KIUC's Rate Case - Kauai Island Utility Cooperative

June/July 2009 

KIUC’s Rate Case

Aloha Island Properties 

EXCEEDING YOUR EXPECTATIONS 

(808) 246-0334 

4232- B Malae Street, Lihue 

Newer 3 Bedroom, 2 Bath home in Molokoa 

Village with Granite Countertops, High Ceilings 

and a Spacious living area. Beautiful hardwood 

flooring and Dewill Cabinets in the kitchen and 

bath. Fantastic Home. $535,000(fs). Call: Karen 

Agudong® 652-0677. 

182 Lihau Street, Wailua 

Homesteads 

Large 2500 s.f. home on a 14,000 s.f. lot on a 

great street in Wailua Homesteads! Beautiful Lush 

Landscaping with Private Back Yard. Tranquil 

Screened in Lanai. Oversized Garage with 

additional workshop area. $599,000(fs). Call: 

Charlotte Barefoot® 651-4627 or Karen 

Agudong® 652-0677. 

Halelani Village #E-206 

Well maintained, Renovated 2 Bed, 1.5 Bath 

upstairs condominium. Master bedroom with 

A/C. New Range. Lanai with Mountain Views. 

$189,000(fs). Call: Kay Leonard(RA) 634-8697 or 

Karen Agudong® 652-0677. 

5960 Kini Place, Wailua 

Homesteads 

Beautiful 3 Bedroom, 2 Bath home with 

Swimming Pool and Breathtaking Mountain 

Views! Located in a very desireable 

neighborhood. Large 1,992 s.f. home includes 

a 3 Car Garage and a Screened in Lanai . 

Lushly landscaped yard of approximately 

27,486 s.f.. This is a Definite "Must See". 

Property is a potential short sale and subject to 

lender approval. Encouraging All Offers! 

$799,000(fs). Call: Karen Agudong® 652-0677. 

2775 Kepa Street, Lihue 

Located in desirable Ulu Mahi Subdivision. 

This unique 3 Bed, 2 Bath home of almost 

2,000 s.f. has endless opportunities for 

entertaining plus a beautiful swimming pool in 

the back yard. Inviting floor plan with open 

beam ceilings, arched entryway and laminate 

flooring throughout the living area, kitchen and 

dining area. Vaulted ceilings accent the dining 

area and built in buffet. $675,000(fs). Call: 

Crystel Chong Tim(RA) 635-3484. 

1214 Nohea Street, Kalaheo 

Gorgeous two story home, built in 2006, with 

beautiful hardwood floors, relaxing front Lanai 

and dynamic ocean views. 

4 Bedrooms, 3 Baths with 2300 sf. of living area 

on a 10,106 s.f. lot. One of the lowest priced 

homes currently available in the Kakela 

Makai Ocean View Subdivision. Priced to Sell. 

$899,000(fs). Call: Karen Agudong® 652-0677. 

Exceptional Price! 

1050 Kamalu Road – B, 

Wailua Homesteads 

Exceptional value for this Beautiful and Very 

Spacious Flag lot on over a quarter acre in 

Wailua Homesteads. Located near the 

Sleeping Giant Hiking Trail. One of the lowest 

priced lots for this size. ONLY $179,000(fs). 

Call: Charlotte Barefoot® 651-4627 or Karen 

Agudong® 652-0677. 

Aloha Island Properties 3-3359 Kuhio Highway, Lihue, HI 96766 

808-246-0334 fax: 808-246-0771 www.alohaisland.com email: karen@alohaisland.com

Simple Pleasures 

Chiefess Kamakahelei Middle School robotics 

students competed in the 2009 Hawaii Regional 

Botball Tournament at the Hawaii Convention Center 

in May 2009. 

Simple Pleasures is a section for our members to share their favorite place, 

favorite pastime or something that makes them happy. Share your Simple 

Pleasures with us by mail at KIUC Currents, 4463 Pahe‘e Street, Suite 1, 

Līhu‘e, HI 96766-2000, or email currents@kiuc.coop. 

4463 Pahe‘e Street, Suite 1, Līhu‘e, Hawai‘i 96766-2000 

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 

PRESIDENT & CEO Randall J. Hee 

EDITOR Anne Barnes, Marketing, Communications & Public Affairs 

ASSISTANT EDITORS Shelley Paik and Maile Moriguchi, Marketing, 

Communications & Public Affairs; Pam Blair, Ruralite Services 

CONTRIBUTING WRITERS Paul Daniels, Dennis Esaki, Teofilo “Phil” 

Tacbian, Randall J. Hee, Ray Mierta, Maile Moriguchi and Shelley Paik. 

Only active KIUC members will be mailed KIUC Currents. KIUC Currents can be found 

online at www.kiuc.coop under Member Information and Currents on the website. 

KIUC is an equal opportunity provider and employer. 

June/July 2009 

Volume 6, Number 3 

Table of Contents 

Simple Pleasures . . . . . . . . . . . . . . . . . . . . . . 3 

Is Your Home Protected? . . . . . . . . . . . . . . . 4 

A Picture’s Worth . . . . . . . . . . . . . . . . . . . . . 7 

Storm Sense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 

Military Appreciation . . . . . . . . . . . . . . . . 10 

A Message from the Chairman . . . . . . . . 11 

Patronage Capital Refunds Totaling $2.4 

Million to Begin Arriving Mid-July . . . . . . 11 

KIUC’s Rate Case. . . . . . . . . . . . . . . . . . . . . . . 12 

Annual Fuel Mix Disclosure . . . . . . . . . . . . 14 

Our Energy, Our Future. . . . . . . . . . . . . . . . . 15 

2009 Spotlight on Excellence Awards . . . . 16 

Child & Family Service . . . . . . . . . . . . . . 16 

Co-op Connections . . . . . . . . . . . . . . . . . . . . 18 

Hot Months, Cool Snacks . . . . . . . . . . . . . . 20 

Changes to the Membership Meeting . . . 22 

KIUC Named in SEPA . . . . . . . . . . . . . . . 22 

Statement of Operations . . . . . . . . . . . . . . 23 

Parting Shot . . . . . . . . . . . . . . . . . . . . . . . . . 23 

Powerlines . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 

On the cover: KIUC Chief Financial Officer 

David Bissell speaks to attendees at the Rate 

Case Information Meeting on June 3rd about 

the proposed rate increase. For more 

information, please see the story on page 12.

Is Your Home Protected? 

By Ray Mierta 

Power Surges On Kaua‘i 

It used to be our homes were filled with basic appliances 

that consisted of motors and lights. New appliances are 

both energy efficient and more expensive. They also are 

more complex than they used to be. 

The very components that give us the reliability, low 

operating cost and improved performance we are used to 

also are sensitive to minor variances in the quality of the 

electricity that powers them. 

4 KIUC CURRENTS 

Power Surges From Internal Sources 

Microprocessors—virtually a component of every 

appliance and device today—are sensitive to small 

fluctuations in power quality. Low-level surges or spikes 

that originate from within our homes caused by 

appliances turning on and off cause stress on these 

circuits and can lead to early failure. 

To the repair technician, it is difficult to determine what 

caused the failure and if it occurred over time from 

internal sources. It often is dismissed as 

being the result of a power surge. 

Invariably, a call is placed to Kaua‘i Island 

Utility Cooperative (KIUC). 

Power Surges From External 

Sources 

On the mainland, weather is a big cause of 

power surges. Lightning strikes, 

thunderstorms, pre-tornado conditions and 

near misses from hurricanes can wreak 

havoc on the power system, producing 

surges. 

Storms—not KIUC—are the biggest cause of 

power surges on Kaua‘i. Wind and lightning 

strikes can affect power lines, generating 

surges of varying intensity. Contact by birds 

and debris in overhead power lines can 

generate damaging surges, as well as 

accidents involving power poles.

An electrical surge or spike can occur on an incoming 

power line, telephone, and antenna or cable line. Any 

wire that runs from the inside of your home to the 

outside is a potential pathway for voltage fluctuations 

above the normal range. 

What Is a Power Surge? 

Utilities strive to provide reliable and consistent electric 

power. A surge is a voltage impulse lasting less than 

1/1000 of a second and is technically defined by IEEE- 

ANSI standard C62.41.1. 

Normal electric system fluctuations, power loss, 

temporary overvoltage, undervoltage and electrical system 

problems are not surges. 

Protection From Power Surges 

Plug-in or point-of-use surge protection devices are 

available locally at retail outlets. They typically are used 

to provide surge protection for 

individual electronic devices, such as a 

home computer, and for groups of 

home electronics, such as a home 

entertainment center. A television, 

stereo tuner or DVD recorder all can be 

plugged into a multiport suppressor. 

Some point-of-use suppressors can 

accommodate telephone and coaxial 

cable connections. 

To be effective, each electronic device 

connected to the outside of the home by 

a wire and devices determined to be of 

value by the homeowner need to be 

connected to their own point-of-use 

surge protection device. If you consider 

how many appliances could need 

individual surge protection devices, it 

would be expensive to provide 

protection for all of them. 

Circuit breakers, central fuses and 

appliance fuses are not fast enough to 

detect a temporary overvoltage 

condition and cannot be relied on for 

surge protection. 

No-Cost Surge Protection 

Most devices with a clock, thermostat 

or timer need to have electric current 

going to them at all times, even when 

they are not being used. Some small 

appliances such as toasters, rice 

cookers, lamps and even power tools do 

not need to be left plugged in when 

they are not being used. If an appliance 

or piece of equipment can be unplugged 

when not in use, it probably does not 

need a point-of-use surge protector. 

KIUC Surge Protection 

KIUC is testing a program to provide surge protection 

devices for customers. The KIUC surge protection system 

is a heavy-duty, multi-layered protection system designed 

to protect your home and sensitive electronics from surgerelated 

power issues.] 

While no surge protection is 100-percent foolproof, a 

combination of point-of-use and point-of-entry devices 

will provide the greatest level of protection. 

The KIUC system includes: 

• A heavy-duty surge arrester that installs behind your 

electric meter. This special meter-base arrester provides 

the first layer of protection for your home. It redirects 

high voltage at the point where it enters the home and 

protects major appliances, such as washers, dryers, 

refrigerators and stoves. 

ORDERING THE KIUC PROTECTION SYSTEM 

Pricing for meter-base and point-of-use plug-in suppressers 

are as follows. 

Service entrance protection (recommended for all homes) 

SS320A meter-base surge arrester 

Fits behind the electric meter. Installation by a KIUC service technician. 

Monthly service fee: $5.00 (KIUC will maintain and replace if ever 

damaged.) 

Installation charge: $40.00 (one-time charge) 

Point-of-use plug-in surge protection Purchase Cost 

MPS1200 10-outlet power strip suppressor $63.00 

with telephone and two video lines. 

A multi-stage suppressor for high-value equipment. 

US1206 6-outlet wall-mount plug-in suppressor $63.00 

with telephone, two cable and data line suppression. 

A multi-stage suppressor for high-value equipment. 

CSS1-T single-outlet suppressor with phone hook up. $19.99 

Single-stage for cordless phone base, answering machine etc. 

CSS1 single-outlet suppressor $14.99 

Single-stage for small appliances such as microwave, toaster oven, rice cooker. 

The installation charge and recurring monthly service fee will appear as a 

line item charge added to your monthly electric bill. Plug-in surge protection 

devices can be purchased by program participants only at the KIUC office, 

located at 4463 Pahee St., Līhu‘e. 

Surge protection products are designed to protect against transient surges of 

short duration. The system is not designed to protect against a sustained 

overvoltage condition. This type of condition, although rare, can result from 

internal wiring problems, loss of neutral or other electrical events on the 

KIUC system. 

JUNE/JULY 2009 5

• Point-of-use protection includes a selection of plug-in 

devices designed to protect your sensitive electronics. It 

offers a second layer of protection for computers, 

televisions, VCRs, telephones, DVD recorders or any 

device connected to the outside of the home by other 

than electric service. Point-of-use devices offered by 

KIUC will be sold to program participants only. KIUC 

provides a selection of plug-in devices as a service to 

program participants. Plug-in devices also are available 

at local retail outlets. 

When combined, this approach virtually eliminates 

opportunities for power surges from inside and outside 

your home to damage connected sensitive electronics. 

What Should be Protected? 

The meter-base suppressor will protect major “white 

goods” appliances connected only to the electric service. 

Full protection takes a combination of meter-base and 

plug-in, point-of-use protectors. 

Meter-base surge protector 

Installation fee: $40.00 (plus tax) 

Monthly rental fee: $5.00 (plus tax) 

Plug-in point-of-use protectors $14.99 to $63.00 (plus tax) 

Plug-in point-of-use protectors will be sold to those 

renting the meter-base protector only. They can be 

purchased from KIUC. 

Tell me about the program. How will I be 

billed if I want to take advantage of KIUC’s 

residential surge protection program? 

The charges for the meter-base surge protector will appear on 

the first or second bill you receive after submitting your 

application. There will be a one-time installation charge for 

the meter-base protector, and a recurring monthly charge. 

You can review the selection and purchase high-quality 

point-of-use surge protection devices in the KIUC lobby. 

At this time, KIUC accepts cash and personal checks only. 

What is the process if I want to join the 

program? 

You will need to complete a program application and return 

it to KIUC, which will review the application and schedule 

installation of the meter-base device. At the time the meterbase 

device is installed, KIUC will leave information about 

the causes and solutions for power surges. You can call 

246.8284 if you have more detailed questions. 

Can I buy individual plug-in protectors if I 

don’t have a meter-base protector? 

Plug-in or point-of-use protectors are designed to function as 

a second stage of surge protection. You can buy point-of-use 

protectors, but they are not designed to provide complete 

protection beyond the device(s) they are attached to. 


When considering the KIUC surge protection system, it is 

recommended you create a list of your high-value 

sensitive electronics. These typically include: 

• Computer systems 

• Television/entertainment centers 

• Microwave ovens and other small appliances 

• Portable or wireless telephones 

• Other important electronics 

Once you have made your list, you can determine which 

items would benefit from surge protection. If the value of 

the device far exceeds the cost to protect it, consider the 

appropriate plug-in surge suppressor through the KIUC 

program. 

To obtain more information and a program application and 

agreement, call 246.8284. 

FAQs ABOUT THE PROGRAM 

KIUC will sell plug-in point-of-use surge protectors only to 

customers who join the program and rent a meter-base 

suppressor. 

Will my electric service be disrupted during 

the installation? 

Yes. Power to your entire home will be off for about 10 

minutes during installation of the meter-base protector. 

After the device is installed, it is advised you look at it to 

locate the indicator light. The indicator light will be on the 

side of the unit. You should check this light periodically. 

What should I do if I notice the indicator 

light no longer is working on my meter-base 

device? 

Call KIUC at 246.8284. As long as the indicator light is 

working, you are protected against surges that could enter 

your home through the KIUC power supply line. Should 

you notice the indicator light is not working, you no 

longer are protected. KIUC will arrange for the testing of 

your existing device and install a new device at no cost to 

you. Remember, the manufacturer of the devices warranty 

their products against defects in the manufacturing 

process only. 

What should I do if I suspect an appliance 

has failed due to a surge? 

The power surge devices KIUC offers as part of its 

program are designed to withstand six times the amount 

of surge as ordinary over-the-counter products. It is highly 

unlikely a power surge will be large enough to damage a 

surge device you purchase through the program. First, 

look at the indicator light on all of your surge protection 

devices. If the indicator lights are all working, the 

appliance did not fail due to a power surge.

A Picture’s Worth... 

Haaaa Terry! Don’t fall off that ladder. 

Terry Caplan, owner of Island Ace Hardware, located at the Princeville 

Shopping Center, has always been an innovative retailer. For the past 22 

years as owner and operator of Island Ace, Terry’s entrepreneurial spirit 

is manifested in the business he has worked so hard to develop. That is 

just another reason Kaua‘i Island Utility Cooperative (KIUC) would like 

to commend him on being the first large installation of light emitting 

diode (LED) technology lighting on Kaua‘i. 

In today’s economic climate, it takes a leap of faith to make an 

investment like Terry has made. Although he already had energyefficient 

T-8 fluorescent lighting, Terry has taken the need for greater 

cost control to the next level, while preserving quality customer service. 

Although LED technology is not new, its varied application is only now 

being recognized. Improved design, application, long life and acceptability 

have brought the cost down. Measured against the high energy cost we 

are faced with, the return on investment is more easily justified. 

With the added benefit of no heat (reducing air conditioning load) 

and longer life (50,000+ hours) this may be the solution for many KIUC members. Remember, if Terry can justify 

the savings from his already efficient T-8, just think of the added savings when converting from old T-12 fluorescents. 

KIUC’s incentive of 50 percent of the project cost represents the co-op’s commitment and support of new technologies 

that are moving into the mainstream. 

Congratulations, Terry! We thank you for making this project happen and look forward to hearing what your 

customers think of this innovative technology. 

If you have a business, large or small, and want to participate in the Commercial Energy Wise Program, call Paul Daniels 

at 246.8275. 

FAQs ABOUT SURGES AND SURGE PROTECTION 

What is a meter-base surge protector? 

A meter-base surge protector is a high-energy surge 

protection device installed behind the electric meter of 

your house. All power coming into your home runs 

through the meter-base surge protector, making it the first 

stage of protection against surges. 

Will the meter-base surge protector protect all 

my equipment? 

No, not by itself. The meter-base device offers excellent 

protection for standard “white appliances” such as 

dishwashers, washing machines, dryers, refrigerators, 

freezers and stoves. Surges can enter the home by other 

means, such as phone and cable television lines. Small 

spikes can occur when various appliances within the 

home turn on and off. 

Electronic devices connected to phone, fax, cable TV lines 

and any other electronic devices with sensitive 

microprocessor electronics should be protected with 

premium plug-in point-of-use devices purchased through 

KIUC. This two-stage approach will provide the greatest 

defense and superior protection from both externally and 

internally generated surges. 

Can I take it with me when I move? 

The meter-base surge protector is rented, so you can 

request the program for your new residence. There will be 

a $40 cost for installation at the new residence and the 

monthly charge will apply. Point-of-use protectors are 

purchased outright from KIUC, so you can take them to 

the new location. 

How do I know if the device is still working? 

The meter-base device and the point-of-use devices have 

indicator lights that let you know they are functioning. If 

the light on the meter-base device goes out, call KIUC 

immediately at 246.8284. If the indicator light on the 

plug-in device goes out, the device should be replaced. 

Will these devices stop the surges that cause 

my clocks and VCR to blink? 

Blinking clocks and VCRs are caused by power 

interruptions, not electrical surges. Surge protection 

equipment will not reduce or prevent power 

interruptions. 

JUNE/JULY 2009 7

Storm 

Sense 

A Practical Guide to 

Emergency Preparedness 

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. 

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). 


When a Hurricane is 

Forecast for Kaua‘i 

Once gale force winds are reached, Kaua‘i Island Utility 

Cooperative (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. 

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. 

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. 

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.

■ Portable radio 

■ Extra batteries 

■ Flashlight(s) and candles 

■ Manual can opener 

Survival Kit 

■ First aid kit, special medications 

and an extra pair of eyeglasses, if 

you wear them 

■ Five-day supply of nonperishable, 

ready-to-eat food; an 

ice chest and blue-ice packs 

■ Containers of water (minimum 2 

quarts per person per day) 

■ 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 

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 up-todate, 

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 

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 

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. 

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. 

JUNE/JULY 2009 9

In the past, like many other Americans, I took the U.S. Navy for granted, thinking it was for young kids to see 

the world and career officers to put in their time prior to some cushy government job. 

Recently, I had the opportunity, courtesy of the Commander of the U.S. Pacific Fleet's DV Program to fly to the 

nuclear aircraft carrier USS John C. Stennis, spend two days on it on an official tour, observing day and night 

flight and other operations, and was catapaulted off its deck. I came away with so much respect and 

appreciation for these men and women in the Navy and other military branches. There were 19- and 20-yearold 

personnel responsible for the multi-million dollar jets, bombs and nuclear reactors. What I saw, from the 

Commander on down to the enlisted men, was so much dedication, order and perfection. I was very impressed 

with the captain and the crew of the USS John C. Stennis. 

They are our ambassadors to the rest of the world. They are prepared to protect us at the drop of a hat. 

We sit at home complaining about nuclear power in our backyards, while we expect these men and women to 

live above nuclear reactors, bombs and millions of gallons of jet fuel. 

Those of you who have served in the United States military, I take my hat off to you. No rhetoric will 

adequately express my appreciation. All I can say is “Thank you.” 

Thank you and God bless those who have served and those serving in the U.S. Armed Forces. Because of you, I 

can say I am proud to be an American. 


Aloha, 

Dennis M. Esaki

A MESSAGE FROM THE CHAIRMAN 

Aloha. 

In May, your Legislative Committee met with our congressional delegation in Washington, D.C., to discuss many 

issues that affect Kaua‘i Island Utility Cooperative (KIUC). Among the topics discussed were climate change 

legislation, a renewable energy standard, an energy-efficiency resource standard, the Rural Utilities Service and 

undergrounding of electric lines in the Wailua Corridor. These discussions were with U. S. Representatives Neil 

Abercrombie and Mazie Hirono and Senators Daniel K. Akaka and Daniel K. Inouye. They were supportive of 

our concerns. 

The committee also met with our member from Līhu‘e, General Eric Shinseki, who is serving as secretary of 

Veterans Affairs. He showed great interest in renewable projects in the Līhu‘e area. 

A strategic planning retreat is scheduled for July. Committee Chairman Peter Yukimura and his committee are 

hard at work in preparing for this event. 

Our staff continues to put in long hours in preparation for our rate case filing with the Public Utilities 

Commission. Chief Financial Officer David Bissell and our consultants, R. W. Beck and Associates, are guiding 

the process. 

We were saddened to receive the resignation of Dennis Esaki, our former chairman. He led our board and co-op 

for three years with a commendable leadership style. His contributions to KIUC are many. His service as the 

director from Hawai‘i at the National Rural Electrical Cooperative Association did not go unnoticed. Our 

national president appointed him to serve as chairman of the Marketing, Communications and Business 

Development Committee. The Board of Directors at KIUC joins me in wishing Dennis the best in his current and 

future business endeavors. 

Teofilo “Phil” Tacbian 

Chairman, KIUC Board of Directors 

KIUC PATRONAGE CAPITAL REFUNDS 

TOTALING $2.4 MILLION TO BEGIN 

ARRIVING MID-JULY 

After receiving approval from the Rural Utilities Service 

(RUS) in May, Kaua‘i Island Utility Cooperative and the 

Board of Directors began making arrangements to 

disburse checks and account information to the 

membership totaling $2.4 million. That is 25 percent of 

the $9.6 million in margins generated by KIUC in 2008. 

Checks will be issued for refunds totaling $10 or more. If 

the amount is less than $10 and the member has an active 

account, the amount will be credited to the member’s 

account. If the refund amount is less than $10 and the 

account is inactive, the amount will remain in the 

member’s patronage account until the cumulative refund 

amount is $10 or more. For an average residential account 

that consumed about 430 kilowatt-hours a month, the 

average refund check will be approximately $27. 

Members can expect refunds to arrive mid-July. 

JUNE/JULY 2009 11

KIUC CEO Randy Hee answers a question during the June 3 public 

meeting about KIUC’s recent application for a rate increase. 

Facing monthly losses for the first time since becoming a 

customer-owned cooperative, Kaua‘i Island Utility 

Cooperative (KIUC) is seeking a new rate schedule that 

will increase revenues by 10.5 percent—about $16 a 

month for an average residential consumer. 

The new rate proposal is scheduled to be presented to the 

state Public Utility Commission around July 1. 

KIUC Chief Financial Officer David Bissell said the 

utility’s revenues are slightly below costs for the first five 

months of the year. 

The rate proposal calls for slightly reduced pass-through 

costs when oil prices rise, but higher base rates, so bills 

will be somewhat higher for the same amount of power. 

The utility’s current rates were established 13 years ago. 

While costs have risen, the company has been able to 

delay increasing rates by balancing increased expenses 

with significant increases in efficiency of its power plants 


KIUC’S RATE CASE 

and an increasing customer base. This year, however, the 

continued increase in costs plus a declining economy 

caught up with KIUC. 

The island’s last electric rate case was completed in 1996, 

when crude oil prices were around $20 a barrel, 

compared with nearly $70 in early June 2009. 

Because most fuel costs are passed directly through to the 

consumer, those don’t damage the co-op’s bottom line. But 

some fuel costs based on the 1996 oil price are included 

in base rates. Other costs also are hurting the co-op. 

During the past 13 years, virtually all the utility’s 

expenses have risen: salaries, lubricating oil, copper wire, 

utility poles and the trucks repair crews drive. The 

Consumer Price Index—the national standard for the 

changing cost of goods and services—has gone up from an 

annual average of 156.9 in 1996 to 215 for 2008. That is 

a 37-percent rise during a period when base electric rates 

on Kaua’i have stayed flat. 

KIUC President Randy Hee said improved operating 

efficiency has helped keep the company balance sheets 

positive. But electricity users have trimmed their power 

consumption to the lowest amount in the island’s recent 

history. In May, average monthly residential use dropped 

from a long-term average of 520 kilowatt-hours (kWh) to 

430 kWh. 

That may be a conservation response to last year’s spike 

in fuel costs, or the current recession. It also might be a 

new energy-efficiency effort by the public. It has been 

suggested a cut in tourism means lower power use in 

rental home and condominium units. While it is unclear 

which factor plays the biggest role, power consumption is 

way down. That means KIUC is selling less power, and 

bringing in less revenue. 

The company launched a cost-cutting drive, reducing its 

operating costs by $1 million and its capital costs by $6 

million for 2009, Bissell said, noting that has not been 

enough to keep the balance sheet in the black. 

KIUC’s sales in 2008 were down 3 percent from 2007. In 

the first quarter of 2009, they were down 8 percent from 

the same period in 2008. In May 2009, energy sales were 

down 14 percent from May 2008. The decline is 

unprecedented in Kaua’i electric utility history. 

The utility’s margins are reduced $2.5 million with every 

5 percent drop in energy sales. 

“If sales stay down, our financials will continue to be 

under stress,” Bissell said. 

KIUC officials have recognized for some time that they 

would need more revenue, and that the cooperative 

should overhaul the way rates are calculated.

There are several significant problems with the 1996 rate 

structure: 

• Base rates are too low, since it now costs KIUC more to 

deliver power to customers than it can legally charge. 

• The portion of fuel costs included in the base rate 

doesn’t account for fluctuations in the price of fuel. 

• The portion of fuel costs passed through to members, 

called the Energy Rate Adjustment Clause (ERAC), 

provides an incentive to the utility when fuel prices go 

up, meaning consumers pay more than the equivalent 

rise in oil cost. In the ERAC under the new rate 

proposal, for every dollar fuel prices rise, the utility 

would charge 10 cents less than it now does. 

• Most of the increase is due to non-fuel charges, which 

have risen dramatically since the 1996 rate case. 

• Because of reduced revenues under the 1996 rates, the 

utility is in violation of one of the terms of its loan from 

the USDA’s Rural Utilities Service. KIUC is required to 

have enough revenue to cover its interest costs 1.25 

times. This is called Times Interest Earned Ratio 

(TIER). KIUC needs a revenue boost to be in 

compliance with its TIER commitment. 

In preparation for determining a new rate structure , the 

utility has prepared four reports during the past several 

months: a depreciation study to calculate the value of 

equipment and what it will cost to repair or replace it; an 

equity management plan to determine major financial 

demands, such as paying down loans and investing in 

new renewable energy systems; a cost-of-service study to 

identify the direct costs to deliver power to different 

classes of consumers; and a revenue requirements study 

to look at issues such as lifeline rates, and efficiency and 

conservation incentives. 

There are three basic components to KIUC’s electric bill. 

Here is how they would change from current rates to 

proposed rates: basic customer charge, from $9.72 to 

$10.74; non-fuel charge, from $.12169 to $.16964 per 

kWh; and a fuel and power purchase charge (the ERAC), 

from $.16916 to $.15174 per kWh. 

For the average user of 500 kWh, the corresponding bill 

charges increase from $9.72, $60.85 and $84.58 ($155.15 

total) to $10.74, $84.82 and $75.87 ($171.43 total). 

For more information about KIUC’s finances and its rate 

proposal, visit www.kiuc.coop. 

For answers to questions about the rates, call Anne Barnes at 

246.4383. For information on how to control monthly bills, 

including the use of solar incentive programs, home energy 

audits and more, call Ray Mierta at 246.8284. 

KIUC CFO David Bissell, below left, and CEO Randy Hee, below right, discuss the reasons for the planned rate increase during a June 3 

public meeting. 

JUNE/JULY 2009 13

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] 

Rate Class of Service Schedule 2003 

REVENUE 

2004 2005 2006 2007 2008 

Residential D $34,701,836 $41,852,500 $46,270,326 $52,568,487 $58,823,116 $67,521,772 

General Lighting Service G $14,861,903 $17,311,614 $19,143,057 $21,628,661 $23,967,162 $27,098,626 

General Lighting Service J $12,530,621 $15,002,979 $17,059,100 $19,001,879 $20,935,075 $23,757,990 

Large Power P $11,619,879 $27,067,200 $30,649,677 $34,296,005 $39,318,452 $48,260,251 

Large Power L $22,510,672 $13,942,418 $15,750,361 $17,003,777 $18,208,673 $20,939,501 

Streetlight SL $853,696 $974,405 $1,061,818 $1,195,058 $1,286,933 $1,457,504 

Irrigation $364,406 $399,640 $437,569 $190,176 $344,452 $415,411 

Total Revenue $97,443,013 $116,550,756 $130,371,908 $145,884,043 $162,883,863 $189,451,055 


KWH SALES 

Rate Class of Service Schedule 2003 2004 2005 2006 2007 2008 

Residential D 148,600,492 156,398,615 156,001,990 160,271,857 165,177,370 160,479,367 

General Lighting Service G 59,886,319 60,871,667 61,180,237 62,620,645 64,311,197 61,762,667 

General Lighting Service J 56,054,844 58,096,402 59,268,519 59,631,978 60,600,629 57,561,387 

Large Power P 104,546,321 108,152,641 109,014,761 109,605,596 116,805,413 118,083,102 

Large Power L 56,826,074 58,315,936 58,338,282 56,459,174 55,893,565 52,082,601 

Streetlight SL 2,328,446 2,420,871 2,493,688 2,601,027 2,643,480 2,637,376 

Irrigation 3,072,500 2,666,518 2,313,146 889,434 1,464,135 1,184,017 

Total KWH Sold 431,314,996 446,922,650 448,610,623 452,079,711 466,895,789 453,790,517 

AVERAGE RETAIL PRICE* 

Rate Class of Service Schedule 2003 2004 2005 2006 2007 

Residential D $0.234 $0.268 $0.297 $0.328 $0.356 $0.421 

General Lighting Service G $0.248 $0.284 $0.313 $0.345 $0.373 $0.439 

General Lighting Service J $0.224 $0.258 $0.288 $0.319 $0.345 $0.413 

Large Power P $0.111 $0.250 $0.281 $0.313 $0.337 $0.409 

Large Power L $0.396 $0.239 $0.270 $0.301 $0.326 $0.402 

Streetlight SL $0.367 $0.403 $0.426 $0.459 $0.487 $0.553 

Irrigation $0.119 $0.150 $0.189 $0.214 $0.235 $0.351 

*All-in cost including customer charge, applicable demand charges and surcharges. 

Fuel Mix Generation* 2003 2004 2005 2006 2007 2008 

Biomass 1,431,000 1,884,000 2,175,000 1,971,638 1,400,362 1,095,193 

Fossil Fuel 427,451,988 430,840,756 430,274,405 436,740,493 461,001,302 437,828,184 

Hydro 23,613,993 35,493,318 36,895,645 36,888,298 26,300,465 36,253,752 

Photovoltaic 66,000 90,315 202,500 373,000 522,769 1,124,406 

Total 

* Gross Generation kWh 

452,562,981 468,308,389 469,547,550 475,973,429 489,224,897 476,301,535 

Fuel Mix Percentage 2003 2004 2005 2006 2007 2008 

Biomass 0.3% 0.4% 0.5% 0.4% 0.3% 0.2% 

Fossil Fuel 94.5% 92.0% 91.6% 91.8% 94.2% 91.9% 

Hydro 5.2% 7.6% 7.9% 7.8% 5.4% 7.6% 

Photovoltaic 0.0% 0.0% 0.0% 0.1% 0.1% 0.2% 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 100%

What’s This All About? 

“Our Energy, Our Future” is a campaign to build a dialogue between America’s electricity 

consumers and elected officials. It’s about our nation’s pressing capacity crisis, the 

technology hurdles we face in developing new, less carbon-intensive power generation, and 

the need to keep electricity affordable while achieving climate change goals. 

We need to begin a conversation now to prompt bipartisan political action, set achievable 

goals, and prepare for what all of this will mean to our monthly electric bills. As co-op 

members, we are consumers and owners of our local electric utility. It’s our responsibility to 

make our voices heard before decisions are made that affect our energy and our future. 

? ? ? 

www.ourenergy.coop 

LED Technology 

Lighting Our Future 

KIUC is hosting an informative workshop on energy-efficient 

light emitting diode (LED) technology. 

Mainland presenters will be discussing and demonstrating a variety 

of LED lighting for both home and commercial applications. 

Workshop Location: 

KIUC Main Conference Room 

Friday July 31, 2 p.m. - 4 p.m. 

(Limited Seating) 

Call Paul Daniels for information or to RSVP at 246.8275 

JUNE/JULY 2009 15

2009 SPOTLIGHT ON 

EXCELLENCE AWARDS 

Kaua‘i Island Utility Cooperative (KIUC) recently took top honors in the 

2009 “Spotlight on Excellence” national awards program, sponsored by 

the Council of Rural Electric Communicators and the National Rural 

2007 

Electric Cooperative Association. KIUC received both a first-place Award 

of Excellence in the Best Annual Report Category for “2007 Annual 

Report, Thinking Beyond the Barrel” and an Award of Merit in the Best 

External Newspaper or Magazine Category for “KIUC Currents.” 

The Spotlight on Excellence awards competition is an annual event recognizing 

the top-rated communication and marketing efforts by electric cooperatives and 

related organizations. 

THINKING BEYOND THE BARREL 

“The judges’ descriptions of this year’s entries ranged from ‘extraordinary’ to 

‘impressive,’” said Maggie Tilley, administrator of Spotlight on Excellence. “The 

consistent comment was that consumers are being well-served by 

communications that seek to inform and to add value for co-op members.” 

Electric cooperative communicators and marketing professionals submitted more 

than 700 entries to the Spotlight on Excellence program, now in its 21st year. 

IMAGINE “On behalf of the Board of Directors of KIUC, I extend Congratulations to our 

THE POSSIBILITIES 

Communications Department on receiving the Award of Excellence for the 2007 

Annual Report and an Award of Merit for KIUC Currents Magazine,” said 

Chairman Phil Tacbian. Our thanks to Anne Barnes, Shelley Paik and Maile 

KAUA’I ISLAND UTILITY COOPERATIVE 2007 ANNUAL REPORT 

Moriguchi for a job well done. Keep up the good work and continue to put your 

best efforts in all you do. We are proud of you.” 

Child and Family Service/Kaua‘i Head Start provides 

preschool and comprehensive family services to 

Kaua’i’s income-eligible families in numerous locations 

throughout the island. The Head Start curriculum 

includes educational, social-emotional, health, and 

nutritional programs, as well as age-appropriate 

excursions for preschool children. Additionally, 

comprehensive services are provided for children with 

disabilities. Each Head Start center is licensed and 


Ly- 

emPOWERING 

August 2008 

October 2008 

our commUNITY 

December 2008 

staffed with a qualified head teacher and a classroom 

aide, and offers a variety of opportunities for families to 

participate as volunteers. Kaua‘i Head Start program 

options include both half day and full day centers. 

These centers are located in Kekaha, ‘Ele‘ele, Kōloa, 

Lihu‘e, Kapa‘a, and the Pre-Plus preschool in Kilauea. 

The Kaua‘i Head Start staff also provides transitioning 

services as the children get ready to move on to 

kindergarten. All interested families are encouraged to 

call 245.5914 for further information, or to request an 

application.

2009 SPOTLIGHT ON 

EXCELLENCE AWARDS 

Kaua‘i Island Utility Cooperative (KIUC) recently took top honors in the 

2009 “Spotlight on Excellence” national awards program, sponsored by 

the Council of Rural Electric Communicators and the National Rural 

2007 

Electric Cooperative Association. KIUC received both a first-place Award 

of Excellence in the Best Annual Report Category for “2007 Annual 

Report, Thinking Beyond the Barrel” and an Award of Merit in the Best 

External Newspaper or Magazine Category for “KIUC Currents.” 

The Spotlight on Excellence awards competition is an annual event recognizing 

the top-rated communication and marketing efforts by electric cooperatives and 

related organizations. 

THINKING BEYOND THE BARREL 

“The judges’ descriptions of this year’s entries ranged from ‘extraordinary’ to 

‘impressive,’” said Maggie Tilley, administrator of Spotlight on Excellence. “The 

consistent comment was that consumers are being well-served by 

communications that seek to inform and to add value for co-op members.” 

Electric cooperative communicators and marketing professionals submitted more 

than 700 entries to the Spotlight on Excellence program, now in its 21st year. 

IMAGINE “On behalf of the Board of Directors of KIUC, I extend Congratulations to our 

THE POSSIBILITIES 

Communications Department on receiving the Award of Excellence for the 2007 

Annual Report and an Award of Merit for KIUC Currents Magazine,” said 

Chairman Phil Tacbian. Our thanks to Anne Barnes, Shelley Paik and Maile 

KAUA’I ISLAND UTILITY COOPERATIVE 2007 ANNUAL REPORT 

Moriguchi for a job well done. Keep up the good work and continue to put your 

best efforts in all you do. We are proud of you.” 

Child and Family Service/Kaua‘i Head Start provides 

preschool and comprehensive family services to 

Kaua’i’s income-eligible families in numerous locations 

throughout the island. The Head Start curriculum 

includes educational, social-emotional, health, and 

nutritional programs, as well as age-appropriate 

excursions for preschool children. Additionally, 

comprehensive services are provided for children with 

disabilities. Each Head Start center is licensed and 


Ly- 

emPOWERING 

August 2008 

October 2008 

our commUNITY 

December 2008 

staffed with a qualified head teacher and a classroom 

aide, and offers a variety of opportunities for families to 

participate as volunteers. Kaua‘i Head Start program 

options include both half day and full day centers. 

These centers are located in Kekaha, ‘Ele‘ele, Kōloa, 

Lihu‘e, Kapa‘a, and the Pre-Plus preschool in Kilauea. 

The Kaua‘i Head Start staff also provides transitioning 

services as the children get ready to move on to 

kindergarten. All interested families are encouraged to 

call 245.5914 for further information, or to request an 

application.

Some of the 

National Deals 

offered on www.connections.coop 

5th Gospel Christian Bookstore 

Aloha Services 

Backdoor Hanalei 

Beachrail 

Buddha Boutique 

Edward Jones 

Hanalei Paddler 

Hanalei Surf Company 

JJ’s Broiler 

Jim Saylor Jewelers 

Lawai Cannery Self Storage & 

Warehouses 

Kaua‘i Inn 

Kaua‘i Self-Storage 

Local Deals 

Kaua‘i Memorial Gardens 

Kayak Kaua‘i 

Kujo’s Mini Mart 

Market Street Diner 

New Leaf Skin Care 

North Shore General Store 

Ohana Hearing Care Inc. 

Precision Tinting Kaua‘i 

Princeville Mail Center (Aloha 

Services) 

Progressive Expressions 

Sweet N Sassy 

Tropics Day Spa 

Wings Over Kaua‘i 

You Have the 

Power to Save 

Get connected with Co-op Connections 

As your electric cooperative, it’s 

important for Kaua‘i Island Utility 

Cooperative (KIUC) to provide its 

member-owners with safe, reliable 

power. Yet our service goes beyond 

the wires. It’s also important that 

we offer additional value that has a 

positive impact on everyone in the 

community. 

That’s why KIUC, in conjunction 

with the other Touchstone Energy 

co-ops serving 22 million 

member-owners 

nationwide, has 

launched the Co-op 

Connections 

program. The cardbased 

member 

benefit program is 

designed to deliver 

added value to our 

members, both 

residential and business, by 

offering valuable discounts at 

participating local and national 

businesses. 

The card also offers valuable 

pharmacy discounts of 10 percent 

to 60 percent off prescriptions. 

The pharmacy discount feature has 

made a huge impact nationwide, 

with a total of $6.7 million saved 

by co-op members since May 2007. 

It is important to note that the 

pharmacy discount is not for 

Members 

can pick up 

their card and key 

fobs at KIUC’s 

Līhu‘e business 

office. 

insurance and is not intended to 

substitute insurance. It does, 

however, give co-op members an 

opportunity to save. 

Whenever a Co-op Connections 

cardholder—whether from KIUC 

or from one of the hundreds of 

Touchstone Energy co-ops across 

the country—shows the Co-op 

Connections card at a 

participating business, they receive 

a discount. Equally, those 

businesses benefit from 

increased customer 

visits by co-op 

members 

participating in the 

program. And it’s 

easy to spot which 

local businesses are 

participating. Look for 

the Co-op Connections 

stickers in the windows, or 

simply log on to 

www.connections.coop and check 

out the list of participants. 

While our number one priority is 

keeping the lights on, KIUC is 

committed to bringing additional 

value to our members and the 

communities we serve. The Co-op 

Connections program is just 

another way to accomplish that 

goal. That’s the cooperative 

difference.

We’re always thinking of 

WAYS TO HELP 

Our Members 

save electricity. 

And then we thought, why stop there? 

To help our members save money on goods and 

services of all kinds, we started the Co-op Connections 

program. To help area businesses prosper and grow, we promote them free 

when they honor the Co-op Connections Card. 

Members take out the Co-op Connections Card anywhere they see a Co-op 

Connections sticker. They save. The business gains a new customer. Everyone wins. 

We believe in looking out for you. To learn more, visit www.kiuc.coop. 

Looking out for you.

Hot Months, 

Cool Snacks 

Sliders 

1 pound hamburger 

1 package onion soup mix 

2 slices bread (softened in water) 

1 egg 

1/4 cup water 

1/4 cup ketchup 

1 package dinner rolls, split and grilled 

1 roma tomato, sliced 

1 small onion, sliced 

Lettuce leaves 

Mix hamburger, onion soup mix, bread, egg, water and 

ketchup; shape into patties. Grill or fry for about 5 

minutes on each side, until the inside is cooked through. 

Serve on a split dinner roll with tomato, onion, lettuce or 

any of your favorite condiments. 


Clam Dip 

1 block cream cheese 

2 tablespoons mayonnaise 

1/4 teaspoon white pepper 

1/2 to 1 tablespoon Worcestershire sauce 

Lemon juice to taste 

1 can clams (save juice) 

1 tablespoon minced onions 

1/4 teaspoon garlic salt 

Soften cream cheese. Mix mayonnaise, minced onions, 

pepper, clams, garlic salt, Worcestershire sauce and lemon 

juice. Add clam juice to mixture depending on your 

desired consistency. Refrigerate before serving.

Guri-guri 

2 12-ounce cans strawberry guava juice 

1 12-ounce can 7 UP 

1 14-ounce can sweetened condensed milk 

Combine all ingredients in a large bowl and stir 

vigorously. Freeze for an hour or two. Remove from 

freezer and stir vigorously again (repeat at least twice). 

Transfer to individual serving containers and freeze until 

firm, a minimum of 8 hours, but preferably one day or 

longer. 

Kim Chee Party Dip 

1/2 cup kim chee, chopped finely 

2 tablespoons kim chee juice 

1 package cream cheese, softened 

Place all ingredients into a blender. Cover. Blend for one 

minute. Serve with crackers or chips. 

Tuna Sandwich 

1 can tuna 


Salt and pepper to taste 

6 slices bread 

1 tablespoon relish (optional) 

1 tablespoon onion, chopped (optional) 

1 tablespoon celery, chopped (optional) 

Open can; drain liquid. Mix tuna, mayonnaise and any 

optional ingredients. Add salt and pepper to taste. Spread 

mixture on bread. 

Egg Salad Sandwich 

3 eggs, hard boiled 


Salt and pepper to taste 

6 slices bread 

1 tablespoon relish (optional) 

Boil eggs and peel. Mash the egg and combine with 

mayonnaise and any optional ingredients. Add salt and 

pepper to taste. Spread mixture on bread. 

JUNE/JULY 2009 21

CHANGES TO KIUC’S 

MEMBERSHIP 

MEETING 

Kaua‘i Island Utility Cooperative (KIUC) has 

changed the date and venue of the Membership 

Meeting to Sunday, August 16, 2009, from 4 

p.m. to 6 p.m. at the Kaua‘i War Memorial 

Convention Hall. 

Doors will open at 4 p.m. All members will 

receive an annual report, Co-op Connections card 

and reusable shopping bag. All attendees will be 

served chili and rice bowls. As in previous 

Membership Meetings, the first 200 members will 

receive a bag of rice. 


We hope you will join us! 

Sunday, August 16, 2009 

4 p.m. to 6 p.m. 

Kaua‘i War Memorial Convention Hall 

KIUC NAMED IN SEPA 

“2008 TOP TEN UTILITY 

SOLAR INTEGRATION 

RANKINGS” 

Kaua‘i Island Utility Cooperative (KIUC) is among the 

top 10 utilities in the country when it comes to the 

amount of solar electric capacity per customer, according 

to the Solar Electric Power Association (SEPA). 

KIUC was listed in SEPA’s “2008 Top Ten Utility Solar 

Integration Rankings,” which was based on the 2008 

Utility Solar Electricity Survey completed by utilities in 

April 2009. The report catalogs how much solar 

electricity was interconnected by surveyed utilities in 

calendar year 2008 and what was installed cumulatively 

through the end of 2008, including both photovoltaics 

and concentrating solar power. 

KIUC ranked in the top 10 in 14 different categories: 

#1 – Annual (2008) customer-side of the meter – solar 

Watts per customer (47.1) 

#1 – Cumulative (through 2008) customer-side of the 

meter – solar Watts per customer (70.6) 

#1 – Annual (2008) total solar Watts per customer – 

West (47.1) 

#1 – Cumulative (through 2008) total solar Watts per 

customer – West (70.6) 

#1 – Annual (2008) customer-side of the meter solar 

Watts per customer – public power utilities (47.1) 


meter solar Watts per customer – public power 

utilities (70.6) 

#2 – Annual (2008) total solar Watts per customer (47.1) 

#2 – Annual (2008) total solar Watts per customer – 

public power utilties (47.1) 

#3 – Cumulative (through 2008) annual (2008) total 

solar Watts per customer – public power utilities 

(70.6) 

#4 – Cumulative (2008) total Watts per customer (70.6) 

#5 – Annual (2008) PPUs total solar Megawatts – public 

power utilities (1.5) 

#5 – Annual (2008) customer-side of the meter solar 

Megawatts – public power utilities (1.5) 


meter solar Megawatts – public power utilities (2.2) 

#6 – Cumulative (through 2008) PPUs total solar 

Megawatts – public power utilities (2.2) 

To view the full report, go to www.solarelectricpower.org.

STATEMENT OF 

OPERATIONS 

For the period 01/01/2009 – 4/30/2009 

By Karissa Jonas, Controller 

KIUC operations through April 30, 2009, are being 

impacted negatively by the weak economy and low fuel 

costs. Electricity usage on the island has significantly 

decreased, 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 the co-op’s loan covenants. Revenues, 

expenses, and net margins totaled $36.7 million, $36.8 

million and $0.1 million, respectively, for the four-month 

period ending April 30, 2009. 

As is the case for all electric utilities, the cost of power 

generation is the largest expense, totaling $18.5 million 

or 50.3 percent of revenues. Fuel costs are the largest 

component of power generation, totaling $13.8 million or 

37.5 percent of revenues, and representing 74.6 percent 

of the cost of power generation. As a point of reference, 

fuel costs have decreased by 55 percent or $16.7 million, 

from $30.5 million a year ago. This has resulted in the 

substantial decrease in the member’s monthly electric 

bills. The remaining $4.7 million or 12.8 percent of 

revenues and 25.4 percent 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 $1.6 million or 4.3 percent of total revenues. The 

cost of servicing our members totaled $1.3 million or 3.4 

percent of revenues. Administrative and general costs— 

which include marketing and communications, legislative 

and regulatory expenses, engineering, executive, financial 

Depreciation & 

Amortization 

15.3% 

Administrative & 

General Net 

of Non-Operating 

Margins 

9.8% 

2 Days 

110 miles 

August 8-9, 2009 

Taxes 

8.5% 

Percentage of Total Revenue 

Member Services 

3.4% 

Interest 

8.7% 

and corporate services, and board of directors expenses— 

totaled $3.9 million or 10.5 percent of revenues. 

Being very capital intensive, depreciation and 

amortization of the utility plant costs $5.6 million or 15.3 

percent of revenues. Although not subject to federal 

income taxes, state and local taxes amounted to $3.1 

million or 8.5 percent of revenues. Interest on long-term 

debt, at a very favorable sub-5 percent interest rate, totals 

$3.2 million or 8.7 percent of revenues. Non-operating 

net margins added $0.3 million to overall net margins. 

Revenues less total expenses equal margins of ($0.1 

million) or (0.3 percent) of revenues. Margins are 

allocated to consumer members and paid when 

appropriate. 

PARTING SHOT 

Net Margins 

-0.3% 

Transmission & Distribution 

Operation & Maintenance 

4.3% 

www.ParadiseRideKaua‘i.com 

Fuel & Purchased 

Power Costs 

37.5% 

Production Operation & 

Maintenance 

12.8% 

The annual fundraising event for Malama Pono Kaua‘i AIDS Project 

www.malama-pono.org 

We’re always looking for interesting items to feature in Parting Shot. If 

you have an item to share with readers, please e-mail 

currents@kiuc.coop or send it to: KIUC Currents, 4463 Pahe‘e Street, 

Suite 1, Līhu‘e, HI 96766-2000.

HI-130 

Powerlines 

Aloha mai kākou, 

We were surprised by Dennis Esaki’s recent announcement of his resignation 

from the Kaua‘i Island Utility Cooperative (KIUC) Board of Directors. We would 

like to thank him for all he has done for KIUC. Dennis has served KIUC and its 

members well. He was one of KIUC’s founding directors, has served on the board 

as an elected director and answered the call as a board appointee. Dennis also led 

our cooperative as its chairman. We appreciate his willingness to serve our 

cooperative and the community, and for all he has done for KIUC; we wish him 

the best of luck. 

Our board, staff and consultants have been busy developing a rate application that 

will be set before the Hawai‘i Public Utilities Commission for consideration. 

Recent global economic difficulties have affected our island as well, and have left 

us in a situation that requires us to increase our rates. As discussed in our public 

informational meetings, and in this month’s magazine, KIUC will be seeking a 10.5-percent increase in revenues 

based on the 2010 budgeted year. We held three informational meetings in the past few months and want to thank 

all of our members who took the time to come out and listen to us, ask questions and share their thoughts. 

One question that was asked at each of the meetings was: “You encourage us to install efficient compact fluorescent 

bulbs and efficient appliances and to conserve energy. Aren’t you now asking us to pay more for using less energy?” 

Yes, we are asking you to pay a little more for using less. But the benefits to you for using efficient lighting and 

appliances and for simply not using electricity far outweigh the increase we are asking you to bear. A simple 

example is that using compact fluorescent bulb saves you more than 50 percent in energy for the same amount of 

light it produces. Using energy wisely is always the right thing to do, and KIUC will continue to encourage energy 

efficiency. As we proceed through this rate case, we encourage any member who has a question to give me a call at 

246.4389. 

We are again in our hurricane season and should never forget how devastating they can be. This month’s issue 

includes some tips that can help you prepare at home. Your safety is our primary concern, and a little preparation 

can go a long way. Check your workplace and your children’s schools to ensure you know what their disaster 

preparations call for. Remember, hurricanes aren’t the only things we should be prepared for. 

I would like to congratulate our Marketing and Communications team for being honored with two 2009 Spotlight 

on Excellence national awards: an Award of Excellence for Best Annual Report and an Award of Merit for Best 

External Newspaper/Magazine. These awards truly reflect the dedication and effort they give to our cooperative. 

Mahalo! 

Randall J. Hee 

President and CEO

KIUC's Rate Case - Kauai Island Utility Cooperative

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