“We're in this together.” - Kauai Island Utility Cooperative

“We’re in this together.”
KIUC’s New President and CEO Understands Kaua‘i’s
Energy Future Must Be a Collaborative Effort
April 2011

Kauai Beach Villas #E4
Nice Ocean view 1 Bedroom, 1 Bathroom Condo
with resort amenities at a Great Price. Quiet
location in the complex. Amenities include 24/7
security, tennis, pool, bbq, water features,
beautiful grounds and much more. ONLY
5093 Hassard Road, Kapaa
Encouraging all offers! Hawaiian Style Plantation
Charm of days gone by. Well maintained home
with development potential and dynamic views of
the Anahola Mountains, Kealia Valley and Kealia
Beach! Property qualifies for 2 dwellings and 1
guest house. REDUCED to $625,000(fs).
Call: 246-0334
$269,900(fs). Call: Judy Piano(RA) 651-9230 Beautiful Pikake Lots in
975 Kamalu Road, Wailua
Breathtaking Custom home located on nearly 3
acres of level land surrounded by Views of Mt
Waialeale, Makaleha and Sleeping Giant. High
End Custom Features. Guest quarters and a Salt
water swimming pool. $1,550,000(fs). Call: Karen
Agudong(R) 652-0677 or Kay Leonard(RA)
634-8697
7136 Alamihi Road, Wainiha -
NORTH SHORE
11,051 sf lot in Wainiha. REDUCED to $314,000 (fs)!
Just a short walk to the beautiful North Shore
Beaches and a short drive to beautiful and historic
Hanalei town. Priced to sell! Sold As-Is. Sale is
subject to Bankruptcy Court approval. Call: Karen
Agudong(R) 652-0677 for more information.
Aloha Island Properties
EXCEEDING YOUR EXPECTATIONS
(808) 246-0334
4182 Awela Street - Puako
Beautiful Golf Course lot located at the end of the
cul-de-sac in the Puako Subdivision. Gorgeous
Mountain & Golf Course views on a spacious lot.
Well established neighborhood. $349,000(fs).
Make Offer! Call: 246-0334
563-A Puuopae Road, Wailua
Immaculately maintained 3 bed, 2 bath home in
Wailua Homesteads, sold completely furnished.
Many upgrades and extra features including
Cathedral Ceilings, Floor to ceiling windows, Oak
Hardwood Floors, Enclosed Sun Room, Numerous
Fruit trees and a beautiful Lanai with Breathtaking
Mountain Views. All of this and located on a half
acre of Land! $650,000(fs). Call: Kay
Leonard(RA) 634-8697 or Karen Agudong(R)
652-0677
Lihue
#1669 - Spacious 11,307 sf corner lot slightly
elevated enhancing the views. $309,000(fs)
#1739 - Golf Course, Lake & Mountain Views.
11,513 sf. $269,000(fs)
#1710 - Located on the 7th Fairway with Dynamic
Ha'upu Mountain and gorgeous Golf Course
views. Neighbor on the left is just trees and a
stream. $359,000(fs)
#1726 -Wonderful level, corner lot located toward
the back of the subdivision. Gorgeous Mtn.
views $265,000(fs)
#17 27 - Price reduced on this Spectacular lot.
14,335 sq ft allows guest house. Golf course,
lake frontage & dynamic mountain views.
$319,000(fs) Call: Karen Agudong(R) 652-0677
or Charlotte Barefoot(R) 651-4627.0
6428 Kipapa Road, Wailua
Homesteads
BACK on the MARKET! 1 ACRE of Land and a
Gorgeous 3 bedroom, 2 bath home with Swimming
Pool and Jacuzzi. Located on peaceful Kipapa
road and surrounded by Dynamic Mountain Views.
Brand New Custom home featuring Open Beam
ceilings, Oak Hardwood Floors, Wolf Gas Range,
Open Floor Plan, Wrap around Lanai, Lava Rock
Wall Entry and numerous Fruit trees. This property
is sure to please. $675,000(fs). Make Offer! Call:
Karen Agudong(R) 652-0677 or Kay Leonard(RA)
634-8697.
Aloha Island Properties 3-3359 Kuhio Highway, Lihue, HI 96766
808-246-0334 fax: 808-246-0771 www.alohaisland.com email: karen@alohaisland.com

April 2011
Volume 8, Number 2
Table of Contents
KIUC Solar Water Heater Loan Program . . . . . . . . . 4
St. Theresa School Celebration . . . . . . . . . . . . . . . . . 6
A Picture’s Worth . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Heat Pump Water Heaters Equal kWh Savings . . . . 8
Appliance Rebates . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Community Outreach . . . . . . . . . . . . . . . . . . . . . . . 11
Bringing PV Online in Kapa‘a . . . . . . . . . . . . . . . . . 12
Renewable Outlook . . . . . . . . . . . . . . . . . . . . . . . . . 14
Maximizing Efficiency . . . . . . . . . . . . . . . . . . . . . . . . 15
KIUC’s Grid: A ‘Smart’ Move . . . . . . . . . . . . . . . . . . 16
Fuel Prices and What You Are
Paying for Electricity . . . . . . . . . . . . . . . . . . . . . . 18
We’re In This Together . . . . . . . . . . . . . . . . . . . . . . 20
Aloha, Randy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Incumbents Re­elected . . . . . . . . . . . . . . . . . . . . . . 22
Board Actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
A Message From the Chairman . . . . . . . . . . . . . . . 23
Division of Authority . . . . . . . . . . . . . . . . . . . . . . . . 24
2011 KIUC Board of Directors Committees . . . . . . 25
Easter Dinner. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
KIUC Matches Employee/Board Donations . . . . . . 29
County of Kaua‘i’s New Household
Battery Recycling Program . . . . . . . . . . . . . . . . . 30
‘Beauty and the Beast Jr.’ Comes to Kalaheo . . . . 31
Co­op Connections . . . . . . . . . . . . . . . . . . . . . . . . . 32
Local Teen Has ‘Amazing Experience’
With National Leadership Council . . . . . . . . . . . 34
LIHEAP: Low­Income Home Energy
Assistance Program . . . . . . . . . . . . . . . . . . . . . . . 36
At NRECA’s Annual Meeting, President
Glenn English Focuses on Membership . . . . . . . 37
Statement of Operations . . . . . . . . . . . . . . . . . . . . . 38
Simple Pleasures . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Parting Shot . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Powerlines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
KIUC is an equal opportunity provider and employer.
On the cover: Newly appointed President and CEO
David Bissell. For more information, see page 20.
Photo by Shelley Paik
4463 Pahe‘e Street, Suite 1, Līhu‘e, Hawai‘i 96766­2000
808.246.4300 ◼ www.kiuc.coop ◼ currents@kiuc.coop
EDITOR
Anne Barnes
ASSISTANT EDITORS
Maile Moriguchi
Shelley Paik
Pam Blair
CONTRIBUTING WRITERS
Anne Barnes
David Bissell
Paul Daniels
Karissa Jonas
Ray Mierta
Maile Moriguchi
Shelley Paik
Steve Rymsha
Teofilo “Phil” Tacbian
Kathy Williams
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.

4 KIUC CURRENTS
Energy conservation practices benefit all KIUC members and our community by
reducing energy costs and improving the quality of our environment. To help our
members save energy and money, Energy Wise offers members several energy­saving
programs designed to help manage energy costs. Two of these programs, the Solar Loan
Program and the Solar Rebate Program, are described in detail in this issue.
The Solar Loan Program offers zero­interest loans to members who want to change
their existing electric water heater to a solar water heating system, or replace an
existing non­functional solar water heater at least 15 years old. KIUC pays the interest
for the participant. The participant repays the principal over five years. No down
payment is required. KIUC has partnered with Kaua‘i Community Federal Credit Union
and the County of Kaua‘i Housing Agency to provide funding for the loans.
The Solar Rebate Program provides an $800 rebate incentive for customers who
want to replace their existing electric water heater with a solar water heater, or
replace an existing non­functional solar water heater at least 15 years old.
For additional details about Energy Wise programs available to our members, please
contact the co­op at 246.8280 or visit our website at www.kiuc.coop.
ENERGY WISE
KIUC Solar Water Heater Loan Program
KIUC has partnered with Kaua‘i Community
Federal Credit Union (KCFCU) and the Kaua‘i
County Housing Agency to bring our customers an
interest­free loan for those who want to install
solar water heating.
Funds for the solar systems are provided by
individual lenders. KIUC pays the interest for
qualified borrowers. The loan is paid back over a
five­year period.
Solar Loan Checklist
Use this checklist to help you through the loan process.
Remember, KIUC is always here to help. You can be heating
your water with the sun in no time!
■ I have an electric water heater
■ Get contractor bid
■ Complete credit application
■ Loan approval
■ Contractor completes incentive application
■ Receive authorization letter
■ Have system installed
■ Schedule system verification
■ Enjoy the benefits of solar water heating!
1. What Kind Of Water Heater
Do I Have?
To qualify for an interest­free solar water heater
loan, you must be a residential customer of record
and have an existing electric resistance water
heater. New construction does not qualify.
The loan can be used to replace existing solar
water heaters that are more than 15 years old.
2. Contractor Bid/Credit
Application
Contact one of the Energy Wise Participating
Contractors to get a bid for your solar system.
You need to know how much you want to borrow.
Once you know how much the system will cost,
complete a credit application. Applications can be
picked up at either KIUC or KCFCU. You also can
call KIUC and we will mail you one. Once you
have completed the credit application, return
it to KCFCU.
3. Loan Approval
Loan approval will be based on a combination
of factors, including income, credit and
employment history. You will be notified by the
lending partner who accepts the application
whether you qualify.

4. System Installation
You will be contacted in writing when your loan
is approved. Contact your contractor and show
the approval letter from your lender to the
contractor. The contractor will complete a KIUC
Incentive Application, which you must sign, and
will forward the application to KIUC.
Once KIUC receives the completed application,
KIUC will mail you an authorization letter that will
advise you to contact your contractor and arrange
for system installation.
5. Schedule a Post­Installation
Verification
Your contractor will notify KIUC after the system
has been installed. KIUC will call you to schedule a
post­installation verification to verify the system
meets KIUC standards.
You will need to be present at the verification to
sign a Verification of Installation form. This will be
used to notify your lender that the installation has
been completed.
6. Loan Payments/Billing
You will be billed monthly by the lending
institution that issued your loan. Loan
payments must be made directly to the lending
institution. Payments for the loan will not
appear on your KIUC electric bill, and loan
payments for solar systems cannot be mailed to
KIUC or paid in our office.
Frequently Asked Questions
Q: Am I required to get multiple bids from
contractors?
A: KIUC does not require you to submit multiple
contractor bids. However, pricing for solar
water heating is very competitive and prices
can vary wildly between contractors. It is a
good idea to shop around to get the best
price and to learn as much about solar water
heating as you can.
Q: Can I choose a contractor who is not
on the list?
A: No. Systems installed by non­participating
contractors or systems installed without
following the Energy Wise loan process
cannot be qualified for a loan. All
participating contractors on the list have
agreed to abide by program standards and
will work with the loan process.
Q: Do I have to make a down payment on the
solar system?
A: You are not required to pay the contractor a
down payment for the system. KIUC is
offering 100­percent financing at no interest
to qualifying customers. The contractor will
be paid the full amount for the system after
KIUC has verified it has met program
specifications.
Q: What about the rebate program?
A: KIUC knows customers like choices. The solar
rebate program is still available if you would
like to have a rebate instead of a loan. You
have a choice of either a rebate or an
interest­free loan.
Q: Where can I call if I have questions about
the loan process?
A: You can call the KIUC Energy Wise hotline at
808.246.8280 or 808.246.8284 Monday
through Friday, 7:30 a.m. to 4:30 p.m.
Phone numbers for questions specific to
the credit application can be found on the
application itself.
Q: How long do I have to pay back the loan?
A: The principal will be paid back over five
years. It can be paid back sooner if you
wish with no pre­payment penalties. All
the interest from the loan will be paid
back by KIUC.
APRIL 2011 5

By Maile Moriguchi
St. Theresa School Celebration
National Catholic School Week celebrations include an energy­saving
retrofit project from KIUC’s Commercial Energy Services team.
6 KIUC CURRENTS
Photos by Maile Moriguchi
Students at St. Theresa School were buzzing
with excitement on February 2. Mayor Bernard
Carvalho was paying them a visit as part of the
National Catholic School’s weeklong celebration,
“Catholic Schools: A+ for America.”
The week included a career day on Monday,
a community clean up on Tuesday, the mayor’s
visit followed by a mahalo ceremony for a new
lighting retrofit program on Wednesday, and a
special mass on Friday.
St. Theresa School, an accredited
nondiscriminatory institution, was founded more
than 60 years ago by the Kekaha plantation
community to provide quality education for the
west Kaua`i community, from Koloa to Mana. The
school’s mission is to provide rigorous course
study for multicultural students in preschool
through middle school, with a focus on developing
the whole child: body, mind and spirit.
Average enrollment at St. Theresa School is 130
students. On February 2, the entire student body
was gathered in the chapel singing hymns and
eagerly anticipating the mayor’s arrival. As the
mayor started walking toward the chapel, the
students began peeking out, squealing with
excitement. As he walked in, he was greeted with
applause.
The mayor attended school at St. Catherine’s in
Kapa`a. He spoke to the students about how,
through faith, things can flow in a positive
direction, and about the importance of
community service and building relationships.

“It’s the little steps that can make a big
difference,” he told the students.
Fitting in perfectly with the mayor’s message of
building relationships and community service was
the school’s retrofit program. Taking the lead on
the project was Darlene Muraoka.
With the school’s facilities and maintenance
committee comprised of parents and community
volunteers, they created a partnership with KIUC.
The project originated from survey visits by KIUC
Commercial Energy Services Specialist Paul
Daniels, who evaluated the energy­saving
potential at the school. He determined lighting
was a good place to start.
“Due to the type of existing lighting, LED
(lighting­emitting diode) seems the best
alternative and offers the maximum energy
savings,” Daniels said.
John Hodges of JCH Hawai‘i provided the new
lights. Additional funding was provided by grants
from the Hawai‘i Community Foundation and the
Annie Sinclair Knudsen Memorial Fund.
Present at the mahalo ceremony were Tad
Miura, a member of the memorial fund board,
and Uri Martos from the foundation. Also in
attendance was Richard Jose, an alumni and
parent of former St. Theresa School students,
who represented the International Brotherhood
of Electrical Workers. IBEW volunteers provided
expertise and labor to install the lighting.
Paul Daniels commends the school as being proactive
and explained the process of the retrofit project.
By Paul Daniels
A Picture’s Worth...
For this month’s “A Picture’s Worth” we would
like to feature a familiar, but often overlooked,
energy­saving technology: window tint. Helping
us highlight this energy­saving technology is
Noel Mock, bookstore manager at Kaua‘i
Community College.
Located in Puhi, KCC is the educational center of
higher learning on Kaua‘i. But many may not
realize KCC is a community leader in working
toward greater facility efficiency, but by offering
classes promoting and helping individuals learn to
implement these important technologies.
Noel and other administrators determined that
tinting their sun­exposed windows could provide
energy savings by reducing the effects of the sun’s
heat through the windows. KCC saves on air
conditioning by having less heat to remove.
Another benefit is the reduction in store
merchandise losses due to sun fading.
Speaking of merchandise, when visiting the
bookstore I was amazed at the variety of products
and services provided. As part of the University of
Hawai‘i system, the KCC bookstore carries a large
selection of university logo clothing, art and
school supplies.
In addition to catering to students, resort
concierge often direct visitors to the bookstore to
find official University of Hawai‘i gifts to take
home, Noel said.
The community is welcome to come in and shop
for themselves or family and friends abroad. Store
hours are 8 a.m. to 3:30 p.m. Monday through
Friday, except state holidays.
Thank you, Noel, for your assistance, and for
using KIUC’s Commercial Energy Program.
If you have a
business, large or
small, and want to
participate in the
Commercial Energy
Wise Program, call
Paul Daniels at
246.8275.
APRIL 2011 7

8 KIUC CURRENTS
By Ray Mierta
Heat Pump Water Heaters
Equal kWh Savings
Take advantage of KIUC’s $300 rebate and save when you heat your hot water.
We all know how good a long hot shower can feel
after a tough day at work or a long day at the beach.
The modern “automatic water heater” makes
hot water available and a hot shower possible at
all times of the day or night with just a turn of the
wrist. The first water heater dates to 1870 in
England. It wasn’t efficient and could be
dangerous, since there were no temperature
controls and it was unpressurized, but it beat
trekking down to the nearest hot springs, if one
was available, or burning wood or some other
combustible material to heat water for a bath.
Not much is known about that invention, but the
first storage water heater dates to 1889. A
Norwegian immigrant invented the first
commercially available water heater in Pennsylvania.
Edwin Rudd designed the first of what would later
become the modern storage water heater.
While there still may be a few wood heaters
around that were common on the plantations, and
at one time there were diesel­fueled heaters on
Kaua‘i, most of the water on the island is heated
with electricity and solar. About one third of the
homes on Kaua‘i have solar water heating. The
average all­electric home on Kaua‘i spends up to
half of its monthly electric use on heating water.
An alternative is a hybrid design—a heat pump
water heater—that uses a combination of
electricity and warm air (energy) removed from
the environment to heat water. On the mainland,
heat pump technology is used within a single unit
to provide both heating and cooling to a home.
On Kaua‘i, heat pumps are best used for heating
water. There are an undetermined number of heat
pump water heaters on Kaua‘i. The technology
here suffered from poor product design, resulting
in questionable reliability, and a lack of
understanding about how the units operated.
Although they are installed by a plumber and the
installation is similar to a conventional electric
water heater, maintenance, troubleshooting and
repair service were non­existent.

That has changed. Energy prices are remaining
high and for longer periods of time, bringing a
renewed interest to heat pump water heating
technology. The heat pump industry use to consist
of small regional manufacturers without the
ability to widely distribute product or provide
service and repairs.
Recently, large corporations such as General
Electric and Rheem have taken an interest in this
water heating technology and want to expand
availability and provide support services. Energy
Star has created efficiency standards for heat
pump water heaters.
How It Works
Generally, it is easier to move something than
it is to create it. In basic terms, a heat pump water
heater works like a standard refrigeration
unit—an air conditioner or refrigerator—but in
reverse, heating water up to 140 degrees.
As long as the average ambient air temperature
stays above 50 degrees—not a problem on Kaua‘i—
it is less expensive to heat water with a heat pump
water heater than a standard electric water heater.
Estimated Savings
A conventional electric water heater will
consume an average of 3,600 to 4,800 kWh
annually or $1,440 to $1,920. A heat pump water
heater consumes 62­percent less energy yielding
a savings of 2,232 to 2,976 kWh or $893 to
$1,190. The cost of a heat pump water heater is
only slightly higher than a standard 50­gallon
electric water heater.
Incentives
The federal government is offering a 30­percent
tax credit on the total cost of a heat pump water
heater through December 31, 2016. In addition,
KIUC is offering a $300 rebate incentive for the
purchase of any Energy Star­rated heat pump
water heater. Only Energy Star­rated models
qualify for the KIUC rebate. Payback on the
purchase price and installation cost, with the tax
credits and KIUC rebate, is about 14 months.
Heat Pump or Solar?
Nothing beats solar. Solar water heating can
cut water heating costs by up to 90 percent. A
heat pump water heater cannot do that, but the
price is much lower than solar water heating,
making it a viable alternative when considering
your budget or when solar is not technically
feasible. The ideal location for a heat pump
water heater is a room 10x10x7, or any open
area, such as a carport or a garage.
If your existing electric water heater is in a small
closet, you may need to add venting to the closet
area so the cool air that is rejected by the heat
pump water heater can dissipate. Your installing
plumber can help with location requirements.
Where to Buy
Energy Star­rated heat pump water heaters are
available on Kaua‘i from local distributers and
retail outlets. Local manufacturers’ reps can install
and service your heat pump water heater for you.
Visit www.kiuc.coop for more information
regarding availability and for a Heat Pump Water
Heater Rebate Application.
KIUC member Earl
Nishiguchi installed his
heat pump a year ago
and has reduced his
electric consumption
by 200 kWh a month.
APRIL 2011 9

KIUC’s NEW Appliance
Replacement
Rebate Program
SEEARP
State Energy-Efficient Appliance Rebate Program Update
10 KIUC CURRENTS
All these appliances,
ALL the time!
Qualified Appliances: Refrigerators, freezers, and clothes
washers
Rebate Amount: $50 per appliance
Program Availability: Ongoing annually
Participating Retailers: Sears, Home Depot and Kapa‘a
Electric & Appliance
KIUC is an equal opportunity provider and employer.
Please contact KIUC Energy Services for
eligibility rules & regulations:
Claurino Bueno—808.246.8280
Paul Daniels—808.246.8275
Steve Rymsha—808.246.8287
Energy Star Refrigerator Rebate
KIUC completed the State Energy­Efficient Appliance Rebate Program Energy Star Refrigerator
Rebate as of March 7, 2011.
KIUC issued 385 rebates at $250 per rebate. The program will result in annual energy savings
of 40,425 kilowatt­hours and life cycle savings of 485,100 kWh in 12 years. With today’s rates at
37 cents a kWh, that amounts to $14,957 annual savings and $179,487 over 12 years.
Kaua‘i’s greenhouse gas emissions will be reduced annually by 72,795 pounds of carbon dioxide,
with a life cycle reduction of 873,543 pounds of CO 2 . Kaua‘i’s oil dependence also will be reduced
by 2,746 barrels of No. 2 diesel per year and 32,958 barrels in 12 years.

Photo by Shelley Paik
KIUC board and staff joined Kealia community
members on February 23 for an informal talk at the
Kealia Landing Lookout in the Kamole cul­de­sac.
Project engineer Caroline Tremblay and board
member Steve Rapozo updated attendees on
the plan to reconfigure the lines in the Kealia
Beach corridor.
The power lines in that area have been
identified as having a high potential to harm
protected and endangered seabirds. In 2007, KIUC
reconfigured the line to address the seabird issue.
To comply with the U.S. Department of Justice
settlement, KIUC must modify and reconfigure
certain areas of the Kealia Beach corridor to
reduce the incidence of seabird takes and to
comply with commitments made in KIUC’s
Short­Term Habitat Conservation Plan.
KIUC is proposing a two­phase project scope:
Phase 1 from Kawaihau Road to Ka‘ao Road, and
Phase 2 from Mailihuna Road to Ka‘ao Road.
By Shelley Paik
Residents joined CEO Bissell and several board members and employees to learn about the new project in KIUC’s first community
outreach of the year.
COOPERATIVE TECHNOLOGY
Community Outreach
Kealia Beach Corridor Reconfiguration Project
In Phase 1, the existing 69­kV line will be
reframed to a bird­friendly configuration and the
existing 12­kV circuit will be reframed to a flat
construction. This will reduce the layers of wires
from nine to five. The poles will be cut about five
to eight feet. Construction is scheduled to begin in
the fourth quarter of 2011.
In Phase 2, distribution and communication
lines will be undergrounded to allow the 69­kV
lines to remain at or below tree­top level to
minimize the potential for bird collisions. The
poles will be about 40 feet compared with the
existing 60­foot poles. There will be three layers of
horizontal wires, instead of the original nine
layers. Construction is scheduled to begin in the
second quarter of 2012.
KIUC is coordinating with Hawaiian Telcom,
Oceanic Time Warner Cable and Sandwich Isles on
underground design of the communications lines.
The co­op is working hard to make sure it keeps
members informed when crews will be working
along Kuhio Highway from the end of Kapa‘a Town
to Kealia Heights.
APRIL 2011 11

12 KIUC CURRENTS
By Steve Rymsha
Bringing PV Online
in Kapa‘a
Trucks and cars followed the muddy, gravelstrewn
unpaved road leading to the site of the
Kapa‘a Solar project below the Olohena Road and
Kaapuni Road intersection in Kapa‘a on February
11 to attend the dedication ceremony for the
1.21­megawatt (MW) photovoltaic project.
Kapa‘a Solar President Kurt Bosshard addresses the crowd
during the February dedication.
Photos by Shelley Paik
Amidst a mid­morning blessing, Kapa‘a Solar
President Kurt Bosshard, project contractor REC
Solar, the construction crew, political dignitaries and
other guests were shuttled across the muddy field to
gather under a white canopy tent for the ceremony.
Kurt Bosshard’s daughter cut the ribbon at the
dedication as everyone involved with the project
stood wilting next to the damp panels.
This large­scale solar project is the largest fully
operational solar electric system in Hawai‘i and
could power up to 300 homes a year. The system
was constructed on five acres of leased land and
includes 5,376 panels.
KIUC believes it can achieve the highest
photovoltaic penetration of anywhere in the
world, which is extremely challenging for an
isolated island power grid. Kaua‘i currently has the
highest penetration of photovoltaics in the state,
ranks nationally in the top five utilities, and on a
sunny day can provide 6 percent of system
demand for energy. With continued rapid
installation of photovoltaic systems, KIUC
anticipates 20 percent of the island’s daytime
demand can be met from photovoltaics on a
sunny day by 2013. Purchased power agreements
KIUC has signed will more the double the island’s
solar capacity.

High penetrations of photovoltaics can have
localized and island­wide impacts on the electric
grid. Localized impacts concern power quality,
caused by the decrease and increase of power
from photovoltaics. On the island, generation
from photovoltaics must be accommodated by
other generators on the system, which react to
maintain frequency. If frequency cannot be
maintained, automatic load shedding will cut off
power to sections of the island.
Current guidelines for distributed generation
recommend no more than 15 percent of
distribution circuit demand be met from
distributed generation. KIUC has some circuits
exceeding 30 percent and wanted to learn how far
it could go before adversely affecting power
quality. Kapa‘a Solar was the co­op’s experiment
to learn the physical limitations. KIUC has proven
100 percent of the power needs can be met by
distributed photovoltaics with a solar farm fairly
close to a substation.
If negotiations are successful, KIUC will install
two 500­kilowatt photovoltaic systems on two
distribution circuits or could dedicate a single
circuit to the system. For this project, the
distributed generation systems will be installed at
the end of the line instead of being close to the
substation. With the generation systems at the
end of the line, their negative impact on the
circuit could be greater.
KIUC is preparing for installation of a battery to
support the island­wide impact of photovoltaics.
Solar energy is an asset for the people of Kaua‘i.
The cooperative must test the limits to facilitate
continued cost­effective integration of these
resources. Photovoltaics are a challenging
resource that produces significantly less electricity
per year than the same sized hydroelectric or
biomass generation facility, highlighting the need
for all types of renewable electricity.
KIUC is in a race against time to get Kaua‘i off
oil. Everyone must be part of the solution. If you
support renewable energy projects, want to
create a strong local economy and build assets
allowing Kaua‘i to be in control of its energy
future, please make your voice heard by attending
neighborhood meetings when they are scheduled.
Together we power Kaua‘i!
Attending the blessing of
Kapa‘a Solar are, from left:
KIUC Board member Jan
TenBruggencate, Kapa‘a
Solar President Kurt
Bosshard, KIUC Senior
Energy Solutions Engineer
Steve Rymsha, KIUC Board
members Steve Rapozo and
Ben Sullivan, Mayor
Bernard Carvahlo, KIUC
Board member Carol Bain,
Director of Planning
Michael Dahilig, Director
of Parks and Recreation
Lenny Rapozo,
Councilwoman Nadine
Nakamura, KIUC Chairman
Teofilo “Phil” Tacbian, KIUC
Board member Stu Burley
and KIUC Board Emeritus
Dennis Esaki.
APRIL 2011 13

14 KIUC CURRENTS
By Steve Rymsha
Renewable Outlook
KIUC’s update on projects in progress and completed
KIUC believes the climate change problem and its feared effects are among the most serious of the environmental issues we
face today. As we transition away from fossil fuels, members also benefit from decoupling electricity generation costs from the
volatility in world oil supplies and price. To that end, the board and management of the co­op have updated KIUC ’s Strategic
Plan to achieve a high standard of sustainability with regard to power supply, and provide fair and competitively valued rates.
What follows is a concise recap of actions taken, and projects in progress and completed. We currently are operating at more
than 13 percent renewable, but in the next few years are taking action to surpass state and federal requirements to reduce
greenhouse gases. Kaua‘i’s seven hydroelectric power plants provide a steady flow of electricity to KIUC.
Hydro
1/12/11 KIUC signed a memorandum of
agreement with Free Flow Power Corp., which will
allow the two firms to jointly explore
development of hydroelectric energy projects on
Kaua‘i. “This is the first step in a lengthy public
process to explore the viability of several
hydroelectric projects. Our members have long
recognized the hydroelectric potential on Kaua‘i,
and we feel now we have the financial resources
and the proven developer to move forward,” said
David Bissell. The use of reservoirs to support
agriculture and to facilitate a larger percentage of
renewables for Kaua‘i is a crucial component in
the development plan to generate greater than 20
percent of Kaua‘i’s electricity needs from new
hydroelectric facilities. If successful, these
generation assets will be owned by KIUC,
providing long­term rate stability under much
more attractive terms than through a power
purchase agreement.
Green Energy Hydro LLC – 130 kW
◼ 170 homes annually
◼ Began operations in Q3 2009
Port Allen Warehouse
◼ Building integrated photovoltaic systems;
completed the first week of February
◼ Replaced roof and installed 68 kW roofintegrated
photovoltaic system—20 homes
annually
Utility Pole­Mount PV
◼ New systems have been installed on poles
near Kaua‘i Humane Society
◼ Forty­eight systems will be installed in 2011 to
further evaluate the cost effectiveness and
resource potential.
Ground­Mount PV
◼ KIUC signed two purchase power agreements
with a total capacity of 4 MW. Once online,
these projects will be the two largest solar
farms in all of Hawai‘i.
◼ 1,100 homes annually
◼ Through these installations, KIUC will
continue as a leader in the integration of
photovoltaic systems. Additionally, these
projects will help utilities around the world
better understand the physical limitations of
photovoltaics on distribution circuits.
◼ KIUC signed a contract with Xtreme Power to
provide a Battery Energy Storage System that
will be located at the substation being
supplied by the 3­MW farm. This storage
system not only will facilitate installation of
this large farm, but will provide support for
island wide photovoltaic systems.
KIUC is interested in signing additional
photovoltaic purchase power agreements in 2011.
KIUC is currently in discussions with numerous
landowners.
Biomass
◼ KIUC signed a power purchase agreement
(PPA) with Green Energy Team LLC for a
biomass­to­energy project to be located near
Koloa. This project will reduce Kaua‘i’s
dependence on fossil fuels by 3.7 million
gallons per year, and provide biomass­fired
generation to serve the energy needs of more
than 8,500 Kaua‘i households.
◼ KIUC continues to work toward the
development of a second biomass­to­energy
facility.
In March, KIUC issued an invitation to propose a
20­MW biomass­to­energy facility for parties who
have been trying to bring biomass facilities online
by the end of 2013. This process will incorporate
independent engineering analysis and, if
successful, KIUC will submit a PPA to the Hawai‘i
Public Utilities Commission by the end of May.

Photos by Shelley Paik
Top: GT­2 before the restoration/overhaul.
Middle: Outside of GT­2 after the restoration/overhaul.
Bottom: Brian Santiago, Power Plant Instrument Technician
inside of GT­2 after the restoration/overhaul.
By Shelley Paik
Maximizing Efficiency
Extending the life of GT­2
with an overhaul and restoration
To maximize the efficiency and useful life of its
generation equipment, KIUC stays on top of
maintenance. It is cheaper to keep equipment the
co­op already owns in peak condition, rather than
have to purchase a new unit.
KIUC began restoration and overhaul of the
John Brown Gas Turbine (GT­2) in August 2010.
The 34­year­old turbine/generator had been
overhauled previously, but due to age, elements
and normal wear and tear, the exterior and some
parts had to be completely replaced and the body
rebuilt. The restoration and overhaul took 32
weeks.
A normal overhaul takes a couple of months,
but this was a combination restoration and
overhaul. A few years ago, the Hitachi Gas Turbine
(GT­1), a 19­megawatt unit, took 26 weeks to be
restored and overhauled.
“The overhaul will extend the life of the unit by
approximately 15 more years,” KIUC Maintenance
Coordinator Shawn deMille said. “Routine normal
preventative maintenance over the next 15 years
will keep GT­2 functioning. “
Like a tune up for your car improves gas
mileage, the restoration and overhaul also will
make the unit run more efficiently, deMille added.
Since the restoration, GT­2 is getting back to its
original heat rate.
GT­2 is KIUC’s second­largest unit, with an
output of 23 MW. The largest unit is the Kapaia
Power Station at 27 MW.
The Production Department predicts how many
hours each unit will run during the year. That
determines when overhauls are scheduled.
APRIL 2011 15

16 KIUC CURRENTS
By Anne Barnes and Shelley Paik
KIUC’s Grid: A ‘Smart’ Move
Picture many systems talking to one another, back and forth, each component
helping to move electricity to transmission lines, distribution lines and your
home as efficiently as possible.
As an electric cooperative member, you have a
stake in the future of electricity availability,
reliability and efficiency—all the things the new
smart grid technologies are intended to manage.
These technologies can even give you the tools to
control and monitor your energy use. And today,
the Federal Energy Regulatory Commission says,
electric co­ops are leading the way in the
deployment of smart meter infrastructure
penetration.
Currently, KIUC has a supervisory control and
data acquisition with automatic generation
controls (SCADA/AGC) system. That real­time
operating system automatically controls our
generation to run at its most economic set point
based on current load. It also communicates with
our substations to collect real­time data and
remotely control devices on KIUC’s transmission
and distribution system, such as breakers,
switches and digital relays.
In the event of an outage, SCADA provides the coop
with the status of affected areas and provides
power plant operators with the information they
need to assess the situation and remedy the
problem. With the advent of advance metering
infrastructure (AMI), communications will
continue from KIUC substations to individual
home meters.
In November 2009, KIUC and 26 other electric
cooperatives from 10 states were awarded a $33.9
million matching grant from the U.S. Department
of Energy (DOE) under the American Reinvestment
and Recovery Act (ARRA) for Smart Grid
Demonstration Projects. DOE awarded the National
Rural Electric Cooperative Association’s (NRECA)
Cooperative Research Network (CRN) half of the
project’s total cost of $67 million to test and
develop technologies that operate together to
make the grid more efficient and reliable.
The cost of KIUC’s project is $11 million, of which
$5.5 million is being provided by ARRA.
The project involves replacing about 33,000
meters with smart meters, along with
communications infrastructure that will allow
two­way communication between the meter
and KIUC. AMI will enable KIUC not only to do
meter readings remotely, but to demonstrate
the effectiveness of load control and demand
response options within households, manage
and detect outages to the household level,
and evaluate different rate designs depending
on usage.

The demonstration project—which includes
replacing existing meters with new smart meters
at members’ homes and installing
communications infrastructure—will assess smart
grid effectiveness. It is estimated to last five years:
two years for installation beginning in 2011, and
three years for data gathering and analysis.
In the final stages of vendor selection, KIUC is
looking forward to meeting the challenge of
clearly articulating the benefits of smart meters
moving forward.
A lack of information can breed uncertainty.
Some of you may have seen news reports from
California, Maine and other areas on the mainland
regarding electro­sensitivity to smart meter
infrastructure. Like any new technology, smart grid
technology is triggering concerns among a small
segment of consumers. KIUC is vigorously
committed to the safety of its members, and will
make it a priority to address any concerns in the
months to come. If you have questions or
concerns, please contact Anne Barnes at the coop,
246.4300. Upcoming issues of KIUC Currents
will address this topic.
Communications
Advanced Metering Infrastructure (AMI) ­
“Smart Metering”
The communications hardware, software, associated system and
data management software that creates a two­way network between
advanced meters, meter modules and utility business systems.
AMI Functionality
◼ Two­way communications
◼ Meter reads
◼ Connect/disconnects
◼ Capacitor switching
◼ Load management
◼ Critical peak pricing
◼ Demand response
◼ Outage detection
◼ Real­time voltage readings
◼ Distribution automation
◼ Tamper/theft detection
◼ Rate and service
◼ Pre­pay
◼ On­demand reads
◼ Phase change tracking
Customer Benefits
◼ Accuracy—fewer read errors
◼ Fewer estimated bills
◼ No meter readers on property
◼ Billing date flexibility
◼ Monitor energy consumption
◼ Improved power quality
◼ Faster outage restoration
◼ Potential energy­efficiency savings
for the customer
)
APRIL 2011 17

Fuel Prices and What You Are
Paying for Electricity
18 KIUC CURRENTS
By Anne Barnes
KIUC is working hard to implement increased energy solutions,
including diversification of power supply and reduced dependency on diesel.
But in light of the recent nearly 25 percent increase in the price of fuel,
we are reprinting the following article to help members understand the
connection between current fuel prices and what you pay for your electricity
on Kaua‘i. The continued surge in oil prices is forcing sharp increases for
everything from gas at the pump, to food on the grocery shelves
—and your electric bill is no exception.
Photos by Shelley Paik
Most of the electricity we use on Kaua‘i is
generated by engines and turbines that burn fuel.
Buying that fuel is KIUC’s single­largest expense.
Just like the fuel you buy for your car, the price of
fuel we buy changes every time we buy it. In fact,
it changes so much more often than any of our
other expenses that when the Hawai‘i Public
Utilities Commission (PUC) set the rates KIUC
charges for electricity, it built in a monthly
adjustment that goes up and down with the price
we pay for fuel, for a given efficiency target. This
target has been set to reflect our average system
efficiency, so if we do better than average, the
rate you pay remains based on the average and
KIUC makes more earnings, which are used to
build equity or are returned via patronage capital.
Conversely, if we do worse than average, your rate
remains based on the average and KIUC makes
less earnings or loses money.

How Much Fuel Does it
Take to Make Electricity—
Efficiency Matters
The adjustment for the changing price for fuel
assumes KIUC generates 13 kilowatt­hours (kWh)
of electricity from each gallon of diesel fuel. Most
people are used to predictions manufacturers
make about the gas mileage they can expect to
get driving their car. Depending on how you drive
your car, you may get slightly better miles per
gallon (MPG) or slightly poorer MPG.
The engines we use that burn fuel to make
electricity work pretty much the same way.
Depending on how we use them, they may
generate a little more or a little less electricity
from each gallon of fuel. For our engines, that
number is called heat rate, not MPG. Unlike MPG,
a smaller heat rate indicates better efficiency,
since the unit of measure is fuel used per kilowatthour
generated.
At KIUC, we use several generators to make the
electricity you need. Some are slightly more
efficient than others, so how much fuel we have to
burn is determined by how many of the less
efficient generators we have to turn on. At night,
when demand for electricity is low, we can get by
running just the most efficient generators. We run
these most efficient generators during the day,
too, but to meet additional demand, we also run
some less efficient generators we can start up
quickly and run as needed.
You might wonder why KIUC keeps these less
efficient generators. The answer is pretty basic:
one, the units are paid for and the cost of
replacement is very high, and two, they are faststarting,
reliable back­up units, which we will
always need as an islanded system. It is KIUC’s
current plan to keep them, but run them less as
we bring on more renewables.
Every engine can generate more or less
electricity, depending on how hard we push it.
If we turn it on, but don’t generate much
electricity, it will operate less efficiently. If we push
it too hard, it also will generate electricity less
efficiently. We try to operate each generator in its
“sweet spot,” where it makes the most electricity
with the least amount of fuel.
If We Do Well It Saves You Money
Throughout each day, the staff managing KIUC’s
generators evaluates how much electricity our
members are using and how much each individual
generator is delivering. They consider what is
likely to be happening to electrical demand at a
particular time of day and where each generator is
most efficient. Then the staff decides if they need
to turn on an additional generator or turn one off.
Our staff tries for the maximum efficiency
possible. More often than not, they generate
electricity more efficiently than the factor set by
the PUC in our rates. When that happens, we save
money—and the more money we save, the larger
your patronage capital credit and patronage
capital refund are at the end of the year.
As members, there is something you can do to
help lower everyone’s bills. When members
conserve and use less electricity, we don’t have to
run less efficient, peaking generators. That
improves our efficiency average and, overall, KIUC
uses less fuel to make each kWh of electricity.
It is just like having a car that gets better MPG—
but in this case, all of Kaua‘i benefits.
A measure of the thermal
efficiency of a generator is
computed by dividing the total
Btu content of fuel burned for
electricity generation by the
resulting net kilowatt­hour
generation. The lower the heat
rate, the greater the efficiency.
APRIL 2011 19

20 KIUC CURRENTS
By Anne Barnes
THE BOARD OF DIRECTORS
We’re In This Together
David Bissell, KIUC’s new president and CEO,
is up to the challenge and knows
Kaua‘i’s energy future depends on
all of us participating in the process.
David Bissell at last fall’s KEDB Kaua‘i Renewable Energy Conference.
David Bissell joined Kaua‘i Island Utility
Cooperative as chief financial officer in August
2006, and became acting president and CEO in
June 2010. In March, the board of directors made
that appointment permanent.
“David stepped up to the plate during the
interim period,” said Teofilo “Phil” Tacbian,
chairman of the board of directors. “He accepted
the responsibility for managing the day­to­day
operations at KIUC and executed the cooperative’s
strategic plan. He was the right choice. Selecting a
CEO is always a difficult task, but it all comes
down to someone we have confidence in, who
can offer stability to our co­op; someone our
employees know, and someone who will hit the
ground running.”
Bissell said he welcomes the challenge of
working with Kaua‘i’s member­owned
cooperative.
Photo by Shelley Paik
“We are in the process of transforming KIUC
into a renewable­based utility,” Bissell said. “I am
excited about the opportunity to help make that
happen. I look forward to working the plan and
moving forward toward a future less dependent
on fossil fuel, balanced with an understanding of
our financial responsibility to our membership.”
Bissell brings nearly 25 years of financial and
electric utility management experience to KIUC.
Prior to joining the cooperative, Bissell served as
manager of financial forecast and reporting for
Cinergy Corp., now part of Duke Energy. His duties
there included preparation and analysis of
financial statements, portfolio optimization,
power outsourcing operations and international
operations. Bissell began his career in the utility
industry at Hoosier Energy Rural Electric
Cooperative in Bloomington, Indiana, where he
spent six years as a tax and audit manager.

Photo by Katie Beer
Bissell enjoys walking with KIUC employees in the Lights on
Rice Parade in December.
Randall J. Hee, president and CEO of KIUC,
submitted his resignation to the board of directors
at KIUC on February 23. The board accepted Hee’s
resignation and thanked him for his strong
leadership and many years of service to KIUC and
its predecessor, Kaua‘i Electric.
Since July of 2010, Randy had been recovering
from knee replacement surgery and was unable to
work. He advised the board he believed
rehabilitation of the knee needed to be his first
priority and noted that the leadership team at
KIUC had performed admirably in his absence.
The former McBryde Sugar mechanical
engineer got his start working with the
plantation’s Wainiha hydroelectric plant and the
sugar mill’s biomass generators. He worked with
KIUC predecessors Kaua‘i Electric and Kaua‘i
Power Partners (KPP) as operations
superintendent at the Port Allen generation
facility and helped establish the KPP facility.
Hee was elected to the KIUC board in 2003.
When the board finalized the purchase of KPP—
now Kapaia Power Station (KPS)—he stepped
down and completed his master’s of business
administration at the University of Hawai‘i.
In February of 2007, Hee became president and
CEO of KIUC after tenures as manager of safety
and chief of operations.
Bissell earned his bachelor’s degree in
accounting and finance from the State University
of New York at Brockport and his master’s of
business administration from the Kelley School of
Business at Indiana University.
He lives on the North Shore with his wife, Carla,
and their daughter, Kathleen.
On the weekends you may find Bissell stand
up paddling in Hanalei Bay with Carla and their
two dogs, Violet and Boo, or using his Co­op
Connections Card at the North Shore General
Store.
He says he used to be a runner when he first
arrived on Kaua‘i, but now his days are busier so
he tries to spend his off­time with family hiking to
Anini or taking care of the home front.
“I love Kaua‘i and am honored to be a part of
this community,” Bissell concluded.
Aloha, Randy
“Randy Hee was a dedicated leader in the
process of building the cooperative, and has
demonstrated dedication to the people of Kaua‘i
and leadership throughout his career,” said KIUC
Board Chairman Teofilo “Phil” Tacbian.
Photo by Shelley Paik
APRIL 2011 21

Incumbents Re-elected
Iha, Tacbian and Yukimura are winners in the 2011 board elections.
22 KIUC CURRENTS
Congratulations to directors David Iha, Teofilo
“Phil” Tacbian and Peter Yukimura, who were
re­elected to KIUC’s Board of Directors for new
three­year terms ending March 2014.
Election packets were mailed to 24,727 active
KIUC members on February 25. They had until
noon March 19 to cast their votes, either by mail,
phone or Internet.
At the close of the polls, 6,193 ballots were
cast—549 by Internet and 102 by phone. KIUC’s
election staff and volunteer mail ballot team
worked efficiently to separate the outer envelopes
from the secret ballot envelopes. The outer
envelopes were collated and packed in a container
to be shredded, then the remaining secret
envelopes were opened and the ballots extracted
and separated from the secret ballot envelopes.
The ballots then were prepared for scanning and
processing, which took a couple of hours.
When the counting was completed, the final
results were verified by Merriman River Group,
and the official observer and the candidates were
notified of the election results. The report was
posted shortly thereafter.
The incumbents took the top three spots in the
March 19 election and were inaugurated on
March 29 at the Annual Meeting of the Board
of Directors.
Official Results
Peter Yukimura . . . . . . . . . . . . . . . 3,132
David Iha . . . . . . . . . . . . . . . . . . . . 3,044
Teofilo “Phil” Tacbian . . . . . . . . . 2,908
Ken Stokes . . . . . . . . . . . . . . . . . . . 2,098
Pat Gegen . . . . . . . . . . . . . . . . . . . . 2,074
Kuuleialoha Santos. . . . . . . . . . . . . 1,854
JoAnne Georgi . . . . . . . . . . . . . . . . 1,582
David Iha
When David Iha joined the KIUC board in 2007, he said he believed the
board had a responsibility to set policy and strategic direction. For four years,
Iha says he has been able to look at policies and grapple with issues from a
macro level instead of spending time micromanaging the cooperative. He
believes the updated strategic plan provides a vision for the co­op.
Iha is active in Lihu`e Christian Church. He and his wife also enjoy singing
with the Kaua‘i Chorale.
Teofilo “Phil” Tacbian
With his 40 years of experience in government, on boards and commissions,
Teofilo “Phil” Tacbian says he believes with the current makeup of the KIUC
board it will be possible to make a real difference in Kaua‘i’s energy future. He
has been a member of the board since 2005, but is particularly excited about
the renewable energy projects now in the works.
Tacbian’s favorite pastime is spending time with his great­grandchildren and
boating on the Wailua River.
Peter Yukimura
Peter Yukimura says in the past few years he believes KIUC has evolved into a
better run company, with greater electric system reliability and employees he
admires. He says he sees a positive future for the co­op and has high hopes for
the board of directors this year.
Yukimura continues to run his family­owned business. With what leisure time
he has, he plays some golf—although not well, he insists—and spends time
with his family.

1/25
2/22
2/24
Special
3/17
Special
Meeting Date Item Description Board Action
Unfinished Business
New Business
New Business
Executive
Session
Board laptop upgrades - the F&A committee recommended the
purchase of new laptops for any director who expressed a desire for
one to be retuned at the end of the director’s term.
Opower program - Authorize staff to proceed with a PUC application for
a three-year customer engagement platform, with cost recovery coming
from the residential DSM surcharge mechanism.
2011 board election vendor selection of Merriman River Group
for a 3-year service contract.
Board Actions
for January­March 2011
Approved
Approved
Passed
Policy Board Policy No. 6, Employment of Related Persons; revised Approved
Policy Board Policy No. 22, Information Flow to Directors; revised Approved
F&A
Policy
2011 capital budget increase of $285k to perform Hanapepe Bridge
12-kV circuit attachment to comply with U.S. DOJ settlement
requirement; T&D, HCP Segment H7 (BAR)
Board Policy No. 7, Interrelationship between
the Board of Directors and the CEO (revised)
Approved
Approved
Policy Board Policy No. 9, Investment of General Funds (revised) Approved
Policy
Board Policy No. 5, Conflicts of Interest and Conduct
of Interested Persons (revised)
F&A Approval of 2010 performance targets results
Board Resolution 01-11, naming David J. Bissell as official
certifier for KIUC (RUS requirement)
NRECA Resolutions - Motion: "KIUC accepts climate change is
substantially contributed to by manmade actifvities and supports
NRECA's effors to mitigate the human affect as much as possible."
Authorize David J. Bissell (interim President and CEO) and Karissa
Jonas (Controller) as signators for KIUC bank accounts
Approved
Approved
Approved
Approved
David Bissell offered the President and CEO position Approved
APRIL 2011 23

Division of Authority; A Director’s Job
This division of authority is central to defining a Directors’ job.
24 KIUC CURRENTS
By Anne Barnes
Directors direct the cooperative.
CEO’s make executive decisions.
Managers manage the staff and projects.
Staff climbs the poles, answers the phones, pays the bills,
runs the programs, fixes the wires, runs the generators
and publishes this magazine.
Each year three director positions are up for
election. These directors are the connection
between you, the member/owners of KIUC, and
the management and staff who operate KIUC.
Elected directors accept the legal obligation to
“prudently represent the interests of the
cooperative and the interests of the members as a
group, as the owners of the enterprise in directing
the business and affairs of the cooperative within
the law“—what is legally known as doing their
fiduciary duty.
Photo by Shelley Paik
David Iha, Peter Yukimura and Teofilo “Phil” Tacbian are sworn in for three­year term with the KIUC Board of Directors
on March 29, 2011
Directors have to spend time studying
complicated financial and strategic issues. They
have to act in the best interests of all co­op
members and not any private interest. They have
to direct management, do financial and strategic
planning, review the performance of the co­op,
and they have to do all of this without doing
management’s job, which is to operate the
cooperative. This division of authority is:

2011 KIUC Board of Directors
Committees
Chairman: Teofilo “Phil” Tacbian
Vice Chairman: Steve M. Rapozo
Treasurer: David Iha
Secretary: Allan Smith
Finance & Audit
Chairman: Allan Smith
Members: Stu Burley, Jan TenBruggencate,
Peter Yukimura
Government Relations/
Legislative Affairs
Chairman: David Iha
Members: Stu Burley, Steve Rapozo,
Allan Smith
Strategic Planning
Setting the strategic direction for the co­op is
one of the most important jobs of a director. The
decisions made today will affect how the utility
operates for decades to come.
The current strategic plan is available on line at
www.kiuc.coop.
Financial Planning & Audit
Directors are responsible for reviewing and
approving the annual budget that ensures the
rates you pay to KIUC are spent wisely.
To meet their legal and moral responsibilities,
they hire a public accounting firm to audit the
books every year.
Hire and Review the CEO
KIUC’s CEO is hired by the Board of Directors.
As the chief executive and most senior manager
at the co­op, the CEO oversees the mid­level
managers who run every KIUC department.
The Board of Directors sets specific, measurable
goals for the CEO each year and provides feedback
during the year.
Member Relations
Chairman: Steve Rapozo
Members: Carol Bain, Ben Sullivan,
Jan TenBruggencate
Nominating Committee
Chairman: Peter Yukimura
Policy
Chairman: Peter Yukimura
Members: Carol Bain, Stu Burley,
Ben Sullivan
Strategic Planning
Chairman: Ben Sullivan
Members: Carol Bain, David Iha,
Jan TenBruggencate, Peter Yukimura
Review KIUC’s Performance
To ensure KIUC is achieving its goals, the
Board of Directors continuously monitors the
results of KIUC operations. Each month, directors
review the financial performance of the co­op,
worker safety, reliability, training and progress
toward strategic initiatives.
Education
KIUC requires every director to attend classes
and pass five courses taught by the National
Rural Electric Cooperative Association leading
to certification as a Credentialed Cooperative
Director.
Most KIUC directors continue their education
through NRECA by taking additional courses
and working toward their Board Leadership
Certificate.
Advocate for the Members
Overarching all of these tasks, directors are
advocates for KIUC members. Their decisions must
reflect the interests, needs and concerns of the
membership as a whole. To that end, directors are
active in the community.
You trust your co­op directors with a big job.
It is a lot of work, with many different tasks.
At the heart of it, it is all about doing the right
thing for you.
APRIL 2011 25

Easter
Dinner
26 KIUC CURRENTS
Photos By Shelley Paik & Maile Moriguchi
1. Rack of Lamb
Mixture:
¼ cup bread crumbs
2 tablespoons minced garlic
2 tablespoons fresh rosemary, chopped
Salt and pepper to taste
Olive oil
Lamb:
1 rack of lamb
Dijon mustard
Olive oil
Salt and pepper to taste
Preheat oven to 450 degrees. In a large bowl,
combine bread crumbs, olive oil, garlic, rosemary,
salt and pepper. Set aside.
Heat the oil and garlic in a Dutch oven. Sear lamb on
both sides for 2 minutes; remove from heat. Coat the
entire rack with mustard; roll in bread crumb mixture
until evenly coated. Place meat back in the Dutch
oven and place in the middle of the oven for 15 to 20
minutes. Use a meat thermometer to cook to desired
temperature: rare, 115 to 125 degrees; medium rare,
130 to 140 degrees; medium 140 to 150 degrees.
2. Zucchini and Yellow Squash
Ribbons with Daikon
1
1 pound each zucchini and yellow squash
(about 3 each)
½ pound daikon
2 teaspoons oregano
20 medium basil leaves, thinly sliced
3 tablespoons extra­virgin olive oil
2 tablespoons fresh lemon juice
1 teaspoon lemon zest
Salt and pepper to taste
1 bunch basil
1 small tomato
Shaved Parmesan
Peel and shave zucchini, squash and daikon into long
wide strips using a vegetable peeler. Discard center.
Put all ingredients into a bowl with thin strips of basil
and oregano. Whisk olive oil, lemon juice, lemon
zest, salt and pepper. Toss with vegetables and
garnish with tomato, small basil leaves and
Parmesan strips.
2

3. Nutty Herbed Quinoa
2¾ cups chicken broth
¼ cup fresh lemon juice
1½ cups quinoa
½ teaspoon salt
¼ cup sliced almonds, toasted
⅓ cup crumbled feta cheese
Dressing:
¼ cup extra­virgin olive oil
¼ cup fresh lemon juice
¾ cup fresh basil, chopped
¼ cup fresh parsley, chopped
1 tablespoon fresh thyme leaves, chopped
2 teaspoons lemon zest
Salt and pepper to taste
In a medium saucepan, add chicken broth, lemon
juice, quinoa and salt. Bring to a boil over medium
high heat. Reduce and simmer; cover the pan and
cook until all of the liquid is absorbed, about 12 to
15 minutes. In a bowl, mix olive oil, lemon juice,
basil, parsley, thyme, lemon zest, and salt and
pepper to taste.
Pour dressing over the quinoa and toss until all
ingredients are coated. Add feta cheese and
almonds, toss, then transfer into a bowl to serve.
4
4. Stuffed Potatoes
4 large russet potatoes, cleaned well
3 shallots, finely chopped
¼ cup fresh parsley leaves, finely chopped
¼ cup fresh basil leaves, finely chopped
¼ cup fresh chives, finely chopped
¼ teaspoon dried marjoram
Salt and Black Pepper to taste
¼ cup sour cream
½ cup milk
2 tablespoons margarine
2 tablespoons olive oil
Grated Parmesan cheese
Preheat oven to 450 degrees. Microwave or boil
potatoes until cooked; set aside. Heat olive oil and
melt margarine in a medium­size pan. Add shallots,
marjoram, salt and black pepper. Cook for 6 to 8
minutes, stirring repeatedly, until shallots are tender.
Remove from heat and mix in chives, parsley and
basil. Cut potatoes in half lengthwise and scoop the
flesh into a large bowl, leaving about a ¼­inch shell
around the potato. Add the shallot, chive, parsley
and basil mixture, along with sour cream, milk, and
salt and pepper to the bowl with the potato flesh;
mash well. Spoon the mixture into the potato shells.
Place potatoes on a greased baking sheet and top
with Parmesan cheese. Bake for 10 minutes, or until
golden brown.
3
APRIL 2011 27

28 KIUC CURRENTS
5. Creamed Spinach
and Bacon
½ pound fresh spinach (1 large bunch)
4 strips bacon, chopped
1 clove garlic, minced
1 medium onion, chopped
Salt and pepper to taste
2 tablespoons butter
2 tablespoons flour
1 cup milk
Clean spinach leaves well. Blanch spinach in a pot of
boiling water for a minute. Drain and rinse with cold
water. Squeeze excess water and chop. Set aside.
In a large pan, fry bacon; add onion and garlic. Sauté
until onions are clear. In a small saucepan, melt
butter. Add flour and stir until smooth. Slowly add in
milk, whisking continuously until thick. Mix spinach,
bacon mixture and sauce in one pan. Bring to a
simmer and remove from heat. Add salt and pepper
to taste.
5
6. Cinnamon Apple Pie
6
1 cup cinnamon graham cracker crumbs
3 tablespoons butter, melted
4 Granny Smith apples
1¼ cups water
¼ cup sugar
½ cup sugar
1 tablespoon cinnamon
2 tablespoons cornstarch
3 tablespoons cold water
1 block butter, softened at room temperature
1 cup flour
Crust:
Mix graham cracker crumbs and butter. Press into
an 8x8­inch pan.
Filling:
Peel, core and cut apples into pieces. Simmer in
water, ¼ cup sugar and cinnamon until apples are
tender, 1 to 2 minutes. Dissolve cornstarch in 3
tablespoons cold water, then add to pot. Simmer
for 5 minutes; cool.
Topping:
Cream butter and ½ cup sugar. Add flour until
mixture is crumbly.
Pour cooled apple filling onto graham cracker crust.
Sprinkle topping evenly over apples. Bake at 350
degrees for 40 to 45 minutes, or until topping is
golden brown.

KIUC presented Kaua‘i United Way (KUW) with a
check for $22,362.08 on March 15. This check
represented the match of KIUC employee and
board of directors’ contributions.
KIUC Board Chairman Teofilo “Phil” Tacbian, KIUC
President and CEO David Bissell and KIUC Member
Services Manager and Kaua‘i United Way Board
Member Barbara Nagamine made the presentation
to Kaua‘i United Way Executive Director Scott
Giarman, KUW 2010 Campaign Co­Chairman Doug
Sears, KUW Campaign Manager and Community
Services Coordinator Lynette Medrano­Stine and
KUW Board President Gerald Ako.
Kaua‘i United Way is Kaua‘i’s charitable
organization. One contribution helps the entire
island, with all funds raised on Kaua‘i staying on
Kaua‘i. Participating KUW agencies offer an array
of programs that help thousands of Kaua‘i
residents each year.
By Shelley Paik
KIUC IN THE COMMUNITY
KIUC Matches Employee/Board
Donations
KIUC matched the donations from employees and members of the board
with a $22,000­plus donation to Kaua‘i’s own United Way.
Photo by Shelley Paik
From left: Barbara Nagamine, Teofilo “Phil” Tacbian, David Bissell, Scott Giarman, Doug Sears, Lynette Medrano­Stine and Gerald Ako.
Since the 2008 campaign, KIUC has been the
leader in contributions, and has consistently been
one of the top five corporate gift­givers to Kaua‘i
United Way’s campaign. KIUC’s campaign
coordinators Dawn Cummings, Kymi Sakai and
Kathy Williams visited the co­op’s different work
sites to ask employees to donate to the campaign,
with 119 employees participating.
“Our employees and board members are so
generous and have always come through for Kaua‘i
United Way,” says Nagamine, who has served on
the Kaua‘i United Way board since 1998. “It is their
generosity that continues to make us shine. Their
contributions come from the heart because they
know how many people KUW helps.”
For more information about how you can help
Kaua‘i United Way, visit www.kauaiunitedway.org
or call 245.2043.
APRIL 2011 29

It’s here! Kaua‘i County is now providing a way to recycle old lithium, NiCad and dry cell batteries.
Many batteries contain hazardous materials that are harmful to us and the environment. They should not be thrown into the
trash, which ends up in our landfills. If not properly handled, batteries can cause groundwater contamination, landfill fires, etc.
Although toxic batteries will be around until there is a practical alternative, being proactive in their recycling helps protect each
of us and the beautiful island of Kaua`i. In the case of rechargeable batteries, recycling not only keeps us safe, the battery
materials can be extracted and reused.
30 KIUC CURRENTS
By Kathy Williams
County of Kaua‘i’s New
Household Battery Recycling Program
The Kaua`i Resource Center (KRC) is located at 3460 Ahukini Road near the airport in Lihu`e.
Battery Collection Days: Monday through Friday; 7:45 a.m. to 4:30 p.m.
(Car batteries and UPS batteries are not accepted.)
Lithium, NiCad and dry cell batteries will be accepted from residents only.
Don’t forget the county’s motor oil recycling program. This is a free program for residents of Kaua`i. Used motor oil can be
recycled at the following locations:
Location Phone Hours
Hanalei Transfer Station 826­7070 7:15 a.m. to 5:15 p.m.
Kapa`a Transfer Station 822­7334 7:15 a.m. to 5:15 p.m.
Lihu`e Transfer Station 241­6854 7:15 a.m. to 5:15 p.m.
Hanapepe Transfer Station 335­0624 7:15 a.m. to 5:15 p.m.
Kekaha Landfill 337­9213 7:00 a.m. to 5:00 p.m.
Locations are open every day, excluding holidays.
Lithium
Used oil filters are now accepted at all transfer stations!
RECYCLE YOUR USED MOTOR OIL AND MOTOR OIL FILTER
After draining the oil from your vehicle’s crankcase, pour the motor oil into a clean container. Many household containers
are suitable, including original motor oil containers. NEVER USE CONTAINERS THAT HELD HOUSEHOLD CHEMICALS SUCH
AS BLEACH. Make sure the container has a secure lid so it cannot spill.
The county distributes FREE specialized containers for recycling used motor oil and motor oil filters. Please call 241­4841 or
241­4894 for more information. IMPORTANT!!!!!
• Never temporarily store oil in any container that once held food or beverages.
(Regardless of the type of container used for carrying or storing used motor oil, make sure it is clearly labeled “used oil,” and
keep it out of the reach of children and pets.)
• Never mix used oil with gasoline or solvents.
• Never put used oil in containers that previously contained bleach or other chemicals.
(Used oil mixed with bleach, gasoline or solvents can become hazardous waste.)
Acceptable Products: Unacceptable Products:
Crankcase oil, gear oil, transmission fluid, Thinner, gasoline, carburetor
power steering oil, diesel fuel, lubricating oil cleaners, break cleaners and
fluids, solvents, antifreeze,
bleach, PCB oil
NiCad
Dry Cell

“It’s a tale as old as time,” but it will be heard
for the first time in Kalaheo when Kalaheo
Elementary School’s Drama Club presents Disney’s
“Beauty and the Beast Jr.” April 29 and 30 and
May 6 and 7.
“Beauty and the Beast Jr.” is presented through
special arrangement with Music Theatre
International. It tells the tale of how the brainy
and beautiful Belle yearns to escape her provincial
life, and her brute of a suitor, Gaston. However,
Belle gets more adventurous than she wanted
when she becomes a captive in the Beast’s
enchanted castle!
Dancing flatware, menacing wolves and singing
furniture fill the stage with thrills in this beloved
fairy tale about very different people finding
strength in one another and learning how to love.
Among other songs, the show features the
iconic “Beauty and the Beast,” with music by Alan
Menken and lyrics by Howard Ashman and Tim
Rice.
The production is based on the book by Linda
Woolverton.
The Beast is played by Jackson Peterson, with
Helena Huffman as Belle and Ben Murray as her
father, Maurice. The notorious Gaston and Lefou
are played by Ryan Elwin and Brian Fleener. The
enchanted servants are played by Haven Ventura
as Mrs. Potts, Natalie Claytor as Chip, Jacob Herr
as Lumiere, Helena Medeiros as Cogsworth,
Kamryn Matsumoto as Madame De La Grande
Bouche and Marlena Lang as Babette. Thirty plus
students are cast in other roles and ensembles.
This is Kalaheo Elementary School’s eighth
season of musical theater, with the renowned
Marly Madayag as director.
‘Beauty and the Beast Jr.’
Comes to Kalaheo
“Beauty and the Beast Jr.” begins at 7 p.m. in the
school’s cafeteria turned theater. Tickets are
available at the school, Kalaheo Chiropractic &
Massage (Rainbow Plaza Suite 211, 332.5580) in
Keala (652.5908) or at the door prior to the show.
The cost is $5 for general admission and $1 for
children under 12.
Come early and enjoy the food booth, where
you can enter a drawing to win themed gift
baskets.
It will be a great family evening of
entertainment. Filled with enchantment and
adventure, “Beauty and the Beast Jr.” will please
children and adults alike with its magic,
charismatic music and amusing dialogue.
APRIL 2011 31

KIUC’S VALUE ADDED SERVICES
Cash In On Savings With Your
Co-op Connections Card
32 KIUC CURRENTS
By Maile Moriguchi
As a card­carrying member, you can use your Co­op Connections Card or key fob at any participating
business and receive discounts at restaurants and retail shops, services, hotels and much more. Spotting
a participating business is easy. Look for the Co­op Connections Card sticker on the door or cash register
at the business. KIUC publishes an updated list of participating businesses in each issue of KIUC Currents
magazine, but deals are added all the time. The best spot to find the latest deals is online at
www.kiuc.coop. Simply click the “Co­op Connections” link. If you have a business and would like to
participate in the program, please call 246.4348 for more information.
Aloha Services, Kapa‘a
10% discount on all shipping, storage, copies and post
office box rentals.
Backdoor Hanalei, Hanalei
10% off all original­priced goods, except surfboards
and paddleboards.
Beachrail, Līhu’e & Hanamā’ulu
5% off products, except Lionel trains and collectable
items.
Buddha Boutique, Līhu’e
10% off (discount cannot be combined with other
discounts or in­store specials).
Edward Jones, Kalāheo
Free portfolio review.
ElectraTech Solar
$500 off any photovoltaic power system.
Hanalei Paddler, Hanalei
10% off all original­priced goods, except surfboards
and paddleboards.
Hanalei Surf Company, Hanalei
10% off all original­priced goods, except surfboards
and paddleboards.
JJ’s Broiler, Līhu’e
“Early Bird Special” – Customer must be seated
between 5 p.m. and 6 p.m. to receive a 10% discount
on food items. Liquor is excluded. Tax and gratuity
not included.
Jim Saylor Jewelers, Kapa‘a
10% discount.
Kalapaki Bay Memorial Park, Līhu’e
$150 discount on cemetary plots.
Kaua‘i Floors, Inc., Līhu’e
10% off all area rugs in stock, not already reduced.
Kaua‘i Inn, Līhu’e
20% off rack rate.
Kaua‘i Self­Storage, Līhu’e
10% off regular rental rate plus one free lock with
rental of any size unit.
Kaua‘i Memorial Gardens, Līhu’e
5% discount on cemetery property and funeral plans
(pre­need). Not good toward at­need services and
merchandise.
Kayak Kaua‘i, Kapa‘a
10% discount on tours and rentals.
Kujo’s Mini Mart, Kalāheo
10% off everything, except alcohol, cigarettes and
gift items.
Lawai Cannery Self Storage & Warehouses, Kalāheo
10% off of any self­storage unit. Offer not valid with
any other specials.
New Leaf Skin Care, Līhu’e
15% off all skin care services.
North Shore General Store, Princeville
20% off café prices.
Precision Tinting Kaua‘i, Līhu’e
15% off regular price.
Princeville Mail Center (Aloha Services), Princeville
10% discount on all shipping, storage, copies and post
office box rentals.
Progressive Expressions, Kōloa
10% off original­marked prices, except surfboards.
Sweet N Sassy, ʻEleʻele
10% off all regular­priced merchandise, not to include
sale items or other in­store promotions.
Tropics Day Spa, ʻEleʻele
Purchase a one­hour massage at regular price ($85)
and get 30 additional minutes for free.
Wings Over Kaua‘i, Kalāheo
10% off, three passenger maximum, two passenger
minimum. Direct booking only.

Kaua‘i Business Owners:
Join the Co-op Connections ® Program
We have an exciting opportunity for Kaua‘i business owners. We would like to invite you to join us in a
member benefits initiative, Co­op Connections. This program gives you the opportunity to offer our
cooperative members valuable discounts. In exchange for your participation, we promote your business
and discount offers to our members at no cost to you. The program is designed to benefit your business
and our members.
In conjunction with other Touchstone Energy® cooperatives around the country, KIUC has developed the
Co­op Connections program to deliver more value to members and assist participating businesses in
increasing customer visits. This program gives your business exposure to our 24,000 members and many
visitors served by our fellow Touchstone Energy cooperatives.
Please contact Maile Moriguchi at 246.4348 for more information.
Members can pick up their Co­op Connections Card at KIUC’s main office in Līhu‘e. If your business would like
to participate in the program, or for more information, please contact Maile Moriguchi at 246.4348.
APRIL 2011 33

34 KIUC CURRENTS
By Maile Moriguchi
Photos by Maile Moriguchi
KIUC KEIKI
Local Teen Has ‘Amazing Experience’
With National Leadership Council
Taylor Langstaff of Kapa‘a High School recently
returned from Orlando, Florida, where he served
on the Youth Leadership Council (YLC) of the
National Rural Electric Cooperative Association
(NRECA) during its 69th Annual Meeting
March 7­9, 2011.
Langstaff represented KIUC and the state of
Hawai‘i on the YLC, a national leadership group
formed by NRECA and composed of 42 students
from across the country.
YLC members played an important role in
NRECA’s Annual Meeting, which drew more than
8,000 electric co­op leaders from around the
country. In addition to performing specific jobs at
the big event, YLC members have the opportunity
to become familiar with national issues affecting
electric cooperatives and the consumers they
serve.
“It was really cool to be part of NRECA’s Annual
Meeting,” Langstaff said. “I learned so much
about the energy industry and how public policy
affects it. And I met people from all across the
country. It was an amazing experience.”
Langstaff worked at the NRECA Congressional
Action Center, encouraging cooperative members
to contact their U.S. senators and representatives
on key co­op issues, including protecting
consumers and keeping electricity rates
affordable.

Taylor
Langstaff
The YLC kicked off the annual meeting’s first
general session, which showcased Langstaff with
the Hawai‘i state flag on the stage. Other typical
YLC duties included providing assistance to NRECA
staff and participating in educational forums.
The YLC is an extension of the Washington
Youth Tour in which more than 1,500 high school
students are sponsored jointly by NRECA, local
electric cooperatives and statewide associations in
45 states. Each June, Washington Youth Tour
students travel to the nation’s capital to visit with
their elected representative and senators, attend
educational seminars and visit historic landmarks.
Each state attending the Washington Youth Tour
selects a representative for the Youth Leadership
Council. The YLC delegate then attends a
weeklong summer leadership conference in
Washington, D.C., where participants take courses
on leadership and deliver a speech on what
inspired them during the June trip. A national
spokesperson is selected during the leadership
conference to address the NRECA Annual Meeting
in the spring.
The 2011 Washington Youth Tour delegation
from Hawai‘i consists of four Kaua‘i juniors: John
Medeiros, Waimea High School; Kristen Sugihara,
Kaua‘i High School; Amy Niwa, Kapa‘a High School;
and Kalei Groves, Olelo Christian Academy.
Prior to leaving for Washington, D.C., in June,
the students will visit with KIUC board,
management and employees to get an inside
look at what the co­op does on Kaua‘i. This will
prepare them to discuss successes and challenges
our island faces with fellow students and our
elected officials.
NRECA is the service organization for the
nation’s more than 900 consumer­owned, not­forprofit
electric cooperatives, which provide electric
service to 42 million people in 47 states.
For more information on KIUC’s Washington
Youth Tour program, visit www.kiuc.coop.
Photo Top left; The 2011 NRECA Youth Leadership Council.
Photo above: Hawai’i YLC winner, Taylor Langstaff, sits with
KIUC Board members Stu Burley and Steve Rapozo.
APRIL 2011 35

MEMBER SERVICES
LIHEAP: Low-Income Home Energy
Assistance Program
36 KIUC CURRENTS
By Kathy Williams
LIHEAP is a federally funded block grant that
provides money to help low­income households
with energy costs. Applications for assistance may
be made once a year, in June.
The State of Hawai`i administers the funds
received from the federal government. On Kaua`i,
Kaua`i Economic Opportunity (KEO) has been
designated as the state’s representative to accept
applications.
Two programs are available:
1. Energy crisis. Assists with up to $200 to
restore power to the residence of a
household whose electricity or gas has been
shut off or whose service is about to be
terminated.
2. Energy credit. Provides households not in
crisis with a one­time payment deposited
directly into the utility account in the latter
part of the year.
Required documents to apply for either
program:
1. Current original gas or electric bill. No copies
will be accepted.
2. Proof of residence. Address listed on energy,
cable, water or medical bills.
3. Proof of birth date. For children under the
age of 6 and adults 60 and older.
4. Proof of income. Pay stubs from January 2011
to June 2011, Social Security, SSI, DHS
financial, SNAP/food stamps, unemployment,
TDI, pension and workers’ compensation. If
self­employed, you must provide GET license
and most recent monthly/quarterly/semiannual
reports. You must provide all
documents that apply for the entire
household.
5. Household assets. Statements for savings
accounts, checking accounts, Christmas
savings accounts, credit union accounts,
stocks, bonds, cash, etc.
6. Picture identification. Driver’s license, state
identification card, passport, etc.
All adults age 18 and older must sign the
application.
KEO will accept applications June 1, 2011,
through June 30, 2011. If you have any questions
or need additional information, please contact
KEO at 245.4077 extension 240.
We Need Your Help
KIUC is updating account records and requesting all members provide
current contact information, including mailing address and phone number(s).
This information is essential in case any of the following occur:
◼ We need to reach you in case of a planned outage in your area.
◼ Bills are returned to us and you are unable to make payment in a timely
manner, placing your account at risk.
◼ Your patronage capital check is returned to us as undeliverable.
◼ There is an emergency and we need to reach you via phone.
You may update your mailing address and phone number(s) any of the ways listed below:
◼ Call us at 246.4300 (7:30 a.m. to 4:30 p.m. Monday through Friday, except holidays).
◼ Make the changes on the back of your bill stub before mailing your payment.
◼ Give us the information in person when you come into the Lihu‘e office for any
reason.
◼ Email us at info@kiuc.coop.
This vital information will NEVER be sold to any outside agency. Mahalo for your
assistance!

Several thousand co­op directors and
leadership and staff from around the country
met in early March to experience the power of
the cooperative network at the 2011 National
Rural Electric Cooperative Association Annual
Meeting. They helped set the course for electric
co­ops in the year ahead by delving into
resolutions from the membership and
participating in the business meeting. It was an
opportunity to listen to world­class speakers and
cooperative leaders share their insights about
the industry, and to expand their abilities and
learn more about today’s critical issues.
Glenn English, NRECA’s long­standing CEO, urged
attendees to put aside political differences and
“focus on the needs of our membership.”
Certainly, the political environment is different
than any we have seen in the past. Recently, the
National Journal had a piece explaining how in
1982 they began looking at Congress and the issue
of polarization. They concluded that we are looking
at the most polarized Congress in history since they
started reviewing the issue of polarization.
English pointed to another “disturbing” survey
about polarization.
“We had 49 percent of the people in this
country who were surveyed who said they would
rather have an elected official who, in fact, would
not compromise as opposed to one who would,”
English said. “Only 42 percent of the people in
this country said that they wanted an elected
official who would compromise. Well, folks, that
makes it pretty difficult to get anything done, to
get much accomplished.”
English stressed that while we all understand
these are difficult times, and we all appreciate and
recognize that pressures are being brought to bear
in Congress to reduce budget deficits, electric
cooperatives must be willing to do their part.
At the same time, he said “I think we’re
extremely proud of the fact that the RUS Loan
Program, instead of costing our government money
is, in fact, generating revenue for this budget,” he
noted. “In fact, some $65 million was added to the
Treasury as a result of our loan program.”
Cooperative leaders continue to visit Congress,
explaining the cooperative program, the work we
do and trying to help them understand we are
doing our job to help this country grow, to make
certain electric power is available.
To be successful and “take care of business,”
English stressed we need to be united, willing to
work together, have a will to win, be able to work
through differences and, finally, to compromise.
That is what our membership deserves, he
concluded.
By Anne Barnes
At NRECA’s
Annual Meeting,
President
Glenn English
Focuses on
Membership
APRIL 2011 37

Statement
of Operations
For the period 01/01/2011 – 02/28/2011
38 KIUC CURRENTS
By Karissa Jonas, Controller
Taxes
8.4%
Depreciation &
Amortization
7.9%
Administrative &
General
Net of Non-Operating
Margins
6.0%
We are pleased to report that the KIUC results
of operations through February 28, 2011, are
improving as the weak economy begins to show
measurable signs of recovery. Electricity use on
the island is 4 percent higher than last year.
Despite the improved sales volume, KIUC still is
doing everything it can to reduce costs in various
areas to operate efficiently and effectively, and
continue to maintain a strong financial position to
meet its loan covenants—all while maintaining
safety and reliability. Revenues, expenses and net
margins totaled $28.1 million, $24.8 million and
$3.3 million, respectively, for the two­month
period ending February 28, 2011.
As is the case for all electric utilities, the cost of
power generation is the largest expense, totaling
$15.7 million or 55.9 percent of revenues. Fuel
costs are the largest component of power
generation, totaling $13.6 million or 48.4 percent
of revenues, and representing 86.5 percent of the
cost of power generation. The remaining $2.1
million or 7.5 percent of revenues and 13.5
percent of the cost of power generation
represents the cost of operating and maintaining
the generating units.
Percentage of Total Revenue
Interest
5.1%
Net Margins
11.6%
Marketing &
Communications
0.4%
Member Services
Production Operation &
1.8%
Maintenance
7.5%
Transmission & Distribution
Operation & Maintenance
2.9%
Fuel & Purchased
Power Costs
48.4%
The cost of operating and maintaining the
electric lines totaled $0.8 million or 2.9 percent of
total revenues. The cost of servicing our members
totaled $0.5 million or 1.8 percent of revenues.
The cost of keeping our members informed
totaled $0.1 million or 0.4 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
$1.8 million or 6.3 percent of revenues.
Being very capital intensive, depreciation and
amortization of the utility plant costs $2.2 million
or 7.9 percent of revenues. Although not subject
to federal income taxes, state and local taxes
amounted to $2.4 million or 8.4 percent of
revenues. Interest on long­term debt, at a
favorable sub­5­percent interest rate, totals $1.4
million or 5.1 percent of revenues. Non­operating
net margins added $0.1 million to overall net
margins. Revenues less total expenses equal
margins of $3.3 million or 11.6 percent of
revenues. Margins are allocated to consumer
members and paid when appropriate.

Simple
Pleasures
Parting Shot
KIUC’s Security & Facilities Coordinator, Mitch Oishi, enjoys
spending his weekends watching his granddaughter Evie.
David Bissell was able to enjoy
the clear blue ocean and one
of the numerous caves along
the Napali Coast on a recent
whale­watching trip.
We are always looking for interesting items to feature in SImple Pleasures and Parting Shot. If you have an item to share with
readers, please e­mail currents@kiuc.coop or send it to: KIUC Currents, 4463 Pahe‘e Street, Suite 1, Līhu‘e, HI 96766­2000.
APRIL 2011 39

40 KIUC CURRENTS
HI-130
Powerlines
A big Mahalo to KIUC members for casting
ballots in our 9th annual election for directors.
“Democratic member control” is a key principle
for our co­op model, and I want to thank all who
exercised their right to actively participate in setting policies and making decisions.
Congratulations to returning board members, David Iha, Teofilo “Phil” Tacbian and
Peter Yukimura.
No one is immune to the devastation that has rocked Japan; it hits particularly close
to home as many of our members and employees have loved ones who are in the
affected areas. As live photos and streaming video fill the airwaves, we all want to
know what we can do to help families in Japan whose homes and lives were torn apart
by the disaster. We can each help by sending a charitable donation to many
organizations that are part of the relief operation.
While KIUC’s strategic plan calls for the co­op to be 50 percent renewable by 2023,
we are working toward becoming 50 percent renewable in half that time. The
portfolio of projects we are pursuing includes hydropower, photovoltaic, biofuel,
battery storage and additional biomass.
I want to stress to you that we have your best interest at heart. When we are
meeting with renewable energy developers, we are looking out for you. Our members
are foremost on our minds in every decision we make. We are also making a
concentrated effort to engage our members in the community, and hope you will
come out to meet us!
Mahalo,
David J. Bissell
President and CEO