September - Kauai Island Utility Cooperative

September 2015
YOUTH TOUR
Kaua‘i Teens
in the Capital
Inside:
2014 Annual Report
Lasers May Protect Seabirds
Much About Mochi
Aloha Island Properties
EXCEEDING YOUR EXPECTATIONS
(808) 246-0334
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In Escrow!
276 Hie St, Wailua
ONE OF THE LOWEST PRICED homes in Wailua
Homesteads! Won’t last long in this market! Charming
2 bedroom, 2 bath home recently built in 2013. Each
bedroom has its own bathroom. Low maintenance
laminate floors; Gas stove and on demand hot water
heater. Beautiful country setting in Wailua Homesteads.
Sold partially furnished. $385,000(fs) Call Karen L.
Agudong, REALTOR (B) 652-0677.
In Escrow!
4722 Maikai St, Kalaheo
Two homes: one of approx. 1,122 s.f is 3 Bed, 2 Bath
residence with 6 foot privacy fencing in the front yard.
Newer laminate wood flooring throughout the living room
and bedrooms. Back Home is a charming 1 Bedroom,
1 Bath home with full kitchen and small front lanai
surrounded by lush landscaping and back yard privacy.
$525,000(fs) Call Karen L. Agudong, REALTOR (B)
652-0677 or Kaye DeFranceaux Leonard, REALTOR (S)
634-8697.
Villas at Puali, Lihue
Beautifully maintained 3 bed, 2 bath single story
condominium with 2 car garage located at Villas at Puali.
Nice location near the end of the cul de sac. Beautiful
upgrades throughout including Custom white Plantation
shutters throughout interior, Solar Hot water heater
and Tile Floors in the Kitchen, living, dining room, hall
and bathrooms. This beautiful home also has a 10 x 20
foot rear patio. $469,000(fs) Call: Karen L. Agudong,
REALTOR (B) 652-0677.
In Escrow!
4186 Lahi Place, Puako/Lihue
Beautiful 3 bedroom / 2.5 bath home plus a 1 bedroom/
1 bath cottage/ohana on over 16,000 sf of land right on
the Puakea Golf Course! High end laminate flooring
and tile on main level; vaulted ceiling in LR and master
bedroom; open floor plan; 2-car garage; possibility of a
4th bedroom in main home. $799,000 (fs) Call/text Kaye
DeFranceaux Leonard, REALTOR (S) 634-8697.
Coming Soon!
374 Eggerking Rd, Wailua
This welcoming home is not too big and not too small.
It's just right! The living room has the open design
you like, with granite counters in the kitchen. The 3
bedrooms and 2.5 bathrooms are nicely planned. The
master bedroom has an ensuite bath. Enjoy granite
counters in the bathrooms as well plus, two walk-in
closets! $449,000(fs).Call Kaye DeFranceaux Leonard,
REALTOR (S) 634-8697.
Halemalu, Lihue
Coming Soon! Private 4 bedroom, 3 bathroom super
clean two story townhome in Halemalu in Puhi. Home
includes solar hot water, tile and laminate floors. Large
fenced back yard! Bonus: no one on the right side of the
property. Call Karen L. Agudong, REALTOR (B) 652-0677
or Kaye DeFranceaux Leonard, REALTOR (S) 634-8697.
if you would like to subscribe to
my newsletter with market updates,
please email to: karen@alohaisland.com
Aloha Island Properties • 2970 Haleko Road, Suite #104, Lihue, HI 96766
808-246-0334 • fax: 808-246-0771 • www.alohaisland.com • email: karen@alohaisland.com
Aloha Island Properties - RB-18993 • Karen L Agudong - RB-17447 • Kay Leonard - RS-RS-72008
Table of Contents
Cover Story
Page 10
Stable Rates, More Renewables Highlighted
At Annual Co-op Membership Meeting . . . 4
Chairman’s Letter . . . . . . . . . . . . . . . . . . . . . . . 5
Board Actions . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Laser Diverters Part of KIUC’s Expanded
Seabird Protection Efforts . . . . . . . . . . . . . . 8
Kaua‘i Youth Tour Delegates Discover
New Worlds in D.C. . . . . . . . . . . . . . . . . . . 10
Important Notice Regarding Past-Due
Billing Notification . . . . . . . . . . . . . . . . . . . 12
KIUC 2014 Annual Report . . . . . . . . . . . . . . 13
Statement of Operations . . . . . . . . . . . . . . . . 29
Much About Mochi . . . . . . . . . . . . . . . . . . . . . 30
Page 8
Page 30
Editor
Jim Kelly
Contributors
Anne Barnes, Pam Blair, Amy Doubet-Devitt,
Karissa Jonas, Jim Kelly, Shelley Paik
On the cover
Save postage, get your Currents online
KIUC Youth Tour delegates Athena Abadilla, Kasey
Emoto, Coleman Langstaff and Haley Okamoto in
front of the White House. Photo by Anne Barnes
Currents is mailed quarterly to members of Kaua‘i Island Utility Cooperative.
This issue and back issues also are available online at www.kiuc.coop.
If you would like to help the cooperative save paper and postage, you can receive
Currents via email or simply read it on our website. Just send a note to currents@
kiuc.coop and we will take you off the mailing list.
We’re also open to story ideas, letters and suggestions. And we’re always looking
for new recipes. Thank you for reading Currents.
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.
December 2014
3
Members and Community
Stable Rates, More Renewables
Highlighted At Annual Co-op
Membership Meeting
She attributed lower sales to the rapid
expansion of rooftop solar in the past
year, and the unusually dry and sunny
weather, which makes those systems
more productive.
“We are obviously watching this
decline in sales and monitoring
expenses closely,” she said.
She and Bissell also told the audience
the cooperative is in the process of a
rate analysis that may result in a new
rate structure to offer more choices to
customers and ensure the utility’s fixed
costs are covered.
Other highlights of the meeting:
•K
IUC expects to reduce its
greenhouse gas emissions to below1990 levels by 2020 if all of its
renewable energy projects come
online.
KIUC members listen to presentations at the annual meeting. Photo by Shelley Paik
•K
IUC’s rates have risen more slowly
TenBruggencate reported that KIUC
Kaua‘i Island Utility Cooperative
than those on neighboring islands,
returned $2.1 million in patronage
reduced its use of imported oil by 2.5
with an increase of 0.1 percent from
capital to its members for fiscal year
million gallons over four years and
2008 to 2014. By comparison, rates
2014—an average of $24 for each
cut greenhouse gas emissions by 9
on Oahu rose 28 percent during the
residential customer. Since 2003, the
percent—two of the most significant
same period.
co-op has returned $32.6 million in
accomplishments of 2014.
•T
he number of installed photovoltaic
patronage capital and bill credits.
Speaking at the 13th annual
systems on Kaua‘i rose from 378 in
“That’s money that stays on the island
meeting of cooperative members
2010 to 2,376 by the end of 2014.
and does not end up in the pockets of
at Kaua‘i Community College July
•R
esidential energy use is at its
some offshore shareholders,” he said.
23, President and CEO David Bissell
lowest level since 1986. Residential
By the end of 2015, 38 percent of
said the cooperative’s increasing use
customers who do not have rooftop
the electricity used on Kaua‘i will be
of renewable resources to generate
solar used an average of 450
electricity is paying off with stable rates generated by renewable resources—up
kilowatt-hours a month through
from 9 percent in 2009, Bissell said.
and lower carbon dioxide emissions.
the first six months of 2015—down
Two solar arrays owned by KIUC—
The annual membership meeting was
from 465 in 2014.
one in Kōloa and one in Anahola—will
attended by 282 people who received
•K
IUC is spending $2.5 million a year
a 2014 annual report, three LED bulbs
provide nearly half the electricity
on research and hazard mitigation
worth $20, a bag of rice, and a dinner of consumed on Kaua‘i during daylight
for federally protected seabirds such
chili and rice.
hours.
as the Newell’s shearwater. That
Jan TenBruggencate, chairman of the
Chief Financial Officer Karissa Jonas
amount has risen 125 percent the
KIUC Board of Directors, noted that the said that while the cooperative finished
past three years, making KIUC the
average residential electric bill was $214 2014 in a strong financial position,
largest single funding source for
lower last year than the previous year— electricity sales through the first six
research on endangered seabirds on
months of 2015 are down 3 percent
the result of greater energy efficiency
Kaua‘i.
from the same period last year.
and lower fuel costs.
4
KIUC Currents
Inside KIUC
From the Chairman
Our progress at KIUC toward
achieving our ambitious renewable
energy goals just keeps building, but the
risks we face are also growing.
As we’ve mentioned before in
Currents, we expect to reach our goal of
50 percent renewable energy by 2023
with years to spare, and we’ve started
planning how to reach the state’s
goal of 100 percent renewable energy
generation by 2045.
The state set another goal, of
reaching 1990 levels of greenhouse gas
emissions by 2020. Thanks to more
efficient generation, the Green Energy
Team biomass plant, and the dramatic
investments in solar power by our
cooperative and our community, we
expect to reach that level early as well—
about 2018.
That’s the good news. The bad news
is that all this utility innovation isn’t
without challenges.
Many renewables—and our exposure
is primarily to solar power—are
intermittent. At night and when it’s
cloudy, solar isn’t producing any power
at all.
That means we maintain two
generation systems—one for when the
sun’s shining, another for when it’s not.
That’s expensive. Right now, we’re
backing up solar with oil. But we want
to reduce our use of some of our older
oil-fired power plants because they’re
more expensive to operate. We’re
investigating several ways to do that.
One is through efficiency so we can
reduce our overall power demand.
We’ve been giving away thousands of
energy-efficient light bulbs and offering
rebates on the purchase of more efficient
appliances. The effect has been dramatic.
In the last 10 years, the average
household on Kaua‘i has reduced its
monthly electric use from 520 kilowatthours a month to about 450 today.
Another way is to shift some electric
demand into the daytime hours. We
recently asked the Public Utilities
Commission to approve a test program
to offer discounted rates to a limited
group of participants to encourage them
to use more electricity when our cheaper
solar power is abundant.
Still another way is to store solar
power so we can deliver it at night.
Batteries are one solution. We’re
hopeful that their price and technology
will continue improving.
As we’ve talked about previously,
we’re moving ahead with engineering
and financial analysis of a pumped
storage project on the west side, using
solar power to pump water uphill during
the day and running it back down
through a turbine to make electricity at
night.
While we’re proud to hit more
renewable energy milestones this year,
we know there are still many challenges
that lie ahead.
With aloha,
Jan TenBruggencate
Elected directors and KIUC staff at the annual meeting. Photo by Shelley Paik
September 2015
5
Inside KIUC
Board Actions
Below is a summary of some of the actions taken by the KIUC Board of Directors in June, July and August 2015.
Agendas and minutes of board meetings are available at www.kiuc.coop.
June 30 meeting
Unanimously approved $133,500 for time-of-use pilot program, pending Public Utilities Commission approval.
Unanimously approved $20 million construction line of credit extension amendment, moving expiration from
September 30, 2015, to September 30, 2020.
Unanimously approved $247,000 for consultants to perform engineering and geotechnical studies on the Puu Opae
pumped hydro storage project.
Unanimously approved $253,560 for consultants to perform a rate design study and assist with the PUC docket on
distributed energy resources.
Approved Board Policies 8 (director compensation and reimbursement), 9 (investment of general funds) and 29
(equity management plan) with no changes or minor revisions.
July 28 meeting
Appointed Patrick Gegen chairman of the 2015-16 nominating committee.
Unanimously approved write-offs of $71,860 for accounts disconnected as of December 31, 2014.
August 25 meeting
Unanimously approved $120,000 from the revolving loan fund for Malama Pono.
Approved investment of $60,000 into the Rural Economic Development Fund for a loan of $360,000 to the National
Tropical Botanical Garden for expansion of its visitor center. TenBruggencate recused himself for conflict of interest.
Next meetings
All meetings are held at KIUC offices at 12:30 p.m. unless otherwise noted: September 22, October 27, November 24.
6
KIUC Currents
Stop Sweating
and Start Saving
Replace your older, less-efficient appliance with a new, energy-efficient model!
Get a $50 rebate to replace your old window air conditioner with an Energy Star
air conditioner with an Energy Efficiency Rating (EER) of 11.2 or higher.
Get a $25 rebate to replace your old ceiling fan with a new Energy Star ceiling
fan, valid for up to two ceiling fans per household.
Applications and information can be found at www.kiuc.coop.
Questions? Call us at 808.246.4300.
KIUC is an equal opportunity employer and provider.
September 2015
7
Members and Community
Lasers, Diverters Part of KIUC’s
Expanded Seabird Protection Efforts
By Shelley Paik
Kaua‘i Island Utility Cooperative
continues to use highly concentrated
beams of light from low-powered lasers
attached to transmission poles and bird
diverters on power lines as part of its
ongoing effort to protect endangered
seabirds.
“We are experimenting with the
use of this technology as it could be a
rapid and cost-effective way to reduce
line strikes by endangered seabirds,”
said Carey Koide, KIUC’s transmission
and distribution manager, who also
oversees wildlife conservation efforts.
Last year, KIUC, in collaboration
with the Kaua‘i Endangered Seabird
Recovery Project (KESRP), created a
“light fence” by attaching 30 lasers to
transmission poles in ‘Ele‘ele.
Seabirds fly in the dark because they
only come to land after nightfall. The
lasers create a visual “fence” in front of
the power lines, allowing the birds to
detect the lasers in the darkness and
avoid the lines.
Nighttime collisions are among the
leading causes of death and injury to
seabirds.
The lasers are similar to common
laser pointers and use a narrowly
focused green beam of light. Because
the beams are parallel to the ground
and the installation is not in designated
air space, the lasers do not pose a
hazard to aircraft or passersby.
“This year, we have redesigned the laser
controller module to provide us with more
reliable on-off cycles and added wireless
communications to each unit,” Koide said.
“The lasers will be programmed to be on
at alternating nights, and biologists from
KESRP will monitor the power lines during
the test season.”
Lasers were installed in August.
Testing runs through December.
“The initial testing of this redesigned
unit at a Wedge-tailed Shearwater
colony earlier this year yielded
8
KIUC Currents
KIUC crews install FireFly bird diverters to power lines near Hanapēpē.
encouraging results, with shearwaters
apparently avoiding the lasers the
majority of the time,” said Marc
Travers, avian conservation biologist
with KESRP. “This gives us hope that
the endangered Newell’s shearwaters
and Hawaiian petrels will see the lasers
and, thus, avoid power lines in areas
where we know collision is a problem.”
The new lasers will be tested again on
power lines in the ‘Ele‘ele coffee fields.
In addition to the lasers, KIUC is
installing FireFly bird diverters. The
devices hang from power lines. They
have reflectors and glow-in-the-dark
features that make them visible to birds
in low-light conditions.
The devices are being attached to
spans of power lines along Kaumuali‘i
Highway west of Hanapēpē and south
of Kīlauea near the intersection of
Kūhiō Highway and Ko‘olau Road.
These are some of the methods the
cooperative is exploring to reduce the
risk of seabird collisions, and are part of
KIUC’s Habitat Conservation plan and
incidental take permit.
Threatened native species including
the Newell’s shearwater and the
Hawaiian petrel are vulnerable to
death or injury from collisions with
utility equipment because they fly in
and out to sea at night and in the early
morning. They are at greatest risk
during a new moon phase when skies
are darkest.
The research is a collaboration
between KIUC and KESRP, which
is a State of Hawai‘i Department of
Land and Natural Resources/Division
of Forestry and Wildlife project
administered by the Pacific Cooperative
Studies Unit of the University of
Hawai‘i.
KIUC, in partnership with
government agencies and conservation
organizations, is the primary funding
source for research into wildlife habitat
protection on Kaua‘i. KIUC spends
nearly $2 million a year to protect
endangered wildlife, including research,
power line and lighting reconfiguration,
habitat restoration and predator
control, and injured bird rehabilitation.
If effective, these experimental
techniques could drastically reduce
the cost to KIUC and its members for
protecting endangered seabirds.
The official Save Our Shearwaters season begins September 15 and runs through
December 15. SOS staff collects the birds and rehabilitates them until they are
ready to be released into the wild.
You can help by:
• Keeping a ventilated box and towel in your vehicle.
• If you find a downed bird, gently pick it up with the towel covering the head, and completely around
its back and wings. Place in the container.
• Keep the bird covered and quiet in a shaded area. Do NOT feed it or give it water.
• Take the bird to the nearest aid station listed below as soon as possible. Please do NOT attempt
to release the bird yourself.
• Please record the information requested at the aid station.
For more information, contact the Kaua‘i Humane Society at
632.0610 extension 109.
If you have found a bird or have a question regarding seabirds,
please call the SOS hotline at 635.5117.
SOS Aid Station Locations
WestSouth
Waimea Fire Station
Hanapēpē Fire Station
Kalāheo Fire Station
Kōloa Fire Station
Central-EastNorth
KAUA‘I
VETERINARY
CLINIC
Kaua‘i Humane Society
Līhu‘e Fire Station
Kapa‘a Fire Station
Kaiākea Fire Station
Kīlauea Medical Group
Hanalei Fire Station
Hanalei Liquor Store
September 2015
9
Members and Community
Kaua‘i Youth Tour Delegates
Discover New Worlds in D.C.
KIUC and Kansas Youth Tour delegates celebrate in front of the White House.
By Pam Blair
An escapade among historical
monuments. A walk through our
Founding Fathers’ stomping grounds.
Stimulating conversations with
inspirational leaders. New, enduring
friendships—especially with the oh-soawesome Kansas kids. New memories
shared. New stories to tell. All in one
summer.
That is how Athena Abadilla sums up
her “unforgettable experience” as one
of four high school juniors to represent
Kaua‘i Island Utility Cooperative
during the 2015 National Rural Electric
Cooperative Association’s Washington
Youth Tour in June.
As is tradition for the KIUC
contingent, Athena, Kasey Emoto,
Coleman Langstaff and Haley Okamoto
traveled to the nation’s capital with
delegates from Kansas for a weeklong
sightseeing and educational tour.
“Traveling on the tour only took
place for about 10 days,” says Coleman.
“However, the tour began months
before we boarded a plane.”
10
KIUC Currents
After their selection, the students
met with chaperone Anne Barnes and
other KIUC leaders, and got to know
one another.
“Many people describe this as a
trip of a lifetime,” says Athena, who
attends Waimea High School. “This trip
provided the knowledge and experience
to last us a lifetime. The most
essential lesson I learned was this: Our
generation is crucial to the success of
this nation. Whatever we decide to
pursue in the present has a big impact
on the society we create for the future.”
Kasey recalls that when she was a
freshman at Kaua‘i High School, she
saw four Youth Tour students sporting
bright, confident smiles on the cover of
Currents magazine—and she yearned
to follow in their footsteps.
“My fascination continued to grow as
I read through their once-in-a-lifetime
experiences from their Youth Tour in
hopes of someday making their past a
reality in my life,” she says.
That dream led to “one of the best
experiences of my life,” Kasey says.
“Youth Tour allowed me and the
other delegates to learn more about our
nation’s history and politics,” Kasey
says. “As we visited the memorials,
monuments and museums, I felt as
though I was not simply viewing our
nation’s past, but living in it.
“Looking up at the Lincoln Memorial,
I felt as though I became a part of the
crowd of people waiting for Martin
Luther King Jr.—a man of magnitude
Haley performs a hula for the group.
and power—to again shake the people
with his words of enlightenment.”
Coleman also was moved by the
experience.
“One thing I learned about our
nation’s history through the different
sites we saw was how much our
nation has gone through and how
much we have adapted to change and
progressed,” he says. “I learned that
I connect with the more tragic side
of our nation’s history than I had
imagined. Seeing all the memorials and
monuments struck me in places I never
thought I had.”
The group’s visit to Mount Vernon
left an impression on Haley of
Kamehameha Schools.
Because she took U.S. History as an
abbreviated summer course, she says
she lacked details about the presidents.
“Now I can proudly say I toured the
place where our first president, George
Washington, resided and died at,” she
says. “It was captivating to learn about
the life he lived more than 200 years
ago. Something I remember learning
is that after George Washington died,
his wife refused to sleep in the bed
they used to share. She closed his room
down and moved to one of the smaller
guest rooms and lived her last years
there.”
Athena was moved by what she
saw at the Newseum—a museum she
describes as championing justice in the
public sphere.
“Seeing how our country has
developed through the years has altered
my perspective on America,” she says.
“It greatly increased my appreciation
for the resilience of our nation’s people
and motivated me to be a more active
participant in my community. I’m
extremely grateful for this opportunity
presented to me by KIUC.”
While in the nation’s capital, the
students learned about the political
process and met with Hawai‘i’s
representatives.
They spent time with
Congresswoman Tulsi Gabbard and
Senators Mazie Hirono and Brian
Schatz.
“Meeting with them and learning
from what they said shows me how
much time and care they put into our
nation,” Coleman says.
KIUC delegates meet with Congresswoman Tulsi Gabbard.
“I got to understand what busy
schedules they have,” Haley adds. “All
of them love and care about Hawai‘i
and the citizens. I could tell through
the hard work they put in—not only
during office hours. Even during their
time off they’re thinking about what is
best for us.”
As she interacted with the students
from Kansas, Haley says she came to
realize how much pride she has in her
Hawaiian culture.
“Since I go to a Hawaiian school, I am
instilled with many Hawaiian values,
and I am culturally connected,” she
explains. “I enjoyed sharing the history
of Hawai‘i, and some of the cultural
activities we do. I also got to perform
a hula for them, which made me feel
proud because I was able to share a bit
of our culture.”
Kasey says being a part of the Youth
Tour and traveling with a bus full of
Kansas and Hawai‘i delegates, and
thoughts of family far from home, was
an immense honor.
“This tour enabled me to bond with
people having diverse backgrounds,”
she says. “They love to slide down
hills, farm and listen to Blake Shelton
on weekends for fun, while I go to the
beach and listen to local music. We
shared our spirit of aloha, our unique
‘pidgin’ slang and ‘interesting’ li hing
mui candy. The Kansas delegates
shared their culture by showing us how
to line dance and demonstrating their
subtle Southern accent. As different
and distant as I thought I would be
from these Kansas delegates, it is hard
to believe we were complete strangers
just months ago, given how close our
ties have become.”
Kasey appreciates not only the bonds
created with those across the Pacific,
but the irreplaceable friendships with
students from different parts of the
island.
“Through my interactions with all of
these new people, I was able to explore
who I was and who I came to be: a
more passionate and outspoken leader
and a proud delegate of Hawai‘i,”
Kasey says. “Although this tour only
lasted about a week, the everlasting
and valuable memories, connections
and lessons I have gained will last me
a lifetime.”
September 2015
11
Members
Inside KIUC
and Community
Important Notice Regarding
Past-Due Billing Notification
Starting in October, Kaua‘i Island Utility Cooperative no longer will send separate service
interruption warning notices to account holders whose payments for electric service are
past due.
Customers will now receive a notification as part of their bill. It will look like this:
4463 Pahee St Suite 1
Lihue HI 96766-2000
For questions and concerns call (808) 246-4300
Office hours: 7:30 AM - 4:15 PM M-F (excluding holidays)
Visit us online at www.kiuc.coop
KIUC
4463 PAHEE ST., SUITE 1
LIHUE, HI 96766-2000
*** FINAL NOTICE ***
DISCONNECTION WARNING
Your account has a balance forward that is past due
and must be paid in full by 08/24/2015 TO AVOID
HAVING YOUR SERVICE LIMITED OR
DISCONNECTED. See information on the back of
this bill.
Billing Date
Account Number
Service Period
08/18/2015
9999001
07/02/2015-08/02/2015
Service Summary
Previous Balance
Thank you!
Payment(s) Received
Balance Forward Due By 08/24/2015
Current Charges Due By 08/29/2015
Total Amount Due
$265.85
$164.12 CR
$101.73
$99.89
$201.62
If you do not pay the amount due by the date listed, your electric service may be limited
or disconnected WITHOUT ANY ADDITIONAL NOTICE.
Discontinuing the separate service interruption notification will save KIUC and its members
significant expenses in staff time, printing and postage.
To ensure uninterrupted service and a good payment history, consider signing up for our
Automatic Bill Pay option. You will still receive a monthly account statement, but your
payment automatically will be deducted from the account you designate.
Later this year, KIUC will introduce more options to make it easier to pay your electric bill
automatically, or do everything online with a desktop computer or mobile device.
To learn more about KIUC’s easy payment options,
go to http://website.kiuc.coop/content/payment-options or call 246-4300.
12
KIUC Currents
JOURNEY
From the CEO and Chairman of the Board
Electric cooperatives are getting a lot of attention in Hawai‘i these days and I’m
proud that KIUC is so often cited as an example of a successful, innovative
business that is responsive to the needs of its community.
The co-op model of democratic participation influences our strategic
planning, which is why, since 2009, we have had as our primary goal
to use renewable resources to supply at least 50 percent of our power
generation by 2023.
With the completion of our Kōloa solar project in August 2014,
renewable energy accounted for 13 percent of our power generation at
the end of the year. By the end of 2015, we will be close to 40 percent.
As a co-op, we are obligated to consider what steps we can take to benefit
all of our members. That is one of the reasons we are incorporating utilityscale solar onto our grid. We believe the benefits of solar shouldn’t just be
available to those who can afford it.
Our success wouldn’t be attainable without the commitment of our elected board and our 151 employees.
Our employees are also co-op member-owners, and they work 24 hours a day to deliver power safely,
reliably and efficiently.
Whether it’s quickly restoring power after a storm or offering practical advice on using electricity more efficiently,
KIUC’s goal is to provide exceptional value and service to members.
Even as technology transforms the utility business, that goal and our commitment to achieving it won’t change.
David J. Bissell
President and Chief Executive Officer
Our community utility continues to be a leader among electric companies in Hawai‘i and across the nation. That’s
thanks to a remarkable staff and the cooperative advantage—the fact that our key policy decisions are made in our
community by our community.
The cooperative’s dedicated employees are actively involved in our island, and each person on our elected board of
directors is a member and customer of KIUC. All of us, employees and leadership, have “skin in the game.”
Just a handful of years ago, Kaua‘i Island Utility Cooperative produced 92 percent of its power from fossil fuels—
mostly diesel and naphtha. Just 8 percent came from renewables—mostly plantation-era hydroelectric plants.
A decade of firm commitment to renewable energy is now taking shape. With new solar and a biomass plant coming
online in 2015, we will be close to 40 percent renewable. We are actively planning for 50 percent and beyond.
We are also controlling costs, keeping operating expenses at or below the rate of inflation, which puts downward
pressure on rates. And we are studying alternative fuels like liquefied natural gas, which could reduce our rates
further, until we are able to bring even more renewables on line.
We do all this under the guidance of a strategic plan that resulted from community meetings around the island.
We are a cooperative and that’s the way we do business. Thanks to each of you for your support.
Jan TenBruggencate
Chairman of the Board
2
In its 12th year in business, the cooperative
maintained its financial stability while achieving
several important renewable energy milestones. These
accomplishments are the result of the work by the elected board
of directors and the men and women who deliver power safely,
reliably and efficiently 24 hours a day, 365 days a year.
Many of those people are on this page and some
of their stories are on the following pages.
KIUC board members and staff at Kōloa solar array, September 2014. Photo by Shelley Paik
KIUC 2014 ANNUAL REPORT 3
KIUC Board of Directors
The role of the board of directors is to set the policies
by which the cooperative operates and to develop
long-range goals for the delivery of reliable power
that is also safe, economical and environmentally
responsible.
The board advocates for the members and
makes decisions with the best interests
of the membership in mind. Directors are
accountable to the membership through
annual elections.
The president and CEO is the board’s only
employee and the board is responsible for
evaluating his or her performance. The CEO
is accountable for the day-to-day operations of
the utility and ensuring that the cooperative is
professionally managed and responsive to its members.
Board Members
Chairman: Jan TenBruggencate
Vice Chairman: Calvin K. Murashige
Treasurer: Peter Yukimura
Secretary: Karen Baldwin
Board: Carol Bain, Dennis Esaki, Pat Gegen,
David Iha and Teofilo “Phil” Tacbian
Finance & Audit
Member Relations
Government Relations/Legislative
Affairs
Policy
Chairman: Peter Yukimura
Members: Dennis Esaki, Pat Gegen, Phil Tacbian
Chairman: Phil Tacbian
Members: Dennis Esaki, Pat Gegen, David Iha
Chairman: Calvin K. Murashige
Members: Carol Bain, Karen Baldwin, David Iha
International
Strategic Planning
Chairman: David Iha
Members: Phil Tacbian, Peter Yukimura
4
Chairman: Carol Bain
Members: Karen Baldwin, Calvin K. Murashige,
Phil Tacbian
Chairman: Dennis Esaki
Members: Carol Bain, David Iha, Peter Yukimura
Kaua‘i Renewable Energy Projects
McBryde Hydro, Wainiha
KIUC Anahola Solar
Westside Pumped
Storage
Kapa‘a Solar
KIUC Waiahi Hydro
Wailuā River Hydro
Pu‘u Opae Hydro
Menehune Ditch Hydro
KAA Hydro
Green Energy Team
MP2 Solar
Pioneer Solar
Gay & Robinson Hydro
KIUC Kōloa Solar
McBryde Hydro, Kalāheo
McBryde Solar, Port Allen
Type
MW
% of Sales
Active In Use
KIUC, Kōloa
KIUC, Anahola*
Green Energy Team*
McBryde, Port Allen
McBryde, Wainiha
KIUC, Waiahi
McBryde, Kalāheo
Gay & Robinson, Olokele
KAA, Waimea/Kekaha
Pioneer, Waimea
Kapa‘a Solar
MP2, ‘Ōma‘o
Customer Solar
Solar12.0 5.5
Solar
12.0
5.5
Biomass
7.2
12.4
Solar
6.0
2.9
Hydro
4.0
3.6
Hydro
1.3
1.4
Hydro
1.0
0.9
Hydro
1.3
0.8
Hydro
1.5
0.8
Solar
.3
0.1
Solar
1.0
0.4
Solar.3 0.1
Solar
16.9
2.2
Under Construction/Permitting
Gay & Robinson, Olokele
Customer Solar
Hydro
Solar
6.0
6.6
4.2
1.0
Pu‘u Opae, Kekaha
Hydro
8.3
Menehune Ditch, Kekaha
Hydro
1.5
Wailuā River/Kalepa
Hydro
4.0
Westside Pumped Storage Solar/Hydro 25.0
9.1
1.5
5.2
13.0
Under Consideration
Total Renewable
Energy in Service 2015
64.8 MW/36.6%
Potential Renewable
Energy in Service 2025
116.2 MW/70.6%
* Online third quarter 2015
KIUC 2014 ANNUAL REPORT 5
2014 Renewable Energy Highlights
Kaua‘i Island Utility Cooperative made significant progress toward its goal of using renewable
resources to generate 50 percent of the island’s power by 2023.
At the end of 2014, renewables accounted for about 13 percent of sales. By the end of 2015,
37 percent of the electricity generated on Kaua‘i will come from a mix of renewable resources:
solar, hydropower and biomass.
Here’s a summary of 2014 projects:
Solar
v Kōloa array: The largest solar array in the state, this
12-megawatt project owned by KIUC went online in August
2014. The $40 million array produces nearly 6 percent of
Kaua‘i’s energy needs and reduces KIUC’s oil consumption
by 1.7 million gallons a year.
v Anahola array: KIUC broke ground on a 12-megawatt,
$54 million solar energy park that will come online
in late 2015. It will reduce KIUC’s carbon dioxide
emissions by 18,000 tons per year. The array
consists of 59,000 panels.
v Customer solar: Up from a total of 311 systems in
2010 to 2,376 as of Dec. 31, 2014. Rooftop systems
are used by 8 percent of residential customers.
Biomass
v Green Energy: This 7-megawatt plant just outside
Līhu‘e neared completion and will provide 12
percent of Kaua‘i’s power under a 20-year contract
with KIUC. One of the first plants of its kind in this
country, the $90-million project burns wood chips
from invasive species and from locally grown trees.
Wesley “Wes” Chow — Operating Technician
10 years of service — Anahola
Wes standup paddles, bikes and takes care of his grandchildren. He serves as a board
member for the Anahola community Pi‘ilani Mai Ke Kai subdivision and has coached
high school and Pop Warner football.
“I want to thank the KIUC ‘ohana for the career here that has given me the blessing to be
home on Kaua‘i and have the only thing that counts in life, being home with my family.”
6
Energy Storage
v Pumped storage hydro: Plans for a system proposed for
Kaua‘i’s west side received preliminary state approval in
2014. The system will use an upper storage pond connected
by a buried steel pipeline to a lower pond. During the
day, inexpensive solar power would be used to push the
water uphill to the storage pond. At night, when demand
for electricity is at its peak, the water would be released,
flowing downhill through the pipe to turn a turbine and
generate electricity.
Lynda Okayama — Accounting Clerk
25 years of service — Kalāheo
Lynda enjoys baking, fishing and plays an active
part in her children’s sports and school activities.
“We, as a KIUC ‘ohana, work together as a
dedicated team to provide quality service to our
members and support one another on a daily
basis. We give back to our keiki and our community
through our services and our Sharing of Aloha
program. Having two children active in their
school activities, it makes me proud to see KIUC
supporting our keiki’s education and activities and I
can say I am proud to be part of KIUC.”
Kevin Akita — Information Services,
System Support Specialist
14 years of service — Kalāheo
Kevin coaches Bronco baseball and girls softball
along with coaching rodeo events with his children.
He’s been president of the Kalawai Youth Baseball
Club since 2011.
“What I love about Kaua‘i is that there is so much
aloha on the island that you don’t need to look far
for support when it’s needed. Everyone is always
willing to give, especially for the keiki.”
KIUC 2014 ANNUAL REPORT 7
Numbers At-A-Glance
Greenhouse
Gas Emissions
kWH Sales
Greenhouse
Gas
E
Greenhouse
Gas Emissions
kWH(Millions)
SaleskWH
(Millions)
Sales
(Millions)
Greenhouse
Gas
E
kWH
Sales
Greenhouse
GasEmissions
Emissions
Greenhouse
Gas
E
kWH
Sales(Millions)
(Millions)
kWH
Sales (Millions)
(Millions)310,000Greenhouse
Gas
Greenhouse
Gas
Greenhouse
GasEmissions
Emissions
kWH
kWH
(Millions)
Sales
kWH
Sales
(Millions)
310,000
310,000
(Tons
of
CO
)
440 Sales
440
)
(Tons
of
CO
(Tons
of
CO
2
310,000
2
440
(Tons
of
CO
310,000
310,000
440
)
(Tons
of
CO
440
(Tons
of
CO
310,000
310,000 (Tons
310,000
440
) ) of CO2)2
(Tons
(Tonsof
ofCO
CO
22
ative
PV Installations
Cumulative
Cumulative
PV Installations
PV
Installations
Cumulative
PV
PVInstallations
Installations
Cumulative
PV Installations
Installations440
umulative
PV
Installations
PV
eCumulative
PV2500
Installations
2500
2500
440
440
2000
2000
2000
437
437
1500
1500
1500
434
434
1000
1000
1000
431
431
500
500
500
428
428
0
02011 2013
2011
2010 2012
2010
2012 2014
2013
2011 2014
2012
0
2010
2011
2012
2010
2011 2012
2012 2013
2013 2014
2014
2010
2011
2012
2010
2012
2013
2014
2012 2011
2013
2014
437
434
431
428
2013
2013
2013
Plant Value
Value
Plant ValuePlant
Value
PlantValue
ValuePlant
Plant
Value
nt (Millions)
Value
ant
Value
$300Plant
(Millions)
(Millions)
$300
(Millions)
$300
(Millions)
(Millions)
Millions)
Millions) (Millions)
$275
$275
$275
425
2014
425
2014
425
2014
$40
$40
428
428
428
278,000
278,000
270,000 270,000
270,000
270,000
2010 2011
2012
2010
2011 2014
2012
2010
2011 2013
2012 2014
2013
2013
2014
270,000
270,000
270,000
270,000
270,000
2010
2011
2012
2013
2014
2010
2011 2012
2012 2013
2013 2014
2014
2010
2011
2012
2013 2014
2010
2012
2013
2014
2010 2011
2011 2010
2012 2011
2013
2014
28
28
$34
$34
$34
$34
$34
$34
$34
2727
$32
$32
$32
$32
$32
$32
$32
26
26
$30
$30
2010 2011
2012
2010
2011 2014
2012
2010$30
2011 2013
2012 2014
2013
$30
$30
$30
2010
2011
2012
2010
2011 2012
2012 2013
2013 2014
2014
2010
2011
2012
2010
2012
2013
2014
2010 2011
2011 2010
2012 2011
2013
2014
$80
$80
$80
$80
$80
$80
$60
$60
$60
$60
$60
$60
$60
$40
$40
464
464
464
$20
$20
$20
$0
2014
$0
$0
2014
2014
80
80
80
$40
$40
$40
$40
$40
$40
$20
$20
$20
$20
$20
$20
2014
2525
2014
2014
29
2929
29
29
29
28
28
2828
28
28
28
27
27
2727
27
27
27
26
26
2626
26
26
26
25
25
252011 2013
2010 2011
2010
2011 2014
2012
2010 2012
2012 2014
2013
25
2525
2010
2011
2012
2010
2011 2012
2012 2013
2013 2014
2014
2010
2011
2012
2010
2012
2013
2014
2010 2011
2011 2010
2012 2011
2013
2014
Patronage
CapitalPatronage
Returned
Capita
Patronage
Capital
Returned
Patronage
Capita
$2.5
$2.5
$2.5
$2.5
$2.5
$2.5
$2.5
$2.0
$2.0
$2.0
$2.0
$2.0
$2.0
$2.0
$1.5
$1.5
$1.5
$1.5
$1.5
$1.5
$1.5
$1.0
$1.0
$1.0
$1.0
$1.0
$1.0
$1.0
$0.5
$0.5
$0.5
$0.5
$0.5
$0.5
$0.5
$2.5
$2.5
$2.0
$2.0
$1.5
$1.5
$0.5
$0.5
2013
2013
2013
SystemSystem
Peak Peak
System
Peak
System
SystemPeak
Peak
System Peak
Peak
System
SystemPeak
Peak
80
80System
80
80
8080
2
2
2
Patronage
CapitalReturned
Returned
Patronage
Capita
Patronage
Capital
Capital
Patronage
Capital
Returned
$3.0
$3.0Returned
$3.0 Patronage
(Millions)
$3.0 (Millions) (Million
$3.0
$3.0 (Millions)
(Millions) (Million
(Million
$3.0
$3.0 (Millions)
$3.0
(Millions)
$1.0
$1.0
$0
$0
$0
2010 2011
2012
2010
2011 2014
2012
2010 $0
2011 2013
2012 2014
2013
$0$0
2010
2011
2012
2010
2011 2012
2012 2013
2013 2014
2014
2010
2011
2012
2010
2012
2013
2014
2010 2011
2011 2010
2012 2011
2013
2014
2
2
2
Fuel Burned
Fuel
Burne
Fuel Burned
Fuel
Fuel
Burned
Fuel Burne
Burne
Fuel
Burned
Fuel
Burned
Fuel
Burned
30
30 (Millions
of
Gallons)
(Millions
of Ga
(Millions
of
Gallons)
30
(Millions
30
(Millions
Gallons)of
(Millions
of Ga
Ga
3030
(Millions
of
(Millions
Gallons)
ofofGallons)
(Millions
of
Gallons)
29
25
2013
2013
2013
Member
Equity Equity
Member
Equity
Member
Member
Equity
MemberEquity
Equity
Member
Equity
Member
Equity
Member
Member
Equity
$100
$100
(Millions)
(Millions)
(Millions)
$100
(Millions)
$100
$100
(Millions)
(Millions)
$100
(Millions)
(Millions) (Millions)
$80
$40
468
468
468
5
5
428
428
428
$36
$36
$36
$60
$60
elsPanels
Per Customer
PerPanels
Customer
Per
Customer
Per
Panels
PerPanels
Customer
Panels
Per Customer
Customer
erPanels
Customer
Per
Customer
58 Per Customer
286,000
286,000
$36
$36
$36
$80
$80
2013
2013
2013
278,000
278,000
278,000
431
431
431
$36
verage
Monthly
Average
Average
Monthly
Average Monthly
Monthly
Average
Monthly
$100
Average
ge
Average
Monthly
geMonthly
Monthly
480
idential
kWH
Use
Residential
kWH
Use
Residential
kWH Use Monthly
480
Residential
kWH
Use
$100
$100
480
Residential
kWHUse
Use kWH Use
tialResidential
kWH
kWH
ntial
kWHUse
UseResidential
460
460
2011
2012
2010
2011 2014
2012
2010460
2011 2013
2012 2014
2013
2010
2011
2012
2010
2011 2012
2012 2013
2013 2014
2014
2010
2011
2012
2010
2012
2013
2014
2012 2011
2013
2014
278,000 278,000
278,000
278,000
431
431
431
29
29
$30
472
472
472
286,000
286,000
286,000
294,000
294,000
$38
$38
$38
2014
$30
$30
2014
2014
476
476
476
286,000 286,000
286,000
286,000
434
434
434
$38
$38
$38
$32
$32
2013
2013
2013
294,000
294,000
294,000
434
434
434
$38
$34
$34
$200
$200
2011
2012
2010
2011 2014
2012
2010
2011 2013
2012 2014
2013
$200
2010
2011
2012
2010
2011 2012
2012 2013
2013 2014
2014
2010
2011
2012
2010
2012
2013
2014
2012 2011
2013
2014
294,000 294,000
294,000
294,000
302,000
302,000
Operations
and Maintenance
Operations
and
Maintenance
Operations
and Maintenance
Operations
and
Maintenance
Operations
andMaintenance
Maintenance
Operations
and
Maintenance30
Operations
and
Maintenance
and
Operations
and
Maintenance
$40
$40
$40 Operations
(Millions)
(Millions) (Millions)
$40
(Millions)
30
30
$40
$40
(Millions) (Millions)
$40 (Millions)
(Millions) (Millions)
$36
$36
$225
$225
$225
302,000
302,000
302,000
437
437
437
425
425
2010 2011
2012
2010
2011 2014
2012
2010425
2011 2013
2012 2014
2013
425
425
425
2010
2011
2012
2010
2011 2012
2012 2013
2013 2014
2014
2010
2011
2012
2010
2012
2013
2014
2010 2011
2011 2010
2012 2011
2013
2014
$38
$38
$250
$250
$250
302,000 302,000
302,000
302,000
437
437
437
2014
$0.0
$0.0
2014
2014
$0.0
$0.0
$0.0
$0.0
2010 2011
2012
2010
2011 2014
2012
2010$0.0
2011 2013
2012 2014
2013
$0.0
$0.0
2010
2011
2012
2010
2011 2012
2012 2013
2013 2014
2014
2010
2011
2012
2010
2012
2013
2014
2010 2011
2011 2010
2012 2011
2013
2014
Summary of Operations
For the period 1/1/2014 through 12/31/2014
The results of operations for the year ended December 31,
2014, remained strong despite a decrease in revenue from
the prior year. Revenue decreased 3 percent primarily
due to lower fuel and purchased power costs. In addition,
electricity use on the island was slightly lower than in the
prior year.
In 2014, KIUC shifted approximately 15,700 megawatthours of generation from fossil fuel to lower-cost
renewable energy as compared to the prior year. The
cooperative is working hard to reduce costs, operate
efficiently and effectively, and preserve a strong
financial position, while maintaining safety and reliability.
Revenue, expenses and net margin totaled $179.4 million,
$169.9 million and $9.5 million, respectively, for the
12-month period ending December 31, 2014.
As is the case for all electric utilities, the cost of power
generation is the largest expense, totaling $109.3 million
or 61 percent of revenue. Commodities, which are fuel
and purchased power costs, are the largest component of
power generation, totaling $95.4 million or 53.2 percent
of revenue. Currently, fossil fuel is the largest component
of commodities, totaling $84.8 million or 47.3 percent of
revenue. Other commodities include hydropower, totaling
$5.0 million or 2.8 percent of revenue, and solar, totaling
$5.6 million or 3.1 percent of revenue. The remaining $13.9
million or 7.8 percent of revenue represents the cost of
operating and maintaining the generating units.
The cost of operating and maintaining the electric
lines totaled $5.2 million or 2.9 percent of total
revenue. The cost of servicing our members totaled
$2.9 million or 1.6 percent of revenue. Administrative and
general costs—which include legislative and regulatory
expenses, engineering, executive, human resources,
communications, safety and facilities, information
services, financial and corporate services, and board of
director expenses—totaled $13.4 million or 7.5 percent of
revenue.
Being very capital intensive, depreciation and amortization
of the utility plant cost $14.8 million or 8.2 percent of
revenue. Although not subject to federal income taxes,
state and local taxes amounted to $15.1 million or 8.4
percent of revenue. Interest on long-term debt, at a very
favorable sub-5 percent rate, totaled $7.8 million or 4.3
percent of revenue. Non-operating net margin deducted
$1.4 million from overall net margin. Revenue less
expenses equals a margin of $9.5 million or 5.3 percent of
total revenue. Margins are allocated to members and paid
when appropriate.
The financial benefit—direct and indirect—to KIUC
members is significant. Since 2002, KIUC has returned
$32.6 million to members in the form of patronage capital
retirements and billing credits. Also, KIUC contributed
$61,411 to local nonprofits and community organizations
in 2014.
In addition, the indirect financial benefits (i.e., ownership)
include patronage capital that is held by KIUC on behalf of
its members to potentially be distributed at future dates,
as determined by the board of directors. This amounts to
$92.5 million in indirect financial benefits to members as
of December 31, 2014.
Juan Lorenzo Jr. “JPL” — Distribution Planner
39 years of service — Kalāheo
Famous for his light display on “Santa’s Lane,” he is assistant coach for the Waimea
High School tennis team and volunteers at his church, King’s Chapel.
“Back in 1969 when I was in college, I took an earth science class and my professor
talked about global warming. Today I see global warming taking its effect and I see why
the utilities are starting to go into renewables.”
KIUC 2014 ANNUAL REPORT 9
Balance Sheet
December 31, 2014, and 2013
Assets
December 31,
20142013
UTILITY PLANT AT COST
Electric Plant in Service
$
479,173,682 $
435,351,324 Electric Plant Acquisition Cost
54,852,453 54,852,453 (253,579,118)
(245,585,999)
Accumulated Depreciation and Amortization
280,447,017 244,617,778 Net Electric Plant in Service
51,849,468 26,947,426 Construction Work in Progress
332,296,485 271,565,204 Net Utility Plant
OTHER INVESTMENTS
Investments in Associated Organizations 791,795 741,259 Rural Economic Development Loans
1,073,313 Total Other Invesments
1,865,108 1,159,935 1,901,194 CURRENT ASSETS
Cash & Cash Equivalents
20,028,196 7,898,651 1,908,115 310,426 Restricted Cash & Cash Equivalents
Accounts and Notes Receivable (Less allowance for doubtful
10,399,975 13,221,075 accounts of $592,145 in 2014 and $537,627 in 2013)
Accrued Unbilled Revenue
7,091,702 8,039,369 Energy Rate Adjustment Clause
- 158,388 14,396,537 15,377,024 Inventories
Other Current and Accrued Assets
1,218,420 1,263,574 Total Current Assets
55,042,945 46,268,507 POST-RETIREMENT BENEFIT ASSET
1,113,400 -
DEFERRED CHARGES
7,530,747 7,405,231 Total Assets
$
397,848,685 $
327,140,136 Equities and Liabilities
EQUITIES AND MARGINS
Memberships
$
467 $
Patronage Capital
92,527,762 Other Equity
396,333 Post-retirement Benefit Obligation Gain (Loss)
94,700 Controlling Equity Interest
93,019,262 Capital Account - A&B KRS II LLC
23,928,991 Non-Controlling Equity Interest
23,928,991 Total Equities and Margins
116,948,253 LONG-TERM DEBT, Less Current Maturities
191,515,093 451 84,689,122
298,104 301,800 85,289,477 -
-
85,289,477 182,968,620 POST-RETIREMENT BENEFITS OBLIGATION
- 1,602,600 ASSET RETIREMENT OBLIGATION
1,139,750 -
CURRENT LIABILITIES
Current Maturities of Long-Term Debt
12,556,893 Line of Credit
39,000,000 11,370,869 Accounts Payable
Energy Rate Adjustment Clause
1,109,770 Consumer Deposits
1,514,639 Accrued Employee Compensation
2,655,600 Accrued Taxes
9,413,017 Other Current and Accrued Liabilities
107,019 Total Current Liabilities
77,727,807 DEFERRED CREDITS
10,517,782 Total Liabilities, Equities and Margins
10
$
397,848,685 $
11,291,699 11,311,000 9,522,670 -
1,281,238 2,387,753 9,881,913 117,380 45,793,653 11,485,786 327,140,136
Statement of Income and Patronage Capital
For the years ended December 31, 2014, and 2013
Year Ended December 31,
2014
Amount
2013
%
Amount
Increase
%
(Decrease)
OPERATING REVENUES
Residential
$ 68,457,684 Irrigation
38,762 Commercial and Industrial 108,660,247 Public Street and Highway Lighting
1,594,732 Other Operating Revenues
624,043 Total Operating Revenues
179,375,468 38.2 $ 69,870,560 0.0 82,525 60.6 112,902,888 0.9 1,616,931 0.3 241,384 37.9
$
0.0 61.1 0.9 0.1 (1,412,876)
(43,763)
(4,242,641)
(22,199)
382,659
100.0 184,714,288 100.0 (5,338,820)
OPERATING EXPENSES
Power Cost
Transmission - Operation
Transmission - Maintenance
Distribution - Operation
Distribution - Maintenance
Customer Accounts
Customer Service and Information
Administrative and General
Depreciation and Amortization
Taxes
Other Interest Expense
109,348,105 335,826 479,856 1,346,803 3,046,602 2,357,285 527,877 13,382,811 14,789,636 15,101,376 550,062 61.0 0.2 0.3 0.8 1.7 1.3 0.3 7.5 8.2 8.4 0.3 115,313,248 334,134 576,913 1,256,350 2,692,103 2,514,917 593,129 15,839,315 13,850,874 15,540,946 456,024 62.4
0.2 0.3
0.7 1.5 1.4 0.3 8.6 7.5 8.4 0.2 (5,965,143)
1,692
(97,057)
90,453
354,499
(157,632)
(65,252)
(2,456,504)
938,762
(439,570)
94,038
Total Operating Expenses 161,266,239 90.0 168,967,953 91.5 (7,701,714)
OPERATING MARGINS
Before Interest
18,109,229 10.0 15,746,335 8.5 2,362,894
INTEREST ON LONG-TERM DEBT
7,766,874 4.3 7,760,076 4.2 6,798
OPERATING MARGINS 10,342,355 5.7 7,986,259 4.3 2,356,096
NONOPERATING MARGINS
Interest Income
1,422,736 0.8 1,063,254 0.6 359,482
Capital Credits
Other Nonoperating Income (Expense)
53,676 (860,613)
0.0 (0.5)
70,012 34,530 0.0 0.0 (16,336)
(895,143)
Total Nonoperating Margins
615,799 0.3 1,167,796 0.6 (551,997)
EXTRAORDINARY ITEMS (1,509,273)
(0.8)
-
0.0 (1,509,273)
NET MARGINS
$
9,448,881 5.2 $
9,154,055 4.9 $
294,826
PATRONAGE CAPITAL - BEGINNING OF YEAR $
84,689,122 $ 78,371,443
Allocation of Net Margins
9,448,881
9,154,055
Patronage Capital Retired
(1,610,241) (2,836,376)
PATRONAGE CAPITAL - END OF YEAR
$
92,527,762 $ 84,689,122
KIUC 2014 ANNUAL REPORT 11
Statement of Cash Flows
For the years ended December 31, 2014, and 2013
December 31,
2014
2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net Margins
$
9,448,881 $
9,154,055
Adjustments to Reconcile Net Margins to Net Cash from
Operating Activities
Depreciation and Amortization
15,184,103 14,233,624
Capital Credits
(53,676)
(70,012)
Income Attributable to Non-Controlling Equity Interest
1,067,191 Change in Assets and Liabiliaties:
Accounts and Notes Receivable
3,768,767 1,534,246
Energy Rate Adjustment Clause
1,268,158 308,656
Inventories and Other Current Assets
1,025,641 (631,258)
Deferred Charges
(125,516)
(318,164)
Post Retirement Benefit Obligations
(2,923,100)
(396,700)
Payables and Accrued Expenses
1,870,190 2,992,714
Deferred Credits
(968,004)
(295,456)
Net Cash from Operating Activities
29,562,635 26,511,705
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to Utility Plant
Rural Economic Development Loans
Other Investments
(74,775,634)
86,622 3,140 (22,542,548)
(332,450)
2,638
Net Cash from Investing Activities (74,685,872) (22,872,360)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments on Long-Term Debt
Borrowings from Long-Term Debt
Net Activity on Line of Credit
Contributions from Non-Controlling Equity Interest
Capital Distributions Paid to Investor
Memberships
Other Equities
Retirement of Patronage Capital
(35,917,333)
45,729,000 27,689,000 23,848,609 (986,809)
16 98,229 (1,610,241)
(11,069,597)
17,289,000
(2,867,000)
17
42,477
(2,836,376)
Net Cash from Financing Activities
58,850,471 558,521
CHANGE IN CASH AND CASH EQUIVALENTS
13,727,234 4,197,866
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR
8,209,077 4,011,211
CASH AND CASH EQUIVALENTS - END OF YEAR
$
21,936,311 $
8,209,077
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash Paid During the Year for:
Interest on Long-Term Debt
7,766,874 7,760,076
Income Taxes
30,836 26,421
Noncash Investing Activities:
Liabilities Incurred for Asset Retirement Obligation
1,139,750 -
12
Net Margins
5.3%
Interest
4.3%
Taxes
8.4%
Depreciation and
Amortization
8.2%
Administrative and
General Net of
Nonoperating
Margins
8.3%
Commodities Fossil Fuel
47.3%
Member Services
1.6%
Transmission and Distribution
Operation and Maintenance
2.9%
Production Operation and
Maintenance
7.8%
Commodities Solar
3.1%
Commodities Hydro
2.8%
Commodities - Fossil Fuel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84,821,209
Commodities - Hydro . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,984,458
Commodities - Solar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,584,767
Production Operation & Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,957,671
Transmission & Distribution Operation & Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,209,087
Member Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,885,162
Administrative & General Net of Nonoperating Margins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,826,347
Depreciation & Amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,789,636
Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,101,376
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,766,874
Net Margins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,448,881
KIUC 2014 ANNUAL REPORT 13
Ho‘oka‘ana Waiwai
(Shared Values)
We, as a company and as individuals, accept these shared values
as a guide to making ethical decisions and promoting harmony
with KIUC and our island community.
Aloha:
v We welcome our members with respect, sincerity and graciousness.
v I will seek to be trustworthy, to share, respect and be kind to my KIUC brothers
and sisters, and members.
Ho‘ohiki:
v We are committed to keeping our promises to each other and our community.
v I am accountable for what I say and do.
Ho‘okela:
v We strive to provide the best service to our members.
v I will contribute my best to attain the highest level of achievement.
Ho‘omau:
v We will persevere in our journey together toward member satisfaction.
v I will not waiver from the path.
Kuleana:
v We accept our responsibilities to our island community as a privilege.
v To do the right thing is a privilege I accept.
Kūpono:
v We will treat members with fairness, integrity and honesty.
v I am committed to treat others the way I like to be treated.
Laulima:
v We will work together toward common goals where one person’s success
is everyone’s success.
v I will combine my best efforts with others.
‘Ohana:
v Community and coworkers, everyone is part of the KIUC family.
Adopted 2008
14
KIUC ‘Ohana
Christopher Acoba
John Adviento
Dwight Akita
Kevin Akita
Maile Alfiler
Galen Alvarez
Warren Amuro
Myles Aquino
Roger Balaan
Julius Balisacan
Anne Barnes
David Bissell
Chantel Blackstad
Timothy Blume
Timothy Brantner
Brooks Braun
Joseph Briones
Giselle Bucao
Richard Bucasas
Michael Callejo
Ranson Camat
Michael Canha
Flordelyn Casticimo
Clyde Chang
Curran Chang
Pua Chin
Wesley Chow
Melanie Cierras
John Cox
Corinne Cuaresma
Dawn Cummings
Kenneth Daubert
Imelda Delos Reyes
Justin Estes
Clarence Estes Jr.
Stanley Farias Jr.
Randall Fernandes
Ira Fernandez
Lisa Fernandez
Brenton Francisco
Thad Fuji
Jeffrey Garcia
Bart Garcia Jr.
Naomi Giovanni
Cory Gokan
Sheryl Grady
Douglas Gray
Pia Gregorio
David Hanashiro
Francis Hetherington
Al Hoffman
Manuel Igaya
Tracie Jacintho
Karissa Jonas
Deidre Kajihara
Kahuwila Kanakaole
Bransen Kawakami
Linda Kawakami
James Kelly
Jensen Koga
Carey Koide
Cameron Kruse
Dayle Kurokawa
Fred Laborte
James Largo
Maika‘i Laureta
Anthony Lazaro Jr.
Dynamite Lee
Juan Lorenzo Jr.
John Ludington
Kendall Maglinti
Patrick Malama
Avelina Maruyama
Robert Mata
Hubert Matsuda
Gregg Matsuo
John Matsuyoshi
John Mattos
Timothy Medeiros
Gerald Miller
Perry Morita
Ken Murakami
Fran Nadatani
Edwin Nakaya
Kjell Newall
Clyde Odo
Mitchell Oishi
Lynda Okayama
Debra Oride
Royden Orsatelli
Scott Otto
Shelley Paik
Nelson Panit
Ferdinand Pascual
Daniel Pereira
Greg Perreira
Robert Perreira
James Pilgram
Lorna Probasco
RJ Quinsaat
Mando Ramos
Royce Ramos
Joshua Rapanot
Tomme Joe Refamonte
Jonnie Reynolds
Brad Rockwell
Gerard Ruiz
Ike Rull
Reygin Rull
Lyle Sagawa
Grace Anne Sahagun
Kymi Sakai
Pedro Saligumba Jr.
Brian Santiago
Debra Santiago
Russ Santiago
Joyce Sato
Andrew Schwartz
Bernard Silva Jr.
Brandie Silva
Ellen Smith
Lauren Sugihara
Jesus Tacata
Curtis Tadani
Charlene Takemoto
Stephen Tangalin
Makani Taniguchi
Nadine Tipps
Jerold Tittle
Mark Tsukiyama
Samisoni Tupou
Elizabeth Ubay
Ivan Vea
Richard Vetter
Wilber Villanueva
Kathryn Williams
William Workman
Glen Yamamoto
Ken Yamamoto
Tom Yamamoto
Don Yamamotoya
Michael Yamane
Jacqueline Yasutake
Michael Young
Henry Zeevat
Dawn Cummings — Member
Relations Supervisor
23 years of service — Kapa‘a
Dawn cooks, swims, does Zumba
and loves to dance. She chaired the
Kamehameha Schools Ho‘olaulea
for three years, chaperoned Special
Olympics, co-chaired American Cancer
Society’s Relay For Life and fundraised
for March of Dimes.
“Get out there and be a volunteer.
Volunteers make the world go round.
If every person volunteered, every
community would be thriving. The
world needs volunteers. Volunteer for
something!”
Cameron Kruse — Substation Operations Supervisor
6 years of service — Kalāheo
Cameron tries to stay active and learn something new every day.
“Having the opportunity to work for KIUC allows me to give back to the community,
work in different environments and challenge myself.”
KIUC 2014 ANNUAL REPORT 15
Seven
Cooperative
Principles
Voluntary
and Open
Membership
Democratic
Member
Control
Members’
Economic
Participation
Autonomy
and
Independence
Cooperatives are voluntary organizations, open to all
persons able to use their services and willing to accept
the responsibilities of membership, without gender, social,
racial, political or religious discrimination.
Cooperatives are democratic organizations controlled by their members,
who actively participate in setting policies and making decisions. The elected
representatives are accountable to the membership. In primary cooperatives,
members have equal voting rights (one member, one vote) and cooperatives at
other levels are organized in a democratic manner.
Members contribute equitably to, and democratically control, the capital of their cooperative. At
least part of that capital is usually the common property of the cooperative. Members usually receive
limited compensation, if any, on capital subscribed as a condition of membership.
Members allocate surpluses for any or all of the following purposes: developing the cooperative,
possibly by setting up reserves, part of which at least would be indivisible; benefiting members in
proportion to their transactions with the cooperative; and supporting other activities approved by
the membership.
Cooperatives are autonomous, self-help organizations controlled by their members. If they enter
into agreements with other organizations, including governments, or raise capital from external
sources, they do so on terms that ensure democratic control by their members and maintain their
cooperative autonomy.
Education,
Training, and
Information
Cooperatives provide education and training for their members, elected representatives,
managers and employees so they can contribute effectively to the development of their
cooperatives. They inform the general public, particularly young people and opinion
leaders, about the nature and benefits of cooperation.
Cooperation
Among
Cooperatives
Cooperatives serve their members most effectively and
strengthen the cooperative movement by working together
through local, national, regional and international structures.
Concern
for
Community
Printed on Kaua‘i
using recycled paper.
While focusing on member needs,
cooperatives work for the sustainable
development of their communities through
policies accepted by their members.
4463 Pahe‘e Street, Suite 1, Līhue, HI 96766-2000
808.246.4300 • www.kiuc.coop
KIUC
Members andInside
Community
Statement of Operations
For the period January 1, 2015, to July 31, 2015
By Karissa Jonas
We are pleased to report the KIUC
results of operations through July 31,
2015, are favorable. The Green Energy
Team biomass plant began testing its
operations and has exported a small
amount of energy to KIUC.
Year-to-date electricity use on the
island is 2 percent lower than in 2014.
Even with the decrease in sales volume,
KIUC is doing everything it can, while
maintaining safety and reliability, to
reduce costs and operate efficiently and
effectively, and continue to maintain a
strong financial position.
Revenues, expenses and net margins
totaled $82.6 million, $79.8 million and
$2.8 million, respectively, for the sevenmonth period ending July 31, 2015.
As is the case for all electric utilities,
the cost of power generation is the
largest expense, totaling $46.8 million
or 56.6 percent of revenues.
Commodities—fuel and purchased
power costs—are the largest component
of power generation, totaling $38.2
million or 46.2 percent of revenues.
Currently, fossil fuel is the largest
component of commodities, totaling
$30.4 million or 36.7 percent of
revenues. Other commodities include
hydropower, totaling $2.3 million or
2.8 percent of revenues; solar power,
totaling $4.9 million or 6.0 percent of
revenues; and biomass, totaling $0.6
million or 0.7 percent of revenues.
The remaining $8.6 million or 10.4
percent of revenues represents the
cost of operating and maintaining the
generating units.
The cost of operating and maintaining
the electric lines totaled $3.2 million or
3.8 percent of total revenues. The cost
of servicing our members totaled $2.0
million or 2.4 percent of revenues. The
PERCENTAGE OF TOTAL REVENUE
Net Margins 5.0%
Interest 4.9%
Commodities —
Fossil Fuel
35.1%
Taxes 8.4%
Depreciation and
Amortization
11.0%
Administrative and
General Net of
Nonoperating Margins
10.0%
Communications
0.6%
Member Services
2.5%
Transmission and
Distribution Operation
Production Operation
and Maintenance
and Maintenance
3.8%
9.9%
cost of keeping our members informed
totaled $0.5 million or 0.6 percent of
revenues.
Administrative and general costs—
which include legislative and regulatory
expenses, engineering, executive,
human resources, safety and facilities,
information services, financial and
corporate services, and board of director
expenses—totaled $8.1 million or 9.8
percent of revenues.
Being capital intensive, depreciation
and amortization of the utility plant
costs $8.7 million or 10.6 percent of
revenues. Although not subject to
Commodities —
Hydro
2.7%
Commodities —
Solar
5.9%
Commodities —
Biomass
0.2%
federal income taxes, state and local
taxes amounted to $6.9 million or 8.4
percent of revenues.
Interest on long-term debt, at a
favorable sub-5 percent interest rate,
totals $4.0 million or 4.8 percent of
revenues.
Nonoperating net margins added
$0.4 million to overall net margins.
Revenues less total expenses equal
margins of $2.8 million or 3.4 percent
of revenues. Margins are allocated to
consumer members and paid when
appropriate.
September 2015
29
Recipes
Much About Mochi
Blueberry Mochi
1 cup butter, melted
1½ cups sugar
12-ounce can evaporated milk
4 eggs, beaten
2 teaspoons vanilla
1 pound mochiko flour
2 teaspoons baking powder
21-ounce can blueberry pie filling
Preheat oven to 350 F. Lightly oil a 9x13-inch baking pan. In a
large bowl, combine melted butter and sugar. Add milk, eggs and
vanilla; mix well. Add mochiko and baking powder to milk mixture;
mix until smooth. Gently fold pie filling into mixture. Pour into
prepared baking pan. Bake for 1 hour, or until done. Cool and cut
into pieces.
Strawberry Jell-O Mochi
1 cup mochiko
3-ounce package strawberry Jell-O
½ cup sugar
1 cup hot water
Katakuriko (potato starch) for dusting
Mix together mochiko, Jell-O and sugar in a microwavesafe bowl. Carefully pour hot water and combine. Microwave
mixture on high for 1 minute at a time until it clumps
together. Stir in between each minute to make sure the
mixture cooks evenly. It should take 3 to 6 minutes,
depending on your microwave. Once cooked, pour the
mixture on a surface lightly dusted with katakuriko. Let cool
for a minute. Once cool enough to touch, use a plastic knife
to divide into pieces. Roll the pieces into balls, coat with
katakuriko, let cool and eat.
Pumpkin Mochi
1 can pumpkin puree (pure pumpkin)
7 ounces sweetened condensed milk
1 block butter, melted
2 eggs, beaten
1 teaspoon vanilla
8 ounces sweet rice flour (mochiko)
1 cup sugar
1 teaspoon baking powder
1 tablespoon ground cinnamon
Preheat oven to 350 degrees. Mix dry ingredients. In a separate bowl, mix
wet ingredients. Combine wet and dry ingredients and mix thoroughly. Grease
a 9x13 pan and evenly pour in the mochi batter. Bake for 40 to 45 minutes,
or until the edges are golden brown. Let the mochi cool. Cut into pieces with a
plastic knife.
30
KIUC Currents
Chocolate Mochi
1 cup mochiko
1½ cups sugar
1 tablespoon baking powder
½ cup melted butter
1 cup semisweet chocolate chips
2 12-ounce cans evaporated milk
2 eggs, beaten
2 teaspoons vanilla
Sift together mochiko, sugar and baking soda. Melt
butter with the chocolate chips. Combine milk, eggs and
vanilla in a separate bowl. Add chocolate to the milk
mixture and stir. Pour into dry ingredients and stir until
smooth. Pour into a greased 9x13-inch pan. Bake at 350
degrees for 1 hour. Cool before slicing.
Butter Mochi
1 pound mochiko flour (1 box)
2 cups granulated sugar
1 teaspoon baking powder
½ cup butter, melted and slightly cooled
3 cups milk
5 eggs beaten
1 teaspoon vanilla
Grease a 9x13-inch pan. Preheat oven to 350
degrees. In a large bowl, combine mochiko, sugar
and baking powder. In a medium bowl, combine
butter, milk, eggs and vanilla. Mix wet ingredients
into the bowl of dry ingredients, stirring until well
combined. Pour into pan and bake for 1 hour, until
golden brown. Cool at least 30 minutes before
cutting into pieces.
Custard Mochi
½ cup butter
1¾ cups sugar
4 eggs
4 cups milk
2 teaspoons vanilla
2 cups mochiko
3 teaspoons baking powder
Cream butter and sugar together with an electric mixer. Add
eggs one at a time. Combine milk and vanilla and in a separate
bowl. Mix in mochiko and baking powder. Add dry and wet
ingredients alternately to creamed mixture. Bake in a 9x13-inch
greased pan at 350 degrees for 1 hour 15 minutes, until the top
browns. Cool. Cut and serve warm or chilled.
September 2015
31
HI-130
September 2015
Volume 12, Number 3
David Bissell
President and CEO
KIUC Board of Directors
Chairman: Jan TenBruggencate
Vice Chairman: Calvin K. Murashige
Treasurer: Peter Yukimura
Secretary: Karen Baldwin
Board: C
arol Bain, Dennis Esaki, Pat Gegen,
David Iha, Teofilo “Phil” Tacbian
Executive
Chairman: Jan TenBruggencate
Members: Calvin Murashige, Karen Baldwin,
Peter Yukimura
Finance & Audit
Chairman: Peter Yukimura
Members: Dennis Esaki, Phil Tacbian, Pat Gegen
Government Relations/Legislative Affairs
Chairman: Teofilo “Phil” Tacbian
Members: Dennis Esaki, Pat Gegen, David Iha
International
Chairman: David Iha
Members: Teofilo “Phil” Tacbian, Peter Yukimura
Member Relations
Chairman: Carol Bain
Members: Karen Baldwin, Calvin Murashige,
Teofilo “Phil” Tacbian
Policy
Chairman: Calvin K. Murashige
Members: Carol Bain, Karen Baldwin, David Iha
Strategic Planning
Chairman: Dennis Esaki
Members: Carol Bain, David Iha, Peter Yukimura
You’re smart with your money.
You wouldn’t buy a $60,000 SUV if all you needed
to get around was a $20,000 compact, right?
The same should go for rooftop solar systems.
That’s why we recommend getting a system that’s right-sized for your
household, not oversized.
For the average household, KIUC recommends a 10-panel system producing
2.5 kilowatts to offset your daytime electric use. You should first consider a solar
water heater, which is a lot less expensive to install and can reduce your electric
bill by 30 percent or more—and KIUC offers a $1,000 rebate.
If you have questions about how much electricity you’re using, or want advice
on right-sizing a rooftop solar system, call us at 246.4300.
4463 Pahe‘e Street, Suite 1
Līhu‘e, Hawai‘i 96766-2000
808.246.4300 n www.kiuc.coop
currents@kiuc.coop
KIUC is an equal oportunity employer and provider.