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KIUC Currents - Kauai Island Utility Cooperative

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December 2010<br />

<strong>KIUC</strong> in the<br />

Community


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

EXCEEDING YOUR EXPECTATIONS<br />

(808) 246-0334<br />

4449-A Aku Road<br />

4 bed, 2 bath Fixer home in Hanalei! ONLY<br />

$675,000(fs). Sold As-is. Located in the quaint<br />

beach town of Hanalei. Downstairs apartment<br />

area with separate entrance. Excellent location<br />

and just a short walk to Hanalei Beach! Make<br />

offer! Great opportunity! Call: Bonnie Stowe(RA)<br />

652-5611<br />

2731- A Ohana Aina Road,<br />

Kalaheo<br />

Stunning custom built home on a quiet and quaint<br />

cul-de-sac street on the Kalaheo Hillside.<br />

Beautifully landscaped and very well maintained.<br />

The grounds create a park like setting. Spacious<br />

upper living area with a large guest suite below<br />

with separate entrance. The large covered front<br />

lanai enhances the Tropical Hawaiian ambiance.<br />

$644,000(fs). Call: Judy Piano(RA) 651-9230.<br />

975 Kamalu Road, Wailua<br />

Breathtaking Custom home located on nearly 3<br />

acres of level land surrounded by Views of Mt<br />

Waialeale, Makaleha and Sleeping Giant. High End<br />

Custom Features. Guest quarters and a Salt water<br />

swimming pool. $1,550,000(fs). Call: Karen<br />

Agudong(R) 652-0677 or Kay Leonard(RA) 634-8697<br />

5093 Hassard Road, Kapaa<br />

Encouraging all offers! Hawaiian Style Plantation<br />

Charm of days gone by. Well maintained home<br />

with development potential and dynamic views of<br />

the Anahola Mountains, Kealia Valley and Kealia<br />

Beach! Property qualifies for 2 dwellings and 1<br />

guest house. $799,000(fs). Call: 246-0334<br />

<strong>Kauai</strong> Beach Villas #E4<br />

Nice Ocean view 1 Bedroom, 1 Bathroom Condo<br />

with resort amenities at a Great Price. Quiet<br />

location in the complex. Amenities include 24/7<br />

security, tennis, pool, bbq, water features,<br />

beautiful grounds and much more. ONLY<br />

$269,900(fs). Call: Judy Piano(RA) 651-9230<br />

4182 Awela Street - Puako<br />

Beautiful Golf Course lot located at the end of the<br />

cul-de-sac in the Puako Subdivision. Priced<br />

significantly lower than 2010 assessed value!<br />

Gorgeous Mountain & Golf Course views on a<br />

spacious lot. Well established neighborhood.<br />

$349,000(fs). Call: 246-0334<br />

4195 Omao Road #B, Omao<br />

Quality construction and plantation style living<br />

describe this beautiful and spacious 3 bedroom,<br />

3.5 bath home located in desirable Omao.<br />

$650,000(fs). Call: Charlotte Barefoot(R) 651-4627.<br />

Beautiful Pikake Lots<br />

in Lihue<br />

#1669 - Spacious 11,307 sf corner lot slightly<br />

elevated enhancing the views.<br />

#1739 - Golf Course, Lake & Mountain Views.<br />

11,513 sf. $269,000(fs)<br />

#1790 - Gorgeous mountain views and ready to<br />

build. House plans are available and can<br />

be included with the purchase. ONLY<br />

$250,000. Call: 246-0334<br />

Wiliko Street,<br />

Pikake Subdivision<br />

Gorgeous Custom Home under construction.<br />

Single Story with an Open Floor plan and High end<br />

features. $995,000(fs). Call: Karen Agudong(R)<br />

652-0677 or 246-0334<br />

7136 Alamahi Road, Wainiha<br />

11,051 sf lot in Wainiha. ONLY $325,000! Just a<br />

short walk to the beautiful North Shore Beaches<br />

and a short drive to beautiful and historic Hanalei<br />

town. Priced to sell! Sold As-Is. Sale is subject to<br />

Bankruptcy Court approval. Call: Karen<br />

Agudong(R) 652-0677 for more information.<br />

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

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


December 2010<br />

Volume 7, Number 6<br />

Table of Contents<br />

2011 Energy­Efficiency Programs . . . . . . . . . . . . . . . 4<br />

A Picture’s Worth . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6<br />

Efficient Appliance Replacement<br />

Rebate Program . . . . . . . . . . . . . . . . . . . . . . . . . . . 6<br />

Reliability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7<br />

NRECA Releases Interoperability and<br />

Cybersecurity Plan . . . . . . . . . . . . . . . . . . . . . . . . 10<br />

Fuel Prices and What You Pay for Electricity . . . . . 12<br />

Renewable Outlook . . . . . . . . . . . . . . . . . . . . . . . . . 14<br />

Democratic Member Control,<br />

2011 Board Election . . . . . . . . . . . . . . . . . . . . . . . 15<br />

Board Actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16<br />

A Message From the Chairman . . . . . . . . . . . . . . . 17<br />

Co­op Connections . . . . . . . . . . . . . . . . . . . . . . . . . 18<br />

Ribbons and Bows . . . . . . . . . . . . . . . . . . . . . . . . . . 20<br />

2011 Calendar of Student Art Winners . . . . . . . . . 23<br />

Holiday Angels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24<br />

Volunteering A Way of Life . . . . . . . . . . . . . . . . . . . 26<br />

<strong>KIUC</strong> Charitable Foundation Awards<br />

Scholarships to KCC Students . . . . . . . . . . . . . . . 27<br />

Bill Payment Made Easy . . . . . . . . . . . . . . . . . . . . . 28<br />

We Need Your Help . . . . . . . . . . . . . . . . . . . . . . . . . 29<br />

Statement of Operations . . . . . . . . . . . . . . . . . . . . . 30<br />

Simple Pleasures . . . . . . . . . . . . . . . . . . . . . . . . . . . 31<br />

Parting Shot . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31<br />

Powerlines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32<br />

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

On the cover: Member Services Call Center<br />

Supervisor Dawn Cummings, Board Vice<br />

Chairman Peter Yukimura and<br />

Key Accounts Executive Ed Nakaya,<br />

help pick up after the community<br />

at an Adopt­a­Highway clean up.<br />

Photo by Shelley Paik<br />

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

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

<strong>KIUC</strong> BOARD MEMBERS<br />

Teofilo “Phil” Tacbian,<br />

Chairman<br />

Peter Yukimura, Vice Chair<br />

David Iha, Secretary<br />

Allan A. Smith, Treasurer<br />

Carol Bain<br />

Stu Burley<br />

Steve Rapozo<br />

Ben Sullivan<br />

Jan TenBruggencate<br />

PRESIDENT & CEO<br />

Randall Hee<br />

ACTING PRESIDENT & CEO<br />

VICE PRESIDENT & CFO<br />

David Bissell<br />

EDITOR<br />

Anne Barnes<br />

Marketing,<br />

Communications<br />

& Public Affairs<br />

ASSISTANT EDITORS<br />

Maile Moriguchi<br />

Shelley Paik<br />

Marketing,<br />

Communications<br />

& Public Affairs<br />

Pam Blair<br />

Ruralite Services<br />

CONTRIBUTING WRITERS<br />

Anne Barnes<br />

Katie Beer<br />

Claurino Bueno<br />

David Bissell<br />

Paul Daniels<br />

Karissa Jonas<br />

Maile Moriguchi<br />

Shelley Paik<br />

Steve Rymsha<br />

Teofilo “Phil” Tacbian<br />

Tracy Warren<br />

Only active <strong>KIUC</strong> members will be mailed <strong>KIUC</strong> <strong>Currents</strong>. <strong>KIUC</strong> <strong>Currents</strong> can be found online at www.kiuc.coop under Member<br />

Information and <strong>Currents</strong> on the website.


By Claurino Bueno<br />

ENERGY WISE<br />

2011 Energy-Efficiency Programs<br />

4 <strong>KIUC</strong> CURRENTS<br />

Energy conservation practices benefit all <strong>KIUC</strong><br />

members and our communities by reducing<br />

energy costs and improving the quality of our<br />

environment. To help our electric members save<br />

energy and money, Energy Wise offers members<br />

receiving electric service 10 energy­saving<br />

programs designed specifically to help manage<br />

energy costs.<br />

◼ Home Visits<br />

◼ New Member Lighting Program<br />

◼ Heat Pump Water Heater Rebate Program<br />

◼ Residential Retail Lighting Program<br />

◼ Solar Loan Program<br />

◼ Solar Rebate Program<br />

◼ Efficient Appliance Replacement Program<br />

◼ Qualifying Member Appliance Replacement<br />

Program<br />

◼ Appliance Meter Service<br />

◼ Commercial Retrofit Program<br />

For details about Energy Wise programs and<br />

rebate/incentive forms, contact the cooperative<br />

office or visit www.kiuc.coop.<br />

Home Visits<br />

A home visit to resolve a high bill inquiry is<br />

available when questions about high bills cannot<br />

be resolved by other means.<br />

The specialist visits the home, helps determine<br />

what conditions are causing consumption, and<br />

provides general educational and program<br />

information that may help the customer reduce<br />

electric use.<br />

New Member Lighting Program<br />

Three 20­watt compact fluorescent light bulbs<br />

are given to each new <strong>KIUC</strong> member at no cost,<br />

residential accounts only. Must be a new member<br />

to <strong>KIUC</strong> opening an account at our office in<br />

person. Takeovers/account transfers do not<br />

qualify.


Heat Pump Water Heater<br />

Rebate Program<br />

The program provides customers with a $300<br />

rebate for replacing an existing electric water<br />

heater, a non­functioning heat pump water heater<br />

or a non­functioning solar water heater. New<br />

construction does not qualify.<br />

Residential Retail<br />

Lighting Program<br />

This promotional program targets the sale and<br />

installation of Energy Star­qualified compact<br />

fluorescent light bulbs (CFLs) on Kaua‘i. Members<br />

will have the opportunity to purchase qualifying<br />

bulbs at discounted prices through local Ace<br />

Hardware Stores.<br />

Solar Loan Program<br />

<strong>KIUC</strong> offers zero­interest loans to customers<br />

who want to change their existing electric water<br />

heater to a solar water heating system, or replace<br />

an existing non­functional solar water heater at<br />

least 15 years old.<br />

<strong>KIUC</strong> pays the interest for the participant. The<br />

participant repays the principal over five years. No<br />

down payment is required.<br />

<strong>KIUC</strong> has partnered with Kaua‘i Community<br />

Federal Credit Union and the County of Kaua‘i<br />

Housing Agency to provide funding for the loans.<br />

Solar Rebate Program<br />

<strong>KIUC</strong> provides an $800 rebate incentive for<br />

customers who want to replace their existing<br />

electric water heater with a solar water heater, or<br />

replace an existing non­functional solar water<br />

heater at least 15 years old.<br />

Efficient Appliance Replacement<br />

Rebate Program<br />

The incentive program is designed to encourage<br />

members to discard older, less efficient<br />

refrigerators, clothes washers and dishwashers<br />

and replace them with new, energy­efficient<br />

models.<br />

The rebate is $50. This is a residential program.<br />

New construction does not qualify.<br />

Applications are available from all appliance<br />

dealers on Kaua‘i and from <strong>KIUC</strong>. To be considered<br />

for the rebate, appliances must be purchased<br />

within the following promotional periods:<br />

Refrigerator February 1 to March 31<br />

Clothes washers May 1 to June 30<br />

Dishwashers August 1 to September 30<br />

Qualifying Member Appliance<br />

Replacement Program<br />

The purpose of this program is to help<br />

qualifying low­income seniors (age 60+) reduce<br />

their residential electricity use by replacing older,<br />

less efficient refrigerators and defective electric<br />

water heaters with new, more efficient ones at no<br />

cost to the member.<br />

Qualified participants must own the refrigerator<br />

and meet federal poverty guidelines for the<br />

program year. The refrigerator to be replaced<br />

must be at least 11 years old and be the primary<br />

refrigerator.<br />

This program is offered in partnership with the<br />

County of Kaua‘i. For more program information<br />

and to determine eligibility, interested customers<br />

must call the County of Kaua‘i Offices of<br />

Community Assistance, Agency on Elderly Affairs,<br />

at 241.4487. Participation is limited.<br />

Appliance Meter Service<br />

The <strong>KIUC</strong> Appliance Meter Service gives<br />

customers a way to meter and record the amount<br />

of electricity consumed by most common electric<br />

appliances. This helps them identify high<br />

consumption appliances that can be targeted for<br />

replacement. Information also can be used to<br />

modify the use of appliances and help reduce<br />

consumption.<br />

Meters may be borrowed for up to seven days,<br />

and are available through member service<br />

representatives at the main office. They come<br />

with easy­to­read instructions and a support<br />

phone number.<br />

Commercial Retrofit Program<br />

Incentives are provided for cost­effective<br />

energy­saving technologies for large and small<br />

businesses. Incentives range from 50 percent to<br />

100 percent.<br />

A detailed energy evaluation of the facility<br />

identifies the technologies that will qualify for the<br />

incentives. <strong>KIUC</strong> will work with large customers to<br />

develop an energy plan to prioritize options so<br />

technologies can be phased in over time,<br />

maximizing the dollars invested. Small commercial<br />

accounts can qualify for FREE compact fluorescent<br />

bulbs. Ask about rebates for new construction.<br />

DECEMBER 2010 5


If you have a<br />

business, large or<br />

small, and want to<br />

participate in the<br />

Commercial Energy<br />

Wise Program, call<br />

Paul Daniels at<br />

246.8275.<br />

By Paul Daniels<br />

A Picture’s Worth...<br />

Lots of great energy projects have been<br />

happening this year. We hope that what we have<br />

presented in our Picture’s Worth column has given<br />

you ideas on how you can save energy.<br />

This month, we are featuring a first for our<br />

commercial program: the Freus (water­cooled) airconditioning<br />

system. Water­cooled AC systems are<br />

not new. However, the application generally is<br />

limited to large chiller AC systems like you might<br />

find in hotels and shopping centers. Energy<br />

efficiency is much improved with water cooling<br />

compared with air­cooled systems.<br />

Pictured here is Kevin Glick of Lihue Pharmacy,<br />

along with some of his helpful staff: Lezlie, Nichole,<br />

Crystal and Lilybeth. In his 18 years on Kaua‘i, Kevin<br />

has been a busy man, with pharmacies in Lihue and<br />

Wilcox Hospital. He is in the process of opening a<br />

new pharmacy in Kapa’a, located in the Kojima<br />

Shopping Center on Kuhio Highway.<br />

By Claurino Bueno<br />

Efficient Appliance Replacement<br />

Rebate Program<br />

6 <strong>KIUC</strong> CURRENTS<br />

The Efficient Appliance Replacement Rebate<br />

Program offers incentives to encourage members<br />

to discard older, less efficient refrigerators, clothes<br />

washers and dishwashers and replace them with<br />

new, energy­efficient models. the rebate is $50.<br />

This is a residential program. New construction<br />

does not qualify.<br />

Applications are available from all appliance<br />

dealers on Kaua`i and from <strong>KIUC</strong>. To be considered<br />

for the rebate, appliances must be purchased<br />

within the following promotional periods:<br />

I tip my hat to Kevin<br />

for his desire to<br />

conserve energy, but<br />

especially his willingness<br />

to take this leap to a<br />

new AC design for<br />

Kaua‘i. Adding to the<br />

higher efficiency of this<br />

water­cooled AC was<br />

concern about salt air<br />

for this area of the<br />

island. Salt destroys conventional air­conditioning<br />

systems long before their time. The Freus unit,<br />

pictured here at Kapa’a Pharmacy, is built of<br />

fiberglass and other corrosion­resistant materials,<br />

providing a longer life. Because it is water cooled,<br />

it does not use a conventional aluminum<br />

condensing coil, which is prone to corrosion and<br />

reduced efficiency with deterioration.<br />

It is worth mentioning that Kevin is in the<br />

process of installing higher­efficiency LED light<br />

fixtures at his new Kapa’a location.<br />

Again, our thanks go out to Kevin for being the first<br />

commercial business with the Freus AC, and thanks<br />

also to our <strong>KIUC</strong> trade ally, Rutan Refrigeration, for<br />

its efforts in making this project happen.<br />

Refrigerators: February 1, 2011, through<br />

March 31, 2011.<br />

Rebate submittal deadline: April 30, 2011<br />

Clothes washer: May 1, 2011, through<br />

June 30, 2011<br />

Rebate submittal deadline: July 31, 2011.<br />

Dishwasher: August 1, 2011 through<br />

September 30, 2011.<br />

Rebate submittal deadline: October 31, 2011.


Photo by Shelley Paik<br />

T&D crews installed relays on poles at Kilohana in 2007 to help collect data.<br />

Providing safe, reliable power that is fairly and<br />

competitively priced is part of <strong>KIUC</strong>’s mission.<br />

Each month, <strong>KIUC</strong> files a report with the Hawai‘i<br />

Public Utilities Commission (HPUC). On an annual<br />

basis, <strong>KIUC</strong> and all other regulated utilities in the<br />

state file an Annual Service Reliability report to<br />

the HPUC.<br />

All utilities use reliability indices that conform to<br />

the Institute of Electrical and Electronics<br />

Engineers (IEEE) standards to report their data.<br />

The reliability indices include Average Service<br />

Availability (ASA), Customer Average Interruption<br />

Duration Index (CAIDI), System Average<br />

Interruption Duration Index (SAIDI) and System<br />

Average Interruption Frequency Index (SAIFI). See<br />

the sidebar for a detailed explanation of IEEE<br />

indices. Simply put, ASA is the percentage of time<br />

electrical service is available, SAIDI is the amount<br />

of time electrical service is not available, CAIDI is<br />

how long the interruptions last and SAIFI is how<br />

often the interruptions occur.<br />

Although the Annual Service Reliability report<br />

allows utilities to “normalize” their data to<br />

account for abnormal situations—including<br />

natural disasters, catastrophic equipment failure<br />

or single outages that cascade into a loss of load<br />

greater than 10 percent of the system.<br />

The following charts give a detailed account of<br />

<strong>KIUC</strong>’s reliability for the last five years.<br />

By Maile Moriguchi<br />

COOPERATIVE TECHNOLOGY<br />

Reliability<br />

Reliability Indices<br />

Measurements used to indicate electrical service reliability. The<br />

indices used in this report conform to Institute of Electrical and<br />

Electronics Engineers (IEEE) standards. Four indices that convey a<br />

meaningful representation of the level of reliability were selected and<br />

are presented in this report. These reliability indices are as follows:<br />

1. Average Service Availability (ASA)<br />

Total customer hours actually served as a percentage of total<br />

customer hours possible during the year. This indicates the extent to<br />

which electrical service was available to all customers. This index has<br />

been commonly referred to as the “Index of Reliability.”<br />

2. Customer Average Interruption<br />

Duration Index (CAIDI)<br />

The interruption duration per customer interrupted during the year.<br />

This index indicates the average duration of an interruption for those<br />

customers affected by a sustained interruption.<br />

3. System Average Interruption<br />

Duration Index (SAIDI)<br />

The interruption duration per customer served during the year. This<br />

index indicates the average interruption time experienced by all<br />

customers serviced on the system.<br />

4. System Average Interruption<br />

Frequency Index (SAIFI)<br />

The number of customer interruptions per customer served during<br />

the year. This index indicates the average number of sustained<br />

interruptions experienced by all customers serviced on the system.<br />

DECEMBER 2010 7


8 <strong>KIUC</strong> CURRENTS<br />

Figure 1—ASA<br />

When it comes to ASA—the percentage of time electrical service is available—the higher the<br />

percentage the better. For the last 10 years, <strong>KIUC</strong>’s ASA has exceeded 99.96 percent. Figure 1 shows<br />

<strong>KIUC</strong>’s ASA compared with other utilities in the state. According to Senior Electrical Engineer John Cox,<br />

in 2008 and 2009, <strong>KIUC</strong> began using an improved distribution protection scheme over newly installed<br />

microprocessor­based relays. Additionally, more communications based tripping schemes on numerous<br />

transmission lines were enabled due to the SONET build out. Since that time, <strong>KIUC</strong> has been able to<br />

reduce fault clearing times on both the transmission and distribution systems. As a result of these<br />

efforts, load shedding due to system faults have decreased, leading to an improvement in overall<br />

stability and reliability.<br />

Figure 2—Average Outage Hours Per Customer (AOHPC)<br />

*<br />

As a result of the relay project and hard work by <strong>KIUC</strong>’s skilled power plant and transmission and<br />

distribution employees, <strong>KIUC</strong>’s Average Outage Hours per Customer (AOHPC) dropped from 3.42 in 2007<br />

to 1.47 in 2008. This is reflected in the ASA data as a 0.02 percent increase in service availability from<br />

2007 to 2008. Figure 2 shows <strong>KIUC</strong>’s average compared with other Hawai‘i utilities and the average of<br />

five large utilities in California.


On average, <strong>KIUC</strong> experiences shorter outages<br />

compared with other utilities as shown in figure<br />

3. <strong>KIUC</strong> has a number of quick start generating<br />

units that allow staff to react to outages by<br />

bringing new units on in a timely manner in the<br />

event of an interruption.<br />

Figure 4 shows the frequency of outages.<br />

The lower the number the better. In this index,<br />

<strong>KIUC</strong>’s outage frequency is higher than other<br />

Hawai‘i utilities.<br />

This is primarily due to the “fuse­saving”<br />

philosophy implemented in <strong>KIUC</strong>’s distribution<br />

protection scheme, compared with the “tripsaving”<br />

philosophy used by HECO. While the<br />

number of interruptions are higher with fuse<br />

saving, the outage duration usually is lower.<br />

At <strong>KIUC</strong>, the distribution breaker is tripped<br />

instantaneously to clear a temporary fault<br />

without blowing a fuse. In most cases, the<br />

distribution breaker recloses and the temporary<br />

fault is cleared with no sustained outage.<br />

However, the distribution breaker will “blink”<br />

all customers on that given circuit.<br />

At HECO, the distribution breaker is slow to<br />

trip, allowing the fuse to blow to clear the fault.<br />

Even if the fault was temporary, the fuse will<br />

blow, causing a partial outage on the circuit.<br />

The fuse must be manually replaced.<br />

Figure 5 shows a breakdown by frequency<br />

for the year 2009. Loss of power supply and<br />

acts of nature are among the top two reasons<br />

for outages.<br />

Figure 5—2009 Sustained Interruptions by Frequency<br />

Figure 3—CAIDI<br />

Figure 4—SAIFI<br />

Power Supply—25%<br />

Acts of Nature—25%<br />

Transmission—12%<br />

Distribuon—18%<br />

Scheduled—


10 <strong>KIUC</strong> CURRENTS<br />

By Tracy Warren<br />

Rural electric co­ops’ Smart Grid Demonstration Project<br />

will develop, implement and test best practices to<br />

advance distribution utility­level cyber security<br />

NRECA Releases<br />

Interoperability and Cybersecurity Plan<br />

The National Rural Electric <strong>Cooperative</strong><br />

Association (NRECA) released an Interoperability<br />

and Cybersecurity Plan (ICSP) developed by the<br />

<strong>Cooperative</strong> Research Network (CRN) for<br />

cooperatives participating in a nation­wide smart<br />

grid demonstration project. The ICSP lays out<br />

specific steps and a continuous process<br />

improvement plan for the cooperatives and the<br />

vendor community to meet evolving federal and<br />

industry standards.<br />

This first comprehensive approach to advancing<br />

cybersecurity at the distribution utility­level<br />

responds to a requirement by the U.S.<br />

Department of Energy (DOE), which is providing<br />

$33.9 million in matching funds for the<br />

demonstration project.<br />

“This plan represents a critical first step that<br />

starts with a recognition of the real­world<br />

circumstances of rural cooperatives who have<br />

been out in front on smart grid development,<br />

pioneering a broad range of new technologies<br />

that can help keep electric bills affordable for<br />

consumers,” said Ed Torrero, director of the CRN.<br />

Prior to deploying more than 150,000 new<br />

components, participating co­ops will adapt this<br />

plan to their own situation, implementing best<br />

practices and continuous process improvement to<br />

help improve their security posture during and<br />

beyond the life of the project.


Components of the ICSP:<br />

◼ CRN, working with the co­ops and Cigital and<br />

Cornice Engineering, mapped the utility and<br />

data flows to create a working picture of the<br />

smart grid for utilities. The map identifies<br />

existing federal and industry standards<br />

corresponding to each interface.<br />

◼ NRECA believes interoperability is key to<br />

improving security. Only with increased<br />

standardization can we create tests to<br />

determine whether software and hardware<br />

are secure. To increase interoperability,<br />

NRECA plans to expand the number of<br />

interfaces included in its MultiSpeak®<br />

standard by 50 percent.<br />

◼ NRECA will use the purchasing power and the<br />

RFP process to push for more secure<br />

technologies. More than $42 million will be<br />

spent on components.<br />

◼ In an environment in which security threats and<br />

standards are in continual flux, participating<br />

cooperatives will implement continuous process<br />

improvement with regard to cybersecurity.<br />

The Regional Smart Grid<br />

Demonstration Project<br />

In August, the DOE approved a $33.9 million<br />

matching grant to the National Rural Electric<br />

<strong>Cooperative</strong> Association to conduct a portfolio of<br />

research projects at 18 electric cooperatives in 10<br />

states. The projects focus on distribution<br />

automation and demand­side management<br />

technologies, and include a test of end­to­end<br />

demand management. Each project tests the<br />

value of the new technologies for cooperative<br />

consumer members.<br />

Participating cooperatives include:<br />

◼ Adams Electric <strong>Cooperative</strong> (Illinois)<br />

◼ Adams­Columbia Electric <strong>Cooperative</strong><br />

(Wisconsin)<br />

◼ Clarke Electric <strong>Cooperative</strong>, Inc. (Iowa)<br />

◼ Corn Belt Power <strong>Cooperative</strong> (Iowa)<br />

◼ Calhoun County Electric <strong>Cooperative</strong><br />

Association (Corn Belt Power Member, Iowa)<br />

◼ Humboldt County Rural Electric <strong>Cooperative</strong><br />

(Corn Belt Power Member, Iowa)<br />

◼ Iowa Lakes Electric <strong>Cooperative</strong> (Corn Belt<br />

Power Member, Iowa)<br />

◼ Prairie Energy <strong>Cooperative</strong> (Corn Belt Power<br />

Member, Iowa)<br />

◼ Delaware County Electric Co­op (New York)<br />

◼ Flint EMC (Georgia)<br />

◼ Kaua’i <strong>Island</strong> <strong>Utility</strong> <strong>Cooperative</strong> (Hawai‘i)<br />

◼ Menard Electric <strong>Cooperative</strong> (Ilinois)<br />

◼ New Hampshire Electric <strong>Cooperative</strong> (New<br />

Hampshire)<br />

◼ Owen Electric <strong>Cooperative</strong>, Inc. (Kentucky)<br />

◼ Salt River Electric <strong>Cooperative</strong> (Kentucky)<br />

◼ Snapping Shoals EMC (Georgia)<br />

◼ United REMC (Indiana)<br />

◼ Washington­St. Tammany Electric <strong>Cooperative</strong><br />

(Louisiana)<br />

The National Rural Electric <strong>Cooperative</strong><br />

Association is the national service organization<br />

that represents the nation’s more than 900<br />

private, not­for­profit, consumer­owned electric<br />

cooperatives, that provide service to 42 million<br />

people in 47 states.<br />

DECEMBER 2010 11


12 <strong>KIUC</strong> CURRENTS<br />

By Anne Barnes<br />

Fuel Prices and<br />

What You Pay for Electricity<br />

Most of the electricity we use on Kaua‘i is<br />

generated by engines and turbines that burn fuel.<br />

Buying that fuel is <strong>KIUC</strong>’s single­largest expense.<br />

Just like the fuel you buy for your car, the price of<br />

fuel we buy changes every time we buy it. In fact,<br />

it changes so much more often than any of our<br />

other expenses that when the Hawai‘i Public<br />

Utilities Commission (PUC) set the rates <strong>KIUC</strong><br />

charges for electricity, it built in a monthly<br />

adjustment that goes up and down with the price<br />

we pay for fuel, for a given efficiency target. This<br />

target has been set to reflect our average system<br />

efficiency, so if we do better than average, the<br />

rate you pay remains based on the average and<br />

<strong>KIUC</strong> makes more earnings, which are used to<br />

build equity or are returned via patronage capital.<br />

Conversely, if we do worse than average, your rate<br />

remains based on the average and <strong>KIUC</strong> makes<br />

less earnings or loses money.<br />

Photos by Shelley Paik<br />

How Much Fuel Does it<br />

Take to Make Electricity—<br />

Efficiency Matters<br />

The adjustment for the changing price for fuel<br />

assumes <strong>KIUC</strong> generates 13 kilowatt­hours (kWh)<br />

of electricity from each gallon of diesel fuel. Most<br />

people are used to predictions manufacturers<br />

make about the gas mileage they can expect to<br />

get driving their car. Depending on how you drive<br />

your car, you may get slightly better miles per<br />

gallon (MPG) or slightly poorer MPG. The engines<br />

we use that burn fuel to make electricity work<br />

pretty much the same way. Depending on how we<br />

use them, they may generate a little more or little<br />

less electricity from each gallon of fuel. For our<br />

engines, that number is called heat rate, not MPG.<br />

Unlike MPG, a smaller heat rate indicates better<br />

efficiency, since the unit of measure is fuel used<br />

per electricity generated.


At <strong>KIUC</strong>, we use several generators to make the<br />

electricity you need. Some are slightly more<br />

efficient than others, so how much fuel we have<br />

to burn is determined by how many of the less<br />

efficient generators we have to turn on. At night,<br />

when demand for electricity is low, we can get by<br />

running just the most efficient generators. We run<br />

these most­efficient generators during the day,<br />

too, but to meet additional demand, we also run<br />

some less efficient generators we can start up<br />

quickly and run as needed. You might wonder why<br />

<strong>KIUC</strong> keeps these less efficient generators. The<br />

answer is pretty basic: one, the units are paid for<br />

and the cost of replacement is very high, and<br />

2, they are fast­starting, reliable back­up units,<br />

which we will always need as an islanded system.<br />

It is <strong>KIUC</strong>’s current plan to keep them, but run<br />

them less as we bring on more renewables.<br />

A measure of the thermal<br />

efficiency of a generator is<br />

computed by dividing the total<br />

Btu content of fuel burned for<br />

electricity generation by the<br />

resulting net kilowatt­hour<br />

generation. The lower the heat<br />

rate, the greater the efficiency.<br />

(For more information, see<br />

Reliability on page 7).<br />

Every engine can generate more or less<br />

electricity, depending on how hard we push it.<br />

If we turn it on, but don’t generate much<br />

electricity, it will operate less efficiently. If we<br />

push it too hard, it also will generate electricity<br />

less efficiently. We try to operate each generator<br />

in its “sweet spot,” where it makes the most<br />

electricity with the least amount of fuel.<br />

If We Do Well it Saves You Money<br />

Throughout each day, the staff managing<br />

<strong>KIUC</strong>’s generators evaluates how much electricity<br />

our members are using and how much each<br />

individual generator is delivering. They take into<br />

consideration what is likely to be happening to<br />

electrical demand at a particular time of day and<br />

where each generator is most efficient. Then the<br />

staff decides if they need to turn on an additional<br />

generator or turn one off.<br />

Our staff tries for the maximum efficiency<br />

possible. More often than not, they generate<br />

electricity more efficiently than the factor set by<br />

the PUC in our rates. When that happens, we save<br />

money—and the more money we save, the larger<br />

your patronage capital credit and patronage<br />

capital refund are at the end of the year.<br />

As members, there is something you can do to<br />

help lower everyone’s bills. When members<br />

conserve and use less electricity, we don’t have to<br />

run less efficient, peaking generators. That<br />

improves our efficiency average and, overall, <strong>KIUC</strong><br />

uses less fuel to make each kWh of electricity.<br />

It is just like having a car that gets better MPG—<br />

but in this case, all of Kaua‘i benefits.<br />

DECEMBER 2010 13


14 <strong>KIUC</strong> CURRENTS<br />

By Steve Rymsha<br />

Renewable Outlook<br />

<strong>KIUC</strong>’s update on projects in progress and completed<br />

<strong>KIUC</strong> believes the climate change problem and<br />

its feared effects are among the most serious of<br />

the environmental issues we face today. As we<br />

transition away from fossil fuels, members also<br />

benefit from decoupling electricity generation<br />

costs from the volatility in world oil supplies and<br />

price. To that end, the board and management of<br />

the co­op have updated <strong>KIUC</strong> ’s Strategic Plan to<br />

achieve a high standard of sustainability with<br />

regard to power supply, and providing fair and<br />

competitively valued rates. What follows is a<br />

concise recap of actions taken, and projects in<br />

progress and completed. We currently are<br />

operating at more than 13 percent renewable, but<br />

in the next few years are taking action to surpass<br />

state and federal requirements to reduce<br />

greenhouse gases. <strong>KIUC</strong>’s 2009 renewable<br />

portfolio standard (RPS) is 14 percent. Kaua‘i’s<br />

seven hydro electric power plants provide a<br />

steady flow of electricity to <strong>KIUC</strong>.<br />

Hydro<br />

—Green Energy Hydro LLC—130 kW<br />

◼ 170 homes annually.<br />

◼ Began operations in Q3 2009.<br />

—<strong>KIUC</strong> continues its efforts in working to make<br />

the Kitano­Kokee hydro projects a reality in the<br />

coming years.<br />

Port Allen Warehouse<br />

◼ Building integrated photovoltaic systems;<br />

completed the first week of February.<br />

◼ Replaced roof and installed 68 kW roofintegrated<br />

photovoltaic system—20 homes<br />

annually.<br />

<strong>Utility</strong> Pole­Mount PV<br />

◼ Two demonstration systems installed in<br />

January.<br />

◼ Additional systems will be installed in 2011 to<br />

further evaluate the cost effectiveness and<br />

resource potential.<br />

Ground­Mount PV<br />

◼ <strong>KIUC</strong> signed two purchase power agreements<br />

with a total capacity of 3MW. Once online,<br />

these projects will be the two largest solar<br />

farms in all of Hawai‘i.<br />

◼ 1,100 homes annually<br />

◼ Through these installations, <strong>KIUC</strong> will<br />

continue as a leader in the integration of<br />

photovoltaic systems. Additionally, these<br />

projects will help utilities around the world<br />

better understand the physical limitations of<br />

photovoltaic’s on distribution circuits.<br />

◼ <strong>KIUC</strong> Issued an RFI for a Battery Energy<br />

Storage System that will be located at the<br />

substation being supplied by the 3­MW farm.<br />

This storage system not only will facilitate the<br />

installation of this large farm, but will provide<br />

support for island­wide photovoltaic systems.<br />

Biomass<br />

◼ <strong>KIUC</strong> and Green Energy Hawai’i continue to<br />

work toward development of the 6.4­MW<br />

biomass facility and hope to be operational in<br />

2013.<br />

◼ <strong>KIUC</strong> and PacWest continue to work together<br />

in building a project to supply 30 percent of<br />

the island’s annual energy needs.<br />

—Land availability has made the development of<br />

these projects challenging for all parties<br />

involved.<br />

—Continue to work with land owners interested in<br />

developing biomass­generated electricity.<br />

Concentrating Solar Thermal<br />

◼ Project is going through a re­design in an<br />

effort to bring down the cost of the project<br />

and the price of electricity.


Kaua‘i <strong>Island</strong> <strong>Utility</strong> <strong>Cooperative</strong>’s Board of<br />

Directors election is set for March 19, 2011.<br />

The <strong>KIUC</strong> Board of Directors appoints a<br />

Nominating Committee consisting of four<br />

community members at least 80 days prior to<br />

election day.<br />

A Nominating Committee chairman is appointed<br />

from a director who is not up for election.<br />

The responsibility of the Nominating Committee is<br />

to review the resumes and letters of interest from<br />

potential candidates. Board Policy 18 lists<br />

qualifications and eligibility for being a director. The<br />

policy can be found at www.kiuc.coop under the<br />

“Board” section.<br />

Resumes and letters of interest can be sent to the<br />

<strong>KIUC</strong> Nominating Committee. The deadline is close<br />

of business January 3, 2011.<br />

Each prospective nominee is required to attend an<br />

orientation session regarding directors’ duties and<br />

confirm their willingness to serve. Once the<br />

orientation is completed, the Nominating<br />

Committee chooses the slate from willing nominees,<br />

and the nominees are contacted for acceptance.<br />

The slate of nominees is announced at least 60<br />

days prior to election day. Once the nominees are<br />

announced, member petitions are accepted and<br />

due by close of business February 7, 2011. If there<br />

are petition candidates, a final directors’ duties<br />

orientation is held and, upon completion, the final<br />

list of candidates is announced.<br />

By Shelley Paik<br />

THE BOARD OF DIRECTORS<br />

Democratic Member Control,<br />

2011 Board Election<br />

The member petition must be signed by 35<br />

active members in good standing. It is<br />

recommended the petitioner collect more than<br />

the minimum number of signatures in the event<br />

a signee no longer is an active member or in good<br />

standing. The petition is verified by staff. The<br />

petition candidate must attend a directors’ duties<br />

orientation.<br />

If any bylaw amendments are on the ballot,<br />

they are brought up for review and finalized<br />

during the January board meeting. At that<br />

meeting, the board also appoints an independent<br />

third party to count votes.<br />

The voter list—the list of members who will<br />

receive election packets—is finalized 30 days prior<br />

to the election. The election packet is mailed to<br />

members at least 20 days prior to election day.<br />

Members should receive their packet in the mail<br />

the first week of March.<br />

The final day for members to cast their ballots is<br />

noon March 19, 2011.<br />

Important Dates<br />

January 3, 2011—Deadline to submit resumes<br />

and letters of interest from candidates<br />

February 7, 2011—Deadline to submit<br />

member petitions<br />

March 19, 2011—Election day<br />

DECEMBER 2010 15


Board Actions<br />

for September­December 2010<br />

16 <strong>KIUC</strong> CURRENTS<br />

Meeting Date Item Description Board Action<br />

9/28 Regular Meeting<br />

New Business<br />

10/26 Regular Meeting<br />

New Business<br />

DWP<br />

DJB<br />

DJB<br />

MRC<br />

TPT<br />

Policy Cmte<br />

Policy Cmte<br />

Board Resolution 11-10, authorization to<br />

enter into a contract with Poipu Solar LLC for<br />

3-MW PV PPA, pending approval of the HPUC<br />

Approval to pay attorney invoices<br />

Smart Grid/AMI with NRECA approval to sign<br />

contract to commit <strong>KIUC</strong> to follow previously<br />

submitted work plan and work to be<br />

performed on project with an estimated cost<br />

of $3.968 million<br />

Approval to subcontract Telecable System<br />

Contract (TSC) for installation and<br />

engineering of fiber optic cable from Makaha<br />

Ridge to PMRF $713,000 is fully reimbursable<br />

from PMRF in return <strong>KIUC</strong> will own<br />

some of the fibers<br />

The 2011 board election date was set for<br />

March 19, 2011<br />

Director Burley appointed as 2010-11<br />

Nominations Committee chairman<br />

Administrative Policy 400-06-001, Code of<br />

Ethics, was approved as revised<br />

Board Resolution 15-10, board support for<br />

staff to look into and bring recommendations<br />

to the board on a voluntary RoundUp<br />

program<br />

F&A Approval to pay attorney invoices<br />

F&A<br />

Approval of GT Control System budget<br />

expenditure in 2010<br />

Motion carried<br />

unanimously<br />

Motion carried<br />

unanimously<br />

Motion carried<br />

unanimously<br />

Motion carried<br />

unanimously<br />

Motion carried<br />

unanimously<br />

Motion carried<br />

unanimously<br />

Motion carried<br />

unanimously<br />

Motion carried<br />

unanimously<br />

Motion carried<br />

unanimously<br />

Motion carried<br />

unanimously


In this issue, I want to recognize the men and women who make <strong>KIUC</strong> what<br />

it is today: our employees. <strong>KIUC</strong> is a viable and reliable utility because of our<br />

professional employees. They are called on to do many tasks that require<br />

different skills—from engineering to financial, technical to clerical and others.<br />

On stormy nights when the lights go out, we have men who are braving<br />

the weather to restore services to our members. These well trained and<br />

skilled employees perform their duties in a professional and safe manner.<br />

Our employees work with our legislators, members of Congress, state<br />

regulators and other government officials. Taking care of members who<br />

walk in or call in is their daily routine. Handling the many tasks, too<br />

numerous to mention, requires a lot of education and training. They<br />

continue to take special training to improve their performance on the job.<br />

Since education and training plays such an important role with our employees and our directors, at<br />

our September board meeting I was honored to recognize the following for completing educational<br />

courses in their respective area of work.<br />

The Management Internship Program, which addresses technical, business and leadership skills<br />

required of cooperative CEOs and managers: Randall Alcott, Safety Coordinator and Ferdinand Pascual,<br />

Distribution Planning Coordinator.<br />

Management Essentials Certificate, a combination of classroom and online learning for mid­level and<br />

senior managers to become more effective managers: Randall Alcott, Shelley Paik, Steven Rymsha and<br />

Kathryn Williams.<br />

Directors who completed the Board Leadership Certificate Program that offers advanced issue and<br />

skill­based courses for Directors, were: Carol Bain and yours truly, T P Tacbian.<br />

The Credential <strong>Cooperative</strong> Director Program (CCD), which provides the basic knowledge and skill<br />

required of cooperative directors, was completed by: Jan Tenbruggencate.<br />

Our goal is for our board of directors and staff to work together to complete the tasks set forth in our<br />

Strategic Plan, which is for the benefit of you, our members.<br />

Enjoy this issue of <strong>Currents</strong>, as we believe service to our community is one of the best works of life.<br />

Attention,<br />

high school juniors!<br />

Don’t miss this opportunity of a<br />

lifetime!<br />

June 7-17, 2011<br />

Washington, D.C.<br />

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

A Message From the Chairman<br />

Phil Tacbian, Chairman, <strong>KIUC</strong><br />

Who can participate?<br />

Any Kaua‘i student in their junior year of high school is eligible.<br />

See your school counselor or call 246.4348 for more information.<br />

Explore our nation’s most significant historic sites<br />

Learn about electric cooperatives<br />

Meet with legislators and see government in action<br />

Meet 1,400 students from across the nation<br />

DECEMBER 2010 17


Members can pick up their Co­op Connections Card at <strong>KIUC</strong>’s main office in Līhu‘e. If your<br />

business would like to participate in the program, or for more information, please contact<br />

Maile Moriguchi at 246.4348.<br />

18 <strong>KIUC</strong> CURRENTS<br />

Save on Your Prescriptions<br />

With Co­op Connections<br />

More than $21.5 million has been saved<br />

on prescriptions by co­op members<br />

since May 2007.<br />

Discover how much you can save<br />

with your Co­op Connections Card<br />

To learn more about Co­op Connections, visit www.kiuc.coop


Pharmacy Discount<br />

Frequently<br />

Asked<br />

Questions<br />

How much will I save?<br />

The discounts save you 10 percent to 60 percent on<br />

prescriptions at more than 60,000 pharmacies nationwide.<br />

How much does the feature cost?<br />

Your pharmacy discounts are provided as part of the Co­op<br />

Connections® Program at no cost.<br />

Does everyone in my family need<br />

an individual card?<br />

No. One card may be used by the entire family.<br />

I just received my card. Can I use it right away?<br />

Yes. Just present your card and prescription at a<br />

participating retail pharmacy to receive a discount at the time<br />

of purchase.<br />

I’ve lost my card. How can I get a replacement?<br />

Please contact <strong>KIUC</strong>.<br />

How are these pharmacy discounts different from<br />

traditional prescription insurance?<br />

This plan is not insurance; it is a pharmacy discount offer.<br />

The card provides immediate discounts at the pharmacy. Upon<br />

presenting your card to the pharmacist, you will pay the lower<br />

of a discounted price or the pharmacy’s regular retail price.<br />

There is no paperwork to fill out and no limit to the number of<br />

times you can use the card. These discounts are available only<br />

at participating retail pharmacies.<br />

Can I use my Co­op Connections Card with my<br />

current insurance benefit to reduce my costs?<br />

Your card cannot be used in conjunction with insurance.<br />

However, use your card to purchase prescriptions not covered<br />

by your insurance plans at a discounted rate.<br />

Where can I get a list of pharmacies that accept<br />

the card?<br />

The Co­op Connections Card is accepted at more than<br />

60,000 retail pharmacies nationwide. You can find<br />

participating pharmacy locations at www.locateproviders.com.<br />

Pharmacy discounts are not insurance, and are not intended<br />

as a substitute for insurance. The discount is only available<br />

at participating pharmacies.<br />

Will I always receive the lowest price?<br />

Yes. You will receive the best price available to you through this<br />

program at the pharmacy. On occasion, pharmacies will price a<br />

particular medication lower than the discount rate provided by<br />

the card. If that occurs, you will receive the lower price.<br />

Can I find out the discounted price of my<br />

prescriptions before going to the pharmacy?<br />

Yes. If you know the name, strength and quantity of the<br />

medication, you can find the discounted price of the<br />

medication by visiting www.rxpricequotes.com.<br />

Why did the price of my prescription change since<br />

my last purchase?<br />

Drug prices are different from pharmacy to pharmacy. Even<br />

chains have different prices in their stores, depending on the<br />

population they are serving. Additionally, manufacturers’ drug<br />

prices change periodically.<br />

What is the mail order program?<br />

To ensure members always save money on their prescription<br />

drugs, a unique mail order program was created to<br />

complement the network pharmacy benefit. Since most<br />

maintenance (long­term) medications are purchased in 90­day<br />

supplies, members maximize savings and have the<br />

convenience of home delivery (at no additional charge) by<br />

ordering through the mail order option.<br />

To Locate Providers in Your Area:<br />

◼ Call 800.800.7616 for Member Services if you<br />

have questions or need a provider.<br />

◼ Log onto www.locateproviders.com and use code<br />

22203 as the group number under the “Groups”<br />

login section. Next, enter your zip code and the<br />

recommended mile radius of 100 to search for<br />

providers near you.<br />

◼ Log onto www.rxpricequotes.com to search by<br />

drug and zip code to get the best deal in town.<br />

Pharmacist Help Desk:<br />

◼ For questions to join or about processing,<br />

call the Help Desk at 877.448.6182.<br />

◼ You can email to join at<br />

nominations@newbenefits.com.<br />

DECEMBER 2010 19


20 <strong>KIUC</strong> CURRENTS<br />

Photos By Shelley Paik & Maile Moriguchi<br />

Ribbons<br />

and Bows<br />

1. Nutty Butter Toffee<br />

2¼ cups sugar<br />

1 teaspoon salt<br />

½ cup water<br />

1¼ cups butter<br />

¼ pound almonds<br />

¼ pound walnuts<br />

¼ pound milk chocolate<br />

Bring sugar, salt, water and butter to boiling. Cook<br />

10 to 15 minutes, stirring constantly, until tested<br />

(when dropped in cold water, should be hard).<br />

Add almonds and walnuts. Grease pan with butter<br />

and pour mixture into pan. When cool, drizzle<br />

with melted chocolate. Break into pieces.<br />

2<br />

1<br />

2. Chocolate Peanut<br />

Butter Mac Nut Balls<br />

1 cup peanut butter<br />

1 cup powdered sugar<br />

1 cup chopped macadamia nuts<br />

1 tablespoon melted butter<br />

1 tablespoon light Karo syrup<br />

6 ounces chocolate chips<br />

Mix peanut butter, powdered sugar, macadamia<br />

nuts, butter and syrup together. Shape into balls.<br />

Refrigerate until balls are solid. Melt chocolate<br />

chips. Dip cooled balls into chocolate. Cool on<br />

waxed or parchment paper.


3<br />

3. Sweet and Spicy<br />

Almonds<br />

2½ cups raw almonds<br />

¼ cup sugar<br />

1½ teaspoons coarse salt<br />

1 teaspoon cayenne pepper<br />

1 tablespoon honey<br />

1 tablespoon water<br />

1 teaspoon olive oil<br />

Preheat oven to 350 degrees. Spray pan with Pam<br />

and spread almonds; place pan in oven to toast<br />

almonds for 10 minutes, until you start to smell<br />

the almonds. In a large bowl, combine sugar, salt<br />

and cayenne pepper. In a large skillet over<br />

medium heat, cook honey and water with olive<br />

oil, stirring until combined, about 1 minute. Add<br />

almonds to pan and toss to coat. Put nuts in a<br />

bowl with sugar mixture and toss to coat. Place<br />

almonds in a pan in a single layer to cool.<br />

4. Manju<br />

1 cube butter<br />

1 cube margarine<br />

2 cups sugar<br />

4 eggs<br />

1 teaspoon vanilla<br />

¼ teaspoon yellow food coloring<br />

5 cups flour (sifted)<br />

6 teaspoons baking soda (sifted)<br />

1 can Koshian (or any other filling of your choice;<br />

apple and pumpkin work well)<br />

Cream butter, margarine and sugar. Add eggs one<br />

at a time. Add vanilla and food coloring. Add flour<br />

and baking soda. Make dough into 2­inch balls<br />

and flatten. Fill with Koshian and pinch to seal.<br />

Place on a greased cookie sheet seam side down.<br />

Brush beaten egg on tops for a shiny finish. Bake<br />

at 350 degrees for about 40 minutes, until golden<br />

brown. Yields approximately 40 pieces.<br />

4<br />

DECEMBER 2010 21


22 <strong>KIUC</strong> CURRENTS<br />

6<br />

5. Herb Infused Olive Oil 1<br />

3 basil leaves<br />

1 sprig thyme<br />

1 sprig rosemary<br />

1 sprig oregano<br />

Extra virgin olive oil<br />

5<br />

Place herbs in a bottle. Using a funnel, pour in<br />

olive oil. Cover tightly and refrigerate.<br />

Herb Infused Olive Oil 2<br />

3 cloves garlic<br />

1 tablespoon crushed red peppers<br />

3 basil leaves<br />

Extra virgin olive oil<br />

Place the basil, garlic and red pepper in a bottle.<br />

Using a funnel, pour in olive oil. Cover tightly and<br />

refrigerate.<br />

6. Hot Chocolate<br />

3 cups nonfat dry milk<br />

1½ cups sugar<br />

¾ cup cocoa<br />

¾ cup non­dairy creamer<br />

Dash of salt<br />

Marshmallows, optional<br />

Chocolate chips and peanut butter chips,<br />

optional<br />

Combine ingredients and mix well. Store in an<br />

airtight container. To make hot chocolate, add 4<br />

tablespoons of mix and fill with boiling water.<br />

\7. Pesto<br />

7<br />

3 large bunches of basil, leaves only, washed and<br />

dried<br />

9 medium cloves garlic<br />

About ½ cup raw pine nuts<br />

About 1½ cups freshly grated Parmesan<br />

A few tablespoons extra­virgin olive oil<br />

If you have a mezaluna, use it! If not, and you love<br />

to cook, invest in one. Otherwise, a very sharp<br />

chopping knife works. Chop all of the garlic and<br />

about ⅓ of the basil leaves (remove stems). Once<br />

this is roughly chopped, add more basil and chop<br />

some more; add the rest of the basil and continue<br />

to chop. Keep chopping until you have a very fine<br />

mince. Add the pine nuts and chop. Add the<br />

Parmesan and chop. In the end, you want a chop<br />

so fine you can press all the ingredients into a<br />

cake. Place the cake in a bowl and add olive oil.<br />

* Sometimes I add a touch of hot pepper paste for<br />

zip, but adding it to the pasta works, too.


Grand Prize Winner<br />

Kimberly Corpuz—Kapa`a High School<br />

Calendar Winners<br />

Samantha Smith—Kaua`i Pacific School<br />

Elijah Ibbs—Kalāheo Elementary School<br />

Waika Rogers—Kapa`a Elementary School<br />

Dylan Niide—Kapa`a Elementary School<br />

Shaughnessey Smith—Kaua`i Pacific School<br />

Stephanie Delos Santos—Kapa`a Elementary<br />

School<br />

Noah Fiorilli­Nemeroff—Private instruction<br />

Sam Goldberg—Private instruction<br />

Zuri Shanklin—Kapa`a Middle School<br />

Megan Scholl—Kapa`a High School<br />

Griffin Lord—<strong>Island</strong> School<br />

Kathleen Bissell—Private Instruction<br />

Nikki Limpert—Kaua`i High School<br />

2011 calendar<br />

of student art<br />

By Maile Moriguchi<br />

<strong>KIUC</strong> KEIKI<br />

2011 Calendar of Student Art Winners<br />

<strong>KIUC</strong> would like to congratulate the winners of our 2011<br />

Calendar of Student Art Contest.<br />

Honorable Mention Winners<br />

Kimberly Corpuz—Kapa`a High School<br />

Mikaela Depoe—`Ele`ele Elementary School<br />

Megan Scholl—Kapa`a High School<br />

Kamalei Pascua—King Kaumuali`i School<br />

Chandi Cabral—`Ele`ele Elementary School<br />

Ela Perozo—Natural Bridges<br />

Carlos Ygau­Tapia—Kapa`a Elementary School<br />

Eli Smart—Private instruction<br />

Katie Peterson—Kapa`a Middle School<br />

Alex Forman—Kīlauea School<br />

La‘akea Gonsalves—Kapa`a Elementary School<br />

Shayne Shibuya—King Kaumuali`i School<br />

Aulani Kaui—Kapa`a Elementary School<br />

Reanna Javinar—Kaua`i High School<br />

Kristen Watanabe—Kapa`a High School<br />

Matthew Mizukami—Kaua`i High School<br />

DECEMBER 2010 23


24 <strong>KIUC</strong> CURRENTS<br />

By Katie Beer<br />

<strong>KIUC</strong> IN THE COMMUNITY<br />

Holiday Angels<br />

Be an angel this year and support The Salvation<br />

Army of Kaua‘i’s Angel Tree Program. Angel trees<br />

are located at the entrances to Kmart and<br />

Walmart from Friday, November 26, until<br />

Wednesday, December 15.<br />

The trees are decorated with numbered paper<br />

angel tags that will provide you with the angel’s<br />

first name, age, sex, sizes and the item(s) they<br />

would like or need. Please purchase new gifts for<br />

your angel and return them to the tree where you<br />

selected your angel.<br />

Gifts will be distributed December 22 and<br />

December 23 at The Salvation Army Corps in Lihue<br />

and Hanapepe. To ensure all gifts go to the person<br />

for whom they were purchased, gifts need to be<br />

returned to The Salvation Army by December 15.<br />

Make their Christmas dreams come true. Adopt<br />

your angel today!<br />

Find the thought of holiday shopping<br />

overwhelming? A monetary donation to the<br />

Salvation Army will go far in making Christmas<br />

merry and bright for families all across the island.<br />

For more information, contact Envoy Larry<br />

Groenleer of the Lihue Corps at 245­2571 or Lt.<br />

Sarah Smuda of the Hanapepe Corps at 335­5441.<br />

Photo by Pia Gregorio


ThePower<br />

to Partner<br />

If you find a downed bird...<br />

1. Pick up the bird as soon as possible. Use a towel to gently wrap the bird. Don’t be alarmed by<br />

the long pointed bill. Shearwaters are usually docile and easy to handle.<br />

2. Do NOT try to release the bird into the air. Please bring the bird to the shearwater<br />

rescue center at Kaua‘i Humane Society or one of the several aid stations listed below.<br />

3. If you must keep the bird overnight, keep it in a ventilated cardboard box lined with a clean towel and<br />

securely lidded.<br />

For more information, contact the Kaua‘i Humane Society at 632.0610.<br />

West<br />

Waimea Fire Station<br />

Hanapēpē Fire Station<br />

Kalāheo Fire Station<br />

South<br />

Kōloa Fire Station<br />

SOS Aid Station Locations<br />

Central­East<br />

Kaua‘i Humane Society<br />

Līhu’e Fire Station<br />

Kapa‘a Fire Station<br />

Kaiākea Fire Station<br />

North<br />

Kīlauea Medical Group<br />

Hanalei Fire Station<br />

Hanalei Liquor Store<br />

KAUA‘I<br />

VETERINARY<br />

CLINIC<br />

DECEMBER 2010 25


26 <strong>KIUC</strong> CURRENTS<br />

By Shelley Paik<br />

Volunteering A Way of Life<br />

During the holidays, we often look back on the<br />

year and realize what we are thankful for and<br />

everything others have done for us. One way we<br />

can give back is to volunteer in the community.<br />

Opportunities are plentiful and the need is<br />

year­round.<br />

One of cooperative principles <strong>KIUC</strong> follows is<br />

Concern for Community. Many of our member<br />

programs involve volunteering in the community<br />

or participating in community events.<br />

<strong>KIUC</strong>’s employees not only get involved with<br />

work­related volunteer opportunities, but<br />

volunteer on their own time. We have employees<br />

who are active in the PTSA and school community<br />

councils, coach community sports, are team<br />

parents or league coordinators, umpire, sit on<br />

boards of nonprofits and associations, and belong<br />

to professional societies and clubs—all of which<br />

contribute to our community.<br />

<strong>KIUC</strong> regularly supports the Salvation Army<br />

Angel Tree in which employees help individuals in<br />

need; the Kaua‘i United Way; the American<br />

Cancer Society’s Relay for Life; and Kaua‘i<br />

Independent Food Bank.<br />

Photo by Shelley Paik<br />

Security and Facilities Coordinator, Mitchell Oishi educates students on electrical safety at a recent elementary school career day.<br />

Anyone who brings in $5 worth of canned<br />

goods, non­perishable food or writes a check to<br />

the Kaua‘i Independent Food Bank receives a<br />

compact fluorescent light.<br />

When you think of volunteering, do something<br />

you enjoy. Ask around and see if others need your<br />

help. Take the initiative do it because you want to,<br />

not because you are being forced to do it. Make it<br />

your own and you will feel great about it.<br />

List of Possible Volunteer<br />

Opportunities<br />

American Cancer Society<br />

American Red Cross<br />

Blood Bank of Hawai‘i<br />

Boys and Girls Club of Hawai‘i<br />

County of Kaua‘i’s Agency on Elderly Affairs<br />

Retired and Senior Volunteer Program (RSVP)<br />

Habitat for Humanity<br />

Kaua‘i Community Health Alliance<br />

Kaua‘i Humane Society<br />

Kaua‘i Independent Food Bank<br />

National Tropical Botanical Garden<br />

Wilcox Memorial Hospital


kiuc charitable foundation<br />

Three $1,000 <strong>KIUC</strong> Charitable Foundation<br />

scholarships were awarded to Kaua‘i Community<br />

College (KCC) liberal arts students Jade Lehua<br />

Cano, Kainoa Matias and Kehaulani Medeiros.<br />

The KCC students each received a $1,000 award<br />

from the <strong>KIUC</strong> Charitable Foundation. They were<br />

selected by the Liberal Arts Scholarship Selection<br />

Committee. Eligibility requirements for the<br />

scholarship included being a resident of Kaua‘i<br />

who had graduated from a high school on Kaua‘i<br />

or obtained a GED equivalency and enrolled at<br />

KCC full­time with a minimum of 12 credits and<br />

pursuing a degree in liberal arts, and has a<br />

minimum GPA of 2.5 form a Kaua‘i high school or<br />

college. Official transcripts from high school,<br />

college, or GED equivalent were required. The<br />

students applied through the University of Hawai‘i<br />

Foundation.<br />

According to KCC Financial Aid Officer Rebecca<br />

Thompson, the students “were chosen based on<br />

their high GPAs, financial need, outstanding essays<br />

and strong recommendations.”<br />

The three scholarship recipients are all secondyear<br />

KCC students. Jade Cano graduated from<br />

Waimea High School. Kainoa Matias and Kehaulani<br />

Medeiros graduated from Kaua‘i High School.<br />

The <strong>KIUC</strong> Charitable Foundation allocated<br />

funding for three $1,000 scholarships for the<br />

2010­2011 academic year at KCC.<br />

“The <strong>KIUC</strong> Charitable Foundation board worked<br />

hard to establish this scholarship to assist our Kaua‘i<br />

students with furthering their academics,” said <strong>KIUC</strong><br />

Charitable Foundation President Allan Smith.<br />

By Shelley Paik<br />

<strong>KIUC</strong> Charitable Foundation<br />

Awards Scholarships to KCC Students<br />

<strong>KIUC</strong> –CF Treasurer Carol Bain, <strong>KIUC</strong>­CF President Allan Smith, <strong>KIUC</strong>­CF Board Member<br />

Trinette Kaui, <strong>KIUC</strong>­CF Secretary Shelley Paik, scholarship recipient Kehaulani Medeiros,<br />

<strong>KIUC</strong>­CF Vice President John Cox, scholarship recipient Kainoa Matias, scholarship recipient<br />

Jade Cano, <strong>KIUC</strong>­CF Board Member Steve M. Rapozo, KCC Chancellor Helen Cox, <strong>KIUC</strong>­CF<br />

Board Member Nancy Bushnell. Missing: <strong>KIUC</strong>­CF Board Members: Michelle Swartman and<br />

Kathryn Williams.<br />

In 2005, Governor Linda Lingle signed<br />

legislation enabling <strong>KIUC</strong> to keep and use for<br />

charitable purposes unclaimed refunds that<br />

previously would have been turned over to the<br />

state for its use. None of these funds come from<br />

<strong>KIUC</strong> assets.<br />

The <strong>KIUC</strong> Charitable Foundation is governed by<br />

nine directors, comprised of three <strong>KIUC</strong> directors,<br />

three <strong>KIUC</strong> employees and three <strong>KIUC</strong> members.<br />

DECEMBER 2010 27


28 <strong>KIUC</strong> CURRENTS<br />

By Kathy Williams and Anne Barnes<br />

Worrying about paying your monthly electric<br />

bill on time every month? Sign up for<br />

Automatic Bill Payment (ABP) and your<br />

worries are a thing of the past.<br />

MEMBER SERVICES<br />

Bill Payment Made Easy<br />

Automatic Bill Payment is as easy as it sounds.<br />

It allows your electric bill to be paid directly from<br />

whatever financial institution you choose: your<br />

bank, your savings and loan or your credit union.<br />

Imagine no more checks and no more payment<br />

deadlines! With Automatic Bill Payment, there has<br />

never been an easier way to pay your monthly<br />

electric bill. It gives you the opportunity to enjoy<br />

convenience, security, speed and savings by having<br />

your payments automatically withdrawn from your<br />

checking or savings account. It eliminates the<br />

burden of mailing payments, saves postage and<br />

ensures your payments are always on time. The<br />

service is absolutely FREE.<br />

With <strong>KIUC</strong> Automatic Bill Payment:<br />

◼ You will never miss a payment, even when you<br />

are out of town.<br />

◼ You will still receive a monthly statement from<br />

<strong>KIUC</strong> showing the same information a bill does<br />

(meter reading, usage, account balance, etc.).<br />

◼ You will see how much energy you used and<br />

the amount and date of your next automatic<br />

withdrawal.<br />

◼ Your payment will be electronically deducted<br />

from your checking or savings account.<br />

◼ No checks are required.<br />

◼ No late payments, ever.<br />

Here is how to get started:<br />

◼ Complete an authorization form and return it<br />

to <strong>KIUC</strong>. Be certain to include a voided check<br />

or photocopy of a check with<br />

the authorization form.<br />

◼ We will arrange your Automatic Bill Payment<br />

with your financial institution.<br />

◼ You will continue to receive an electric bill<br />

every month that features the date on which<br />

your bill will automatically be paid. Deductions<br />

are made 21 days or later once your electric<br />

bill is mailed. This gives you<br />

time to review your bill and call <strong>KIUC</strong> with<br />

any questions.<br />

◼ All you have to do is make certain there are<br />

sufficient funds in your account to cover the<br />

automatic withdrawal each month. If your<br />

Automatic Bill Payment is returned for<br />

insufficient funds, your financial institution<br />

and <strong>KIUC</strong> will assess the same amount that<br />

would apply for a dishonored check.<br />

So, let your bank, savings and loan, or credit<br />

union do your monthly bill paying automatically.<br />

Complete the form or call a Member Services’<br />

representative at 246.4300 7:30 a.m. to 4:30 p.m.<br />

Monday through Friday, except holidays.<br />

If you already signed up for account access at<br />

www.kiuc.coop thru e­biz, you may complete<br />

the form online.


<strong>KIUC</strong> is updating account records and<br />

requesting all members provide current contact<br />

information, including mailing address and phone<br />

number(s). This information is essential in case<br />

any of the following occur:<br />

◼ We need to reach you in case of a planned<br />

outage in your area.<br />

◼ Bills are returned to us and you are unable to<br />

make payment in a timely manner, placing<br />

your account at risk.<br />

◼ Your patronage capital check is returned to us<br />

as undeliverable.<br />

◼ There is an emergency and we need to reach<br />

you via phone.<br />

Artwork by Nikki Limpert, Twelfth Grade, Kaua`i High School<br />

By Anne Barnes<br />

We Need Your Help<br />

You may update your mailing address and<br />

phone number(s) any of the ways listed below:<br />

◼ Call us at 246.4300 (7:30 a.m. to 4:30 p.m.<br />

Monday through Friday, except holidays).<br />

◼ Make the changes on the back of your bill<br />

stub before mailing your payment.<br />

◼ Give us the information in person when you<br />

come into the Lihu`e office for any reason.<br />

◼ Email us at info@kiuc.coop.<br />

This vital information will NEVER be sold to any<br />

outside agency. Mahalo for your assistance!<br />

Happy Holidays<br />

from<br />

<strong>KIUC</strong><br />

DECEMBER 2010 29


Statement<br />

of Operations<br />

For the period 01/01/2010 – 09/30/2010<br />

30 <strong>KIUC</strong> CURRENTS<br />

By Karissa Jonas, Controller<br />

We report that the <strong>KIUC</strong> results of operations<br />

through September 30, 2010, are improving as<br />

the weak economy begins to show signs of<br />

recovery. Electricity use on the island has<br />

remained at the same level as the prior year. It is<br />

still at a significantly decreased level from the preeconomic<br />

downturn level, primarily due to the<br />

reduction in visitors to the island. <strong>KIUC</strong> is doing<br />

everything it can, while maintaining safety and<br />

reliability, to reduce costs in various areas to<br />

operate efficiently and effectively, and continue to<br />

maintain a strong financial position to meet our<br />

loan covenants.<br />

Revenues, expenses and net margins totaled<br />

$115.2 million, $107.3 million and $7.9 million,<br />

respectively, for the nine­month period ending<br />

September 30, 2010.<br />

As is the case for all electric utilities, the cost of<br />

power generation is the largest expense, totaling<br />

$64.2 million or 55.7% of revenues. Fuel costs are<br />

the largest component of power generation,<br />

totaling $54.1 million or 46.9% of revenues, and<br />

representing 84.2% of the cost of power<br />

generation. The remaining $10.1 million or 8.8%<br />

of revenues and 15.8% of the cost of power<br />

generation represents the cost of operating and<br />

maintaining the generating units.<br />

Percentage of Total Revenue<br />

Taxes<br />

8.4%<br />

Depreciation &<br />

Amortization<br />

9.8%<br />

Administrative &<br />

General<br />

Net of Non-Operating<br />

Margins<br />

7.0%<br />

Marketing &<br />

Communications<br />

0.5%<br />

Interest<br />

5.9%<br />

Member Services<br />

2.4%<br />

Net Margins<br />

6.9%<br />

Fuel & Purchased<br />

Power Costs<br />

46.9%<br />

Production Operation &<br />

Maintenance<br />

8.8%<br />

Transmission & Distribution<br />

Operation & Maintenance<br />

3.4%<br />

The cost of operating and maintaining the<br />

electric lines totaled $3.9 million or 3.4% of total<br />

revenues. The cost of servicing our members<br />

totaled $2.7 million or 2.4% of revenues. The cost<br />

of keeping our members informed totaled $0.6<br />

million or 0.5% of revenues. Administrative and<br />

general costs—which include legislative and<br />

regulatory expenses, engineering, executive,<br />

human resources, safety and facilities,<br />

information services, financial and corporate<br />

services, and board of director expenses—totaled<br />

$8.5 million or 7.4% of revenues.<br />

Being very capital intensive, depreciation and<br />

amortization of the utility plant costs $11.3<br />

million or 9.8% of revenues. Although not subject<br />

to federal income taxes, state and local taxes<br />

amounted to $9.7 million or 8.4% of revenues.<br />

Interest on long­term debt, at a very favorable<br />

sub­5% interest rate, totals $6.8 million or 5.9% of<br />

revenues. Non­operating net margins added $0.4<br />

million to overall net margins. Revenues less total<br />

expenses equal margins of $7.9 million or 6.9% of<br />

revenues. Margins are allocated to consumer<br />

members and paid when appropriate.


Parting Shot<br />

An early morning photo taken at the boat launch<br />

area in Kapa‘a.<br />

Simple<br />

Pleasures<br />

Princeville Sunset<br />

Photo courtesy of<br />

Diana Rachal<br />

Photo by Judie Fernandez<br />

We are always looking for interesting items to feature in SImple Pleasures and Parting Shot. If you have an item to share with<br />

readers, please e­mail currents@kiuc.coop or send it to: <strong>KIUC</strong> <strong>Currents</strong>, 4463 Pahe‘e Street, Suite 1, Līhu‘e, HI 96766­2000.<br />

DECEMBER 2010 31


Powerlines<br />

Looking Out for YOU.<br />

32 <strong>KIUC</strong> CURRENTS<br />

HI-130<br />

<strong>Cooperative</strong>s are different from other business you deal with. We’re different because<br />

we’re looking out for you. Now, more than ever, that’s important because we need to work<br />

together to keep your electric bills affordable.<br />

Congress did not pass a comprehensive climate bill last year. In January, the U.S.<br />

Environmental Protection Agency began regulating greenhouse gasses—an action made<br />

possible by a 2007 Supreme Court decision, followed by rulings allowing the EPA to use the<br />

Clean Air Act to curb carbon emissions. Policies dealing with coal ash, even more stringent<br />

controls on other power plant emissions and state renewable energy requirements also could<br />

lead to higher costs.<br />

It is hard to predict the future, but one thing seems certain: Government regulations are going to increase the cost of<br />

doing business.<br />

New regulations won’t be the only culprit. Prices for fuel, materials and equipment will continue to rise. Although the<br />

recent economic slump and corresponding drop in electricity use provided some much­needed breathing room, soon we<br />

will need additional generation, requiring a significant long­term investment of time and money.<br />

We’re committed to keeping you informed about policy changes that will impact your electric bill through channels like<br />

<strong>Currents</strong> and www.kiuc.coop. We’re going to do everything we can to keep your electric bills affordable.<br />

To accomplish that, we’re controlling costs through innovation. Our energy­efficiency programs you can read about in this<br />

issue help you manage your energy use. We also offer home energy visits to make sure you’re getting the best value out of<br />

the energy you use every month.<br />

Deploying state­of­the­art solutions like next year’s rollout of AMI helps us control operating costs and improve service<br />

reliability. Nationally, co­ops are meeting members’ power needs with a diverse fuel mix, including renewable energy.<br />

Above all else, we’re member focused. No matter what comes our way, we will continue to put you first.<br />

As a member, you have a voice in how your co­op operates. In March, you will have the opportunity to elect fellow<br />

members to our board of directors to represent your best interests. Don’t miss our next meeting on December 21.<br />

Member control means we are accountable to those we serve, and are dedicated to assisting our communities. Your<br />

money stays at work close to home.<br />

Costs are rising for all of us, but when it comes to your electric bill, our rates are set to cover the cost of doing business—<br />

not to generate profits for distant stockholders.<br />

The bottom line? We’re working together to keep your electric bills affordable. We’re controlling costs through<br />

innovation. And we’re continuing to put you, our members, first.<br />

No matter what the future brings, one thing is certain: We’re looking out for you.<br />

Wishing you a happy and safe holiday from <strong>KIUC</strong>!<br />

Mahalo,<br />

David J. Bissell<br />

Acting President and CEO

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