GREEN ENERGY Firing Up Kaua`i`s New Biomass Plant

June 2015
GREEN ENERGY
Firing Up Kaua‘i’s
New Biomass Plant
Inside:
USDA Loans Help Businesses Grow
Pumped Storage Project Update
Cool Recipes for Summer
Aloha Island Properties
EXCEEDING YOUR EXPECTATIONS
(808) 246-0334
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Regency Huleia, Lihue
374 Eggerking Rd, Wailua
Well maintained Regency at Huleia condominium in
Lihue. End unit with 2 bedrooms, 2.5 baths and a 1 car
garage. Great location near the up and coming Safeway
shopping center, Costco, Kukui Grove shopping center
and the Puakea Golf Course. Refreshing swimming pool
located on the property. Great opportunity at a great
price! $444,000 (fs) Call: Karen L. Agudong, REALTOR
(B) 652-0677.
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! $439,000(fs).Call Kaye DeFranceaux Leonard,
REALTOR (S) 634-8697.
6471-B Kuamoo Rd
PRICE REDUCED on these 2 immaculate homes on the
Wailua River Rim overlooking the Wailua River. This like
new home features a light bright space with gorgeous
flooring, high ceilings/skylight with a gas fireplace. The
French doors that open on to lanai enhance the
breathtaking RARE river valley views. Beautiful Silestone
Quartz kitchen counters and quality cabinets in this
spacious gourmet kitchen and large dining area with a
view. This gorgeous rim lot provides spectacular
sweeping views of Wailua River and breathtaking
mountain views. $1,029,000(fs) Call Karen L. Agudong,
REALTOR (B) 652-0677.
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Kalapaki Villas, Lihue
if you would like to
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my newsletter
with market updates,
please email to:
karen@alohaisland.com
Very well maintained and spacious 2 bedroom, 2
bathroom ground floor condominium at Kalapaki Villas
with 2 outdoor lanais. Beautiful laminate flooring in the
living room and bedrooms. Newer appliances with a
brand new front load washer and dryer. Convenient
location surrounded by lush landscaping. Sold partly
furnished. Swimming pool on property. Close to Kalapaki
Beach, schools and shopping. Excellent opportunity in
the heart of Lihue. $240,000(fs) Call Karen L. Agudong,
REALTOR (B) 652-0677.
276 Hie St, Wailua
ONE OF THE LOWEST PRICED home 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. $415,000(fs) Call Karen L.
Agudong, REALTOR (B) 652-0677 or Kaye DeFranceaux
Leonard, REALTOR (S) 634-8697.
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
Table of Contents
Cover Story
Page 6
Board Actions . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Bill Changes, Improvements Coming. . . . . . . 4
Chairman’s Letter . . . . . . . . . . . . . . . . . . . . . . . 5
Annual Membership Meeting Scheduled. . . . 5
Green Energy Fired Up. . . . . . . . . . . . . . . . . . . 6
Co-op Loan Program Helps Local
Businesses, Nonprofits Grow . . . . . . . . . . . 8
Pumped Storage Project Update . . . . . . . . . . 10
Straight Talk on Rooftop Solar . . . . . . . . . . . 11
Cool Summer Recipes. . . . . . . . . . . . . . . . . . . 12
Statement of Operations . . . . . . . . . . . . . . . . 14
Kaua`i Renewable Energy Project Map . . . . 15
Page 10
Page 12
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
Green Energy biomass plant, looking southeast, with
Haupu Ridge on the right. Photo by Fred Pascual,
KIUC. Above left, Green Energy plant manager
Randy Singer gives a tour. Photo by Shelley Paik,
KIUC.
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
Inside
Members
KIUC
and Community
Board Actions
Below is a summary of some of the actions taken by the KIUC Board of Directors in March, April and May 2015.
Agendas and minutes of board meetings are available at www.kiuc.coop.
March 24 meeting
Board unanimously approved director compensation and reimbursement (Board Policy 8), investment of general funds
(9) and equity management plan (29) with minor revisions or no changes.
April 28 meeting
Board unanimously approved return of $2.1 million in patronage capital to members starting in June 2015.
Board appointed Pat Gegen as assistant board treasurer. In favor Bain, Baldwin, Gegen, Murashige, Iha, TenBruggencate;
opposed Esaki, Tacbian. Not present Yukimura.
May 26 meeting
Board unanimously approved setting March 12, 2016, as date of director election.
Board unanimously approved Code of Ethics for board and employees (Board Policy 12), relationship between board and
CEO (7), access to information (16), information flow to directors (22) and funding KIUC Charitable Foundation (24)
with minor revisions or no changes.
Board unanimously approved the 2015-2035 Long-Range Engineering Plan.
Next meetings
All meetings are held at KIUC offices at 12:30 p.m. unless otherwise noted: June 30, July 28, August 25.
Annual membership meeting July 23 at 6 p.m. at Kauai Community College Performing Arts Center.
Bill Changes, Improvements Coming
Starting in September, members will
see changes in the ways their bills look,
improvements in the KIUC website,
and more options for online bill
payment and account information.
The new bills are designed to be
simpler and easier to read. They will also
include new shorter account numbers,
replacing the current 12-digit numbers.
The changes are part of a year-long
upgrade of KIUC’s Customer Information
System to give members more choice and
more access to their account information
online through the KIUC website and an
app on mobile devices.
4
KIUC CURRENTS
The upgrade will make it easier for
members to get updated account
information online and make payments
with credit and debit cards and from
their checking accounts.
The new system will also enable
KIUC to install a self-service kiosk at
the office in Līhu‘e. The kiosks work
like ATM machines and can be used by
customers to make cash payments
with immediate posting to their
accounts.
If the kiosk is successful in Līhu‘e,
KIUC plans to install kiosks at other
locations around the island.
The kiosks have been used
successfully by other electric co-ops to
reduce walk-in traffic and give members
the ability to make cash payments 24
hours a day.
As part of its service enhancements,
KIUC also plans to provide online
outage maps and restoration updates
on its website. Those features are
expected to become available in
2016.
Watch for information later this
summer on changes to bills,
notifications on past-due payments and
other account information.
Inside KIUC
From the Chairman
I like to think of our mission at KIUC
as the four Rs: reliability, rates,
renewables and relationships.
Reliability is simple. You flip a switch
and a light comes on. At our end, it is
complicated, and getting more
complicated all the time, as we put more
intermittent renewable energy sources
on the grid. When a cloud comes over a
big solar array, we need to manage
alternative resources such as batteries
and fast-response diesels to pick up the
sudden drop in power generation. Our
team is doing groundbreaking work in
managing these issues, and their
solutions are being emulated around the
country.
Rates. We have been working steadily
to reduce rates and their volatility. From
October 2014 to March 2015, the
average KIUC residential bill fell $67,
mainly due to the decline in oil prices.
When oil prices rise again, so will bills—
but less, if we can help it. Our solar,
hydropower and biomass contracts are
at stable rates that will dampen the
corrosive up and down of oil prices.
With the changing energy landscape,
the fairly simple rate structure of the alloil days is no longer so fair. We are
working on rate strategies that will clean
up cross-subsidies in which one class of
our membership pays too much and
others pay less than their share.
We also will be looking at ways our
members can benefit from our new cost
structure, possibly using lower rates to
encourage electric use during the day,
when cheaper solar power is available.
(Example: A timer can shift your washer
or dryer to come on when rates are
cheap, thus reducing your electric bill.)
Renewables are front and center for
KIUC. In some areas—notably solar—
we are leading the nation. We are
committed to getting to 50 percent
renewable energy by 2023, and will hit
that target early. KIUC was at only 8
percent renewable when I was elected to
the KIUC board in 2010. As I write this,
we are at more than 20 percent. By the
end of the year, we will be near 40
percent. KIUC is now actively planning
for how to push past our 2023 goal and
toward 100 percent. Our westside
pumped storage proposal—which will
allow us to accept more inexpensive
solar power—is one of our strategies.
Relationships are key to everything
we do at KIUC. Kaua‘i is a small
community. As a cooperative, each of
the directors is elected by the
membership. You see us and can talk to
us at the market, bank, ballfield, on the
jogging path, at work, family meetings
and over beer and pupus all around the
island. The 150 KIUC employees also are
ambassadors for the cooperative.
But we don’t depend only on face-toface meetings. We have beefed up our
outreach, holding community meetings
on specific projects and on our strategic
plan. We are active on social media.
(If the power goes out, there is a good
chance you can get details on your
phone via Facebook.) We use
advertising, email, publications such as
this issue of Currents and many other
venues to help keep folks informed. We
send representatives to speak to
community groups. We participate in
community planning efforts.
You also can talk to the Board of
Directors at our monthly board
meetings, which are open to the public
at the KIUC offices on Pahe‘e Street in
Līhu‘e. Generally, they are at 12:30 p.m.
on the last Tuesday of the month.
With aloha,
Jan TenBruggencate
KIUC Annual Membership Meeting
July 23, 2015, 6 p.m.
KCC Performing Arts Center
Doors open at 5 p.m. with music by Paul Togioka.
First 350 will receive LED bulbs and a bag of rice.
Chili and rice will be served.
JUNE 2015
5
Inside KIUC
Green Energy Wood Chips
Replace Oil
By Jim Kelly
For the first time since the last of the
sugar plantations closed six years ago,
biomass is being used as a fuel to make
electricity on Kaua‘i.
After three months of testing, the
Green Energy Team power plant 7miles
southwest of Līhu`e is nearing full
commercial production, sending 7
megawatts of electricity onto Kaua‘i’s
grid.
Green Energy will supply 12 percent
of the electricity used on Kaua‘i—
enough to power 8,500 homes. The
plant gives a big boost to KIUC’s goal of
using renewable resources to generate
at least 50 percent of the island’s
electricity by 2023.
The primary benefit of the plant is
that it provides firm, dispatch-ready
power 24 hours a day, just like a
conventional oil- or gas-fired generator.
The plant burns wood chips from
trees to heat water inside a boiler and
convert it to steam. Under high
pressure, the steam turns a turbine to
generate electricity.
The $90 million plant is owned by a
consortium of German, Belgian and
local investors who sell electricity to
KIUC under a 20-year contract.
The plant is the first of its kind in the
U.S. While there are other biomass
plants, what makes Green Energy
unique is it is a closed-loop system that
controls its own fuel supply and even
recycles its ash as fertilizer for the trees
that are grown for fuel.
By growing its own trees and having
contracts with private landowners and
the state for clearing invasive albizia
trees, Green Energy has a steady
supply of fuel that will take it into the
next decade.
“That’s the deal-killer for most
biomass plants: the inability to
guarantee a steady fuel supply,” said
6
KIUC CURRENTS
An automated scoop moves wood chips to the boiler to make steam. Photo by Shelley Paik
Randolph Singer, manager of the
Green Energy plant. “Between our
own plantation operation and the
contracts we have with suppliers, we
know we have a sufficient supply for
the life of our contract with KIUC.
And that’s maybe the best thing about
this plant: that we’re not relying on
offshore sources for fuel and not
having to worry about what world
events do to oil prices. Kaua‘i is
independent.”
Green Energy replaces 3.7 million
gallons of oil annually. Its state-of-theart combustion system releases far less
sulfur dioxide and nitrogen dioxide
than KIUC’s conventional power plants.
An electrostatic precipitator captures
particulate matter before it leaves the
smokestack.
Planning for the plant began in 2005
and construction began in late 2012. In
addition to helping Kaua‘i meet its
renewable energy goals, Green Energy
has been a driver of economic activity.
More than 200 construction
workers—many of them local—were
involved in construction of the plant,
along with hundreds of Kaua‘i-based
subcontractors, vendors and
suppliers.
Green Energy and its tree plantation
employ a permanent staff of 39
workers, most of them hired locally.
Where Green Energy Gets Its Fuel
Short-term supply (2015-2019)
Green Energy Team has agreements to clear invasive albizia trees from thousands of acres of state land mauka of
Hanama‘ulu in Kalepa. Green Energy also has clearing rights on land owned by Hawaiian Mahogany Inc. near
Kōloa—mainly the area around the plant and off Maluhia Road. Several major landowners also have asked Green
Energy to remove albizia from their property.
Long-term supply (2020 to end of contract with KIUC)
About 75 percent of the wood will come from Green Energy Team’s own plantations. Green Energy has leases and
farming agreements on several thousand acres of private and public land. Most of the lands are currently overgrown
with albizia. Once these have been removed, non-invasive hardwoods—mainly eucalyptus—will be planted. The
lands are in Kalepa (public land) and the Kōloa area (private land).
The other 25 percent will come from Hawaiian Mahogany Inc. under a clearing right agreement. HMI will continue
to grow wood for Green Energy for the duration of the contract with KIUC, and Green Energy will buy the standing
timber, harvest it and process it to biomass.
Spot market opportunities
Early in 2015, Green Energy signed a contract with the state of Hawai‘i to remove trees burned in wildfires at
Koke‘e in 2012. In the future, the plant could burn some types of green waste from county and commercial sources.
Green Energy does not rely on this supply to meet its energy production demands, but will consider working with
the community if opportunities arise.
THE YWCA 8th ANNUAL
NEVER FORGET
SANDY G
GOLF TOURNAMENT
Sunday, August 9, 2015
Kaua‘i Lagoons Golf Club
Hole-in-One Prize $25,000
(Split with the YWCA of Kaua‘i)
4-person modified scramble
Shot gun start 7:30 a.m. — Sign in begins at 6:30 a.m.
Awards Luncheon to Follow
BE A SPONSOR OR SIGN UP TO PLAY NOW!
www.ywcakauai.org or 245.5959
The continued support of individuals like you will help to ensure the success of the
tournament and aid the YWCA’s efforts to eliminate the violence that tragically affected
the Mendonca family and our entire community. We can’t stop now; there is more to be
done: the trial, finish Sandy’s Memorial Garden and keeping all of the YWCA’s
prevention programs going. Please kokua by participating as a GOLFER this year, or
helping to put together a TEAM of PLAYERS.
JUNE 2015
7
Members and Community
Loan Program Puts $1.4M to Work
in Local Businesses, Nonprofits
Revolving fund makes KIUC a powerful partner for economic growth
By Anne Barnes
Cooperatives contribute to their
communities in two ways: as a business
that employs people and provides
essential services, and as a catalyst for
positive change and community
growth.
The first role is clear. We generate,
transmit and distribute electricity.
What is less clear is KIUC’s role as a
catalyst. What does it mean to serve as
a catalyst?
Cooperatives have found that taking
an active role in the planning, financing
and management of activities involving
development helps spark changes in
their communities.
KIUC is deeply committed to
maintaining, strengthening and
diversifying Kaua‘i’s economy. We do
this through a revolving loan fund plan,
circulating funds granted from the U.S.
Department of Agriculture’s Rural
Economic Development Loan & Grant
program.
In 2005, after a series of planning
retreats and contracting with the Iowa
Area Development Group to help us
implement the program, KIUC began
its revolving loan program, awarding its
first zero-interest loan of $300,000 to
Kaua‘i Hospice. The revolving loan fund
originated when Kaua‘i Hospice paid
back the loan.
In 10 years, the program has
provided $1.4 million in loans to nine
businesses and nonprofits.
KIUC’s revolving loan fund is an
opportunity for nonprofit organizations
and for-profit businesses on Kaua‘i to
obtain loans at low interest rates. The
primary goal of this project is to build
and maintain jobs, diversify Kaua‘i’s
economy and upgrade the public
infrastructure where conventional
8
KIUC CURRENTS
Workers do laundry at JC Linen in Puhi, which expanded with the help of a low-interest loan through
KIUC. Photo by Shelley Paik
“KIUC encourages
applications for projects that
will provide long-term
improvement of the island’s
economy,” said David Bissell,
president and CEO of KIUC.
“The program is not intended
to compete with other public
and private lenders, but to
collaborate with them to help
make projects happen. Being
involved in the economic
development of Kaua‘i is
critical as a cooperative. We
believe we have tailored a
strategy to meet the needs of
our community.”
A loan review committee
appointed by the KIUC Board
of Directors and consisting
of both cooperative and
community leaders reviews
all loan applications.
In selecting project
Justin Guerber of Kauai Brewing. Photo by Shelley Paik
recipients, the committee
considers job creation and
financing is insufficient, unavailable or
retention, economic diversification,
unfeasible.
improving workforce skills and
KIUC also provided zero- or lowupgrading the public infrastructure to
interest loans for Hale ‘Opio in 2008;
improve the health, safety and/or
National Tropical Botanical Garden and
medical care of KIUC members.
Island School in 2010; Kaua‘i Brewery in
Loans are collateralized, to the extent
2012; Tiki Iniki and JC Linen in 2013;
determined necessary by the KIUC
and Kipuni Way and YWCA last year.
Board of Directors, and typically
Each loan has provided our
include mortgages, liens, letters of
community with opportunities for
credit and/or personal guarantees.
growth. We look forward to continuing
The KIUC board has final authority
the program for the foreseeable future.
regarding all revolving loan fund
The fund grows as those
matters.
organizations and businesses pay back
The committee evaluates project
the loans. As of the second quarter of
need, analyzes the applicant’s credit,
2015, nearly $500,000 is available.
and determines the expected life of the
“Being involved in the
economic development
of Kaua‘i is critical as a
cooperative. We believe
we have tailored a strategy
to meet the needs of our
community.”
~ David Bissell
KIUC CEO
security and the applicant’s ability to
repay the loan before making a
recommendation to the KIUC board.
Committee members are George
Costa, Scott Giarman, Jim Mayfield,
Clyde Nakaya, Darcie Yukimura, KIUC
Director Phil Tacbian and KIUC
employees Anne Barnes, Corrine
Cuaresma and Kymi Sakai.
The Opportunity You Need?
KIUC can offer zero-interest loans of
up to $300,000 to eligible Kaua‘i
organizations with projects promoting
sustainable economic growth and job
creation. Through the USDA Rural
Economic Development Loan and
Grant program, we have access to
federal funds to pass through interestfree to companies initiating such
projects.
For information about participating in
the program, please contact Anne Barnes
at 246-4383 or abarnes@kiuc.coop.
How it Works
Loans are paid
back to the RLF
to maintain and
grow the fund
Hale ‘Opio
Kaua‘i Hospice
Kaua‘i Brewers, LLC
NTBG
Tiki Iniki
Island School
JC Linen, Inc.
YWCA
Rural Utilities Service Grants
to Revolving Loan Fund
$300,000 x 4
KIUC matches 20%
with its own funds
$60,000 x 4
KIUC administers the RLF
$1.44 million
Kipuni Way
JUNE 2015
9
Inside KIUC
2 Sites Studied for Pumped Storage
KIUC consultant Jason Hines describes how a pumped storage system works. Photo by Shelley Paik
About 60 people attended a
community update on KIUC’s plans for
a pumped hydro storage project on the
westside.
The meeting, held May 28 at the
Waimea Theatre, included a
presentation on progress of the plan.
KIUC has identified two potential
locations for the project on state land,
and has received preliminary approvals
to perform geotechnical work and
engineering surveys.
Geographically, the west side of
Kaua‘i is an ideal location for a pumped
storage system because of the drop in
elevation from the ridges to the Mana
Plain.
KIUC is in discussions with the state
Department of Land and Natural
Resources, the state Agribusiness
Development Corporation and the
Department of Hawaiian Home Lands,
10
KIUC CURRENTS
which manage the two areas under
consideration.
Only one of the projects would be
built. Preliminary estimates put the
cost of each project at between $55
million and $65 million.
Both projects would be capable of
generating about 25 megawatts at
night. That would make it possible to
power down the utility’s older and less
efficient oil-fired generators, saving
money and reducing greenhouse gas
emissions.
David Bissell, president and CEO of
the cooperative, said the purpose of the
meeting was to keep the community
updated on progress of the plan, which
is still in its early stages.
Engineering and financial
assessments remain to be done. Bissell
stressed the board has not made a
decision whether to proceed with the
project. If the board approves the
project, multiple environmental studies
and state approvals would be required.
Pumped storage is essentially a huge
battery that stores water instead of
electrons. It can use solar power to
inexpensively pump water uphill to a
storage pond during the day, then
reuse the same water at night to turn a
turbine and create electricity.
One of the advantages of pumped
storage is it does not remove any
water from streams or ditches and
requires no diversions. There is no
runoff, either. The water simply flows
back and forth through the pipe, with
only a small amount lost to
evaporation.
The May 28 presentation is available
at www.kiuc.coop under “News and
Events.” Questions can be sent to
info@kiuc.coop.
Inside KIUC
Straight Talk From Your
Co-op on Rooftop Solar
As a co-op, we support measures our
members can take to save money and
become more energy efficient.
We also want our members to make
informed decisions about their energy
use. With rooftop solar systems being
sold so aggressively on Kaua‘i, we are
already seeing situations in which people
are not getting the savings they were
promised. So now they are paying a KIUC
bill and making monthly payments on a
solar system.
People who use very little electricity
are being talked into buying big rooftop
systems. In some cases, their monthly
payments can be more than their
existing electric bill.
Rooftop solar is not right for everyone,
so it is important you get all the facts
before buying or leasing a system.
If you decide to get a rooftop system,
we recommend getting one sized
correctly for the amount of electricity
your household uses, not oversized. The
bigger the system, the higher the cost.
And there is no guarantee KIUC will
always buy your excess power.
Here are the co-op’s answers to some
common questions about rooftop solar:
Should I get a rooftop solar
system?
It mostly depends on how your
household uses electricity. To maximize
your savings, your household must be
able to shift a significant amount of its
electricity use to the hours when the sun
is shining—doing laundry or cooking
during the day, for example. If no one is
home during the day and your energy
use during those hours is minimal, your
savings will be small.
What size should my system be?
Every household uses electricity
differently, but the average household
using 500 to 700-kilowatt hours a month
can usually achieve savings with a 10panel system producing 2.5 kilowatts. For
people using less than 500 kWh a month,
the savings probably are insufficient to
justify the cost of rooftop solar. You
should first consider a solar water heater,
which is much less expensive to install
and can reduce your bill by 30 percent or
more—and KIUC offers a $1,000 rebate.
You can call us at 246-4300 and we will
tell you your average use.
How many panels do I need to
make my bill go away?
Even customers who offset all of their
household use still must pay a minimum
monthly charge. An oversized system
designed mainly to sell excess electricity
to KIUC can cost $40,000 or more before
tax incentives. The bigger the system,
the longer it takes to recover your
investment, if ever.
Those zero-down contracts
sound like a great way to get
solar on my roof.
With zero money down, you are rolling
the cost into the monthly payment you
make to the solar company, which charges
you for the electricity your system
produces. Before signing a long-term
contract, ask yourself some questions: Do
I plan to live here for 20 years or am I
going to move? Am I comfortable with the
risk that if the price of electricity falls, I’m
still locked into a higher monthly
payment? Can I shift my use of electricity
to the daytime? What kind of warranty
does the contractor provide? Who will be
around to repair my system if it breaks 10
years from now? How much will KIUC
pay me for the excess electricity I
generate?
For most members with rooftop solar,
the amount KIUC pays for the electricity
they export to the grid changes every
month, depending on the price of oil. It
has been as high as 26 cents and as low
as 10 cents. This rate, known as Schedule
Q, reflects the amount KIUC would have
had to pay to generate the power if we
did not buy it from you. Because KIUC
generates most of its electricity by
burning oil, this so-called “avoided cost”
calculation is tied to the price of oil. As
more renewables come on line and KIUC
burns less oil, the amount paid under
Schedule Q is expected to drop.
Will KIUC always buy the extra
energy my system produces?
On a sunny afternoon when all of the
photovoltaic systems on the island are at
their maximum output, more power can
be generated than there is demand.
There is nowhere for this excess power to
go, so there may be times when our
system will not accept all of the solar
power available. That is known as
curtailment. The more oversized rooftop
systems on the grid, the more likely
curtailment happens. KIUC hopes to
avoid curtailment by encouraging
customers to install right-sized systems.
At times when peak solar production
outpaces demand, it is possible KIUC
may temporarily disconnect some
oversized systems so they cannot export
energy to the grid.
Will the charges on my electric
bill stay the same if I have solar?
People with photovoltaic systems are
still on the grid. They count on it to
provide 80 percent of their power, since
those systems don not work at night and
when it is cloudy. They do pay a smaller
share of the utility’s fixed costs – people,
poles, lines, power plants, batteries –
than people without PV. Regulators have
acknowledged existing rate mechanisms
do not reflect the new reality of
renewable resource integration. Some
Mainland utilities are starting to charge
PV customers a fee to help recover their
share of fixed costs. Hawai‘i utilities,
including KIUC, are studying similar
fees. Any rate changes would be subject
to approval of the Hawai‘i Public Utilities
Commission.
JUNE 2015
11
Recipes
Cool Summer Recipes
Jalapeno Popper Dip
2 packages cream cheese, softened
¾ cup shredded cheddar cheese
½ cup shredded mozzarella cheese
1 cup mayonnaise
½ cup chopped jalapenos
5 pieces bacon, cooked and crumbled
Preheat oven to 350 degrees. Combine ingredients.
Pour in an 8x8 glass baking dish. Optional: Add
additional cheese and/or bread crumbs on top of mixture.
Bake for 25 minutes.
Broccoli Salad
1-2 heads fresh broccoli
½ cup red onion, chopped
½ pound bacon, cooked and crumbled
2½ tablespoons vinegar
1 cup mayonnaise
⅓ cup sugar
1½ cups grated mozzarella cheese
½ cup dried cranberries
Cook bacon and crumble into pieces. Chop broccoli into bite-sized
pieces. Mix broccoli, onions, bacon, cranberries and mozzarella in a
large bowl. In a separate bowl, combine vinegar, sugar and
mayonnaise. Pour over broccoli mixture and toss to coat.
Refrigerate overnight and serve.
Fresh Fruit Pops
1 container blueberries
1 container strawberries
2 kiwi
1 bottle white grape juice
Popsicle sticks
3 ounce cups or popsicle molds
Cut blueberries in half and cut strawberries
into bite-sized pieces. Skin and slice kiwi. Place
fruits in popsicle molds or cups. Cover with juice
and insert stick. Freeze overnight.
12
KIUC CURRENTS
Strawberry Lemonade
Popsicles
1 tray strawberries, sliced
1 bottle lemonade
Popsicle sticks
3 ounce cups
Place strawberry pieces in the cups. Top with
lemonade. Insert popsicle sticks and freeze overnight.
Trout
6 trout (akule can be substituted)
¼ cup shoyu
1 cup vegetable oil
¼ cup fresh garlic, sliced
¼ cup fresh ginger, chopped
¼ cup green onion, chopped
Salt
Pepper
Garlic powder (granulated is OK)
In a small pot or pan, add oil, ginger
and garlic; cook on low heat for 7 to 10
minutes to infuse the oil with the
flavors of the ginger and garlic. Be sure
not to burn the ginger and garlic. Separate the ginger and garlic from the oil. Clean trout well. Season with salt, pepper and
garlic powder. Let it sit at least 10 minutes. Cook trout in ½ cup oil in a frying pan. Place in a shallow dish. As soon as it is
done, sprinkle with chopped green onions, pour infused oil and shoyu over trout, and serve immediately.
Salsa Medley
1 large zucchini
½ red onion
3 roma tomatoes
1 cucumber (seeds removed)
1 can kernel corn
1 can pineapple chunks (reserve ½ can of juice)
1 can black beans (drained and rinsed)
1 cup Herdez Salsa Verde
1 tablespoon sugar
Salt and pepper to taste
Chop zucchini, cucumber, tomatoes and pineapple into small
pieces. Add the rest of the ingredients and serve chilled.
JUNE 2015
13
Inside KIUC
Statement of Operations
For the period January 1, 2015, to April 30, 2015
By Karissa Jonas
We are pleased to report the KIUC
results of operations through April 30,
2015, are favorable. The Green Energy
Team biomass plant began testing its
operations and 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 $45.7 million, $43.4 million and
$2.3 million, respectively, for the fourmonth period ending April 30, 2015.
As is the case for all electric utilities,
the cost of power generation is the
largest expense, totaling $24.5 million
or 53.8 percent of revenues.
Commodities—fuel and purchased
power costs—are the largest component
of power generation, totaling $20.0
million or 43.9 percent of revenues.
Currently, fossil fuel is the largest
component of commodities, totaling
$16.0 million or 35.1 percent of
revenues. Other commodities include
hydropower, totaling $1.2 million or 2.7
percent of revenues; solar power,
totaling $2.7 million or 5.9 percent of
revenues; and biomass, totaling $0.1
million or 0.2 percent of revenues.
The remaining $4.5 million or 9.9
percent of revenues represents the cost
of operating and maintaining the
generating units.
The cost of operating and maintaining
the electric lines totaled $1.7 million or
3.8 percent of total revenues. The cost
14
KIUC CURRENTS
PERCENTAGE OF TOTAL REVENUE
Net Margins 5.0%
Interest 4.9%
Commodities —
Fossil Fuel
34.8%
Taxes 8.4%
Depreciation and
Amortization
11.0%
Administrative and
General Net of
Non-Operating Margins
10.0%
Communications
0.6%
Member Services
2.5%
Transmission and
Distribution Operation
Production Operation
and Maintenance
and Maintenance
3.8%
9.9%
of servicing our members totaled $1.2
million or 2.5 percent of revenues. The
cost of keeping our members informed
totaled $0.3 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 $4.8 million
or 10.4 percent of revenues.
Being capital intensive, depreciation
and amortization of the utility plant
Commodities —
Hydro
2.7%
Commodities —
Solar
5.9%
Commodities —
Biomass
0.2%
costs $5.0 million or 11.0 percent of
revenues. Although not subject to
federal income taxes, state and local
taxes amounted to $3.9 million or 8.4
percent of revenues. Interest on longterm debt, at a favorable sub-5 percent
interest rate, totals $2.2 million or 4.9
percent of revenues. Nonoperating net
margins added $0.2 million to overall
net margins. Revenues less total
expenses equal margins of $2.3 million
or 5.0 percent of revenues. Margins are
allocated to consumer members and
paid when appropriate.
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
Solar
Solar
Biomass
Solar
Hydro
Hydro
Hydro
Hydro
Hydro
Solar
Solar
Solar
Solar
12.0
12.0
7.2
6.0
4.0
1.3
1.0
1.3
1.5
.3
1.0
.3
16.9
5.5
5.5
12.4
2.9
3.6
1.4
0.9
0.8
0.8
0.1
0.4
0.1
2.2
Hydro
Solar
6.0
6.6
4.2
1.0
Hydro
Hydro
Hydro
Solar & Hydro
8.3
1.5
4.0
25.0
9.1
1.5
5.2
13.0
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, Omao
Customer Solar
Under Construction/Permitting
Gay & Robinson, Olokele
Customer Solar
Under Consideration
Pu‘u Opae, Kekaha
Menehune Ditch, Kekaha
Wailuā River/Kalepa
Westside Pumped Storage
Total Renewable
Energy in Service 2015
64.8 MW/36.6%
Potential Renewable
Energy in Service 2020
116.2 MW/70.6%
* Online third quarter 2015
JUNE 2015
15
HI-130
June 2015
Volume 12, Number 2
David Bissell
President and CEO
KIUC Board of Directors
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
Executive
Chairman: Jan TenBruggencate
Members: Calvin Murashige, Karen Baldwin,
and Peter Yukimura
Finance & Audit
Chairman: Peter Yukimura
Members: Dennis Esaki, Phil Tacbian,
and Pat Gegen
Government Relations/Legislative Affairs
Chairman: Teofilo “Phil” Tacbian
Members: Dennis Esaki, Pat Gegen, and David Iha
International
Chairman: David Iha
Members: Teofilo “Phil” Tacbian and
Peter Yukimura
Member Relations
Chairman: Carol Bain
Members: Karen Baldwin, Calvin Murashige, and
Teofilo “Phil” Tacbian
Policy
Chairman: Calvin K. Murashige
Members: Carol Bain, Karen Baldwin, David Iha
and General Counsel Laurel Loo
Strategic Planning
Chairman: Dennis Esaki
Members: Carol Bain, David Iha and Peter
Yukimura
MyMeter works with your
smart meter and enables
you to monitor your electric
use on a monthly, weekly,
even daily basis with easyto-read graphic displays.
All you need to sign up is
your electric bill and the last
four digits of your Social
Security Number. If you are
unable to register online, it may be because we don’t have the
last four digits of your SSN on your account. Please call our
office at (808) 246-4300 and we will assist you.
Sign up at https://mymeter.kiuc.coop and create your account
today!
4463 Pahe‘e Street, Suite 1
Līhu‘e, Hawai‘i 96766-2000
808.246.4300 ■ www.kiuc.coop
currents@kiuc.coop