KIUC Currents - Kauai Island Utility Cooperative
KIUC Currents - Kauai Island Utility Cooperative
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