEAR $ 51,316,308 $ 48,191,014
FINANCIALS
KIUC 2009 ANNUAL REPORT 13

FINANCIALS
Statement of Cash Flows
For the years ended December 31, 2009 and 2008
December 31,
2009 2008
CASH FLOWS FROM OPERATING ACTIVITIES
Net Margins $ 5,573,757 $ 9,553,597
Adjustments to Reconcile Net Margins to Net Cash Provided by
(Used in) Operating Activities
Depreciation and Amortization 17,105,515 16,824,554
Capital Credits ( 39,725) (58,688)
Accounts and Notes Receivable (769,584) 3,681,831
Energy Rate Adjustment Clause (3,440,559) 3,577,112
Inventories and Other Current Assets (250,319) (980,004)
Deferred Charges (1,468,950) 821,880
Post Retirement Benefit Obligations (133,700) (192,600)
Payables and Accrued Expenses (3,214,506) 517,045
Deferred Credits (2,683,322) 2,175,792
Net Cash Provided by Operating Activities 10,678,607 35,920,519
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to Utility Plant (18,813,417) (16,720,081)
Rural Economic Development Loans 9,262 (693,173)
Other Property and Investments (2,037,894) (144,473)
Net Cash Used in Investing Activities (16,766,261) ( 17,643,649)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments on Long-Term Debt (14,241,572) (8,179,243)
Advance Payments to RUS 2,000,000 (456,050)
Memberships 20 22
Other Equities 19,704 24,534
Retirement of Patronage Capital (2,448,463) (3,037,387)
Net Cash Used in Financing Activities (14,670,311) (11,648,124)
INCREASE IN CASH AND CASH EQUIVALENTS (20,757,965) 6,628,746
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 23,666,774 17,038,028
CASH AND CASH EQUIVALENTS - END OF YEAR $ 2,908,809 $ 23,666,774
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash Paid During the Year for:
Interest on Long-Term Debt $ 9,502,337 $ 9,940,742
Income Taxes $ 35,469 $ 36,972
14 TOGETHER WE POWER KAUA‘I

Taxes
8.4%
Depreciation &
Amortization
12.9%
Administrative &
General
Net of Non-Operating
Margins
8.1%
Interest
7.3%
Member Services
2.5%
Net Margins
4.3%
Production Operation &
Maintenance
9.9%
Transmission & Distribution
Operation & Maintenance
3.6%
Fuel & Purchased
Power Costs
43.0%
Fuel Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55,815,418
Production Operation & Maintenance . . . . 12,778,208
Transmission & Distribution
Operation & Maintenance . . . . . . . . . . . . . . 4,675,344
Member Services . . . . . . . . . . . . . . . . . . . . . . . 3,196,079
Administrative & General
Net of Non­Operative Margins . . . . . . . . . . 10,445,353
Depreciation & Amortization . . . . . . . . . . . . 16,736,333
Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,026,840
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,502,337
Net Margins. . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,573,757
KIUC 2009 ANNUAL REPORT 15

SEVEN COOPERATIVE PRINCIPLES
Voluntary and Open Membership
Cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept the
responsibilities of membership, without gender, social, racial, political, or religious discrimination.
Democratic Member Control
Cooperatives are democratic organizations controlled by their members, who actively participate in setting policies
and making decisions. The elected representatives are accountable to the membership. In primary cooperatives,
members have equal voting rights (one member, one vote) and cooperatives at other levels are organized in a
democratic manner.
Members’ Economic Participation
Members contribute equitably to, and democratically control, the capital of their cooperative. At least part of that
capital is usually the common property of the cooperative. Members usually receive limited compensation, if any, on
capital subscribed as a condition of membership.
Members allocate surpluses for any or all of the following purposes: developing the cooperative, possibly by setting up
reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the
cooperative; and supporting other activities approved by the membership.
Autonomy and Independence
Cooperatives are autonomous, self-help organizations controlled by their members. If they enter into agreements with
other organizations, including governments, or raise capital from external sources, they do so on terms that ensure
democratic control by their members and maintain their cooperative autonomy.
Education, Training, and Information
Cooperatives provide education and training for their members, elected representatives, managers, and employees so
they can contribute effectively to the development of their cooperatives. They inform the general public, particularly
young people and opinion leaders, about the nature and benefits of cooperation.
Cooperation Among Cooperatives
Cooperatives serve their members most effectively and strengthen the cooperative movement by working together
through local, national, regional, and international structures.
Concern for Community
While focusing on member needs, cooperatives work for the sustainable development of their communities through
policies accepted by their members.
KIUC is an equal opportunity provider and employer.
4463 Pahe‘e Street, Suite 1, Lihue, HI 96766-2000
808.246.4300 www.kiuc.coop

Every year, KIUC is required by law to provide our ratepayers annual fuel mix and average electric cost information.
HRS [§269-16.4] annual fuel mix disclosure.
(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 existing and new retail electricity customers for the prior calendar year.
(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 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 total electric revenues for each rate class of service by the total kilowatt-hours sold to each respective rate class.
(c) The disclosure required by this section shall be:
(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
(2) Posted and updated on the supplier’s Internet website, if any.
(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 generation category. The total fuel mix included in each disclosure shall total 100 percent. [L 2003, c 147, §2]
REVENUE
Rate Class of Service Schedule 2004 2005 2006 2007 2008 2009
Residential D $41,852,500 $46,270,326 $52,568,487 $58,823,116 $67,521,772 $48,759,892
General Lighting Service G $17,311,614 $19,143,057 $21,628,661 $23,967,162 $27,098,626 $18,738,834
General Lighting Service J $15,002,979 $17,059,100 $19,001,879 $20,935,075 $23,757,990 $15,861,517
Large Power P $27,067,200 $30,649,677 $34,296,005 $39,318,452 $48,260,251 $32,715,713
Large Power L $13,942,418 $15,750,361 $17,003,777 $18,208,673 $20,939,501 $11,999,215
Streetlight SL $974,405 $1,061,818 $1,195,058 $1,286,933 $1,457,504 $1,160,789
Irrigation $399,640 $437,569 $190,176 $344,452 $415,411 $264,087
Total Revenue $116,550,756 $130,371,908 $145,884,043 $162,883,863 $189,451,055 $129,500,047
KWH SALES
Rate Class of Service Schedule 2004 2005 2006 2007 2008 2009
Residential D 156,398,615 156,001,990 160,271,857 165,177,370 160,479,367 161,946,254
General Lighting Service G 60,871,667 61,180,237 62,620,645 64,311,197 61,762,667 58,775,630
General Lighting Service J 58,096,402 59,268,519 59,631,978 60,600,629 57,561,387 54,387,913
Large Power P 108,152,641 109,014,761 109,605,596 116,805,413 118,083,102 114,413,017
Large Power L 58,315,936 58,338,282 56,459,174 55,893,565 52,082,601 42,638,562
Streetlight SL 2,420,871 2,493,688 2,601,027 2,643,480 2,637,376 2,702,271
Irrigation 2,666,518 2,313,146 889,434 1,464,135 1,184,017 1,409,589
Total KWH Sold 446,922,650 448,610,623 452,079,711 466,895,789 453,790,517 436,273,236
AVERAGE RETAIL PRICE*
Rate Class of Service Schedule 2004 2005 2006 2007 2008 2009
Residential D $0.268 $0.297 $0.328 $0.356 $0.421 $0.301
General Lighting Service G $0.284 $0.313 $0.345 $0.373 $0.439 $0.319
General Lighting Service J $0.258 $0.288 $0.319 $0.345 $0.413 $0.292
Large Power P $0.250 $0.281 $0.313 $0.337 $0.409 $0.286
Large Power L $0.239 $0.270 $0.301 $0.326 $0.402 $0.281
Streetlight SL $0.403 $0.426 $0.459 $0.487 $0.553 $0.430
Irrigation $0.150 $0.189 $0.214 $0.235 $0.351 $0.187
*All-in cost including customer charge, applicable demand charges and surcharges.
Fuel Mix Generation* 2004 2005 2006 2007 2008 2009
Biomass 1,884,000 2,175,000 1,971,638 1,400,362 1,095,193 2,219,370
Fossil Fuel 430,840,756 430,274,405 436,740,493 461,001,302 437,828,184 417,228,747
Hydro 35,493,318 36,895,645 36,888,298 26,300,465 36,253,752 36,364,756
Photovoltaic 90,315 202,500 373,000 522,769 1,124,406 5,023,000
Total 468,308,389 469,547,550 475,973,429 489,224,897 476,301,535 460,835,873
* Gross Generation kWh
Fuel Mix Percentage 2004 2005 2006 2007 2008 2009
Biomass 0.4% 0.5% 0.4% 0.3% 0.2% 0.5%
Fossil Fuel 92.0% 91.6% 91.8% 94.2% 91.9% 90.5%
Hydro 7.6% 7.9% 7.8% 5.4% 7.6% 7.9%
Photovoltaic 0.0% 0.0% 0.1% 0.1% 0.2% 1.1%
Total 100.0% 100.0% 100.0% 100.0% 100% 100%
JUNE 2010 29

A Message From the Chairman
30 KIUC CURRENTS
By Maile Moriguchi
THE BOARD OF DIRECTORS
A Director’s Spotlight
Director Steve Rapozo recently completed his first
year as a KIUC board member. Rapozo, who worked
at a utility for 33 years, ran for the board because he
missed the work. Asked if there were any surprises,
Rapozo says the shear amount of time the position
takes was a little unexpected.
Rapozo has spent his first year familiarizing himself
with the co­op and has immersed himself in research,
which he takes seriously so he can make informed
decisions for the co­op. “Questioning is the heart of
due diligence,” said Rapozo.
In his first year as a director, Rapozo has worked
with the other members of the board and
management to create what he calls, one of the most
comprehensive strategic plans he’s seen in years. He
has seen the current board grow as a team and feels
it has the right mix of talents and expertise to be
successful.
Renewable energy and paying down debt­to­gain
equity are on Rapozo’s agenda for his second year. He
is a proponent of hydropower and would like to see
KIUC use this resource to its fullest without disrupting
the ecology and preserving Kaua‘i’s natural beauty.
A very important function of your cooperative involves government and legislative
matters. In early May, David Iha, chairman of KIUC’s Legislative Committee, lead meetings
with our congressional delegation to discuss matters of great concern to us at KIUC.
Topics included federal legislation related to the Clean Air Act; the Rural Energy Savings
Program Act, which would provide consumers with low­cost financing for energy­efficiency
improvements to homes and businesses; and the Rural Utilities Service (RUS) Electric Loan
Program, which makes it possible for rural electric cooperatives to construct and maintain
distribution and generation systems with low­interest loans. The loan level in the fiscal year
2011 RUS budget is targeted for $2.5 billion in cuts. We asked our delegation to keep the
current level of $6.5 billion and not restrict funds for environmental upgrades to existing
power plants such as ours at Port Allen and Kapaia.
We asked for FY2011 funding of $10 million for the U.S. Agency for International
Development (USAID), which supports co­ops in disaster areas, such as Haiti, and promotes rural
electrification in countries such as the Philippines.
KIUC issues included: the seabirds and the impending investigation by the Department of Justice;
undergrounding of our overhead lines in conjunction with the road widening project in Wailua with the
Department of Transportation, and the lawsuit brought against DOT on this project; and smart grid, which is a
partially federally­funded program that benefits KIUC.
Members of Congress participating in the meetings included Sen. Daniel Akaka, Sen. Daniel Inouye and
Rep. Mazie Hirono. They all assured us of their support for these programs and KIUC.
Gen. Eric Shinseki, secretary of Veterans Affairs, expressed interest in renewable projects in the Lihue area.
The general—whose family are members of KIUC—previously served on the board of directors of a local
development company. He was briefed on all proposed projects in this area.
I want to thank David Iha, Allan Smith, Randy Hee, Mike Yamane and Carey Koide for their valuable input in
briefing our congressional leaders on the challenging issues we face.
Phil Tacbian, Chairman KIUC

Directors direct the cooperative.
CEOs make executive decisions.
Managers manage the staff and projects.
Staff climb the poles, answer the phones, pay the bills, run the programs,
fix the wires, run the generators and publish this magazine.
The division of authority is central to defining a
director’s job.
Each year, three director 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.
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.
Directors have to spend time studying
complicated financial and strategic issues. They have
to act in the best interests of all co­op members and
not any private interest. They have to direct
management, do financial and strategic planning,
review the performance of the co­op, and they have
to do all of this without doing management’s job,
which is to operate the cooperative.
Strategic Planning
Setting the strategic direction for the co­op is
one of the most important jobs of a director. The
decisions made today will affect how the utility
operates for decades to come.
The current strategic plan is available on line at
www.kiuc.coop.
Financial Planning & Audit
Directors are responsible for reviewing and
approving the annual budget that ensures the
rates you pay to KIUC are spent wisely.
To meet their legal and moral responsibilities,
they hire a public accounting firm to audit the
books every year.
Hire and Review the CEO
KIUC’s CEO is hired by the Board of Directors. As
the chief executive and most senior manager at
the co­op, the CEO oversees the mid­level
managers who run every KIUC department.
The Board of Directors sets specific, measurable
goals for the CEO each year and provides feedback
during the year.
By Anne Barnes
Division of Authority: A Director’s Job
Review KIUC’s Performance
To ensure KIUC is achieving its goals, the Board
of Directors continuously monitors the results of
KIUC operations. Each month, directors review the
financial performance of the co­op, worker safety,
reliability, training and progress toward strategic
initiatives.
Education
KIUC requires every director to attend classes and
pass five courses taught by the National Rural
Electric Cooperative Association leading to
certification as a Credentialed Cooperative Director.
Most KIUC directors continue their education
through NRECA by taking additional courses and
working toward their Board Leadership Certificate.
Advocate for the Members
Overarching all of these tasks, 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.
You trust your co­op directors with a big job. It is
a lot of work, with many different tasks. At the heart
of it, it is all about doing the right thing for you.
JUNE 2010 31

Public Attendance and Procedures
32 KIUC CURRENTS
Open Meetings
All meetings except Executive Meetings of the
Board of Directors, and all meetings of the
members, are open to the public.
The chairman may, at his or her sole
discretion, remove any person who willfully
disrupts any meeting.
Executive Meetings
The Board of Directors may hold an Executive
Meeting closed to the public. A meeting closed to
the public will be limited to the matters listed
below. The reason for holding such a meeting will
be publicly announced.
1. Human Resource issues related to:
a) Hiring, evaluating, dismissing or disciplining
an officer or employee.
b) Labor negotiations
2. Legal consultation, including issues pertaining
to the powers, duties, privileges, immunities
and liabilities of the Board of Directors.
3. Matters related to the safety and security of
KIUC.
4. Matters of a proprietary or financial nature,
public disclosure of which could affect
ongoing or potential negotiations or legal or
administrative proceedings.
Posting of Meetings
The date, time and location of all regular
meetings will be posted at www.kiuc.coop and at
all KIUC locations.
The date, time and location of all special
meetings will be posted no later than 24 hours
prior to the meeting at www.kiuc.coop and at all
KIUC locations.
Posting of Minutes & Agendas
Minutes of previous meetings will be posted
on the website, and tentative agendas will be
posted prior to the meeting. The agenda will be
finalized just prior to accepting public testimony
at such meeting.
Procedures for Public Testimony
Written testimony is encouraged, and will be
accepted with regard to any item or items on the
agenda of a particular board meeting up to the
conclusion of the meeting.
Transcription, Video and
Audio Taping
No transcription, video or audio taping of
meetings will be allowed without prior written
approval of the Board of Directors.
Oral Testimony
Anyone wishing to give oral public testimony
needs to register either over the telephone at
246.4307 or in person prior to the approval of the
agenda. Oral testimony by anyone not registered
will not be allowed. The following rules apply:
1. Maximum time allowed is determined by the
chairman, but may not exceed three minutes
per individual.
2. No more than a total of 60 minutes of oral
testimony will be allowed by members of the
public at any one meeting.
3. Testimony will be taken immediately
following the approval of the agenda, in
order of registration.
4. Testimony must be on a topic or topics on the
meeting’s agenda.
5. Testimony will be relevant to the topic, shall
be civil and devoid of personal attacks, all as
determined by the chairman.
6. No individual will be allowed to testify more
than once at any meeting.
7. Any person who willfully disrupts any
meeting, as determined by the chairman,
shall be removed from the meeting.
Contact Information
For written or oral testimony, agendas, minutes
or questions regarding the date, time and location
of KIUC Board of Director Meetings, or special
meetings, please contact Pua Chin 246.4307.

Meeting Date Item Description Board Action
2/23 Regular Meeting
3/26 Special Meeting
3/30 Annual Board Mtg
3/30 Regular Meeting
4/27 Regular Meeting
New
Business
Executive
Session
Executive
Session
New
Business
Chairman’s
Report
Government
Relations
New
Business
Executive
Session
Admin Policy 600-07-004, Bereavement Leave Unanimous Oversight
Authorization to approve the final draft of the
propsed consent decree with regard to the
seabird issues subject to conditions
Authorization to approve the terms of the
propsed rebuttal testimony terms in the rate
case
Authorization to approve the 2009 NBU
incentive compensation amount
Authorization to again defer notice of default
being sent to Green Energy Team, LLC under
their PPA with KIUC for an additional period of
time
Board Res 06-10; Approval of the proposed
settlement with the State of Hawai‘i Consumer
Advocate in KIUC’s rate case, PUC Docket
2009-0059
Ratification of 2010 Board Officers,
Committee Chair & Member assignments
Board Actions
Ratified in Open Session
Ratified in Open Session
Ratified in Open Session
Ratified in Open Session
Ratified in Open Session
Unanimous consent
Admin Policy 600-10-001, Bonus Vacation Unanimous Oversight
Independent Auditor’s Report on the 2009
Audited Financial Statements
Assignment of Strategic Plan Agenda for
Action Goals to specific committees for
oversight
Recommend approval to authorize the CEO to
enter KIUC into a consulting services
agreement with RW Beck for a rate study and
support services
KIUC will remain neutral in regard to NRECA’s
position to support legislation sponsored by
Senators Kerry and Lieberman that would set
standards for “greenhouse gas” emissions,
including CO2 and specifically “…preempt EPA
and state regulation in the area.”
Board Resolution 07-10, 2009 Patronage
Capital Retirement
Board Policy No. 18, Board Member
Qualifications and Eligibility revision
Ratify actions of 2010 Performance Incentive
Targets with amendments
Report received
Assignment
Committee
recommendation carried
unanimously
Show of hand Vote -
"Remain neutral"
carried 6-2-0
Motion carried
unanimously
Motion carried
unanimously
Motion carried
unanimously in open
session
for February ­ April 2010
JUNE 2010 33

co-op connecons scoop
MAKE THE CO-OP CONNECTIONS CARD
Part of Your Social Network
The Co-op Connecons Card program is constantly evolving to
provide more value to co-ops and co-op members. Stay current on
the latest specials, naonal discount deals and limited me offers
with tweets from Twier. Several hundred co-op members have
signed on to receive up-to-the-minute news flashes on the program.
Followers receive a maximum of five tweets per week. Co-op
members can also become fans of the Co-op Connecons Card on
Facebook. Visit connecons.coop for links to the program’s pages on
both sites.
Co-op Connections:
Fast Fact
286
34 KIUC CURRENTS
Number of Touchstone Energy cooperatives
that offer the card to their members.
$17.3 7.3 Million Milli Million
Approximate amount saved since
May 2007 on prescription medications
by co-op members nationwide.
Glam it up with
Coop Connections
Pampering yourself is now economical when
using your Co-op Connecons card.
The Co-op Connecons Card program has
more than 75 naonal discount deals to go
along with KIUC’s local deals. Visit
Connecons.coop to check out a complete
list of discounts.
10% off
Free Shipping on any order
Purchase a one-hour
massage at regular price and
get 30 addional minutes free
651.4195
www.tropicsdayspa.com
a new leaf
15% off all
skin care services
652.5274
newleaauai@gmail.com

As a card­carrying member, you can use your Co­op Connections card or key fob at any participating
business and receive discounts at restaurants and retail shops, services, hotels and much more. Spotting
a participating business is easy. Look for the Co­op Connections card sticker on the door or cash register
at the business. KIUC publishes an updated list of participating businesses in each issue of KIUC Currents
magazine, but deals are added all the time. The best spot to find the latest deals is online at
www.kiuc.coop. Simply click the “Co­op Connections” link. If you have a business and would like to
participate in the program, please call 246.4348 for more information.
Aloha Services, Kapa‘a
10% discount on all shipping, storage, copies and post
office box rentals.
Backdoor Hanalei, Hanalei
10% off all original­priced goods, except surfboards
and paddleboards.
Beachrail, Līhu‘e & Hanamā‘ulu
5% off products, except Lionel trains and collectable
items.
Buddha Boutique, Līhu‘e
10% off (discount cannot be combined with other
discounts or in­store specials).
Edward Jones, Kalāheo
Free portfolio review.
Hanalei Paddler, Hanalei
10% off all original­priced goods, except surfboards
and paddleboards.
Hanalei Surf Company, Hanalei
10% off all original­priced goods, except surfboards
and paddleboards.
JJ’s Broiler, Līhu‘e
“Early Bird Special” – Customer must be seated
between 5 p.m. and 6 p.m. to receive a 10% discount
on food items. Liquor is excluded. Tax and gratuity
not included.
Jim Saylor Jewelers, Kapa‘a
10% discount.
Kalapaki Bay Memorial Park, Līhu‘e
$150 discount on cemetary plots.
Kaua‘i Floors, Inc., Līhu‘e
10% off all area rugs in stock, not already reduced.
Kaua‘i Inn, Līhu‘e
20% off rack rate.
Kaua‘i Self­Storage, Līhu‘e
10% off regular rental rate plus one free lock with
rental of any size unit.
By Maile Moriguchi
KIUC’S VALUE ADDED SERVICES
Cash In On Savings With Your
Co-op Connections Card
Kaua‘i Memorial Gardens, Līhu‘e
5% discount on cemetery property and funeral plans
(pre­need). Not good toward at­need services and
merchandise.
Kayak Kaua‘i, Kapa‘a
10% discount on tours and rentals.
Kujo’s Mini Mart, Kalāheo
10% off everything, except alcohol, cigarettes and
gift items.
Lawai Cannery Self Storage & Warehouses, Kalāheo
10% off of any self­storage unit. Offer not valid with
any other specials.
Market Street Diner, Līhu‘e
10% off all items, excluding early bird or happy hour.
New Leaf Skin Care, Līhu‘e
15% off all skin care services.
North Shore General Store, Princeville
20% off café prices.
Precision Tinting Kaua‘i, Līhu‘e
15% off regular price.
Princeville Mail Center (Aloha Services), Princeville
10% discount on all shipping, storage, copies and post
office box rentals.
Progressive Expressions, Kōloa
10% off original­marked prices, except surfboards.
Sweet N Sassy, ʻEleʻele
10% off all regular­priced merchandise, not to include
sale items or other in­store promotions.
Tropics Day Spa, ʻEleʻele
Purchase a one­hour massage at regular price ($85)
and get 30 additional minutes for free.
Wings Over Kaua‘i, Kalāheo
10% off, three passenger maximum, two passenger
minimum. Direct booking only.
Members can pick up their Co­op Connections card at KIUC’s main office in Līhu‘e. If your
business would like to participate in the program, or for more information, please contact
Maile Moriguchi at 246.4348.
JUNE 2010 35

Bottom row, from left,
Amber Duldulao, Melanie
Mendoza, Tori Waialeale­
Battad, Mehana Rietow.
Middle row, from left,
Rachel Coyaso, Lindsay
Wong, Jaylen Moniz, Kellie
Kurasaki, Christen Wilson,
Gabe Abrams. Back row,
from left, Josh Quinlan,
John Delos Santos,
Kyle McDonald,
Kevin Macadangdang
KIUC KEIKI
Leadership Kaua‘i
36 KIUC CURRENTS
Leadership Kaua‘i’s Youth Program, Pi`ina Hoku
Class of 2010 (juniors from across Kaua‘i), has
teamed up with KIUC, Trex Enterprises and Blue
Planet Foundation to introduce the Kaua‘i Energy
Education Project (KEEP).
Our Future Looks Bright
with Leadership Kaua‘i
Pi’ina Hoku began its community project by
participating in KIUC’s Kill a Watt service. Each
student conducted a home measurement with the
tools KIUC provided, gathering data for a newly
designed interactive website, www.KEEProject.org.
The site allows visitors to self­assess their home
energy consumption and provides an estimate to
retrofit to it to make it more energy efficient.
Another component of KEEP involved the
students touring their respective high schools
with KIUC’s Paul Daniels to make them aware of
how the buildings need to be retrofitted to meet
energy­efficiency standards.
Pictured above is the Pi’ina Hoku Class of 2010,
which spent April 1 at Kukui Grove, offering a free
exchange of energy­efficient compact fluorescent
light bulbs (CFLs) for old­style incandescent bulbs.
Applications are being accepted from this
year’s sophomores for the Class of 2011. This
program, sponsored by Leadership Kaua‘i, is
designed to prepare youth and develop strengths
for a future of endless possibilities!
For more information, or to receive an
application, please contact Leadership Kaua‘i at
246.8727, email info@leadershipkauai.org or visit
www.leadershipkauai.org.
KIUC’s Claurino Bueno, one of Leadership Kaua‘i’s board members, helped during the light bulb exchange at Kukui Grove.
Pi’ina Hoku’s Gabe Abrams, lead web designer for the project, Kellie Kurasaki and Rachel Coyaso pack returned bulbs.

The KIUC renewable trailer has been spotted all
across the island, from Kekaha to Kilauea. The
trailer has been to numerous schools’ math and
science nights, Career Days and other special
events. The objective of the trailer is to teach
people how clean energy can be produced and to
introduce them to the process of converting
energy to something we can use.
KIUC Senior Energy Solutions Engineer Steven
Rymsha was the mastermind behind the project.
Rymsha began working with the KIUC
communications team to develop a theme for the
trailer. To spark the children’s interest, it had to be
colorful and exciting. The team began working
with local artist Justin Prem, and the result was
the KIUC renewable characters you see on the
sides of the trailer.
Colorful and fun, the characters often
become an interesting topic of discussion
during presentations.
“It is amazing to hear the questions students
have about energy,” said KIUC Communications
team member Shelley Paik. “The students
associate the characters with the different types
of renewable energy options.”
The renewable trailer not only is a great tool for
educating the public. It also could serve as a
mobile power station, if needed. Recently, KIUC’s
system electricians installed a mobile emergency
repeater system to the trailer. This will enable
employees in Lihue and at the Kapaia Power
Station to communicate through the co­op’s
existing mobile radio system in case the main
repeater link goes off.
Not just a generator on wheels, the trailer made
by Assured Mobile Power produces silent fumefree
energy in an efficient and economical way,
and will continue to serve as an educational tool
for the community.
If you have any questions or would like more
information about KIUC’s community outreach
programs, email info@kiuc.coop.
By Maile Moriguchi
KIUC’s Renewable Trailer
Above: Steven Rymsha at Kawaikini New Century Public
Charter School.
Below: KIUC’s renewable trailer.
JUNE 2010 37

38 KIUC CURRENTS
1
Photos By Maile Moriguchi
It’s a Piece of Cake
1. Trifle Chocolate Cake
2 boxes instant chocolate pudding
3 cups milk
1 box devil’s food cake mix
1 to 2 cartons Cool Whip
Heath candy bars – crush or pound
Cherries for the top
Bake cake mix per directions (use two 9­inch
round cake pans). Mix instant pudding with 3 cups
of milk. In a clear glass bowl, layer cake, pudding,
Cool Whip and candy. Repeat layers. Top with
cherries.
2
2. Mandarin Peach
Cake
Cake:
1 box yellow cake mix
1 11­ounce can mandarin oranges, undrained
1 cup oil
4 eggs
Mix all ingredients except oranges and beat
until well blended. Add oranges and beat until
oranges are slightly mashed. Pour into a greased
9x13 pan. Bake at 350 degrees for 35 to 40
minutes, or until done.
Frosting:
1 15­ounce can peaches, drained
1 8­ounce carton Cool Whip
1 box vanilla instant pudding
Mix all ingredients. Refrigerate until cake is
done. Apply frosting to cake when cool, then
return to refrigerator until ready to eat.

3
3. Robbyn and Shayla’s
Rainbow Cupcakes
Yellow or white cake mix (prepared
according to box)
Red, orange, yellow, green, blue and purple
food coloring
Use any type of yellow or white cake mix. Mix
cake mix according to instructions on the box. Get
six individual plastic cups, preferably clear. Place
four to six drops of each color food coloring into
each cup. Distribute equal amounts of cake mix
into each cup. Use a chopstick to mix each cup of
batter. Add food coloring to desired color. Evenly
pour each color into cupcake liners in rainbow
order. Bake according to box instructions. Cool,
then frost with desired frosting.
4. Angel Food Cake
Use any boxed angel food cake mix. Add
maraschino cherries and bake according to box
instructions.
4
5
5. Dobash Cake
Cake:
1 box devil’s food cake mix
8 ounces sour cream
¾ cup vegetable oil
1 teaspoon vanilla
½ cup sugar
½ cup water
4 eggs
Combine and beat for 4 to 5 minutes. Bake at
300 degrees for 40 to 60 minutes, or until
toothpick comes out clean.
Filling:
1 box instant chocolate pudding
¾ cup milk
Mix pudding with milk until thick. Cut cake in
half horizontally. Spread filling in the middle. (It
may be easier to cut the top part of the cake in
half down the center to avoid the cake from falling
apart while spreading the filling.)
Frosting:
1 cup sugar
¼ cup cornstarch
2 1­ounce squares unsweetened chocolate
1 teaspoon vanilla
1 ½ cups boiling water
2 tablespoons butter
¼ teaspoon salt
In a pot, mix sugar and cornstarch. Break
chocolate squares. Add to sugar mixture. Stir into
water, blending well. Cook on medium heat,
stirring constantly, until mixture thickens. Stir in
butter, salt and vanilla. Cool to warm and frost
immediately.
JUNE 2010 39

40 KIUC CURRENTS
By Shelley Paik
KIUC IN THE COMMUNITY
KIUC Charitable Foundation
Releases Funds for Scholarships
for KCC Students
The KIUC Charitable Foundation has allocated
funding for three $1,000 scholarships for the
2010­2011 academic year at Kaua‘i Community
College (KCC).
Eligibility requirements include being a resident
of Kaua‘i who has graduated from a high school on
Kaua‘i or obtained a GED equivalency; is enrolled
at Kaua‘i Community College full time with a
minimum of 12 credits pursuing a degree
in liberal arts; and has a minimum grade­point
average of 2.5 from a Kaua‘i High School or
college. Official transcripts from high school,
college or GED equivalent are required.
Interested students may apply through the
University of Hawai‘i Foundation.
kiuc charitable foundation
“It was a great effort by board members to
establish this scholarship,” said KIUC Charitable
Foundation President Allan Smith.
In 2005, Governor Linda Lingle signed legislation
enabling KIUC to keep and use for charitable
purposes unclaimed refunds that previously would
have been turned over to the state for its use.
None of these funds come from KIUC assets.
The KIUC Charitable Foundation is governed by
nine directors, comprised of KIUC Directors Carol
Bain, Steve M. Rapozo and Allan Smith; KIUC
employees John Cox, Shelley Paik and Kathryn
Williams; and KIUC members, Nancy Bushnell,
Trinette Kaui and Michelle Swartman.

KIUC is a powerful partner for economic
development.
The co­op has a huge investment in the
community, fixed assets with focused attention,
professional capacity and resources, and a valuesdriven
commitment.
KIUC is deeply committed to maintaining,
strengthening and diversifying the island’s
economy. KIUC does this through a revolving loan
fund plan (RLF), circulating funds granted from the
U.S. Department of Agriculture’s (USDA) Rural
Economic Development Loan & Grant program
(REDL&G).
KIUC encourages applications for projects that
will provide long­term improvement of the
island’s economy. The program is not intended to
compete with other public and private lenders,
but to collaborate with them to help make
projects happen.
A Loan Review Committee (LRC) appointed by
the KIUC Board of Directors and consisting of both
cooperative and community leaders reviews all
RLF loan applications. In selecting project
recipients, the committee considers job creation
and retention, economic diversification, improving
workforce skills and upgrading the public
infrastructure to improve the health, safety
and/or medical care of KIUC members.
By Anne Barnes
Economic Development
Loans Available
KIUC began its USDA revolving loan program
by awarding the first grant—a $300,000
zero­interest loan—to Kaua‘i Hospice.
The Revolving Loan Fund originated when
Kaua‘i Hospice paid back the loan.
RED Grant Loans
Monies paid back on rural economic
development loans go into the revolving
loan fund to be re­loaned.
Kaua‘i Hospice ­ Paid in full
National Tropical Botanical Gardens – In the
process of paying
Island School – Will start paying later this year
One application in process
RLF Loans
Hale Opio – In the process of paying
JUNE 2010 41

42 KIUC CURRENTS
RLF Governance and Guidance
Loan Review Committee:
• Reviews application
• With plan administrator, monitors loan
portfolio for classification changes and
reports to the board annually
• Makes recommendation on loan terms
Board:
• Makes final credit decision and sets terms
• Responsible for overall policy and guidance
The committee—Clyde Nakaya, Beth Tokioka,
Jim Mayfield, Darcie Yukimura, Scott Giarman and
Phil Tacbian—evaluates project need, analyzes the
applicant’s credit, and determines the expected
life of the security and the applicant’s ability to
repay the loan before making a recommendation
to the KIUC Board of Directors.
Loans are collateralized, as determined necessary
by the KIUC Board of Directors, and typically
include mortgages, liens, letters of credit and/or
personal guarantees. The KIUC Board of Directors
has final authority regarding all RLF matters.
Loans funded from RLF funds are available to
eligible applicants for any rural economic
development purpose in accordance with the
terms and conditions of KIUC’s grant agreement
with USDA Rural Development (USDA RD). Eligible
activities include business expansions and
business startups, including cost of buildings,
equipment, machinery, land, site development,
and working capital; community infrastructure
necessary for economic development and job
creation purposes; community facilities and
services necessary for economic development and
job creation purposes; medical facilities and
equipment to provide medical care to rural
residents; educational facilities and equipment to
provide training and job enhancement skills to
rural residents to facilitate economic
development; or business incubator projects to
assist in developing emerging enterprises.

Ineligible uses include pre­development costs
and project site development that adversely affect
the environment; loans to fund or assist projects
in which any director, officer or manager of KIUC
or any of their relatives is an owner, stockholder,
partner or director or in which the loan would
create an actual conflict of interest or an
appearance of a conflict of interest; the purchase
or lease of any real property, materials,
equipment or services from KIUC, any affiliates or
subsidiary of KIUC or any director, officer or
manager of KIUC or any of their relatives without
the prior consent of the USDA rural development;
refinancing of existing debts; any electrical or
telephone purposes; illegal activities or other legal
activities that in the opinion of the board
adversely affect the interests and goals of the
plan; projects located in areas covered by the
Coastal Barrier Resources Act; general
improvement loans related to normal
replacement needs of a business and unrelated to
business expansion/job creation; projects that
have alternative sources of financing at
reasonable interest rates; any consumer loan for
personal, family or household purposes; or any
other purpose that has not been approved by
program regulations.
If you believe you have a project that qualifies
for the RLF, contact Kymi Sakai at ksakai@kiuc.coop,
or call the co­op at 246.4300. KIUC is an equal
opportunity provider, employer and lender.
Loan Amounts:
RLF loan applications are subject to fund availability and
program maximum (the amount currently in the fund).
• Minimum loan—$40,000
Interest Rates:
For­profit organizations will be charged a base rate of 5
percent. If the organization has strong collateral, it will be
charged the for­profit base rate, less up to 2 percent.
Not­for­profit organizations will be charged a base rate
of 3 percent. Organizations with strong collateral will be
charged the not­for profit base rate, less up to 2 percent.
Fees and Charges:
An administration fee of 1 percent of the outstanding
loan principle amount will be charged on the first day of
each year of the loan term.
The loan recipient will be charged actual costs of closing
the loan, including but not limited to recording fees,
appraisal fees and attorneys’ fees.
Terms:
Up to 10 years maximum, depending on loan purpose.
The following maturities based on the loan collateral will
be used as a general guideline:
• Building ­ 10 years
• Real estate ­ 10 years
• Equipment ­ 3 to 7 years
• <strong>Working</strong> capital ­ 1 to 3 years
Application Deadlines:
The LRC has an open door policy. Applications are
accepted year­round.
Application Process and Forms:
Each applicant must complete an application and provide
financial statements, a business plan, financial projections
and additional information, as requested. A project may be
required to document its need to finance a funding gap not
covered by conventional lenders.
Costs associated with providing a business plan, financial
information, clear title, appraisal, environmental
compliance and collections are at the applicant’s expense.
Each applicant will be asked to provide reports and
documents in compliance with the loan and program
requirements.
JUNE 2010 43

44 KIUC CURRENTS
By Kathy Williams
LIHEAP – Low Income Home
Energy Assistance Program
LIHEAP is a federally funded block grant that
provides money to help low­income households
with energy costs. Applications for assistance may
be made once a year.
The State of Hawai‘i administers the funds
received from the federal government. On Kaua‘i,
Kaua‘i Economic Opportunity (KEO) is designated
as the state’s representative to accept
applications.
KAUAI ECONOMIC OPPORTUNITY, INCORPORATED
2804 WEHE ROAD LIHUE, KAUAI, HAWAII 96766
Two programs are available:
1. Energy Crisis. Assists with up to $200 to
restore power to the residence of a
household whose electricity or gas has been
shut off or is about to be terminated.
2. Energy Credit. Provides households not in
crisis with a one­time payment deposited
directly into the utility account in the latter
part of the year.
KEO is accepting applications through June 30, 2010.
For additional information or questions, call
KEO at 245.4077.
Low Income Home Energy Assistance Program
# in Household
1
2
3
4
5
Annual Income
$18,690
$25,140
$31,590
$38,040
$44,490
Add $6,450 for each additional member
REQUIRED DOCUMENTS
1. CURRENT ORIGINAL ENERGY BILL: Original electric or gas bill. No copies will be accepted.
2. PROOF OF RESIDENCE: Proof of address that is listed on energy bill.
3. PROOF OF BIRTH DATE: Proof of birth date for children under the age of 6 and adults 60 and older.
4. PROOF OF INCOME: Pay-stubs from January 2010 to current, Social Security Award Letter,
Supplemental Security Income Letter, Welfare Determination Letter, Unemployment Determination
Letter, etc. whichever applies for the entire household.
5. HOUSEHOLD ASSETS: Statements for Savings Accounts, Checking Accounts, Christmas
Savings Account, Credit Union Accounts, Stocks, Bonds< Cash, Certificate of Deposit, etc.
6. PICTURE ID: Please have a Driver’s License, State Identification Card, or Passport.
ALL ADULTS 18 AND OLDER MUST SIGN THE APPLICATION
We will be taking applications from June 1, 2010 to June 30, 2010
Any questions please contact: 245.4077

JUNE 2010 45

46 KIUC CURRENTS
By Maile Moriguchi
KIUC Volunteers
KIUC employees are members of our community.
We are your neighbors, friends, relatives and an
integral part of Kaua‘i’s community—not only
because of the important task of electrifying Kaua‘i,
but by serving as volunteers in the community.
As an organization, KIUC supports many of the
island’s charitable programs and community events.
In the April 2010 issue of KIUC Currents, we
highlighted KIUC’s support for Kaua‘i United Way,
March of Dimes and Relay for Life, and featured the
employees who are key to those efforts.
But that was just the start. KIUC employees also
contribute to the community by serving as coaches,
on boards and commissions, and by working to
make a better Kaua‘i.
KIUC employees adopted a shared set of
values in 2009, called Ho’oka’ana Waiwai.
Through volunteerism, KIUC employees are
showing their commitment to the values and to
the people of Kaua‘i.
“Volunteering can be a rewarding experience
and a way to give back to my community,” said
KIUC Residential Energy Services Specialist
Claurino Bueno.
Pictured: from left, Gregorio, Allan, and Claurino Bueno
at Holy Cross Church.
Bueno serves as a volunteer at his church, Holy
Cross, preparing young parishioners for
confirmation. He also is a board member for
Leadership Kaua‘i, which is a non­profit organization
dedicated to cultivating strong leaders on Kaua‘i.

Bart Garcia, KIUC distribution planner, lives in
Hanapepe Heights. He has been a driving force
behind the Hanapepe Parks Project for five years.
Along with a few others in his community, he has
worked tirelessly to create a safe place for children
to play.
Garcia admits it has been challenging, but says
he persevered because of his strong belief that
“volunteering is the only way to make a better
community.”
He also has served as a coach for both Pop
Warner football and flag football. Garcia says
coaching gives him an opportunity to make a
positive impact on others’ lives.
David “Hana” Hanashiro, a shift supervisor at
KIUC’s Port Allen Power Plant, spends Tuesday
evenings serving as a panel leader at Kaua‘i
Community Correctional Center (KCCC) to help
inmates follow a 12­step plan to recovery from
substance abuse. Sharing hope inspires him. He
views his efforts at KCCC as similar to his job at
KIUC: restoring power to people.
“Although at the utility we try to avoid outages,
when we do have one and we bring power back, it
is very rewarding,” he said. “The same goes for
mentoring. It gives me the feeling of restoring
power to those that have had it taken from them.”
In explaining why they volunteer, a common
thread for the three was “because that’s the way I
was brought up.” Their parents and families
volunteered, so it has become a way of life for them.
Bueno, Garcia and Hanashiro are just a few of the
KIUC employees who make a difference in the
community. We thank them for putting Ho’oka’ana
Waiwai into practice.
Relay for Life Update
2010 Relay for Life campaign goal was $8,000.
KIUC’s team raised $10,444.
On May 8, the KIUC team began its 2011 Relay
campaign by holding a car wash and raising more
than $1,000. Next year’s goal is $10,000, and the
group hopes to exceed its goal again.
March of Dimes Update
According to Joe Fontanilla, the KIUC March of
Dimes team raised $2,705.
KIUC Named One of Nation’s
Most Solar Integrated Utilities
KIUC was named in the Solar Electric Power Association’s (SEPA) third annual “2009 Solar Utility Rankings.”
According to the SEPA report, “The Top Ten rankings take into account large and small solar projects owned by
customers, solar companies or the utilities themselves that are integrated into the utility’s grid, allowing them to
compare themselves against peer, regional or national benchmarks. The annual rankings include solar that was
interconnected in 2009, and the cumulative rankings take into account all solar that was interconnected into the
utility’s grid up until the end of 2009, including prior years.”
The rankings were the result of a national survey of utilities. KIUC was listed and rank in the following categories:
• Total Annual Solar Watts per Customer – KIUC #5, 18.8 (Watts­ac)
• Cumulative Solar Watts per Customer – KIUC #2, 88.3 (Watts­ac)
• Western Region Annual Solar Watts per Customer – KIUC #5
• Western Region Cumulative Solar Watts per Customer – KIUC #2
For more information about the report, visit www.SolarElectricPower.org
JUNE 2010 47

Storm Sense
48 KIUC CURRENTS
A Practical Guide to Emergency Preparedness
When a Hurricane is Forecast for Kaua‘i
Before a Hurricane…
Prepare
The checklist provided will help you prepare for
a hurricane. Don’t wait until a warning is given to
begin making your plans. Have your survival kit
ready. Know where emergency shelters are
located.
Hurricane Survival Checklist
To do before hurricane season
(in May or June)
■ Trim trees around the home, especially those
with weak limbs
■ Tighten loose gutters and roof tiles
■ Have window and door coverings (plywood
or storm shutters) in good condition and
ready to install, if needed
■ Review insurance policies to be certain they
are up­to­date, and have a photo or video
inventory of possessions
■ Know where all important documents are
(insurance, wills, marriage licenses, etc.)
■ Be certain your survival kit is complete
■ Make sure pets have some form of
identification and are current on vaccinations
■ Have a carrier for each pet and maintain at
least a one­week supply of pet food, cat
litter, special medications and other
necessary supplies
If you or a member of your family is receiving
special medical treatment (such as dialysis or
chemotherapy), know what the procedures are
for emergency conditions. If you live in a flood
zone or think your home won’t withstand the
force of a hurricane, have an evacuation plan
ready before a hurricane warning is issued.
Prior to leaving home, turn off the electricity
and gas. Take your survival kit; shelters do not
provide food, bedding, water or other essential
items.
Provide for your pet. Contact the Humane
Society for information on people/pet sheltering.
Stay Informed
When a hurricane watch or warning is declared,
listen to the radio for further instructions. Kaua‘i’s
Civil Defense station is KQNG, 570 AM or 93.5 FM,
but all island radio stations are in voluntary
compliance.
KIUC personnel will be in contact with all three
stations and will broadcast special advisories
about your power supply. Oceanic Time Warner
also broadcasts National Weather Service reports.
During a Hurricane…
Before heavy winds begin, turn off all switches
on your electric circuit panel (usually located
inside the home or garage) and turn off the switch
for your main breaker (usually located outside
near your meter).

Once gale force winds are reached, KIUC will
begin planned power interruptions to avoid
damage to electrical equipment. Unplug electrical
appliances and sensitive electrical equipments.
Keep refrigerator and freezer doors closed as
long as possible. Food may stay frozen in the
refrigerator’s freezer compartment for 12 to 48
hours, and may stay frozen up to 72 hours in a
fully loaded separate freezer.
Do not be fooled by the calm sometimes
experienced in the “eye” of a hurricane; stay
indoors during and immediately after the storm.
Going outside during the storm could put you and
others who try to help you in danger. It also may
hamper emergency crews.
A Storm Glossary
Hurricane—Hurricanes are intense, compact
cyclones that form over warm, tropical
waters. They are like giant whirlwinds, with
air moving in a large, tightening spiral around
a center of extreme low pressure. They pack
winds from 74 to 200 mph. The storm affects
the ocean surface and lower atmosphere
over tens of thousands of square miles,
causing strong winds, high surf, heavy rains
and tornadoes.
Hurricane Watch—Hurricane force winds may
occur within 36 hours.
Hurricane Warning—Dangerous conditions
expected within 24 hours.
Tropical Depression—A storm with sustained
winds of less than 39 mph.
Tropical Storm—A storm with sustained winds
from 39 to 73 mph.
After A Hurricane…
In Your Home
Be sure your stove, washer, dryer, microwave
and other electrical appliances—and the areas
around them—are completely dry before
attempting to plug, unplug, move or operate them
(wait a week or two). If still unsure, contact a
technician to inspect for damage.
Check for food spoilage. Food that has warmed
to room temperature probably is unsafe to eat.
When in doubt, throw it out.
■ Portable radio
■ Extra batteries
■ Flashlight(s) and candles
■ Manual can opener
■ First aid kit, special medications
and an extra pair of eyeglasses, if
you wear them
■ Five­day supply of nonperishable,
ready­to­eat food; an
ice chest and blue­ice packs
■ Containers of water (minimum 2
quarts per person per day)
Survival Kit
Power Lines and Utility Poles
When lines from utility poles are on the ground,
assume they are dangerous. Don’t touch them. If
someone is touching a line, don’t try to rescue
them yourself and risk becoming a victim; get help
immediately by calling 911 or KIUC’s Emergency
Line at 246.8200.
Beware, a fence or guardrail can be energized
for a thousand yards if it is touching a downed
power line. If a power line falls on your car while
you are in it, wait for help, if possible. If you must
get out, jump free of the car so that your body
clears the vehicle before touching the ground.
Important Phone Numbers
KIUC Trouble Calls, 24 hours . . . . . . 246.8200
KIUC Member Services . . . . . . . . . . 246.4300
Emergency police, fire, ambulance . . . . . 911
Civil Defense. . . . . . . . . . . . . . . . . . . 241.1800
American Red Cross. . . . . . . . . . . . . 245.4919
The Gas Company . . . . . . . . . . . . . . 245.3301
Dept. of Water Trouble Calls . . . . . . 245.5444
After Hours . . . . . . . . . . . . . . . . . . . 241.6711
Hawaiian Telecom Repair Services. . . . . . 611
Oceanic Time Warner . . . . . . . . . . . 245.7720
Kaua‘i Humane Society . . . . . . . . . . 632.0610
■ Sleeping bags or blankets
■ Change of clothing for each
family member
■ Matches or lighter
■ Camp stove, lantern and fuel
■ Masking tape for windows
■ Personal hygiene, sanitary
supplies, diapers
■ Bleach
■ Plastic sheeting and garbage
bags
JUNE 2010 49

50 KIUC CURRENTS
Using a Generator
Before operating a generator, be sure your
home is not connected to KIUC’s system where
electric lines feed into the meter. Turn off the
main breaker to your home before operating a
generator.
Have a qualified electrician install a special
switch so power is properly supplied to the house
without endangering family, neighbors and utility
workers in the area.
If your generator is being used to power an
individual appliance or piece of equipment, make
sure it is connected directly to your generator.
This keeps the power safely isolated from any
other wiring in your building or beyond.
Follow the instruction manual to properly
ground the generator. Make sure the generator
location is properly ventilated to reduce the
danger of fumes and overheating.
Minimize the noise impact as much as possible.
Store reserve fuel in a safe place away from the
generator.
Hurricane Preparation Checklist
When a hurricane watch is announced by the National Weather Service:
■ Tie down or store all loose objects
■ Bring all potted plants into the house
■ Remove and store lanai furniture
■ Tape windows and sliding glass doors (to contain shattered glass if a window breaks)
■ Store all propane tanks
■ Store insurance and other essential documents in waterproof packets
■ Wrap cameras, computers, VCRs, stereos and microwaves in waterproof sheeting
■ Freeze water to fill up all available freezer space; in the event of a lengthy power outage, frozen
foods will stay cold longer in a fully loaded freezer
■ Fill up the gas tank of your car
■ Thoroughly clean and disinfect bathtubs with bleach; fill with water
■ Fill as many clean containers as possible with water (do not use milk containers; they have milk
residue, which makes drinking water unpleasant)
■ Line garbage cans with plastic trash bags and fill with water; this water can be used later for
non­potable purposes such as flushing toilets
■ If you finish all of your tasks at home, help a neighbor
KIUC’s 2010 Membership Meeting
KIUC
Annual
Membership
Meeting
Save the date for the KIUC Membership Meeting on
Sunday, September 12, 2010, at the War Memorial
Convention Hall from 4 p.m. to 6 p.m.
Doors will open at 4 p.m. with the first 300 members
receiving a bag of rice. All members in attendance will
receive an annual report and reusable shopping bag. We
also will have Co­op Connections cards available.
Kalaheo School’s Sunshine Express will perform prior to
the business meeting, which begins at 4:30 p.m.
Bring your family and neighbors to learn about what
KIUC has been doing, and enjoy a light dinner and
entertainment.
We hope you will join us!

For residents who have curbside refuse
collection service from the county, some exciting
changes are coming this summer.
The County of Kaua'i will begin implementing
Phase 1 of the automated refuse collection
program on July 1. Phase 1 will service
approximately 3,200 homes in Puhi, Līhu'e and
portions of Hanamā'ulu. The weekend of June 19,
the county will begin to deliver specialized 96gallon
refuse carts to households scheduled to
receive the new service. The new carts hold up to
three times more refuse than the standard 32gallon
barrels most households currently set out
for refuse collection. The cart design includes
wheels to enhance maneuverability.
The new refuse carts are designed to work with
a specialized side­loader refuse truck with a
mechanical arm. It will enable one equipment
operator to service up to 33 percent more
collection units per day than a manual collection
system, which requires three employees.
Advantages to automated refuse collection
include reduced labor costs, safer conditions for
workers and improved neighborhood aesthetics.
County of Kaua‘i
HI-5 Parks
Recycling Bins
Recycle:
HI-5 Glass HI-5 Plastic HI-5 Aluminum
Please do not place non-HI5 recyclables or trash into the
recycling bins
County of Kaua‘i
Refuse Collection Service
Earn Extra Cash
Residents, visitors, clubs, and sporting groups are welcome to
remove HI-5 items from the recycling bins and redeem them for
cash at redemption centers located throughout the island. Call
or visit the County website for redemption center information.
Households in the Lihue area that are
converting to automated pickup during Phase 1
will be contacted by the county with additional
information regarding delivery of their countyissued
refuse cart and instructions for use.
Phase 1 residents will be informed on issues
such as where the cart should be placed on pickup
day; what is accepted and what is not accepted in
the cart; and where to recycle and/or dispose of
items not accepted.
Along with the start of the automated refuse
collection service, the schedule for rubbish pickup
will change for most residences on Kaua'i—even
for those not yet converting to the automated
program. Changes to the refuse collection
schedule are due to route adjustments for Phase 1
that will cause a ripple effect, requiring balance
and reorganization of collection routes
throughout the island.
To confirm your refuse pickup day, please visit the
county’s website at www.kauai.gov/refusecollection,
or call 241.4895. Please note that the new pickup
schedule will begin July 1.
Program funded by the State Department of Health
For more information, call 241-5112 or visit www.kauai.gov/HI5
Have you heard?
The County of Kaua’i
has placed blue
HI-5 recycling bins
in County Parks.
JUNE 2010 51

MEMBER SERVICES
Patronage Capital and
Patronage Capital Accounts
52 KIUC CURRENTS
As a member of an electric cooperative, you
receive a benefit reserved for owners of a
company: a return on your investment through
the disbursement of capital credits.
Capital credits come from the money a
cooperative has left over after paying all of its
expenses in a given year. At the end of the year,
that money is credited to each member’s account
according to the amount paid for energy used.
This account is your equity in the co­op.
When KIUC’s finances permit, that money is
returned to members in the form of patronage
capital refunds.
A rural electric cooperative is a nonprofit
business that exists solely to provide its members
with electricity. In a co­op, margins don’t belong
to the company; they belong to the individual
members who paid money on their monthly bills.
In effect, the members of a cooperative are the
shareholders. Because of that, when the
cooperative takes in more money than is needed
to operate the business, pay outstanding loans
and pay any additional expenses, the owners are
entitled to a share. That’s the philosophy behind
member equity.
What This Means for
Members of KIUC
At KIUC, your equity is based on the amount
paid for energy used during the year. The more
you buy, the higher your share of equity. KIUC sets
up a credit account that shows the share of the
year’s accrued margins belonging to you.
As additional member equity funds come in
year after year, KIUC is able to “retire” some of its
accrued capital credits from your account, issuing
patronage capital refunds to members.
Your elected Board of Directors and the bylaws
determine how and when capital credits are paid
to members.
KIUC’s bylaws have a provision for repayment of
capital credits on a rotating basis. The retiring of
capital credits depends on the successful
operation of the cooperative, its financial status
and the level of loan repayments.
Margins
The difference between a cooperative’s income and its expenses; returned to members in the form of
patronage capital as the cooperative’s financial status allows.
Patronage capital
Margins credited to members of a cooperative based on their purchases from the cooperative; used by the
cooperative as working capital for a period of time, then paid back to the membership; also called capital
credits; should not be confused with profits, which are a return on capital; retirement of patronage capital is a
return of member­furnished capital.
Patronage capital accounts
An individual account containing all unpaid margins; used by the cooperative for payment of loans,
purchasing fuel and overall operations.

You might ask, “Why don’t you just break even?” A cooperative isn’t in business to make money,
so it might seem like it should establish a budget and rates that would allow it to break even each
year, rather than show a profit.
While this may seem desirable, the business of generating and distributing power is very
expensive, and maintaining power lines is subject to outside forces—most notably, weather. In
addition, KIUC invests in capital projects for future system reliability and growth.
It is impossible for KIUC’s management and board to plan the operations of KIUC so precisely in
advance that revenues and expenses come out perfectly even at the end of each year. To prove to
its lenders it is financially sound, some margin must remain after expenses so the co­op can
continue to operate. Like any business, KIUC must have money on hand to provide current
operating funds and set up a reserve against emergencies.
Frequently Asked Questions
Q: What is patronage capital?
A: Patronage capital, also known as capital credits,
comes from the money a cooperative has left
over after paying all of its expenses in a given
year. At the end of the year, that money is
credited to each member’s patronage capital
account according to the amount paid for
energy used.
Q: What are margins?
A: Margins are what are left over at the end of the
year after KIUC has paid all expenses. Your
share of any operating margins is credited to
your patronage capital account. In other
business organizations, this would be called
profit.
Q: Why don’t you call this profit?
A: As a cooperative, we are here to provide a
service, not a profit. Any revenue collected that
is not needed to cover the cost of providing
service is set aside and divided among the
members in proportion to their patronage (how
much electricity they paid for during the year).
Q: Why don’t you send me the money?
A: As with any other business, it is necessary to
maintain a certain amount of equity capital.
Your Board of Directors determines annually the
prudent balance between retained equity and
patronage capital refunds. Also, KIUC must
meet requirements placed by our lender.
Questions about how it works?
Contact us at 246.4300 or visit www.kiuc.coop.
Q: Is interest paid on patronage capital?
A: No. Since KIUC is nonprofit and
member­owned, you do not receive interest or
dividends on your patronage capital account.
Q: When will I get my patronage capital back?
A: Patronage capital can be paid back to the
members upon approval from the Board of
Directors and the co­op’s lender.
Q: If I move away, will I get my patronage
capital?
A: Yes, your patronage capital that has
accumulated in your account will remain in your
name. It is important that you keep KIUC
informed of your current address so you will
receive your check when a general refund of
patronage capital is made.
Q: What line items on my bill are included in
determining patronage capital refunds?
A: The following items are included: kilowatt­hour
(kWh) charge, customer charge, energy
adjustment, minimum charge, resource cost
charge, streetlight (SL) fixture charge and
demand charge.
Q: Do I have to pay taxes on my patronage
capital refunds?
A: Please consult with your tax adviser for any
potential tax implications.
JUNE 2010 53

Statement
of Operations
For the period 01/01/2010 – 04/30/2010
54 KIUC CURRENTS
By Karissa Jonas, Controller
We report that the KIUC results of operations
through April 30, 2010, are improving as the
weak economy begins to show signs of recovery.
Electricity usage on the island has increased
slightly over the prior year. However, it is still at
a significantly decreased level, primarily due to
the reduction in visitors to the island. KIUC is
doing everything it can, while maintaining safety
and reliability, to reduce costs in various areas
to continue to meet loan covenants. Revenues,
expenses and net margins totaled $49.2 million,
$46.7 million, and $2.5 million, respectively, for
the four­month period ending April 30, 2010.
As is the case for all electric utilities, the cost
of power generation is the largest expense,
totaling $27.8 million or 56.4% of revenues. Fuel
costs are the largest component of power
generation, totaling $22.7 million or 46.1% of
revenues, and representing 81.7% of the cost of
power generation. The remaining $5.1 million or
10.3% of revenues and 18.3% of the cost of
power generation, represents the cost of
operating and maintaining the generating units.
Percentage of Total Revenue
Taxes
8.4%
Depreciation &
Amortization
11.1%
Administrative &
General
Net of Non-Operating
Margins
6.4%
Marketing &
Communications
0.5%
Interest
6.1%
Member Services
2.5%
Net Margins
5.0%
Fuel & Purchased
Power Costs
46.1%
Production Operation &
Maintenance
10.3%
Transmission & Distribution
Operation & Maintenance
3.9%
The cost of operating and maintaining the
electric lines totaled $1.9 million or 3.9% of
total revenues. The cost of servicing our
members totaled $1.2 million or 2.5% of
revenues. The cost of keeping our members
informed totaled $0.2 million or 0.5% of
revenues. Administrative and general costs,
which include legislative and regulatory
expenses, engineering, executive, human
resources, safety and facilities, information
services, financial and corporate services, and
board of director expenses, totaled $3.2 million
or 6.4% of revenues.
Being very capital intensive, depreciation and
amortization of the utility plant costs $5.5
million or 11.1% of revenues. Although not
subject to federal income taxes, state and local
taxes amounted to $4.1 million or 8.4% of
revenues. Interest on long­term debt, at a very
favorable sub­5% interest rate, totals $3.0
million or 6.1% of revenues. Non­operating net
margins added $0.2 million to overall net
margins. Revenues less total expenses equal
margins of $2.5 million or 5.0% of revenues.
Margins are allocated to consumer members
and paid when appropriate.

Parting Shot
KIUC Lineman: a day in the life
Simple
Pleasures
The Miyashiro ‘Ohana has a lot to be
proud of. They graduated three
students this May! Pictured: from
left, Ashlee Miyashiro (Kaua‘i High
School), Sandy Aviguetero (Waimea
High School) and Jodi Miyashiro
(University of Hawai‘i­Mānoa).
We are always looking for interesting items to feature in SImple Pleasures and Parting Shot. If you have an item to share with
readers, please e­mail currents@kiuc.coop or send it to: KIUC Currents, 4463 Pahe‘e Street, Suite 1, Līhu‘e, HI 96766­2000.
JUNE 2010 55

56 KIUC CURRENTS
HI-130
Powerlines
Aloha mai kākou,
This issue of Currents features KIUC’s Board of Directors. I would
like to thank the nine directors who currently govern our
cooperative for their dedication and the amount of time they give
to our cooperative. I also would like to thank all of our past
directors, including members of the founding board, for having the
foresight that enabled us to be where we are today.
On April 29, 2010, the Hawai‘i Public Utilities Commission issued
an Interim Decision and Order allowing interim rates that will increase KIUC’s overall revenues by
2 percent. Residential rates will increase by about 4.3 percent, or about $7 a month for an average
user of about 500 kilowatt­hours a month. It is expected that the interim rates may be in place by
the time this issue of Currents is circulated.
Included in this issue is a copy of the KIUC Annual Financial Report. Reduced operating revenues
reflect reduced electric sales resulting from the downturn of the economy. Also affecting KIUC
were lower oil costs, which reduced margins received through the energy adjustment efficiency
mechanism. The new rates discussed above will assist is stabilizing KIUC’s financials.
On May 19, an indictment of KIUC was filed in U.S. District Court for the District of Hawai`i. This
follows a three­year criminal investigation by the U.S. Department of Justice of KIUC for the
incidental taking of seabirds in violation of the Endangered Species Act (ESA) and the Migratory
Bird Treaty Act (MBTA). I am extremely disappointed in the indictment, as KIUC diligently has been
seeking to obtain incidental take permits from the State of Hawai‘i, Department of Land and
Natural Resources ­ Division of Forestry and Wildlife and the U.S. Fish and Wildlife Services. KIUC
has worked on and submitted Habitat Conservation Plans, as required for the application of
incidental take permits. KIUC has replaced or shielded all of its street lights on the island and
installed bird­compliant lighting at its power plants. KIUC also funds and administers the Save our
Shearwater (SOS) program, with the assistance of the Kaua‘i Humane Society. It has always been
KIUC’s intention, desire and practice to work with the agencies to save our shearwaters and other
seabirds. It is truly disappointing and disturbing to be accused of doing otherwise.
Mahalo!
Randall J. Hee
President and CEO