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“Phil” Tacbian - Kauai Island Utility Cooperative

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April/May 2009<br />

New Board Chairman<br />

Teofilo <strong>“Phil”</strong> <strong>Tacbian</strong>


Aloha <strong>Island</strong> Properties<br />

EXCEEDING YOUR EXPECTATIONS<br />

(808) 246-0334<br />

Sun Village #B-407<br />

Highly Desireable 4th Floor, 2 Bed, 2 Full Bath<br />

condominium at Sun Village. Gorgeous OCEAN<br />

VIEWS and Spacious Open Beam Ceilings! This is<br />

an End unit which enhances the feel of privacy.<br />

Pride in ownership is reflected in this extremely<br />

well maintained unit. $270,000(fs). Call: Karen<br />

Agudong® 652-0677<br />

Prime location for this turn-key eclectic Boutique at<br />

one of Kaua‘i’s Premier Resorts. Diverse inventory of<br />

Clothing, Beachwear, Designer Purses and hand bags<br />

offer the visitor and local clientele to the resort variety.<br />

Purchase price includes over $95,000 in wholesale<br />

inventory, fine furniture and fixtures. Call Charlotte<br />

Barefoot(R) 651-4627. $175,000(lh).<br />

FIXER for $275,000(fs) -<br />

5343-A Kawaihau Road, Kapaa<br />

Price Reduced again! Make Offer! Great Handyman<br />

or contractor opportunity for this 4 Bedroom Home in<br />

Kapaa. Needs alot of work but has alot of potential.<br />

Sold AS-IS. Karen Agudong® 652-0677 or Kaye<br />

DeFranceaux Leonard(RA) 634-8697<br />

Regency Huleia<br />

Like new townhome at Regency Huleia with 2 master<br />

bedrooms and 2.5 baths. End unit with many tasteful<br />

upgrades and vaulted ceilings, corian counters, quality<br />

appliances and tile flooring on entry level and<br />

bathrooms. The private back lanai faces a wide green<br />

belt surrounded by lush foliage. Call: Crystel Chong<br />

Tim(RA) 635-3484 or Judy Piano(RA) 651-9230.<br />

$429,000(fs)<br />

1050 Kamalu Road – B,<br />

Wailua Homesteads<br />

Exceptional value for this Beautiful and Very<br />

Spacious Flag lot on over a quarter acre in Wailua<br />

Homesteads. Located near the Sleeping Giant<br />

Hiking Trail. One of the lowest priced lots for this<br />

size. ONLY $205,000(fs). Call: Charlotte Barefoot®<br />

651-4627 or Karen Agudong® 652-0677<br />

2775 Kepa Street, Lihue<br />

Located in desirable Ulu Mahi Subdivision. This<br />

unique 3 Bed, 2 Bath home of almost 2,000 s.f. has<br />

endless opportunities for entertaining plus a<br />

beautiful swimming pool in the back yard. Inviting<br />

floor plan with open beam ceilings, arched<br />

entryway and laminate flooring throughout the<br />

living area, kitchen and dining area. Vaulted<br />

ceilings accent the dining area and built in buffet.<br />

$675,000(fs). Call: Crystel Chong Tim(RA) 635-<br />

3484.<br />

ONLY $399,000(fs).<br />

1050 Kamalu Road, Wailua<br />

One of the Lowest Priced Homes in Wailua<br />

Homesteads! Charming Home. Oak Wood Floors and<br />

Roomy Kitchen. Located on a spacious lot near the<br />

Sleeping Giant hiking trail. Areka Palms in front of<br />

the home enhance privacy. Beautiful Mountain<br />

Views. Priced to sell! Make Offer! Call: Karen<br />

Agudong® 652-0677<br />

Halelani Village<br />

Several great units to choose from. Rim Location<br />

with Beautiful Mountain Views and spacious Back<br />

Yard; completely reburbished. ONLY<br />

$210,000(fs). Upstairs, Corner with beautiful<br />

Renovations, available for only $199,000(fs).<br />

Call: Karen Agudong® 652-0677 or Sharon<br />

Gibson(RA) 635-1530.<br />

Aloha <strong>Island</strong> Properties 3-3359 Kuhio Highway, Lihue, HI 96766<br />

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


Simple Pleasures<br />

KIUC was recently given an award by the Filipino<br />

Chamber of Commerce for its participation in the<br />

Bring a Book Build a Library program.<br />

Simple Pleasures is a section for our members to share their favorite place,<br />

favorite pastime or something that makes them happy. Share your Simple<br />

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

Līhu‘e, HI 96766-2000, or email currents@kiuc.coop.<br />

4463 Pahe‘e Street, Suite 1, Līhu‘e, Hawai‘i 96766-2000<br />

808.246.4300 www.kiuc.coop currents@kiuc.coop<br />

KIUC BOARD MEMBERS Teofilo <strong>“Phil”</strong> <strong>Tacbian</strong>, Chairman; Dennis Esaki,<br />

Chairman Emeritus; Peter Yukimura, Vice Chair; David Iha, Secretary;<br />

Allan A. Smith, Treasurer; Carol Bain, Stu Burley, Steve Rapozo, Ben<br />

Sullivan<br />

PRESIDENT & CEO Randall J. Hee<br />

EDITOR Anne Barnes, Marketing, Communications & Public Affairs<br />

ASSISTANT EDITORS Shelley Paik and Maile Moriguchi, Marketing,<br />

Communications & Public Affairs; Pam Blair, Ruralite Services<br />

CONTRIBUTING WRITERS Walt Barnes, Pamela Varma Brown, Paul<br />

Daniels, Teofilo <strong>“Phil”</strong> <strong>Tacbian</strong>, Randall J. Hee, Ray Mierta, Maile<br />

Moriguchi and Shelley Paik.<br />

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

April/May 2009<br />

Volume 6, Number 2<br />

Table of Contents<br />

Simple Pleasures . . . . . . . . . . . . . . . . . . . . . . 3<br />

Energy Services Round Up For 2009 . . . . 4<br />

A Picture’s Worth . . . . . . . . . . . . . . . . . . . . . 5<br />

Co-op Begins 2009 Rebates for Efficient<br />

Appliance Replacement . . . . . . . . . . . . . . 5<br />

Light Up A Life . . . . . . . . . . . . . . . . . . . . . . . . . . 6<br />

Practical Solutions for Reducing<br />

Your Electric Bill . . . . . . . . . . . . . . . . . . . . . . . 7<br />

Buy Clothes Washers That Make A<br />

Difference and Collect $50 . . . . . . . . . . . . . . 8<br />

A Message from the Chairman . . . . . . . . . 9<br />

Future Meetings of the Board . . . . . . . . . . . . . 9<br />

2009 Directors Election Results . . . . . . . . . . 10<br />

2009-2010 Board of Directors . . . . . . . . . . . 11<br />

KIUC Board Profiles . . . . . . . . . . . . . . . . . . . . 12<br />

KIUC Charitable Foundation . . . . . . . . . . . 13<br />

Co-op Connections . . . . . . . . . . . . . . . . . . . 16<br />

A Director’s Job . . . . . . . . . . . . . . . . . . . . . . 18<br />

Five Meals for $15 or Less . . . . . . . . . . . . . 20<br />

Public Attendance and Procedures<br />

for Public Testimony . . . . . . . . . . . . . . . 22<br />

Statement of Operations . . . . . . . . . . . . . . 23<br />

Parting Shot . . . . . . . . . . . . . . . . . . . . . . . . . 23<br />

Powerlines . . . . . . . . . . . . . . . . . . . . . . . . . . . 24<br />

New Board Chairman Teofilo <strong>“Phil”</strong> <strong>Tacbian</strong>.<br />

See KIUC Board Profiles on page 12 for more<br />

information on all of the members of the 2009-<br />

2010 Board of Directors.


ENERGY SERVICES ROUND UP FOR 2009<br />

By Ray Mierta<br />

Here is a look at the residential energy service programs<br />

Kaua‘i <strong>Island</strong> <strong>Utility</strong> <strong>Cooperative</strong> (KIUC) has planned for<br />

2009. Remember: Incentives are available on a first-come,<br />

first-served basis. Since funding is limited, it is best to<br />

participate as soon as you hear about program availability.<br />

KIUC will do its best to let you know Watts Up and<br />

coming for the year to help you plan ahead.<br />

Appliance Efficiency<br />

New appliances use less energy than older ones.<br />

Appliances with the Energy Star label save the most<br />

money because they exceed government efficiency<br />

standards. Although the savings from replacing any one<br />

appliance doesn’t seem like much, consider that you will<br />

be living with that appliance for 10 to 15 years. And the<br />

number of different appliances you replace with new ones<br />

will help the savings add up quicker.<br />

Efficient Appliance Replacement<br />

Refrigerator Rebates<br />

Starting February 1 through March 31, 2009, KIUC offered<br />

a $50 rebate for members replacing an existing refrigerator<br />

with a new one. All makes, models and sizes qualified. This<br />

is a replacement program, which means rebates were not<br />

available for purchasing a second refrigerator for your<br />

home or for a home you may be building. Multiple<br />

refrigerators will increase your monthly consumption.<br />

KIUC wants you to remove an older model and replace it<br />

with one that will use less electricity.<br />

Clothes Washer<br />

It is often best to plan for large purchases such as<br />

appliances. KIUC wants you to know it will be offering<br />

appliance rebates for different appliances throughout the<br />

year.<br />

A $50 rebate for clothes washers will be available from<br />

May 1, 2009, through July 1, 2009. Front-loading clothes<br />

washers use less energy than top-loading models. But any<br />

new washer will use less energy and water than older<br />

ones. If you have a clothes washer that is approaching 10<br />

years of age, look for KIUC rebates for this appliance<br />

during the summer.<br />

Dishwasher Rebates<br />

Most homes on Kaua‘i do not have automatic dishwashers.<br />

But if you do, KIUC wants you to change out your old one<br />

and save. Energy Star dishwashers use 25 percent less<br />

energy than a standard model, but any new dishwasher<br />

will be more efficient than your older one. Rebates for<br />

dishwasher replacement will be available from August 1,<br />

2009, to September 1, 2009, so plan ahead.<br />

Appliance rebate applications and program details are<br />

available at all appliance dealers on Kaua‘i or by calling<br />

246.8280.<br />

4 KIUC CURRENTS<br />

Light Up A Life<br />

KIUC will offer a free 20-Watt compact fluorescent bulb<br />

with every $5 food donation made at the KIUC office in<br />

Līhu‘e. Food donations will be accepted in conjunction<br />

with the Kaua‘i Food Bank’s annual food drives. KIUC<br />

also will accept checks made out to the Kaua‘i Food Bank<br />

for amounts of $5 or more. No cash is accepted. Please<br />

call 246.8284 for information, or stop by our lobby to see<br />

the display and make your contribution.<br />

FREE Refrigerator for Qualifying Seniors<br />

That’s right: KIUC is offering to replace older<br />

refrigerators for qualifying seniors at no cost. Applicants<br />

must meet age and income requirements, and the existing<br />

refrigerator must be at least 11 years old.<br />

For more information about this program for someone<br />

you know or for yourself, call the County Agency on<br />

Elderly Affairs at 241.4487. It will determine if you meet<br />

age and income requirements. If you do, KIUC will be<br />

notified and will determine the age of the refrigerator and<br />

arrange for a new one to be installed.<br />

Refrigerators can be the second-highest electricity user in<br />

the home after water heating. Solar water heating might<br />

not make sense for a one- or two-person household, so<br />

replacing the refrigerator is a cost-effective option.<br />

Solar Water Heating<br />

Most homes on Kaua‘i heat their water with electricity.<br />

For these homes, 40 percent to 50 percent of the monthly<br />

electric bill results from heating water. Heating water<br />

with the sun costs a lot less, but because of its high<br />

purchase cost, solar water heating may be out of reach for<br />

a lot of members.<br />

Did You Know?<br />

The state of Hawaii has made tax credits available for the<br />

installation of solar water heaters. The Hawaii tax credit is<br />

35 percent of the installed cost, with a cap of $2,250. The<br />

state solar tax credit expires at the end of 2009. The federal<br />

government is offering a 30-percent tax credit with no cap.<br />

Consult the person who prepares your taxes to see how<br />

these credits might apply to you.<br />

Solar Incentives From KIUC<br />

KIUC has two programs available for residential members<br />

to help with the cost of installing solar water heating.<br />

The KIUC solar rebate program is 10 years old. To obtain<br />

the rebate, the solar system must replace an existing<br />

electric water heater or an existing solar water heater that<br />

is 15 years old and not functional. The rebate is $800. An<br />

Energy Wise participating contractor must install the<br />

system. Detailed information about the solar rebate<br />

program is available by calling KIUC at 246.8280.


KIUC also offers a no-interest loan for solar water heating<br />

installations. No down payment is required. KIUC pays<br />

the interest and you can finance 100 percent of the<br />

system cost. The qualifying member will pay the loan<br />

back over five years. Systems will be installed by<br />

participating Energy Wise contractors.<br />

Program incentives cannot be combined. You have a<br />

choice of either a loan or a rebate.<br />

Solar Water Heater Savings Pilot Program<br />

There is still plenty of opportunity to participate in this<br />

solar pilot program mandated by the state of Hawaii. It<br />

allows for your existing electric water heater (gas water<br />

heaters do not qualify for this program) to be replaced by<br />

a solar water heater with no money paid up front. You<br />

have up to 15 years to pay the principal back. Your<br />

monthly payment for the system is made on your electric<br />

bill. This is a three-year pilot program, with a maximum<br />

of 25 participants each year. Call 246.8284 to request<br />

additional information.<br />

Solar Free<br />

Homeowners with existing electric water heaters who<br />

meet federal poverty income guidelines and other<br />

program requirements may qualify for a free solar water<br />

heater from Kaua‘i Economic Opportunity. Call KEO at<br />

245.4077 for more information.<br />

Commercial Retrofit Program<br />

Businesses large and small can benefit from the<br />

Commercial Retrofit Program. Rebates of up to 50 percent<br />

of the cost for the replacement of energy-saving<br />

equipment are available. Your business might even qualify<br />

for free compact fluorescent bulbs.<br />

A KIUC Commercial Energy Specialist will perform an<br />

energy evaluation on your facility to identify which<br />

effective energy-saving devices can be installed. He will<br />

identify which ones are most cost effective and tell you<br />

their rebate level. The areas that can achieve the greatest<br />

savings per dollar invested can be anything from lighting<br />

to motors to equipment controls. KIUC can even help<br />

with equipment operation and maintenance issues.<br />

KIUC also holds periodic workshops and seminars<br />

addressing energy issues of interest to commercial<br />

customers. They are open to the public<br />

Call our Commercial Energy Services representative at<br />

246.8275 to schedule an evaluation for your facility and<br />

to inquire about rebate levels.<br />

Energy Information<br />

Got a question about energy use in your home? Call the<br />

Energy Wise Guy at 246.8280. He can help you<br />

understand your energy use, provide suggestions for<br />

reducing your energy consumption and tell you about<br />

programs and services available from KIUC.<br />

Home Visits<br />

The Energy Wise Guy makes home visits. KIUC offers<br />

home visits to customers who have questions about<br />

electric consumption at their homes. A representative will<br />

review the list of appliances in the home, discuss energy<br />

A Picture’s Worth...<br />

For this issue of “A Picture’s Worth” we are pleased to feature Beachrail Lines, located at Harbor Mall in Līhu‘e. The<br />

business was established in 1990 in Cayucos, California. Digby Stuart-Williams and Sandy Brightwell (pictured),<br />

owners of Beachrail, moved to Kaua‘i in 2004 and continue to offer Hawaii residents and travelers alike quality<br />

service.<br />

For you kid’s at heart, Beachrail customers can expect to find Lionel, Corgi,<br />

Model Power, Tamiya and other well-known and often hard-to-find products<br />

by reputable manufacturers. Sandy and Digby’s philosophy is to sell product<br />

lines that support customer service and quality products such as Bruder,<br />

Schleich, Safari, Folkmanas, Testors, Revell and many others, including<br />

their most popular items, Thomas and Friends, Lionel, Model Master<br />

Supplies and model kits, die-cast cars, planes and handcrafted model ships.<br />

In line with Sandy and Digby’s personal commitment to energy efficiency<br />

and environmentally minded concerns, Beachrail is always adding new lines<br />

to its ever-growing inventory, featuring energy conservation teaching items<br />

such as Thames & Kosmos renewable energy science kits—great for school<br />

projects or home schooling.<br />

Having installed energy-efficient compact fluorescent track lighting with<br />

KIUC assistance, Sandy and Digby also are supporters of KIUC’s<br />

community-related programs. They are participants in KIUC’s “Co-op<br />

Connections Card” program.<br />

Thank you, Beachrail!<br />

If you have a business, large or small, and want to participate in the<br />

Commercial Energy Wise Program, call Paul Daniels at 246.8275.<br />

APRIL/MAY 2009 5


use habits and make recommendations that may result in<br />

lower electric use. He might even install energy-efficient<br />

showerheads, faucet aerators, a tank wrap and compact<br />

fluorescent light bulbs, if they are needed.<br />

Many things in a home can affect how we use electricity<br />

and how much we use, including the number, age and<br />

fuel source of appliances and the number of household<br />

members, their ages, education and income level. A home<br />

visit can help identify low- or no-cost recommendations<br />

that may involve minor habit changes or awareness<br />

building. Often, an older or malfunctioning appliance can<br />

be causing higher-than-necessary electric use. Call<br />

246.8280 to see if you would benefit from a home visit<br />

from a KIUC Energy Specialist.<br />

Surge Protection<br />

The Member Advantage Program is a service offered by<br />

KIUC that doesn’t involve electric reduction or address<br />

energy issues. The surge protection program offers<br />

members the opportunity to learn more about power<br />

quality issues that originate from within and from outside<br />

your home.<br />

All appliances can be damaged from power surges that<br />

arise from outside your home, mostly due to weather<br />

interactions with the KIUC system. Newer appliances are<br />

more susceptible to even minor fluctuations in power<br />

quality—the kind that comes from within your home.<br />

KIUC can help with both of these situations. KIUC<br />

provides equipment that can stop surges from entering<br />

LIGHT UP A LIFE<br />

KIUC partners with the Kaua‘i Food Bank to build awareness about hunger<br />

on Kaua‘i and to encourage food donations for families on the island.<br />

For the 2009 spring food drive, KIUC is serving as a drop off center for the Kaua‘i Food Bank.<br />

The promotion, called Light Up A Life, will provide one free compact fluorescent light bulb for a minimum $5 food<br />

donation that is made at the KIUC office at 4463 Pahee Street in Līhu‘e. The bulb is of high quality and replaces a<br />

standard 75-watt incandescent bulb. In a typical home, this bulb will save about $50 a year in electricity costs. The<br />

food donation can be made at the main KIUC lobby. The lobby receptionist will accept the donation and issue the<br />

bulbs Monday through Friday from 7:30 a.m. to 4:30 p.m.<br />

KIUC also will accept checks made out to the Kaua‘i Food Bank. No cash will be accepted.<br />

The spring food drive ends April 30, but KIUC will accept food donations—including tuna, pasta, rice, canned meat<br />

and canned vegetables—at the Hana Kukui Center in Līhu‘e through the month of May. So, there is plenty of time to<br />

contribute.<br />

KIUC wants to help Light Up A Life of those in need by helping to collect food and taking the opportunity to provide<br />

high-quality, energy-saving light bulbs to help with members’ energy-efficiency efforts. The bulbs will be available on<br />

a first-come, first-served basis until the stock on hand is depleted.<br />

“These are tough economic times,” said Barbara Nagamine, manager of Member Services for KIUC. “There is plenty<br />

of food on Kaua‘i. It’s just a matter of getting that food to those that need it the most. We are hoping that KIUC and<br />

the rest of the community can help accomplish that.”<br />

For more information, call KIUC Energy Services at 246.8284.<br />

6 KIUC CURRENTS<br />

your home through the electric service drop. High-quality<br />

plug-in surge protection for inside your home can stop<br />

internal power fluctuations and surges that come from<br />

your phone line, TV cable, satellite dish connection and<br />

Internet connection.<br />

Call 246.8284 for information and the fees associated<br />

with this program.<br />

Appliance Meters<br />

KIUC will lend you an appliance meter to help you see<br />

how much your large appliances are costing you to<br />

operate. Before you purchase a new refrigerator or freezer,<br />

it is often helpful to know how much your existing large<br />

appliance is using. This simple-to-use meter can be<br />

borrowed from KIUC to help you answer that question. It<br />

also may help you find a malfunctioning appliance—one<br />

that can be using way more electricity than it should.<br />

The meters can be borrowed from the KIUC office in<br />

Līhu‘e, with payment of a small deposit, for up to a week.<br />

Call 246.4300 ahead of time to check on availability.<br />

Meters come with easy-to-understand operating<br />

instructions and telephone help, if you need it.<br />

Wrap Up The Round Up<br />

That about wraps up the Energy Services Round Up for<br />

this issue. Thank you for taking the time to read about<br />

our program offerings. Be sure to give us a call to<br />

participate or if you have any questions.


PRACTICAL SOLUTIONS FOR REDUCING<br />

YOUR ELECTRIC BILL<br />

By Ray Mierta<br />

The cost of electricity is going up because prices for oil—<br />

the fuel KIUC uses to generate electricity—is increasing<br />

to historic highs. Take a few minutes to review these<br />

energy-saving tips. If you still have questions, answers are<br />

just a phone call away! Call Energy Wise at 246.8280.<br />

General Efficiency<br />

• Wash full loads of laundry. Air dry, if possible.<br />

• Always look for the highest Energy<br />

Star rating when you purchase new<br />

appliances. Call KIUC and ask<br />

about the 2009 efficient appliance<br />

rebate schedule.<br />

• Take showers instead of baths.<br />

• Shut off lights, computers,<br />

electronics and appliances when<br />

you are not using them.<br />

Water Heating<br />

• Look for the Energy Star label<br />

when purchasing a new water<br />

heater.<br />

• Better yet, install a solar water<br />

heater.<br />

• Turn your water heater off at the<br />

breaker switch when you will not<br />

be using hot water for two or more<br />

days in a row.<br />

• Make sure your water heater is<br />

properly sized for your home and<br />

the number of people in it. If your<br />

water electric heater is more than<br />

50 gallons, consider downsizing it.<br />

Lighting<br />

• Use compact fluorescent lights<br />

instead of incandescent bulbs.<br />

They last longer, and will save you<br />

money on your operating cost.<br />

• Use daylight as a source of light<br />

whenever possible.<br />

• Provide task lighting to a specific<br />

area rather than lighting up an<br />

entire room.<br />

• Keep fixtures clean. A dusty fixture<br />

may lead to using a higher-wattage<br />

bulb.<br />

<br />

Laundry<br />

• Use natural drying whenever possible. Save your<br />

electric dryer for rainy weather when you cannot<br />

hang your clothes outside to dry.<br />

• Wash clothes in cold water. Front-loading washers<br />

and liquid detergent make warm or hot water<br />

washing obsolete.<br />

MENTAL HEALTH FAIR<br />

May 16th, 2009<br />

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APRIL/MAY 2009 7


The annual energy-efficient appliance replacement<br />

promotion for clothes washers begins May 1 and<br />

ends June 30.<br />

To qualify, the clothes washer must be placed in<br />

service in a residential Kaua‘i <strong>Island</strong> <strong>Utility</strong><br />

<strong>Cooperative</strong> (KIUC) account and replace an existing<br />

operating machine. New construction does not qualify.<br />

The process is simple. Just visit a local appliance dealer<br />

on Kaua‘i, and choose the clothes washer that suits<br />

your needs. Ask for the Applaince Rebate Application<br />

and follow the easy instructions on the application. If<br />

you have questions, call KIUC at 246.8280.<br />

Make a Difference<br />

Any new clothes washer will use fewer resources<br />

than the one you are currently using. The older your<br />

existing model, the more you will save.<br />

How?<br />

High-efficiency motors and pumps make for lower<br />

use of electricity. Higher speed spin cycles remove<br />

more water, significantly reducing drying time. And<br />

don’t forget the water! New clothes washers use a lot<br />

less water than older models.<br />

Remember, your best energy-saving value is with<br />

Energy Star models. They are rated highest in<br />

efficiency. But any new clothes washer will qualify<br />

for the KIUC rebate as long as it meets the<br />

qualifications stated above.<br />

Clothes Washer Tips<br />

• Wash in cold water: About 90 percent of the energy<br />

consumed for washing clothes is due to heating the<br />

water. Unless you are dealing with oily stains, the<br />

cold water setting on your machine generally will do<br />

a good job of cleaning your clothes. Liquid detergents<br />

and high-efficiency washers have made hot and<br />

warm water washes obsolete. Using the cold cycle can<br />

cut your clothes washing cost by more than half!<br />

• Fill it up: Clothes washers use relatively the same<br />

amount of energy regardless of the size of the<br />

laundry load, so run full loads whenever possible.<br />

8 KIUC CURRENTS<br />

Buy Clothes Washers That<br />

Make A Difference and Collect<br />

$50 From KIUC!<br />

• Activate the high spin speed option: If your clothes<br />

washer has spin options, choose a high spin speed<br />

or the extended spin option to reduce the amount<br />

of remaining moisture in your clothes after<br />

washing. This decreases the amount of time it takes<br />

to dry your clothes.<br />

• Hang clothes outside: Air-drying clothes (indoors<br />

or outdoors) helps them last longer and saves lots<br />

of energy.<br />

• Leave the door open after use: Front-loading<br />

washers use airtight seals to make sure no<br />

moisture leaks while the machine is in use.<br />

However, when the machine is not in use, this<br />

seal can trap moisture in the machine. Leave the<br />

door ajar for an hour or two after use to allow<br />

the remaining moisture inside the machine to<br />

evaporate. Make sure children do not climb into<br />

the machine while the door is open.<br />

• Always use HE (high-efficiency) detergent:<br />

Front-loading clothes washers are designed<br />

specially to use only high-efficiency detergent.<br />

Using regular detergent in a front-loading<br />

washer will create too many suds in the<br />

machine. This leads to decreased washing and<br />

rinsing performance. Over time, it can lead to<br />

mechanical problems and foul odors.<br />

A BIG Thank You To All Who<br />

Participated In The Refrigerator<br />

Rebate Promotion…<br />

KIUC has processed more than 210 refrigerator<br />

rebate applications so far, and we are still<br />

counting! That is a lot of old refrigerators being<br />

replaced with new ones in a short two-month<br />

period and a lot of energy being saved. KIUC has<br />

you to thank.<br />

Rebates for replacing refrigerators will be available<br />

again next year, but if you haven’t replaced your<br />

old refrigerator with a new one, don’t wait until<br />

next year to do it. Start saving now!


A MESSAGE FROM THE CHAIRMAN<br />

Aloha.<br />

We are entering a new era at Kaua‘i <strong>Island</strong> <strong>Utility</strong><br />

<strong>Cooperative</strong> (KIUC), faced with many challenges on<br />

many fronts. I want to assure you, our members, that<br />

your board of directors and staff are up to the challenges.<br />

One of our concerns is in the area of legislation. The<br />

legislature is in session, and we are faced with legislation<br />

that could greatly impact our finances through taxation. We<br />

have been working with our legislators to protect KIUC’s<br />

interest in fuel tax legislation. Those efforts are led by our<br />

Committee on Governmental Relations and Legislative<br />

Affairs, headed by Allan Smith and David Iha, and our staff<br />

point persons, Mike Yamane, Carey Koide and Chief<br />

Executive Officer Randy Hee. We are so very grateful to Sen.<br />

Gary Hooser and Reps. Mina Morita, James Tokioka and<br />

Roland Sagum for looking after our interests in this area.<br />

This committee also is working with our congressional<br />

delegation and staff, looking after our interests at the<br />

federal level on issues such as the sea birds, stimulus<br />

funds and renewable projects.<br />

Since KIUC has been operating with rates that were set<br />

13 years ago, we are now considering a rate case to<br />

stabilize our rates. Our Chief Financial Officer David<br />

Bissell is working with our consultants, R.W. Beck, and<br />

will have more to report on this later.<br />

Our Strategic Planning Committee, headed by Peter<br />

Yukimura and staff member Steve Rymsha, has put<br />

together a group of projects in addition to ones that are<br />

ongoing. Topping the list are solar and hydropower. Wind<br />

has bird issues and wave is not proven yet.<br />

I want to welcome three new members to the board: Stu<br />

Burley, Steve Rapozo and Ben Sullivan. They come with<br />

varying experiences and backgrounds. They will be taking<br />

director training in June and, upon successfully<br />

completing it, will join the rest of your directors as<br />

Credentialed <strong>Cooperative</strong> Directors (CCD).<br />

We have very competent people serving on the board of<br />

directors and a professional staff. I am confident that<br />

together we can overcome our challenges for your benefit.<br />

Teofilo <strong>“Phil”</strong> <strong>Tacbian</strong><br />

Chairman, KIUC Board of Directors<br />

FUTURE MEETINGS OF THE BOARD OF DIRECTORS<br />

The KIUC Board of Directors will have regular meetings open<br />

to the public at 1:30 p.m., unless otherwise specified.<br />

April 28, 2009<br />

May 26, 2009<br />

June 30, 2009<br />

July 28, 2009<br />

August 25, 2009<br />

September 29, 2009<br />

October 27, 2009<br />

November 24, 2009<br />

December 22, 2009<br />

Please note that future board of directors meetings will be posted<br />

at www.kiuc.coop, along with agendas and minutes of meetings.<br />

The public is invited to all meetings.<br />

APRIL/MAY 2009 9


2009 BOARD OF DIRECTORS<br />

ELECTION RESULTS<br />

Kaua‘i <strong>Island</strong> <strong>Utility</strong> <strong>Cooperative</strong> (KIUC) announces that<br />

Ben Sullivan, Steve M. Rapozo and Stewart “Stu” Burley<br />

have been elected to KIUC’s Board of Directors. These<br />

three new directors will each serve three year terms<br />

ending in March 2012.<br />

The official results of the 2009 board of directors Election<br />

are as follows:<br />

Sullivan, Ben 3,652 22.49%<br />

Rapozo, Steve M. 2,874 17.70%<br />

Burley, Stewart “Stu” 2,354 14.50%<br />

Oda, Dane K. 2,131 13.12%<br />

Paler, Raymond W. 2,031 12.51%<br />

Georgi, JoAnne 1,967 12.11%<br />

Chung, Milton K. 1,223 7.53%<br />

Both of the proposed KIUC bylaw changes passed, with<br />

the following results:<br />

Should Section 2 (D) of Article III be amended to<br />

substitute the words “the Election Day” for the Words<br />

“said date” to clarify what date the words “said date”<br />

refer to?<br />

Yes 4,964 89.53%<br />

No 580 10.46%<br />

Should Section 10 of Article III dealing with “Quorum,<br />

Voting” be amended to provide that the quorum of the<br />

number of KIUC Directors necessary for the transaction<br />

10 KIUC CURRENTS<br />

of business at any regular or special<br />

meeting of the Board of Directors be set<br />

as a “majority” of the voting directors in<br />

office rather than “one-half (1/2),” and to<br />

provide that “all questions to be decided<br />

by the board be decided by a majority of<br />

the entire voting membership of the<br />

Board of Directors, whether present at<br />

the meeting or not (four [4] if the number<br />

of voting Directors is seven [7] and five<br />

[5] if the number of voting Directors is<br />

eight [8] or [9])” except as otherwise<br />

proven herein.<br />

Currently a quorum of the KIUC<br />

Directors to convene a meeting of the<br />

board is “one-half (1/2)” of the voting<br />

directors in office at the time of the<br />

meeting. This formula makes the quorum<br />

four (4) if the number of voting directors<br />

in office at the time is seven (7) and five<br />

(5) if the number of voting directors in<br />

office at the time is nine (9). However, if the number of<br />

voting directors in office is eight (8), a quorum is only<br />

four (4) and the vote necessary to decide a question, by<br />

law, is only a majority of the quorum or three (3)<br />

directors. This amendment ensures that no question of<br />

KIUC’s Board of Directors will ever be decided by less<br />

than a majority of the entire voting membership of the<br />

Board of Directors.<br />

Yes 4,923 88.94%<br />

No 612 11.05%<br />

KIUC received 6,679 qualified ballots in this election.<br />

While there were three available director slots to fill, not<br />

all voters chose to exercise all three votes on their ballot;<br />

therefore, the number of votes may not equal the total<br />

number of ballots received.<br />

KIUC management, with the assistance of Omaha-based<br />

Election Consulting Services Inc., announced the official<br />

tally.<br />

The new board members were inaugurated on March 31.<br />

Following the inauguration, the board held its regularlyscheduled<br />

meeting.<br />

The KIUC Board of Directors consists of nine elected<br />

representatives from the KIUC membership. The board<br />

governs the business affairs of KIUC, and is involved in<br />

the utility’s direction and greater courses of action rather<br />

than the day-to-day utility operations.


2009-2010 BOARD OF DIRECTORS<br />

T. Phil <strong>Tacbian</strong><br />

Chairman of the Board<br />

David Iha<br />

Board Secretary<br />

Stu Burley<br />

Board Member<br />

Dennis Esaki<br />

Chairman Emeritus<br />

Allan Smith<br />

Board Treasurer<br />

Steve Rapozo<br />

Board Member<br />

Peter Yukimura<br />

Vice Chairman<br />

Carol Bain<br />

Board Member<br />

Ben Sullivan<br />

Board Member<br />

The KIUC Board of Directors<br />

gives hundreds of hours each year<br />

on behalf of the member-owners<br />

to direct the cooperative. They<br />

approve annual operating budgets;<br />

construction work plans and<br />

capital expenditure budgets; and<br />

ensure the development of plans<br />

for a long-term supply of reliable,<br />

economical electricity and the<br />

development of long-term sources<br />

of operating capital. It is also the<br />

board’s duty to approve plans for<br />

management of member equity,<br />

and to select KIUC’s independent<br />

auditors and engage them for an<br />

annual financial audit. The board<br />

hires a chief executive officer to<br />

manage the company and its<br />

employees, and evaluates his or<br />

her performance. The board works<br />

with the CEO to develop policies<br />

to ensure members’ concerns are<br />

addressed promptly and fairly, to<br />

promote good member relations<br />

and to keep members informed on<br />

important issues.<br />

Committees:<br />

Executive: Chairman - Peter Yukimura / Members - Dennis Esaki, David Iha, Allan Smith and Phil <strong>Tacbian</strong><br />

Finance & Audit: Chairman - David Iha / Members - Carol Bain and Allan Smith<br />

Government Relations Legislative Affairs: Chairman - Allan Smith / Members - David Iha<br />

International: Chairman - Peter Yukimura / Member - Allan Smith<br />

Member Relations: Chairman - Allan Smith / Members - Stu Burley, Steve Rapozo and Peter Yukimura<br />

Policy: Chairman - Carol Bain / Members - Steve Rapozo and Ben Sullivan<br />

Strategic Planning: Chairman - Peter Yukimura / Members - Stu Burley, David Iha and Ben Sullivan<br />

General Counsel: David Proudfoot<br />

APRIL/MAY 2009 11


KIUC BOARD PROFILES 2009<br />

By Pamela Varma Brown<br />

Kaua‘i <strong>Island</strong> <strong>Utility</strong> <strong>Cooperative</strong> (KIUC) is governed by a<br />

nine-member board of directors, elected for three-year<br />

terms. Each member spends an average of 10 to 20 hours<br />

a week on co-op matters—sometimes more—in exchange<br />

for a modest stipend and the knowledge he or she is<br />

helping the island.<br />

Board member Carol Bain.<br />

Carol Bain<br />

Board member Carol Bain’s interest in KIUC began when,<br />

as a staunch proponent of open records laws that require<br />

certain organizations to make some of their documents<br />

available to the public, she wanted to make sure Kaua‘i’s<br />

new member-owned co-op was in compliance. “In its<br />

early years, especially its first decade, I think it’s<br />

beneficial to know that an organization knows it’s being<br />

watched,” she says.<br />

After watching for awhile, Bain ran for election and<br />

joined the board in 2007. She now serves as chairwoman<br />

of the Policy Committee and says she is satisfied that all<br />

open records laws are indeed being followed by the co-op.<br />

She eventually would like the minutes from committee<br />

meeting minutes to be posted on the co-op’s website. “It’s<br />

up to me to find a way to do that,” she says. “That’s my<br />

challenge: to find ways to encourage transparency so all<br />

directors and staff are comfortable, while our members<br />

are best served.”<br />

When not attending to KIUC board matters, Bain—who<br />

has a master’s degree in educational communication and<br />

technology from the University of Hawai`i at Manoa—<br />

works part time as an instructor at Kaua‘i Community<br />

College’s Learning Resource Center. In past years, she<br />

taught communications and journalism at KCC.<br />

A 24-year island resident, Bain and her husband, Ed Coll,<br />

also a KCC instructor, own an electric vehicle they enjoy<br />

12 KIUC CURRENTS<br />

entering in parades and driving due to its efficiency.<br />

Bain joined KIUC’s Finance and Audit Committee this<br />

month and says she still has policy-related projects she<br />

wants to tackle. “At this point, I want to help KIUC get<br />

through these rough economic times,” she says. “I’d like<br />

to be there if I feel like I can play a productive role.”<br />

Stewart “Stu” Burley<br />

As one of the board’s newest members, Stu Burley plans<br />

to apply some of his managerial experience gained from<br />

46 years involved “in every operation that ever existed” at<br />

the Pacific Missile Range Facility (PMRF) to help KIUC<br />

move forward with renewable energy projects. “My pet<br />

alternative power is the ocean,” he says. “It moves, it has<br />

current and it’s 800 times more powerful than wind.”<br />

Before retiring as PMRF’s fleet division head in 2004,<br />

some of Burley’s notable accomplishments included<br />

helping to set up the first Rim of the Pacific Exercise<br />

(RIMPAC) in which nations ringing the Pacific Ocean<br />

spend a month at PMRF test firing missiles and<br />

torpedoes; and helping to write PMRF’s first strategic<br />

plan. His responsibilities ranged widely, including riding<br />

in submarines and on aircraft carriers, and being involved<br />

in some classified things. “I was on programs that I can’t<br />

write about,” he says.<br />

Now retired, Burley actively mentors students in<br />

underwater robotics and rocketry clubs at a handful of<br />

schools from Kekaha to Kapa‘a. As someone with three<br />

college degrees—liberal arts, marketing and hotel<br />

management—and with a fourth almost completed in<br />

business, he requires seniors in the clubs to apply for<br />

college and scholarships. “There are 12 million<br />

scholarships online every semester,” he says. “If you<br />

submit for 10, you’re guaranteed to get at least one.” He<br />

also is helping create about 18 internships in the hightech<br />

industry for college students returning to Kaua‘i.<br />

Active in community organizations, Burley is president<br />

of the Kaua‘i chapter of AARP; vice president of Kaua‘i’s<br />

Navy League Council; and is on the executive committee<br />

for the Kaua‘i Economic Development Board.<br />

He looks forward to serving on KIUC’s board, and says he<br />

wants “unity, one voice—a plan where we’re going and<br />

how we can help Kaua‘i.”<br />

Dennis Esaki<br />

Kaua‘i born and raised, Dennis Esaki has been involved<br />

with KIUC since the early days, when a buyout of<br />

privately-owned Kaua‘i Electric was first being<br />

contemplated. He is the immediate past board chairman,<br />

chairman emeritus and a director representing all of<br />

Hawai`i on the National Rural Electric <strong>Cooperative</strong><br />

Association board.


Esaki says almost half of his time was spent on electric<br />

cooperative business when he was board chairman, and<br />

that was somewhat of a challenge for his own company,<br />

Esaki Surveying & Mapping Inc., which he founded 30<br />

years ago. “Luckily, I’ve got good staff that does all the<br />

work here,” he says, referring to his 12 employees.<br />

Though work has slowed somewhat recently, “so far<br />

we’ve still been able to keep everybody onboard working<br />

40 hours.” Esaki has performed work on all the Hawaiian<br />

islands, Guam, Palau and the Marshall <strong>Island</strong>s.<br />

An active entrepreneur, Esaki recently became a partner<br />

in Kaua‘i Farm Fuels—a company that collects used<br />

vegetable oil from restaurants and converts it to biodiesel<br />

for use in various types of equipment and machinery. He<br />

also purchased Kalapaki Bay Memorial Park with partners<br />

within the past year. He has suffered some business<br />

setbacks over the years as well, including his partownership<br />

of an airline and a helicopter company.<br />

A helicopter pilot and a Harley-Davidson motorcycle<br />

enthusiast, Esaki is vice president of the Sons of Hawai`i<br />

Motorcycle Club, which often holds fundraising rides to<br />

assist families of military personnel deployed overseas.<br />

He sees KIUC’s ability to sustain itself, give refunds and<br />

build equity without raising rates since the co-op’s<br />

inception as a tremendous accomplishment, and<br />

anticipates moving forward on the co-op’s plans for<br />

sustainable energy sources. Though there’s work ahead,<br />

he says, “I think we’ve come a long way. With everyone’s<br />

cooperation, we will forge our way into the future.”<br />

Board Administrative Assistant Pua Chin-Shigeta and Board<br />

Secretary David Iha.<br />

David Iha<br />

When David Iha joined the KIUC board in 2007, he<br />

believed his 16 years of experience at Kaua‘i Community<br />

College—from which he retired as provost in 2004—and<br />

eight years as executive administrator and secretary of the<br />

University of Hawai`i Board of Regents would come in<br />

handy. “A board has responsibility to set policy and set<br />

strategic direction,” says Iha, now the KIUC board<br />

secretary. “We’ve been able to look at policies and grapple<br />

with issues from a macro level instead of spending time<br />

micromanaging the cooperative.” Iha says KIUC’s<br />

The KIUC Charitable Foundation<br />

The KIUC Charitable Foundation released<br />

$50,000 to the Kaua‘i Economic Opportunity<br />

(KEO) in August 2008 to help qualified lowincome<br />

electricity users with their electric bills,<br />

and since then more than 97 percent of those<br />

who applied qualified. There are still monies<br />

available. All interested Kaua‘i residents should<br />

call KEO at 808.245.4077 x240 to see if they<br />

qualify or to apply.<br />

strategic plan—developed in 2007 and updated in 2008—<br />

provides a vision for the co-op.<br />

While he was at KCC, Iha was part of the team that<br />

transformed the institution from Kaua‘i Technical<br />

School—a vocational school on a 10-acre campus—to a<br />

community college and the move to its current 200-acre<br />

Puhi campus. Under his guidance, courses of study were<br />

added or expanded in culinary arts, music, electronics<br />

technology and nursing. He oversaw rebuilding of both<br />

campuses after hurricanes `Iwa and `Iniki, and the<br />

popular Performing Arts Center was completed during his<br />

tenure.<br />

Iha is active in Lihu`e Christian Church, where his wife,<br />

Shirley, has been the organist for many years. The couple<br />

also enjoy singing with the Kaua‘i Chorale. He is a bass;<br />

she is an alto. “It’s a real diverse group, with singers from<br />

Kekaha to Hanalei that gathers weekly for rehearsals,”<br />

Iha says. “It brings music to the community and it’s a<br />

good opportunity to make new friends.” Iha reminds folks<br />

to come out for the chorale’s spring concerts at KCC’s<br />

Performing Arts Center and on the North Shore.<br />

Steve M. Rapozo<br />

For new member Steve Rapozo, joining the KIUC board is<br />

almost like a homecoming. “I’ve worked in the utility<br />

business pretty much all my life,” he says, having retired<br />

from Hawaiian Tel at the end of 2003. “I kind of felt like<br />

working for KIUC was my calling.”<br />

Rapozo looks forward to being involved in KIUC’s<br />

continuing focus on renewable energy sources, and has a<br />

personal penchant for solar and hydro power. But the<br />

largest project on the immediate horizon, he says, is the<br />

co-op’s application for rate restructuring. “It will be a rate<br />

increase, but it will also stabilize the rates. If the cost of<br />

oil goes up, rates won’t fluctuate as much,” he says.<br />

“Everything’s got to be in balance. The company’s got to<br />

make its margins so customers can get the rewards.”<br />

Rapozo began his career with Hawaiian Tel as a lineman<br />

in 1970 and worked his way through the company,<br />

holding many positions. He eventually took charge of<br />

APRIL/MAY 2009 13


joint construction projects that involved other utility<br />

companies, including Kaua‘i Electric and cable television.<br />

“I like to pull people together to work as a team,” he says.<br />

“You need to pool your resources and have everybody on<br />

the same page.”<br />

Working part time as a manager at Puakea Golf Course<br />

allows Rapozo time to continue his behind-the-scenes<br />

community service, helping others whenever he can,<br />

especially with projects involving children. “Family is<br />

important,” he says, adding he has three children of his<br />

own.<br />

Kaua‘i born and raised, Rapozo is looking forward to his<br />

first term on the KIUC Board of Directors. “I see a lot of<br />

talent on this board,” he says. “It’s going to be a very,<br />

very professional three years.”<br />

Ben Sullivan<br />

Newly-elected board member Ben Sullivan ran for a KIUC<br />

board position because he believed KIUC’s planning and<br />

decision-making—especially about establishing renewable<br />

energy projects—could be shared with the co-op’s<br />

members more effectively. “From what I’ve seen in just a<br />

brief time on the board, there are a whole lot of positive<br />

things being looked at, and we have an opportunity and<br />

responsibility to convey some of that information to the<br />

community,” he says.<br />

He also believes a greater sense of urgency should be<br />

applied to the co-op’s strategic plan, which calls for<br />

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14 KIUC CURRENTS<br />

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President & CEO Randy Hee and new board member Ben Sullivan.<br />

generating 50 percent of the co-op’s energy from<br />

renewable resources by 2023. “It (the strategic plan)<br />

assumes that we’re going to have access to petroleum over<br />

the next 10 to 15 years and it’s going to be affordable,” he<br />

says, noting that in a changing world, that’s not<br />

guaranteed.<br />

Sullivan has been integrally involved in community<br />

discussions about energy since 2005 through Apollo<br />

Kaua‘i—a nonprofit organization that brings energy issues<br />

to the public for discussion. He also does residential<br />

architectural design and construction through his<br />

company, Mobius Designworks. His involvement in<br />

community food security and agriculture-related issues is<br />

picking up speed. “They’re related and probably more<br />

important than electricity,” he says.<br />

But most important of all to him and his wife, Traci, are<br />

their three children, ages 4, 6 and 8. “They’re still young,<br />

but they’re really smart and well-mannered,” he says.<br />

“I’m proud of my kids.” He and his wife take them<br />

hiking, to the beach and play with them around the<br />

house. “I try to get them to work in the garden with me,<br />

too, but they’re not always up for it,” he says.<br />

Beyond his children, Sullivan says one of the most<br />

meaningful parts of his life is being part of a community<br />

awakening to the importance of environmental and<br />

energy issues on a broad scale, and “understanding that<br />

we can work together to bring about real change.”<br />

Allan A. Smith<br />

After a 20-year career in senior management positions for<br />

sugar plantations throughout Hawai`i—many of which<br />

used their own greenwaste to help produce electricity—<br />

Allan Smith can see how changing times and the decline<br />

of sugar companies has affected us all. “We’ve gone<br />

backwards in the last 25 years as far as our energy<br />

sources,” he says. “We don’t have that biomass that we<br />

did when we had those sugar plantations operating on the<br />

island.” Though there are “myriad” other energy sources<br />

that can be used besides fossil fuels, he says, “it’s going to<br />

cost us, unfortunately, for the short run to get our longterm<br />

benefit.”


CFO David Bissell and Board Treasurer Allan Smith.<br />

Smith retired as senior vice president of Grove Farm<br />

Company, where he managed the company’s 40,000 acres.<br />

He also directed the company's land development,<br />

construction, and rock quarrying and crushing<br />

businesses.<br />

A KIUC board member since 2007 and board treasurer,<br />

Smith volunteers for many other nonprofit organizations,<br />

including as a board member of the Waipa Foundation—<br />

an educational Hawaiian organization on Kaua‘i’s North<br />

Shore. He recently completed a term as trustee of the<br />

Queen’s Health Systems on O`ahu. He has been involved<br />

in many other community organizations, but declines to<br />

list them, saying, “that’s plenty enough for now.”<br />

Smith keeps active playing senior softball and golf, and<br />

plays music in various combos—a talent that runs in the<br />

family. His wife, Linda, principal of Kaua‘i High School,<br />

was a band instructor and his 87-year-old father still plays<br />

music on a regular basis on the West Side, Smith says.<br />

“We’re a fourth-generation Kaua‘i family on the English-<br />

French side,” he says. “The Hawaiian side has been on<br />

Kaua‘i for ages. This is still the best place in the world to<br />

live. We are truly blessed.”<br />

Teofilo <strong>“Phil”</strong> <strong>Tacbian</strong><br />

As chairman, Teofilo <strong>“Phil”</strong> <strong>Tacbian</strong>’s goal is for the<br />

KIUC Board of Directors “to act as one unit, in unison.”<br />

With his 40 years of experience in government, on boards<br />

and commissions, his training as a parliamentarian and<br />

the current makeup of the KIUC board, he believes this is<br />

possible. “This board is outstanding right now,” he says.<br />

“We have people from all walks of life, all different<br />

professions: engineers, accountants, people who worked<br />

for the federal government. And they’re sitting right here<br />

in the same room.”<br />

A board member since 2005, <strong>Tacbian</strong> is excited about<br />

some of the renewable energy projects under investigation<br />

to help decrease the co-op’s reliance on fossil fuels. Solar<br />

farms similar to Wilcox Memorial Hospital’s, only larger,<br />

are under consideration, as is harnessing hydropower<br />

from the abandoned reservoirs of Kekaha Sugar Company<br />

on land the co-op is working to acquire.<br />

An insurance agent by trade, offering life and medical<br />

coverage and annuities, <strong>Tacbian</strong> has simultaneously had<br />

an active career in government from the age of 23, when<br />

he was appointed to the board of water supply. He has<br />

been on the Contractors License Board, the state Land<br />

Use Commission and served as Sen. Daniel Akaka’s<br />

Kaua‘i liaison.<br />

<strong>Tacbian</strong>’s favorite pastime is spending time with his great<br />

grandchildren, ages 3 and 7. “They just make my life<br />

complete,” he says. He also enjoys boating on the Wailua<br />

River.<br />

He looks forward to updating KIUC’s strategic plan this<br />

summer, reprioritizing upcoming projects and working<br />

with the new blend of board members. “It’s like night and<br />

day,” he says. “The directors are all together. It seems like<br />

the staff is working closer together through the leadership<br />

of (CEO) Randy Hee. When we can work together like<br />

this, we sure can accomplish much, much more.”<br />

Peter Yukimura<br />

As a board member since 2005 and currently vice<br />

chairman, Peter Yukimura says in the past few years,<br />

“we’ve evolved into a better run company,” with greater<br />

electric system reliability and higher employee morale.<br />

He applies his accounting degree from the University of<br />

Hawai`i’s school of business when discussing co-op<br />

finances and in operating his family-owned business, Koa<br />

Trading, of which he is president. The company began in<br />

the early 1970s, after his father and grandfather—both of<br />

whom owned retail grocery stores—decided to branch<br />

into food wholesaling. Originally called Yukimura’s Inc.,<br />

Yukimura renamed the business after his son’s middle<br />

name a few years later.<br />

The business has grown steadily from four employees to<br />

50, and gross income has multiplied 25-fold from the<br />

early days. The business location was moved three times<br />

to accommodate its expansion, Yukimura says, noting the<br />

current facility in the Lihu`e Industrial Park has been<br />

added onto three times.<br />

When he is not working—though he often clocks 50<br />

hours a week at the office and about 20 hours a week for<br />

KIUC business—he enjoys golfing. “I have a very high<br />

handicap,” he says, laughing. He is the proud father of a<br />

daughter, 30, who lives on Kaua‘i, and a son, 28, who has<br />

been traveling the world, about whom Yukimura jokingly<br />

says, “I’m mad at him because he’s having more fun than<br />

me.” His wife, Lani, recently retired as public relations<br />

officer for Wilcox Memorial Hospital.<br />

Yukimura sees a positive future for the organization. “I<br />

think KIUC is a great company,” he says. “I admire the<br />

employees. I think they all work very hard to make the<br />

company successful.” He has equally high hopes for the<br />

board of directors. “It looks like everybody will work well<br />

together,” he adds.<br />

APRIL/MAY 2009 15


Co-op Connections ® Program<br />

Member Discounts<br />

As a card-carrying member, you can use your Co-op Connections Card or key fob at any participating<br />

business and receive discounts at restaurants, hobby shops, retail shops, services and more. Spotting a<br />

participating business is easy. Look for the Co-op Connections Card sticker on the windows, doors or cash<br />

registers of the business. Deals are being added all the time. The best place to find the latest deals is online<br />

at www.kiuc.coop.<br />

5th Gospel Christian Bookstore, Līhu‘e<br />

10% off any one regular-priced item.<br />

Aloha Services, Kapa‘a<br />

10% discount on all shipping, storage, copies and<br />

post office box rentals.<br />

Backdoor Hanalei, Hanalei<br />

10% off all origina-priced goods, except surfboards<br />

and paddleboards.<br />

Beachrail, Līhu‘e & Hanamā‘ulu<br />

5% off products, except Lionel trains and<br />

collectable items.<br />

Buddha Boutique, Līhu‘e<br />

10% off (discount cannot be combined with other<br />

discounts or in-store specials).<br />

Edward Jones, Kalāheo<br />

Free portfolio review.<br />

Hanalei Paddler, Hanalei<br />

10% off all original priced goods, except<br />

surfboards and paddleboards.<br />

Hanalei Surf Company, Hanalei<br />

10% off all original priced goods, except<br />

surfboards and paddleboards.<br />

JJ’s Broiler, Līhu‘e<br />

“Early Bird Special” – Customer must be seated<br />

between 5 p.m. and 6 p.m. to receive 10% discount<br />

on food items. Liquor is excluded. Tax and gratuity<br />

not included. Parties of up to 10 people only.<br />

Jim Saylor Jewelers, Kapa‘a<br />

10% discount.<br />

Lawai Cannery Self Storage & Warehouses,<br />

Kalāheo<br />

10% off of any self-storage unit. Offer not valid<br />

with any other specials.<br />

Kaua‘i Inn, Līhu‘e<br />

20% off rack rate.<br />

16 KIUC CURRENTS<br />

Kaua‘i Self-Storage, Līhu‘e<br />

10% off regular rental rate plus one free lock with<br />

rental of any size unit.<br />

Kaua‘i Memorial Gardens, Līhu‘e<br />

5% discount on cemetery property and funeral<br />

plans (pre-need). Not good toward at-need services<br />

and merchandise.<br />

Kayak Kaua‘i, Kapa‘a<br />

10% discount on tours and rentals.<br />

Kujo’s Mini Mart, Kalāheo<br />

10% off everything, except alcohol, cigarettes and<br />

gift items.<br />

Market Street Diner, Līhu‘e<br />

10% off all items, excluding early bird or happy hour.<br />

New Leaf Skin Care, Līhu‘e<br />

15% off all skin care services.<br />

North Shore General Store, Princeville<br />

20% off café prices.<br />

Ohana Hearing Care Inc., Līhu‘e<br />

15% off all new digital hearing aids and 10% off<br />

T.V Ears Regular System.<br />

Precision Tinting Kaua‘i, Līhu‘e<br />

15% off regular price.<br />

Princeville Mail Center (Aloha Services),<br />

Princeville<br />

10% discount on all shipping, storage, copies, and<br />

post office box rentals.<br />

Progressive Expressions, Kōloa<br />

10% off original-marked prices, except surfboards.<br />

Sweet N Sassy, ʻEleʻele<br />

10% off all regular priced merchandise, not to<br />

include sale items or other in-store promotions.<br />

Tropics Day Spa, ʻEleʻele<br />

Purchase a one-hour massage at regular price<br />

($85) and get 30 additional minutes for free!<br />

Wings Over Kaua‘i, Kalāheo<br />

10% off, three passenger maximum, two passenger<br />

minimum. Direct booking only.


Co-op Connections ® Program<br />

a new leaf<br />

At A New Leaf, licensed esthetician Mandy Matsumoto treats to you facials, waxing,<br />

eye lash perms and tints. By showing your Co-op Connections card, you can save 15<br />

percent off all skin care services. A <strong>Kauai</strong> High<br />

graduate, Mandy moved back to <strong>Kauai</strong> 2-1/2 years ago,<br />

after training at the Spa Luna Holistic Esthetician<br />

School, and has worked at Paul Brown on Oahu, an<br />

Aveda Lifestyles Salon in New York<br />

and at Hide Away Day Spa and<br />

Salon in Waimea before venturing<br />

out on her own to start A New Leaf<br />

in August 2008. Call Mandy,<br />

652.5274, at A New Leaf in Studio<br />

203 at 3173 Akahi Street #101 to<br />

book your appointment today!<br />

VALUABLE PHARMACY DISCOUNTS<br />

Did you know your Co-op Connections Card<br />

can save you between 10 percent and 60<br />

percent on prescriptions at participating<br />

pharmacies? To search for discounts on<br />

your prescriptions, head online to<br />

www.rxpricequotes.com;<br />

a list of participating<br />

locations also can be found<br />

online at<br />

www.locateprovider.com.<br />

Simply present your card<br />

along with your prescription<br />

at a participating pharmacy<br />

to receive a discount.<br />

The Co-op Connections Card is a benefit of being<br />

a member of Kaua‘i <strong>Island</strong> <strong>Utility</strong> <strong>Cooperative</strong>—<br />

your local electric cooperative. Use your card at<br />

any local business displaying the Co-op<br />

Connections window sticker and save money. For a<br />

complete list of participating businesses, log onto<br />

www.kiuc.coop. If your business is interested in<br />

participating, please call Maile Moriguchi at<br />

246.4348 for more information.


A DIRECTOR’S JOB<br />

By Walt Barnes<br />

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

<strong>Cooperative</strong> (KIUC) is<br />

guided by a board of nine<br />

directors. Each year, three<br />

director’s positions are up<br />

for election. These<br />

directors are the<br />

connection between you,<br />

the owners of KIUC, and<br />

the management and<br />

staff, who operate KIUC.<br />

26,000 Member-Owners<br />

like you.<br />

Your Vote<br />

When directors are<br />

elected and sworn in, they accept the legal obligation to<br />

“prudently represent the interests of the cooperative and<br />

the interests of the members as a group, as the owners of<br />

the enterprise in directing the business and affairs of the<br />

cooperative within the law.” That’s what is legally known<br />

as doing their fiduciary duty, and it means co-op directors<br />

are held to a high standard of performance.<br />

Directors have to spend time studying complicated<br />

financial and strategic issues. They have to act in the best<br />

interests of all co-op members and not any private<br />

interest. They have to direct management, do financial<br />

and strategic planning, and review the performance of the<br />

co-op. They have to do all of this without doing<br />

management’s job, which is to operate the cooperative.<br />

This division of authority is central to defining a<br />

director’s job.<br />

Strategic Planning<br />

Every director’s job is important, but setting the strategic<br />

direction for the co-op is one of the most important ones.<br />

<strong>Utility</strong> poles and lines may last 20 years and expensive<br />

generating equipment may have an even longer service<br />

life. The decisions KIUC makes today certainly will affect<br />

how the utility operates for decades to come.<br />

Each year, KIUC directors and managers come together at<br />

dedicated meetings to plan for the future. They consider<br />

Directors … direct the cooperative.<br />

Chief Executive Officer (CEO) … makes<br />

executive decisions.<br />

Managers … manage staff and projects.<br />

Staff … climb the poles, answer the phones,<br />

read the meters, fix the wires, run the<br />

generators and publish this magazine.<br />

18 KIUC CURRENTS<br />

Strategic<br />

Direction &<br />

Oversight<br />

KIUC Elected Board KIUC CEO<br />

Directs<br />

Employees<br />

five-year, 10-year and even longer forecasts of demand for<br />

electricity and costs of resources. They discuss possible<br />

opportunities and potential risks. Keeping in mind their<br />

obligation to represent the interests of the cooperative and<br />

the interests of the members as a group, the Board of<br />

Directors then sets the strategic direction for the co-op.<br />

The current strategic plan is available online at<br />

www.kiuc.coop.<br />

Financial Planning & Audit<br />

KIUC is one of the largest companies on Kaua‘i. The<br />

directors you elect are responsible for reviewing and<br />

approving the annual budget. The budget ensures co-op<br />

operations are funded, strategic programs proceed,<br />

unexpected emergencies can be handled and all the rates<br />

you pay to KIUC are spent wisely.<br />

Directors are legally and morally responsible for the<br />

financial integrity of the co-op. To meet that obligation,<br />

directors hire a public accounting firm to audit the books<br />

at the co-op every year. The Board of Directors hires the<br />

auditors and their audit report is delivered to the Board of<br />

Directors. That’s how the directors can be sure, and you<br />

can be sure, the co-op funds are accounted for and spent<br />

wisely.<br />

Hire and Review the CEO<br />

KIUC’s CEO is hired by the Board of Directors to manage<br />

the co-op. The day-to-day success of the co-op, how well


every employee does their job, depends on having a good<br />

manager at the top. That makes the Board of Director’s<br />

job to select the CEO crucial. The values of the CEO<br />

ultimately will be reflected in the values of the co-op. And<br />

as the chief executive and most senior manager at the coop,<br />

the CEO will oversee the mid-level managers who run<br />

every KIUC department.<br />

Even good managers need goals and direction. That’s why<br />

the Board of Directors sets annual specific, measurable<br />

goals for the CEO. Throughout the year, the Board of<br />

Directors reviews the CEO to provide feedback. Once a<br />

year, the Board of Directors gives the CEO a formal,<br />

annual review.<br />

Review KIUC’s Performance<br />

To ensure KIUC is achieving its goals, the Board of<br />

Directors continuously monitors the results of KIUC<br />

operations. The directors review the financial<br />

performance of the co-op monthly to ensure expenses and<br />

revenue are on track with the annual budget. Other<br />

metrics covering worker safety, reliability and training are<br />

reviewed by directors monthly. Progress toward strategic<br />

initiatives also is tracked, as well as anything out of the<br />

ordinary.<br />

Education<br />

Being an effective director requires effort, experience and<br />

education. KIUC requires every director to attend classes<br />

and pass five courses taught by the National Rural Electric<br />

<strong>Cooperative</strong> Association (NRECA): Director Duties and<br />

Liabilities, Understanding the Electric Business, Board<br />

Roles and Relationships, Strategic Planning, and Financial<br />

Decision Making. Graduates who pass all five courses earn<br />

NRECA’s Credentialed <strong>Cooperative</strong> Director (CCD)<br />

designation, a requirement for KIUC directors.<br />

Most KIUC directors continue their education through<br />

NRECA by taking additional courses and working toward<br />

their Board Leadership Certificate.<br />

New Board Chairman Teofilo <strong>“Phil”</strong> <strong>Tacbian</strong> congratulates outgoing<br />

Board member Ray Paler.<br />

Advocate for the Members<br />

Overarching all of these tasks, directors are advocates for<br />

KIUC members. They seek out members to understand<br />

their needs. Their decisions as directors must reflect the<br />

interests, needs and concerns of the membership as a<br />

whole. To that end, KIUC directors are active in the<br />

community, serving in their churches, in other nonprofits<br />

and as individuals. Everywhere they go and whatever<br />

they do, they are still listening to your concerns about the<br />

service your electric utility provides so they can best<br />

represent your interests.<br />

You trust your co-op directors with a big job. It’s a lot of<br />

work, with many different tasks, but at the heart of it, it’s<br />

all about this last duty, being an advocate for the<br />

membership: Doing the right thing for you.<br />

Walt Barnes is a former, founding director of KIUC. He is a<br />

Credentialed <strong>Cooperative</strong> Director and teaches nonprofit<br />

board governance, including Director Duties and<br />

Responsibilities.<br />

Early Childhood Education Professionals Appreciation Dinner<br />

(to honor and celebrate our early childhood educators, providers, practitioners)<br />

“Laying the Foundation for Kaua‘i’s Future”<br />

“Ready, Set, Inspire ...”<br />

Saturday, May 16, 2009<br />

5 p.m. - 9 p.m., at the Kaua‘i Community College Dining Hall<br />

Program to include: Guest Speaker Barry Cutler of Cookin’ with Cutty<br />

Goody bags for all attendees Entertainment Door prizes Silent auction Ono food & great company<br />

Lead sponsor Good Beginnings Alliance Kaua'i<br />

Co-sponsors KIUC, PATCH, Kaua‘i Community College, HAEYC.<br />

Supporting organizations ‘Ae Kamali‘i Preschool, Kaua‘i Head Start, Tutu & Me Traveling Preschool<br />

For more info, contact GBA at 632-2114 or PATCH at 246-0622


Five Meals<br />

for $15<br />

or less<br />

Chicken Long Rice<br />

1 small tray chicken thighs, cut into pieces<br />

1 bunch long rice<br />

1 can chicken broth<br />

1 onion, chopped<br />

1 carrot, julienned<br />

1 clove garlic, smashed<br />

Oyster sauce<br />

1 cup water<br />

1 packet S&S soup base<br />

Salt<br />

Pepper<br />

Put water, soup base, chicken broth, chicken, onion and<br />

garlic in a pot and bring to a boil. Once chicken is<br />

cooked, add long rice and carrots and simmer for 10<br />

minutes. Add oyster sauce, salt and pepper to taste.


Kalua Cabbage<br />

1 tub kalua<br />

1 onion<br />

1 head cabbage<br />

1 tablespoon oyster sauce<br />

1 teaspoon sugar<br />

1/8 cup water<br />

1 tablespoon shoyu<br />

Garlic salt<br />

Pepper<br />

Chop head cabbage into pieces. Put the kalua in the pan<br />

on high heat and add the onions. Saute until onions are<br />

cooked, then add cabbage, salt and pepper to taste. Serve<br />

with rice.<br />

Cream Salmon<br />

1/2 cube butter<br />

4 tablespoons flour<br />

2 cups milk<br />

1/2 teaspoon salt<br />

1 can salmon<br />

1 package frozen peas (optional)<br />

Heat butter in a pot; add flour to melted butter. Keep on<br />

medium heat and slowly add milk. Keep stirring to keep<br />

mixture creamy. Add salt, salmon and peas. Heat through<br />

and serve.<br />

Preston’s Mulligan Stew<br />

2 pounds hamburger<br />

3 cloves garlic, chopped<br />

2 cans vegetable soup<br />

Brown hamburger with garlic. Drain oil. Add vegetable<br />

soup. Heat and serve.<br />

Taco Soup<br />

1 pound hamburger<br />

1 can corn, undrained<br />

1 can kidney beans, undrained<br />

1 can diced tomatoes, undrained<br />

1 package taco seasoning<br />

Tortilla chips<br />

Sour cream, optional<br />

Olives, optional<br />

Cheese, optional<br />

Brown the hamburger in a large saucepan or soup pot.<br />

Drain off the grease. Add the corn, kidney beans,<br />

tomatoes and taco seasoning. Simmer for 30 minutes, or<br />

until heated through.<br />

Serve over chips—either as a soup, or nacho style. Good<br />

with or without optional ingredients. Wonderful the next<br />

day. This recipe can be doubled or tripled if serving a<br />

large crowd. It just wouldn’t be under $15.<br />

APRIL/MAY 2009 21


PUBLIC ATTENDANCE AND PROCEDURES<br />

FOR PUBLIC TESTIMONY<br />

AT MEETINGS OF THE KIUC BOARD OF DIRECTORS<br />

PUBLIC ATTENDANCE<br />

Open Meetings<br />

All meetings except executive meetings of the Board of<br />

Directors, and all meetings of the members are open to<br />

the public.<br />

The chairman may, at his or her sole discretion, remove<br />

any person who willfully disrupts any meeting.<br />

Executive Meetings<br />

The Board of Directors may hold an executive meeting<br />

closed to the public. A meeting closed to the public will<br />

be limited to the matters listed below. The reason for<br />

holding such a meeting will be publicly announced.<br />

1. Human resource issues related to:<br />

a) Hiring, evaluating, dismissing or disciplining an<br />

officer or employee.<br />

b) Labor negotiations.<br />

2. Legal consultation, including issues pertaining to the<br />

powers, duties, privileges, immunities and liabilities of<br />

the Board of Directors.<br />

3. Matters related to the safety and security of KIUC.<br />

4. Matters of a proprietary or financial nature, public<br />

disclosure of which could affect ongoing or potential<br />

negotiations, or legal or administrative proceedings.<br />

POSTING OF MEETINGS,<br />

MINUTES & AGENDAS<br />

Posting of Meetings<br />

The date, time and location of all regular meetings will be<br />

posted at www.kiuc.coop and at all KIUC locations.<br />

The date, time and location of all special meetings will be<br />

posted no later than 24-hours prior to the meeting at<br />

www.kiuc.coop and at all KIUC locations.<br />

Posting of Minutes & Agendas<br />

Minutes of previous meetings will be posted on the website,<br />

and tentative agendas will be posted prior to the meeting.<br />

The agenda will be finalized just prior to accepting public<br />

testimony at such meeting.<br />

CONTACT INFORMATION<br />

For written or oral testimony, agendas, minutes or<br />

questions regarding the date, time and location of KIUC<br />

22 KIUC CURRENTS<br />

Board of Director meetings, or special meetings, please<br />

contact:<br />

Pua Chin<br />

(808) 246.4307<br />

For the seventh revised and restated<br />

Bylaws of KIUC<br />

www.kiuc.coop<br />

4463 Pahe‘e Street, Suite 1<br />

Līhu‘e, HI 96766-2000<br />

PROCEDURES FOR PUBLIC TESTIMONY<br />

Written Testimony<br />

Written testimony is encouraged, and will be accepted with<br />

regard to any item or items on the agenda of a particular<br />

board meeting up to the conclusion of the meeting.<br />

Transcription, Video & Audio Taping<br />

No transcription or video or audio taping<br />

of meetings will be allowed without prior written<br />

approval of the Board of Directors.<br />

Oral Testimony<br />

Anyone wishing to give oral public testimony needs to<br />

register either over the telephone at 246.4307 or in<br />

person prior to the approval of the agenda. Oral<br />

testimony by anyone not registered will not be allowed.<br />

The following rules apply:<br />

1. Maximum time allowed is determined by the chair,<br />

but may not exceed three minutes per individual.<br />

2. No more than a total of 60 minutes of oral testimony<br />

will be allowed by members of the public at any one<br />

meeting.<br />

3. Testimony will be taken immediately following the<br />

approval of the agenda, in order of registration.<br />

4. Testimony must be on a topic or topics on the<br />

meeting’s agenda.<br />

5. Testimony will be relevant to the topic, shall be civil<br />

and devoid of personal attacks, all as determined by<br />

the chair.<br />

6. No individual will be allowed to testify more than<br />

once at any meeting.<br />

7. Any person who willfully disrupts any meeting, as<br />

determined by the chair, shall be removed from the<br />

meeting.


STATEMENT OF<br />

OPERATIONS<br />

For the period 01/01/2009 – 3/31/2009<br />

By Karissa Jonas, Controller<br />

We report that the KIUC results of operations through<br />

March 31, 2009, are being impacted negatively by the<br />

weak economy and low fuel costs. Electricity usage on<br />

the island has significantly decreased, primarily due to<br />

the reduction in visitors to the island. KIUC is doing<br />

everything we can, while maintaining safety and<br />

reliability, to reduce costs in various areas in order to<br />

continue to meet our loan covenants. Revenues, expenses<br />

and net margins totaled $27.6 million, $27.7 million and<br />

($0.1 million), respectively, for the three-month period<br />

ending March 31, 2009.<br />

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

generation is the largest expense, totaling $14.1 million<br />

or 51.0% of revenues. Fuel costs are the largest<br />

component of power generation, totaling $10.4 million or<br />

37.7% of revenues, and representing 73.9% of the cost of<br />

power generation. As a point of reference, fuel costs have<br />

decreased by 54% or $12.4 million, from $22.8 million a<br />

year ago. This has resulted in the substantial decrease in<br />

the member’s monthly electric bills. The remaining $3.7<br />

million or 13.3% of revenues and 26.1% of the cost of<br />

power generation, represents the cost of operating and<br />

maintaining the generating units.<br />

The cost of operating and maintaining the electric lines<br />

totaled $1.2 million or 4.3% of total revenues. The cost<br />

of servicing our members totaled $0.9 million or 3.5% of<br />

revenues. Administrative and general costs—which<br />

include marketing and communications, legislative and<br />

Depreciation &<br />

Amortization<br />

15.2%<br />

Administrative &<br />

General Net<br />

of Non-Operating<br />

Margins<br />

9.3%<br />

Taxes<br />

8.4%<br />

Percentage of Total Revenue<br />

Member Services<br />

3.5%<br />

Interest<br />

8.7%<br />

Net Margins<br />

-0.4%<br />

Transmission & Distribution<br />

Operation & Maintenance<br />

4.3%<br />

Fuel & Purchased<br />

Power Costs<br />

37.7%<br />

Production Operation &<br />

Maintenance<br />

13.3%<br />

regulatory expenses, engineering, executive, financial and<br />

corporate services, and board of directors expenses—<br />

totaled $2.8 million or 10.0% of revenues.<br />

Being very capital intensive, depreciation and<br />

amortization of the utility plant costs $4.2 million or<br />

15.2% of revenues. Although not subject to federal<br />

income taxes, state and local taxes amounted to $2.3<br />

million or 8.4% of revenues. Interest on long-term debt,<br />

at a very favorable sub-5% interest rate, totals $2.4<br />

million or 8.7% of revenues. Non-operating net margins<br />

added $0.2 million to overall net margins. Revenues less<br />

total expenses equal margins of ($0.1 million) or (0.4%)<br />

of revenues. Margins are allocated to consumer members<br />

and paid when appropriate.<br />

PARTING SHOT<br />

Congratulations to the 2009 Youth<br />

Tour winners Natasha Abadilla<br />

(Waimea High), Alyssa Mary Clark<br />

(Kapaa High), Dustin Julian (<strong>Kauai</strong><br />

High) and Lacey Kalahiki<br />

(Kamehameha Schools, Kapalama<br />

Campus).<br />

We’re always looking for interesting items to<br />

feature in Parting Shot. If you have an item to<br />

share with readers, please e-mail<br />

currents@kiuc.coop or send it to: KIUC Currents,<br />

4463 Pahe‘e Street, Suite 1, Līhu‘e, HI 96766-2000.


HI-130<br />

Powerlines<br />

Aloha mai kākou,<br />

In this issue we focus on the directors of our cooperative. The member-elected<br />

director is the key link between the cooperative and its member-owners. Kaua‘i<br />

<strong>Island</strong> <strong>Utility</strong> <strong>Cooperative</strong> (KIUC) has elections every year, during which<br />

members elect or re-elect candidates to fill three board seats. The elected directors<br />

provide strategic vision, governance and make fiscal decisions that guide our<br />

cooperative.<br />

While simply stated, those tasks are not easy and require countless hours of<br />

research, education, reading and participation in workshops, committee meetings<br />

and board of director meetings. It is my feeling that those who serve as directors<br />

of our cooperative often are under-appreciated for the amount they give to our<br />

cooperative and our community.<br />

This issue provides a summary of how our energy services group—which includes Ray Mierta, Paul Daniels and<br />

Claurino Bueno—can help increase your end-user efficiency, reduce the amount of electricity you use and reduce<br />

your electric bill. I have always said that the way to reduce your bill is to use less. Please call on our energy services<br />

experts to help you use less.<br />

You no doubt have heard that KIUC intends to submit an application to the Hawai‘i Public Utilities Commission<br />

requesting a general rate increase. The rate increase will help ensure KIUC’s financial stability during a time when<br />

energy sales are being lowered by the economic downturn as well as our effort to attain higher efficiencies in our<br />

production and use of electrical energy.<br />

KIUC makes some margin off fuel cost as an incentive to operate efficiently. The existing rates were put into effect<br />

in 1996. The fuel efficiency incentive has allowed KE and KIUC to operate without going in for a rate case because,<br />

in general, fuel costs have been increasing in the years since then. KE and KIUC have reinvested the margin gained<br />

from fuel efficiencies to make plant improvements, which also have increased operating efficiencies.<br />

Our goal at the end of this rate case is to ensure KIUC’s financial stability, make our rates more transparent and<br />

position us to increase our sustainable energy sources. While the fuel efficiency incentive served its purpose, recent<br />

wild fluctuations in fuel prices has caused a lot of confusion with the energy adjustment on your bill. KIUC intends<br />

to eliminate the fuel efficiency incentive and provide a rate format that is much clearer and more transparent.<br />

We have been holding public informational meetings to inform our members of our intentions and to receive their<br />

concerns and input. Please attend these meetings and look at the information we have posted on our website at<br />

www.kiuc.coop.<br />

Mahalo!<br />

Randall J. Hee<br />

President and CEO

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