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August 2011 - Kauai Island Utility Cooperative

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3-Time Award-Winning<br />

<strong>August</strong> <strong>2011</strong><br />

NRECA Youth Tour delegates<br />

return to Kaua’i as stronger leaders,<br />

with confidence to make a difference.


Kamamalu Condominiums in<br />

Lihue<br />

Beautiful, Brand New 2 Bedroom, 2 Full Bath<br />

condominiums! No restrictions on resale.<br />

Opportunity available now for Owner occupants or<br />

Investors! Very spacious floor plan with wonderful<br />

features. Interior Units: $189,000(fs) End Units:<br />

$242,000(fs). Call: Aloha <strong>Island</strong> Properties 246-<br />

0334 or Karen Agudong(R) 652-0677.<br />

5121 Menehune Road #1,<br />

Waimea<br />

A Gardener's delight! Almost 16,000 sf of land<br />

filled with fruit trees! 2 Bedrooms, 2 baths.<br />

Beautiful clean lines and pine trim construction.<br />

Vaulted ceiling in the upstairs and a solarpowered<br />

roof fan. $365,000(fs). Call: Kay<br />

Leonard(RA) 634-8697.<br />

<strong>Island</strong>er on the Beach<br />

OCEANFRONT property located along the beautiful<br />

Coconut Coast of Kapaa. Ground floor unit located<br />

directly across from the swimming pool w/ distant<br />

ocean views. ONLY steps from the beach. Sold<br />

COMPLETELY furnished w/ Hawaiian Style Decor and<br />

includes Travertine flooring, under-cabinet lighting at<br />

the kitchenette area, a small refrigerator, microwave<br />

and small sink. $86,900(fs). Call: Kay Leonard(RA)<br />

634-8697 or Karen Agudong(R) 652-0677<br />

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

EXCEEDING YOUR EXPECTATIONS<br />

(808) 246-0334<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 />

<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 />

Beautiful Pikake Lots in<br />

Lihue<br />

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

elevated enhancing the views.<br />

$309,000(fs)<br />

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

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

#1710 - Located on the 7th Fairway with Dynamic<br />

Ha'upu Mountain and gorgeous Golf<br />

Course views.. $359,000(fs)<br />

#1726 - Wonderful level, corner lot located toward<br />

the back of the subdivision. Gorgeous<br />

Mtn. views $265,000(fs)<br />

#1727 - 14,335 sq ft allows guest house. Golf<br />

course, lake frontage & dynamic mountain<br />

views. $319,000(fs)<br />

Call: Karen Agudong(R) 652-0677<br />

Halelani Village #X-102<br />

Corner ground floor condominium at Halelani<br />

Village. Fantastic fenced yard and good<br />

placement within complex. Nicely renovated 2<br />

bedroom, 1.5 bathroom with beautiful, low<br />

maintenance laminate flooring throughout. Clean<br />

and well maintained. $145,000(fs). Lender<br />

approved price. Short Sale. Call: Charlotte<br />

Barefoot(R) 651-4627.<br />

7136 Alamahi Road, Wainiha -<br />

NORTH SHORE<br />

11,051 sf lot in Wainiha. ONLY $275,000(fs)! Just<br />

a 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 />

6370 Kawaihau Road, Kapaa<br />

3 Bedrooms, 1 bath home with attached 1<br />

bedroom, 1 bath and additional workshop building<br />

with bath, located on a spacious lot of almost<br />

15,000 sf. Beautiful mountain views. One electric<br />

meter and 2 water meters. Main house has solar.<br />

Property being sold As-is. $399,999(fs). Call:<br />

Karen Agudong(R) 652-0677<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


Table of Contents<br />

QMARP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4<br />

A Picture’s Worth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5<br />

Resurgence in Heat Pump Water Heating Technology . . . . . . . . .6<br />

Advanced Meters for Advanced Service . . . . . . . . . . . . . . . . . . . .8<br />

Alexander & Baldwin and KIUC Announce<br />

Largest Solar Facility on Kaua‘i . . . . . . . . . . . . . . . . . . . . . . . . .11<br />

On the Way to Waiahi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12<br />

DLNR Supports Hydro Exploration . . . . . . . . . . . . . . . . . . . . . . . .14<br />

KIUC Membership Approves Board Decision on<br />

Free Flow Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15<br />

KIUC Petition Signature Validation Process . . . . . . . . . . . . . . . . .16<br />

Customer Generation Rate Comparison Offering . . . . . . . . . . . .17<br />

Effects of Lightning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18<br />

Renewable Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20<br />

KIUC Charitable Foundation Releases Funds for<br />

‘Free School Supplies Day’ and Scholarships<br />

for KCC Students . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21<br />

A Continuing Partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22<br />

Stop Flu at School . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25<br />

Walk to End Alzheimer’s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25<br />

Four Smiling Faces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26<br />

2012 Calendar of Student Art . . . . . . . . . . . . . . . . . . . . . . . . . . . .29<br />

Mr. Medeiros Goes to Washington . . . . . . . . . . . . . . . . . . . . . . . .30<br />

Rise and Shine! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32<br />

A Message From the Chairman . . . . . . . . . . . . . . . . . . . . . . . . . .34<br />

KIUC’s <strong>2011</strong> Membership Meeting . . . . . . . . . . . . . . . . . . . . . . . .34<br />

Board Actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35<br />

Tariff Rule #10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36<br />

Co­op Connections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40<br />

Statement of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42<br />

Simple Pleasures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43<br />

Parting Shot . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43<br />

Powerlines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44<br />

<strong>2011</strong> NRECA Youth Tour participants from left, Kalei<br />

Groves from Olelo Christian Academy, Amy Niwa from<br />

Kapaa High School, Kristen Sugihara from Kaua‘i High<br />

School, and John Medeiros from Waimea High School.<br />

For more information, see page 26.<br />

Photo by Shana Read.<br />

EDITOR<br />

Anne Barnes<br />

ASSISTANT EDITORS<br />

Maile Moriguchi<br />

Shelley Paik<br />

Pam Blair<br />

CONTRIBUTING WRITERS<br />

Anne Barnes<br />

Paul Daniels<br />

Jessika­Lyn Garcia<br />

Karissa Jonas<br />

Carey Koide<br />

John Medeiros<br />

Maile Moriguchi<br />

Amy Niwa<br />

Shelley Paik<br />

Steve Rymsha<br />

Teofilo “Phil” Tacbian<br />

Kathryn Williams<br />

Only active KIUC members will be mailed KIUC Currents. KIUC Currents can be<br />

found online at www.kiuc.coop under Member Information and Currents on<br />

the website.<br />

KIUC is an equal opportunity provider and employer.


4 KIUC CURRENTS<br />

By Claurino Bueno<br />

ENERGY SERVICES<br />

QMARP<br />

After electric water heating, refrigerators are<br />

the second­highest consuming appliance in a<br />

home. Improvements in the efficiency of<br />

refrigerators have increased significantly, largely<br />

due to government mandates. In 1972, the<br />

average refrigerator used more than 1,800<br />

kilowatt­hours (kWh) a year. Thanks to new<br />

standards for refrigerators set in 2000, they<br />

average less than 500 kWh a year.<br />

The Qualified Member Appliance Rebate<br />

Program (QMARP) was developed to help<br />

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

their residential energy use by replacing older, less<br />

efficient appliances with new, more efficient ones<br />

at no cost to the participant.<br />

The program demonstrates KIUC’s commitment<br />

to the Kaua‘i community and the pursuit of energy<br />

efficiency. It may not make economic sense to<br />

install a solar water heater for a small family with<br />

one or two people in the household. However,<br />

replacing an older refrigerator makes perfect<br />

economic sense.<br />

Judith Graf of Wailua, received her new Maytag refrigerator May <strong>2011</strong> thanks to KIUC’s QMARP program.


KIUC also provides an energy evaluation for the<br />

rest of the home. That may qualify members to<br />

receive compact fluorescent light bulbs, energyefficient<br />

showerheads, a water heater tank wrap<br />

and faucet aerators at no cost, if they are needed.<br />

KIUC takes a broad approach. Once at the<br />

house, co­op staff tries to accomplish as much as<br />

possible to maximize the use of time and<br />

minimize the member’s bill.<br />

KIUC partners with the County of Kaua‘i Office<br />

of Elderly Affairs on the program. The county<br />

performs the “intake,” verifying the applicant’s<br />

age and income, and provides referrals for the<br />

program. It is the first point of contact, and the<br />

partnership has worked well. The county has<br />

experienced outreach consultants who are aware<br />

of many resources and programs that may benefit<br />

Kaua‘i’s seniors, including the QMARP.<br />

Hidden somewhat out of sight at the north<br />

end of Kapa’a, at 1465­C Kuhio Highway, you<br />

can find Epic Hair Boutique.<br />

Owned and operated by Darci Furtado,<br />

Kaua‘i's newest hair boutique features Aveda<br />

concept salon products and specializes in cuts,<br />

colors, weddings and much more. The people at<br />

Epic make each guest feel comfortable,<br />

welcomed and relaxed.<br />

Darci said they are passionate about what<br />

they do, and are aligned with Aveda’s vision of<br />

connecting beauty and well being.<br />

Darci is assisted by two stylists, Crystal<br />

Jefferson and Heidi Rodriguez. Like Darci, both<br />

are Aveda trained and certified.<br />

This energetic girl was born and raised on<br />

Kaua‘i, graduating from Kapa’a High School. She<br />

was trained and certified at the The Paul<br />

Mitchell School in Costa Mesa, California. Her<br />

salon opened in February 2010.<br />

QMARP Eligibility<br />

■ Potential recipient must be on the residential rate schedule.<br />

■ Homeowner must be 60 years or older.<br />

■ Household must meet federal poverty income guidelines for the<br />

program year. Income eligibility will be based on total gross<br />

household income from all sources.<br />

■ Refrigerator replaced must be a minimum of 11 years old and be the<br />

primary refrigerator. Existing unit will be removed from the residence<br />

at no cost by KIUC.<br />

For more information, please call the County of Kaua‘i Office of Elderly<br />

Affairs or KIUC’s Energy Services at 246.8280 or 246.8287.<br />

By Paul Daniels<br />

A Picture’s Worth...<br />

Darci came in contact with KIUC’s Energy<br />

Wise Program because she thought she needed<br />

a way to reduce her overall energy bill. Kamuela<br />

Gomes, owner of <strong>Island</strong> Window Tinting and a<br />

KIUC trade ally, helped her reduce the impact<br />

of the hot afternoon sun on her air<br />

conditioning. Darci also received a free energy<br />

audit, which identified additional energy<br />

savings opportunities. As a result, Epic Hair<br />

qualified for assistance to install not only the<br />

window tinting, but new LED track lighting also.<br />

Darci reports the tinting and new lights have<br />

made a big difference on cooling her salon.<br />

Good luck, Darci, and thanks for helping<br />

Kaua‘i reduce its energy demand.<br />

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 />

AUGUST <strong>2011</strong> 5


By Ray Mierta<br />

Resurgence in Heat Pump Water<br />

Heating Technology<br />

KIUC announces availability of rebate for heat pump water heating<br />

6 KIUC CURRENTS<br />

We all know how good a long hot shower can<br />

feel after a tough day at work or a long day at the<br />

beach.<br />

The modern “automatic water heater” makes<br />

hot water available and a hot shower possible at<br />

all times of the day or night with just a turn of the<br />

wrist. The first water heater dates to 1870 in<br />

England. It wasn’t efficient and could be<br />

dangerous, since there were no temperature<br />

controls and it was unpressurized, but it beat<br />

trekking down to the nearest hot springs, if one<br />

was available, or burning wood or some other<br />

combustible material to heat water for a bath. Not<br />

much is known about that invention, but the first<br />

storage water heater dates to 1889. A Norwegian<br />

immigrant invented the first commercially<br />

available water heater in Pennsylvania. Edwin<br />

Rudd designed the first of what would later<br />

become the modern storage water heater. While<br />

there still may be a few wood heaters around that<br />

were common on the plantations, and at one time<br />

there were diesel fueled heaters on Kaua‘i, most<br />

of the water on the island is heated with<br />

electricity and solar. About one third of the homes<br />

on Kaua‘i have solar water heating. The average<br />

all electric home on Kaua‘i spends up to half of its<br />

monthly electric use on heating water.<br />

Kukui Grove First Fridays at the Mall<br />

<strong>2011</strong> light bulb exchange dates:<br />

<strong>August</strong> 5 ■ September 2 ■ October 7<br />

November 4 ■ December 2


An alternative is a hybrid design—a heat pump<br />

water heater—that uses a combination of<br />

electricity and warm air (energy) removed from<br />

the environment to heat water.<br />

On the mainland, heat pump technology is used<br />

within a single unit to provide both heating and<br />

cooling to a home. On Kaua‘i, heat pumps are best<br />

used for heating water. There are an<br />

undetermined number of heat pump water<br />

heaters on Kaua‘i.<br />

The technology here suffered from poor<br />

product design, resulting in questionable<br />

reliability, and a lack of understanding about how<br />

the units operated. Although they are installed by<br />

a plumber and the installation is similar to a<br />

conventional electric water heater, maintenance,<br />

troubleshooting and repair service were<br />

nonexistent. That is changing.<br />

Energy prices are remaining high and for longer<br />

periods of time, bringing a renewed interest to<br />

heat pump water heating technology. The heat<br />

pump industry use to consist of small regional<br />

manufacturers without the ability to widely<br />

distribute product or provide service and repairs.<br />

Recently, large corporations such as Rheem and<br />

General Electric have taken an interest in this<br />

water heating technology and want to expand<br />

availability and provide support services.<br />

Energy Star has created efficiency standards for<br />

heat pump water heaters. Only Rheem and<br />

General Electric have received Energy Star<br />

certification. Both manufacturers supply a 10­year<br />

parts warranty for their product.<br />

How It Works<br />

Generally, it is easier to move something than it<br />

is to create it. In basic terms, a heat pump water<br />

heater works like a standard refrigeration unit—an<br />

air conditioner or refrigerator—but in reverse,<br />

heating water up to 140 degrees.<br />

As long as the average ambient air temperature<br />

stays above 50 degrees—not a problem on<br />

Kaua‘i— it is less expensive to heat water with a<br />

heat pump water heater than a standard electric<br />

water heater.<br />

Estimated Savings<br />

A standard electric water heater can use about<br />

4,200 kilowatt­hours (kWh) or about $1,932 a year<br />

in hot water. Based on heat pump technology and<br />

manufacturers’ estimates, the same amount of<br />

water heated with a heat pump water heater will<br />

save about $1,198. That is a 62­percent reduction.<br />

The cost of a heat pump water heater is only<br />

slightly higher than a standard 50­gallon electric<br />

water heater.<br />

Incentives<br />

The federal government is offering a 30­percent<br />

tax credit on the total cost of a Energy Starcertified<br />

heat pump water heater. In addition,<br />

KIUC is offering a $300 rebate incentive for the<br />

purchase of any Energy Star certified heat pump<br />

water heater.<br />

Heat Pump or Solar?<br />

Nothing beats solar. Solar water heating can cut<br />

water heating costs by up to 90 percent. A heat<br />

pump water heater cannot do that, but the price<br />

is much lower than solar water heating, making it<br />

a viable alternative when considering your budget<br />

or when solar is not technically feasible. The ideal<br />

location for a heat pump water heater is a room<br />

10x10x7, or any open area such as a carport or a<br />

garage. If your existing electric water heater is in a<br />

small closet, you may need to add venting to the<br />

closet area so the cool air that is rejected by the<br />

heat pump water heater can dissipate. Your<br />

installing plumber can help with location<br />

requirements.<br />

Where to Buy<br />

Energy Star­certified heat pump water heaters<br />

are available at Sears, Home Depot, and<br />

Fergusons. Visit www.kiuc.coop for more<br />

information regarding availability and for a Heat<br />

Pump Water Heater Rebate Application.<br />

AUGUST <strong>2011</strong> 7


8 KIUC CURRENTS<br />

By Anne Barnes<br />

COOPERATIVE TECHNOLOGY<br />

Advanced Meters<br />

for Advanced Service<br />

Frequently asked questions about smart meters<br />

If you are a regular reader, you know that In<br />

November 2009, KIUC and 26 other electric<br />

cooperatives from 10 states were awarded a<br />

$33.9 million matching grant from the U.S.<br />

Department of Energy under the American<br />

Reinvestment and Recovery Act (ARRA) for Smart<br />

Grid Demonstration Projects. DOE awarded the<br />

National Rural Electric <strong>Cooperative</strong> Association’s<br />

<strong>Cooperative</strong> Research Network half of the<br />

project’s total cost of $67 million to test and<br />

develop technologies that operate together to<br />

make the grid more efficient and reliable. The<br />

cost of KIUC’s project is $11 million, of which $5.5<br />

million is being provided by the ARRA.<br />

As part of the program, KIUC is investing in<br />

new, smart meters to improve the efficiency and<br />

reliability of the electric system. Members have<br />

begun asking questions about these new meters<br />

and how they work. Here are the most common<br />

questions and answers.<br />

How is KIUC’s efficiency improved by<br />

Smart meters?<br />

With remote meter reading and reconnection,<br />

we save time and money. And with more detailed<br />

data about demand and usage we can distribute<br />

power more efficiently.<br />

How will the new technology improve<br />

affordability of electric service?<br />

Operating more efficiently can help minimize<br />

cost increases. We also can use the new data to<br />

help our members address high bills.<br />

How will new smart meters increase<br />

KIUC’s reliability?<br />

New meters help us locate and respond to<br />

outages faster and more safely, and help us<br />

improve power quality, reducing surges and<br />

blinks.<br />

When will my meter be installed?<br />

KIUC anticipates installation for the<br />

demonstration project to begin in 2012. The fiveyear<br />

process will include an expected two years<br />

of installation of new meters at members’ homes<br />

and installing communications infrastructure to<br />

assess smart grid effectiveness, and three years<br />

for data gathering and analysis.<br />

Will I lose electrical service during<br />

the installation?<br />

Yes, for a few minutes. You will need to reset<br />

electronic clocks and other devices.<br />

How does my new automated meter<br />

work?<br />

With these new meters, KIUC will be able to<br />

communicate with each individual meter<br />

remotely from our central office.


Why are we changing to the<br />

automated meters?<br />

The meter upgrade provides KIUC members<br />

with numerous benefits:<br />

■ Accuracy—fewer read errors<br />

■ Fewer estimated bills<br />

■ Billing date flexibility<br />

■ Monitor energy consumption<br />

■ Improved power quality<br />

■ Faster outage restoration<br />

■ Potential energy savings<br />

How much is this going to cost?<br />

There will be no additional cost to the member<br />

to install the new system. No rate increase is<br />

anticipated in association with this project.<br />

Following the installation, members will receive a<br />

bill with two readings: one for the old meter and<br />

one for the new meter.<br />

What other additional installation<br />

parts will I need?<br />

No additional parts are anticipated or required.<br />

However, if something is identified as faulty or<br />

hazardous with a member’s equipment, the co­op<br />

will replace it.<br />

Who will be changing out the meters?<br />

We anticipate employees and members from a<br />

vendor team will be changing the meters.<br />

Do members have a choice in getting<br />

a new meter?<br />

The plan is to install new meters on all<br />

accounts. The cooperative is embarking on a<br />

systemwide program that will change all existing<br />

residential and commercial meters to acquire<br />

more accurate information, without the need to<br />

enter a member’s property.<br />

Currently, if members have a question about<br />

their energy usage, the cooperative must send<br />

operations personnel to the member/owner’s<br />

property to re­read the meter. With the new<br />

system, customer service representatives can<br />

access the meter information and obtain the<br />

reading almost instantaneously.<br />

The new system will give the cooperative<br />

frequent meter readings, instead of monthly<br />

readings. The new system also will provide new<br />

data that will enable KIUC to monitor the system<br />

better and correct inefficiencies.<br />

But what if I REALLY don’t want<br />

a new meter?<br />

While the plan is to install new meters on all<br />

accounts, KIUC management and the board are<br />

discussing an opt­out program. If the decision is<br />

made to move forward with this option, there will<br />

be a cost associated with a member’s decision not<br />

to receive a new smart meter.<br />

What is the difference between the<br />

new meters and the old meters?<br />

The new meters are equipped with a two­way<br />

communications module and the ability to<br />

communicate with our central office computer<br />

system. The existing meters were either an<br />

electro­mechanical device or an older digital<br />

device.<br />

Will I keep the same rate after<br />

the conversion?<br />

Yes, members will continue to stay on the same<br />

rate class as they have in the past.<br />

What if my bill reports more kWh<br />

usage than normal or I think my meter<br />

is not working correctly?<br />

Contact the KIUC office right away at 246.4300<br />

to discuss your billing concerns. Electronic meters<br />

are more accurate than analog or mechanical<br />

meters. The new meters installed have been<br />

tested and meet American National Standards<br />

Institute regulations.<br />

Will meter readers ever need to come<br />

to read the meter onsite again once the<br />

new meter is in place?<br />

Probably not. Meter readers no longer will<br />

regularly need to spend valuable time traveling to<br />

every meter for a monthly read. All meter reads<br />

will be digitally transmitted back to co­op<br />

headquarters.<br />

What information does the new<br />

meter record?<br />

The new meter records an electronic kWh<br />

reading, the date and time of energy usage, the<br />

overall peak demand of the electric account, if the<br />

meter has rotated backwards, and the number of<br />

times the meter has experienced a loss of power<br />

for any reason. In fact, the meter will record the<br />

date and time of light blinks and the length of a<br />

power outage.<br />

AUGUST <strong>2011</strong> 9


KIUC INCLUDED IN OBAMA<br />

ADMINISTRATION’S RELEASE<br />

OF ‘A POLICY FRAMEWORK<br />

FOR THE 21ST CENTURY GRID<br />

KIUC President and CEO David Bissell was invited to Washington, D.C.,<br />

for the unveiling of the Obama Administration’s grid modernization<br />

event. “A Policy Framework for the 21st Century Grid: Enabling Our<br />

Secure Energy Future” includes KIUC as a case study for a battery energy<br />

storage system and implementing demand response to support solar<br />

generation. The report highlights the opportunities a modernized electric<br />

system provides for America. It can be found at<br />

www.whitehouse.gov/administration/eop/ostp/pressroom/0613<strong>2011</strong>.<br />

10 KIUC CURRENTS<br />

What day of the month will the<br />

meters be read?<br />

All of the co­op’s new meters can be read at a<br />

variety of times to obtain a history of account<br />

information. However, for billing purposes,<br />

member bills will be read on monthly schedules.<br />

Once co­op employees no longer<br />

need to read the meter, can obstacles<br />

be constructed that may make the<br />

meter inaccessible?<br />

No. Reasonable access to equipment still must<br />

be maintained. This allows for cooperative<br />

personnel to either read or maintain the meter, if<br />

necessary, at reasonable times.<br />

How will the co­op read the meters?<br />

The cooperative’s computer will communicate<br />

with the substation­installed equipment, which<br />

sends a request for one or more meter readings.<br />

The meter reading is sent back to the co­op via a<br />

secure network.<br />

Will someone other than the co­op be<br />

able to read the new meter?<br />

It is unlikely. Meter manufacturers are<br />

incorporating security features and encryption<br />

technology into their meters, as recommended by<br />

national security experts. KIUC’s goal is to upgrade<br />

the electric distribution system to make it safer,<br />

more secure and more reliable. Your new digital<br />

meter is part of this effort. Once your new digital<br />

meter is installed, your cooperative will be able to<br />

tell if someone “tampers” with your meter<br />

because the meter will report any tampering<br />

attempts to the cooperative.<br />

Are there potential health impacts<br />

from a meter that can receive and<br />

send data?<br />

The simple answer is “no,” but like any new<br />

technology, smart grid technology is triggering<br />

concerns among a small segment of consumers.<br />

KIUC is vigorously committed to the safety of its<br />

members, and will make it a priority to address<br />

any concerns in the months to come.<br />

Research conducted by the Electric Power<br />

Research Institute, the Utilities Telecom Council<br />

and others has revealed no health impacts from<br />

digital meters. The radio frequencies emitted by<br />

digital meters fall well below the maximum<br />

recommended in federal guidelines. Compare this<br />

activity to a laptop with a wireless connection,<br />

which is constantly sending and retrieving data.<br />

A digital meter equipped to send and receive<br />

data has an RF density hundreds of times less<br />

than the RF density of a cell phones—and the<br />

meters are installed on the outside of your house,<br />

not next to your ear.<br />

Will the co­op continue to do service<br />

inspections?<br />

Routine inspections of all meters and services<br />

will continue to look for safety hazards, theft or<br />

other problems.<br />

How secure will the new meters be?<br />

The meter display is visible for members to<br />

check their consumption. All other information<br />

and data stored in the meter is secure and the<br />

meter is sealed.<br />

Can the cooperative disconnect electric<br />

service using the new meters?<br />

Yes, meters can have remote disconnect<br />

capabilities.<br />

Will the new meter notify the co­op<br />

when the power goes out?<br />

Yes. The meters will be able to record outages,<br />

allowing the cooperative to identify outages to<br />

individual households immediately.<br />

Will the co­op notify me prior<br />

to installation?<br />

Yes. KIUC will send out installation schedules.<br />

How will I know if my meter has<br />

been changed?<br />

The co­op employee or contractor will leave a<br />

door hanger on your front door to let you know<br />

they have changed the meter. KIUC will work with<br />

businesses to minimize any inconvenience. You do<br />

not have to be present during the meter change.<br />

If you have other questions or concerns, please contact Anne Barnes at the co­op, 246.4300. Upcoming issues of KIUC Currents will continue to<br />

inform you on the progress of the program. Please see additional information at www.kiucrenewablesolutions.coop.


On July 18, Alexander & Baldwin, Inc. (A&B)<br />

and Kaua‘i <strong>Island</strong> <strong>Utility</strong> <strong>Cooperative</strong> jointly<br />

announced plans for a 6­megawatt utility­scale<br />

solar (photovoltaic) facility on Kaua‘i’s sunny<br />

south shore.<br />

A subsidiary of A&B will be the developer and<br />

operator of the facility, and will sell the power to<br />

KIUC under a 20­year, fixed­rate power purchase<br />

agreement (PPA) signed by the parties. The<br />

proposed facility—which is contingent on state and<br />

county approvals—would be built on a 20­acre,<br />

industrial­zoned parcel of land owned by A&B<br />

adjacent to KIUC’s Port Allen Generating Station.<br />

The site is located in one of the highest solar<br />

radiation regions on Kaua‘i.<br />

Pending county and state regulatory approvals,<br />

construction is expected to begin in late <strong>2011</strong>,<br />

with completion before the end of 2012.<br />

“A&B is pleased to increase its production of<br />

clean energy on Kaua‘i through this investment,<br />

and to help achieve KIUC’s renewable energy<br />

goals,” said Christopher J. Benjamin, A&B’s chief<br />

financial officer, who also oversees A&B’s<br />

agribusiness unit and energy­related initiatives.<br />

“Our company’s century­long commitment to<br />

generating renewable energy for Kaua‘i’s residents<br />

and businesses dates to the very origins of<br />

McBryde Sugar Company through the operation<br />

of our hydroelectric facilities at Kalaheo and<br />

Wainiha, which currently generate about 5 MW of<br />

electricity for KIUC,” he explained.<br />

“We are excited to think that A&B will soon be<br />

capable of generating a total of 11 MW of clean,<br />

renewable energy on Kaua‘i, and we look forward<br />

to expanding our collaborative relationship with<br />

KIUC to explore additional renewable energy<br />

opportunities.”<br />

A&B already is among the state’s largest<br />

providers of renewable energy, generated by<br />

hydroelectric facilities on both Maui and Kaua‘i<br />

and biomass­fueled cogeneration on Maui.<br />

KIUC President & CEO David Bissell said, “A&B’s<br />

facility, which would be the largest solar<br />

generation facility on Kaua‘i when completed,<br />

underscores KIUC’s progress in the solar arena.<br />

Alexander & Baldwin<br />

and KIUC Announce<br />

Largest Solar Facility on Kaua‘i<br />

<strong>Island</strong> to benefit From clean, renewable energy under 20­year, fixed­rate contract<br />

When coupled with an existing 1­MW facility at<br />

Kapa‘a and a planned 3­MW facility at Poipu, KIUC<br />

will likely have the highest percentage of solar PV<br />

on its system anywhere in the country.<br />

“This project means KIUC members will benefit<br />

for the next two decades from clean, renewable<br />

solar energy at a fixed price below our current<br />

cost of generation and not tied to oil. This is truly<br />

a win­win situation for the Kaua‘i community and<br />

underscores our ability to work with landowners<br />

to make these kinds of projects happen.”<br />

“With these solar projects placed in service, and<br />

with the completion of previously announced<br />

projects, we anticipate that KIUC’s renewable<br />

energy portfolio will meet more than 20 percent<br />

of Kaua‘i’s annual energy needs,” said KIUC Board<br />

Chairman Teofilo “Phil” Tacbian. “We continue to<br />

believe that our portfolio approach emphasizing<br />

multiple technologies—including solar,<br />

hydropower, and biomass generation—is the best<br />

path to meeting our goal of becoming 50 percent<br />

renewable by 2023.”<br />

As currently planned, the 6 MW polycrystalline<br />

panel solar facility will be integrated with a<br />

battery energy storage system (BESS) installed by<br />

KIUC at the point of interconnection to the grid.<br />

The BESS will facilitate greater stability on the<br />

KIUC system by maintaining a predictable flow of<br />

power from the Port Allen solar facility and other<br />

intermittent generation resources.<br />

Additional information about the proposed<br />

project will be provided to KIUC’s members at the<br />

cooperative’s quarterly update meetings, while<br />

A&B will seek additional community feedback at<br />

an Eleele­Hanapepe­Port Allen meeting to be<br />

scheduled later this summer.<br />

AUGUST <strong>2011</strong> 11


On the Way to Waiahi<br />

A Pictorial<br />

Instrument and control electricians take<br />

readings monthly at Blue Hole and Waikoko<br />

for the Waiahi hydros. The readings are stored<br />

in little probes that are downloaded onto<br />

computers for data collection.<br />

12 KIUC CURRENTS<br />

Blue Hole<br />

By Shelley Paik<br />

On the right the public notice sign at the<br />

Blue Hole Diversion reads, "Please do not<br />

modify this stream diversion or tamper with<br />

the position of the gates in any way. The<br />

water is being diverted in order to provide<br />

green energy for the people of Kaua‘i."<br />

Above the upstream of the Blue Hole diversion from the Wailua<br />

North Fork Stream. Blue Hole is the first diversion of water to<br />

the Waiahi Hydros.<br />

Above, the Blue Hole diversion leads to an<br />

overflow weir and a stilling chamber (a flow<br />

meter probe is located inside black pipe). This<br />

stilling chamber is where water is monitored for<br />

temperature and levels every 15 minutes so KIUC<br />

can determine how much water is being diverted<br />

to the Waiahi Hydros. Josh Rapanot, KIUC<br />

Apprentice I&C electrician, takes readings at the<br />

Blue Hole probe. Josh first conducted a manual<br />

reading before he dowloaded the data to his<br />

laptop. After the download, another manual<br />

reading was taken off the staff gauge on the side<br />

of the pipe (or stilling well).


Above, the Blue Hole diversion water enters the<br />

tunnel moving water to Waikoko stream.<br />

Above, water from the tunnel ends up here, at the Waikoko stream<br />

diversion, where many people enjoy swimming in the cool water.<br />

Left, the blue Hole diversion overflow weir.<br />

Above, the Waikoko stream diversion.<br />

Above, Josh takes readings at the Waikoko Tunnel<br />

diversion. This flow now is an accumulation of Blue<br />

Hole and Waikoko stream diversion waters heading<br />

toward the Waiahi hydros through tunnels and<br />

open ditches.<br />

AUGUST <strong>2011</strong> 13


14 KIUC CURRENTS<br />

By Anne Barnes<br />

DLNR Supports Hydro Exploration<br />

On June 29, KIUC received a statement of<br />

support for its exploration of new, small<br />

hydroelectric development from the Hawai‘i<br />

Department of Land and Natural Resources (DLNR).<br />

KIUC has been in consultation with DLNR and<br />

other state agencies and elected officials as a part<br />

of its ongoing outreach efforts as the cooperative<br />

evaluates the viability of hydropower on Kaua‘i.<br />

“The state supports renewable and<br />

hydroelectric energy projects and encourages the<br />

Kaua‘i community to move forward in studying<br />

the island's hydroelectric potential,” said Deborah<br />

Ward, DNLR information specialist.<br />

The statement voiced concern regarding the<br />

potential use of the Federal Energy Regulatory<br />

Commission (FERC) to “license” projects at the<br />

construction phase of development, but<br />

recognized that KIUC thus far has not filed any<br />

license applications.<br />

While KIUC has discussed these concerns with<br />

state officials, the cooperative is committed to<br />

working out with state agencies the best process<br />

that ensures protecting state resources and KIUC’s<br />

first right to develop projects deemed feasible<br />

after completion of extensive, mandatory<br />

community outreach and cultural, environmental,<br />

and agricultural impact studies.<br />

“The decision whether or not to use the FERC<br />

licensing process will not be made for a year or<br />

more," said David Bissell, KIUC president and CEO.<br />

" We remain committed to engaging state<br />

agencies, officials, our members, and community<br />

in a dialogue to define the optimal process for<br />

responsible hydroelectric power development.”<br />

DNLR’s statement concluded, “State officials<br />

have discussed these concerns with the Kaua‘i<br />

<strong>Island</strong> <strong>Utility</strong> <strong>Cooperative</strong> and acknowledge that<br />

the utility to date has made no commitment to<br />

seek a federal license.”<br />

For a complete copy of DNLR’s statement,<br />

please go to www.kiucrenewablesolutions.coop.<br />

Bissell said DNLR’s statement is consistent with<br />

the cooperative’s commitment to responsible<br />

hydroelectric power development—in particular,<br />

the board of director’s April 18, <strong>2011</strong>, resolution.<br />

It reads, in part, that KIUC will always:<br />

■ Recognize the legitimacy and priority of the<br />

cultural, diversified agricultural, hunting,<br />

fishing, tourism, and recreational needs of<br />

Kaua‘i, using only the remaining water flow<br />

after such considerations for hydro.<br />

■ Recognize that sufficient stream flow must be<br />

maintained for adequate habitat for affected<br />

aquatic and terrestrial species.<br />

■ Get direct input from any and all interested<br />

parties and include their concerns and<br />

objectives in any preliminary designs for a<br />

hydro project.<br />

■ Include ongoing online access for community<br />

members’ hydro questions, with answers<br />

posted on a publicly accessible website.<br />

■ Continue to get direct input to consider<br />

whether further design modifications are<br />

needed to meet the objectives of any<br />

interested parties once a design for a hydro<br />

project is proposed.<br />

■ Recognize that stakeholder involvement may<br />

require meetings, forums and other feedback<br />

resources that exceed any procedural<br />

requirements of governmental bodies.


KIUC Membership Approves Board<br />

Decision on Free Flow Power<br />

On July 8, certified results in the Kaua‘i <strong>Island</strong><br />

<strong>Utility</strong> <strong>Cooperative</strong> ballot initiative confirmed the<br />

KIUC Board of Directors’ decision to engage Free<br />

Flow Power (FFP) to help the cooperative explore<br />

the potential for new, small hydropower on Kaua‘i.<br />

The yes vote prevailed, with 5,404 or 72 percent<br />

of members voting yes and 2,098 or 28 percent<br />

voting no.<br />

The independent election management<br />

consultant, Merriman River Group, certified the<br />

results of member ballots. Merriman River Group<br />

has managed the counting and certification of<br />

KIUC’s board elections since 2009. Observers of<br />

the ballot count included a representative of the<br />

petitioners.<br />

“We would like to say mahalo to the hundreds<br />

of community members who came out to our<br />

public meetings and actively participated in KIUC’s<br />

outreach process,” said KIUC Chairman Teofilo<br />

“Phil” Tacbian. “We take to heart all of your<br />

comments, both supportive and critical, and we<br />

look forward to continuing to reach out to the<br />

entire Kaua‘i community as we explore<br />

hydropower for our island.”<br />

KIUC President and CEO David Bissell said the<br />

cooperative was in the process of scheduling its<br />

next round of regular quarterly meetings.<br />

“We look forward to further discussing the role<br />

that hydropower and other renewables play in<br />

achieving our strategic plan goals of reaching at<br />

least 50 percent renewable supplied power for<br />

Kaua‘i,” he said. “Receiving input from all Kaua‘i<br />

stakeholders, KIUC members, state and local<br />

leaders, and those that have concerns about our<br />

hydropower evaluation alike, will be an essential<br />

component of our continued assessment of<br />

hydropower resources on Kaua‘i.”<br />

Continued Tacbian, “We are grateful for the<br />

support our members have shown, and we remain<br />

committed to the principals outlined in our board<br />

resolution passed in April which mandates<br />

continued long­term outreach efforts, while<br />

considering agricultural, cultural, recreational and<br />

environmental interests in our evaluation of<br />

hydropower’s potential on Kaua‘i. We look<br />

forward to engaging in a process to determine the<br />

blueprint for how responsible hydropower<br />

development can be determined for Kaua‘i.”<br />

Bissell added, “We continue to believe that<br />

KIUC’s low cost of capital, tax­exempt and nonprofit<br />

status provides the best and lowest­cost<br />

structure for hydropower development. As a<br />

member­owned cooperative with a board elected<br />

by the members, KIUC’s evaluation criteria will<br />

always be based on what is best for Kaua‘i,<br />

without a profit motive interfering with that<br />

ultimate responsibility.”<br />

VOTE<br />

AUGUST <strong>2011</strong> 15


16 KIUC CURRENTS<br />

By Kathryn Williams<br />

KIUC Petition Signature<br />

Validation Process<br />

When KIUC receives a petition from the membership, the validation of signatures on the<br />

petition is required. If the member is an account holder of an active account, he or she is<br />

considered to be a member in good standing. The validation process is as follows:<br />

I. Valid Signatures<br />

A signature is considered to be valid if the<br />

petitioner is the customer of record on an active<br />

electric account and has subscribed to<br />

membership in the cooperative.<br />

Based on the information provided by the<br />

petitioner, the following sequential steps are<br />

taken to validate each signature:<br />

Account Number<br />

■ If an account number has been provided, the<br />

name on the petition is matched with the<br />

name on an account.<br />

■ If the names are the same or one is a<br />

derivative of the other (“Bob” instead of<br />

“Robert”) and the account is active, the<br />

signature is considered to be valid.<br />

Name Search<br />

■ If no account number has been provided, the<br />

name on the petition is used to search for an<br />

account.<br />

■ If the name is found, any additional<br />

information provided on the petition, such as<br />

phone number and/or address, is used to<br />

confirm account ownership.<br />

■ If the name and account information provided<br />

can be verified, the signature is considered to<br />

be valid.<br />

Address/Phone Number Search<br />

■ If there is no account number and the name is<br />

only partially legible, the address or phone<br />

number provided is used to search for an<br />

account.<br />

■ If an account is found, the name on that<br />

account must be recognizable as the same on<br />

the petition.<br />

■ If the name and account information can be<br />

verified, the signature is considered to be<br />

valid.<br />

II. Invalid Signatures<br />

If the name of a petitioner cannot be verified<br />

after all possible searches, the signature is<br />

considered to be invalid.<br />

Spouses of account holders are not members<br />

and, as such, their signatures are not valid.<br />

A validated signature is counted only once,<br />

regardless of the number of active accounts held<br />

by the petitioner.<br />

The signature of an account holder of an<br />

inactive account is not valid.<br />

III. Undetermined<br />

If a signature cannot be adequately validated by<br />

account, name, address, and/or phone number—<br />

i.e., the service address and account number are<br />

valid, but the name of the account holder and the<br />

signature are not a reasonable match—it is<br />

determined to be a “maybe.”<br />

In the case where the number of undetermined<br />

signatures impacts the validity of the petition,<br />

KIUC will attempt to contact the petitioner by<br />

phone to validate the name and signature.<br />

IV. Access to Petition Names<br />

Due to privacy concerns, copies of petitions<br />

received by KIUC will not be provided for<br />

inspection by other members or the general<br />

public. Any petition that includes personal<br />

information will always be held in strictest<br />

confidence Members’ expectation of privacy will<br />

be respected.


By Claurino Bueno<br />

Customer Generation<br />

Rate Comparison Offering<br />

KIUC offers three interconnection schedules for alternative energy sources. Net Energy Metering<br />

(NEM), Schedule Q, and the NEM Pilot are the three interconnection schedules currently available. This<br />

table will help KIUC members differentiate, compare and understand, the different schedules. For<br />

additional information, please contact KIUC’s Energy Services at 246.8280 or 246.8287.<br />

Schedule Details /<br />

Function<br />

Eligible Customer<br />

Generator<br />

Metering & Bill Rendering<br />

NEM<br />

Permanent<br />

customer<br />

1 Calendaryear<br />

January 1 to<br />

December 31<br />

Schedule “Q”<br />

Modified<br />

Permanent<br />

customer<br />

2 Calendar year<br />

Januaryֶ 1 to<br />

December 31<br />

NEM Pilot Description—Options<br />

Permanent<br />

customer<br />

3 Calendar year<br />

January, 1 to<br />

December 31<br />

Annual Credits No Yes Yes<br />

Rate<br />

Agreement,<br />

Interconnection<br />

Requirements & Process<br />

Duration of Agreement/<br />

Contract Term<br />

Maximum Generator<br />

Capacity Allowed<br />

(Duration of Offering)<br />

Maximum Aggregate<br />

Generation Allowed<br />

1 Retail rates<br />

2 Avoided cost<br />

based<br />

3 $0.20 kWh<br />

exported to KIUC<br />

at a 20­year term<br />

Required Required Required<br />

N/A N/A 20 years<br />

1 50 kW or less 2 100 kW or less 3 200 kW or less<br />

1 1% of the peak<br />

demand of the<br />

preceeding year<br />

Risk Profile Current rates<br />

2 No limit<br />

Avoided cost<br />

based<br />

3 3 MW or<br />

3­year pilot<br />

$0.20 kWh<br />

20­year term<br />

Permanent customers of KIUC who own (or lease from<br />

a third party) and operate (or contract to operate with a third<br />

party) a solar, wind turbine, biomass, or hydroelectric<br />

energy generating facility, or a hybrid system.<br />

1 Bills will be based on the rate schedule otherwise applicable to<br />

the customer as a non­net metered customer. The monthly<br />

carry­over credit shall be reconciled every 12 months. Any credit<br />

for excess electricity that remains unused at the end of the<br />

12­month reconciliation period may not be carried over to the<br />

next 12­month reconciliation period. 2/3 For any unused credits<br />

that remain at the end of the calendar year, the participant will<br />

have until January 31 of the following year to submit a written<br />

notice to either continue to carry over the unused credits or<br />

request for payment for any unused credits.<br />

1 The rate is based on the average cost of energy, and includes<br />

the energy charge and base rate adjustments, such as the<br />

resource cost adjustment surcharge and the energy rate<br />

adjustment clause, but excludes the monthly customer charge/<br />

minimum charge and any demand charge. 2 Rates are based<br />

on the avoided fuel cost and system efficiency (heat rate).<br />

3 Fixed at the rate of $0.20 per kWh for a 20­year term.<br />

1 In the NEM option, 50% will be allocated to systems whose size<br />

is 10kW or smaller and the remaining 50% will be allocated to<br />

systems whose size is greater than 10kW, but no greater than<br />

50kW. 2 Schedule “Q” Modified does not have a maximum limit<br />

in allowable aggregate generation. 3 The NEM Pilot program is<br />

a three­year pilot program. Facilities with a capacity of<br />

50kW to 200 kW will be limited to 2MW.<br />

Facilities with a capacity of less than 50 kW but more than<br />

10 kW and facilities with 10 kW or less will be limited to 0.5 MW<br />

each. Availability is based on a maximum generation capacity in<br />

aggregate of 3 MW or the end of the three­year pilot.<br />

The rates for both NEM and Schedule “Q” Modified<br />

are affected by current fuel cost. The fluctuation of fuel<br />

prices directly affects rates for both NEM and Schedule<br />

“Q” Modified. The NEM Pilot participants are locked into<br />

a $0.20 per kWh for a term of 20 years.<br />

AUGUST <strong>2011</strong> 17


Effects of Lightning<br />

18 KIUC CURRENTS<br />

By Jessika­Lyn Garcia<br />

We have all been shaken by a bad thunderstorm.<br />

We have seen the big white strikes in the eerie dark<br />

sky, and even though we may have experienced<br />

times like these, many of us do not understand the<br />

science of lightning.<br />

Lightning is produced by the mixture and<br />

collisions of ice crystals in the higher part of the<br />

thunderstorm, and hail and raindrops in the lower<br />

part. When the lighter ice crystals become<br />

positively charged, they are carried into the higher<br />

parts of the cloud. At the same time, heavier hail<br />

and rain gathers to form a negative charge and fall<br />

toward the lower part of the cloud.<br />

Normally, the earth’s surface has a slight<br />

negative charge. However, as the negative charges<br />

in the lower part of the cloud build up, the ground<br />

directly below the cloud and its surrounding<br />

locations become positively charged.<br />

Air usually acts as an insulator between the<br />

differing charges. But when the electrical charges<br />

between the two charges become too great, a<br />

discharge of electricity occurs, creating lightning.<br />

Lightning and Electrical Systems<br />

To understand how lightning affects electrical<br />

lines, we first must understand how electricity<br />

travels.<br />

Energy cannot be stored. Therefore, moving<br />

electricity requires packing power as heavily as<br />

possible onto transmission lines. Increasing<br />

electricity’s voltage causes it to move more<br />

efficiently. Substations are “transit” points in this<br />

system, giving it the ability to raise or lower voltage.<br />

While high voltage equals efficient moving of<br />

electricity, if electricity enters your home at too<br />

high a level, electronics could be damaged. That is<br />

what happens when lightning strikes.<br />

Each substation contains an array of equipment,<br />

including transformers, lightning arrestors, circuit<br />

breakers and insulators. Transformers perform the<br />

heavy work, altering voltage as needed.<br />

Power blinks are created when a breaker, or<br />

switch, opens along any portion of the power<br />

system. Breakers usually open because of a large,<br />

quick rise of electrical current. Large rises,<br />

commonly known as a fault condition, can occur<br />

when a tree branch touches a line, lightning<br />

strikes or a wire breaks.<br />

When such a fault condition happens, a relay<br />

senses it and tells the breaker to open, preventing<br />

the flow of power to the problem site. After<br />

quickly opening, the breaker closes. A brief<br />

delay—or power blink—allows the fault to clear.<br />

Typically, that lasts less than two seconds.


10+ Ways to Stay Safe During a<br />

Thunderstorm<br />

How do you stay safe during a thunderstorm?<br />

Here are a few tips to ensure your safety:<br />

1) Plan ahead. If thunderstorms are in the<br />

forecast, consider rescheduling your<br />

outdoor activities. Having a portable NOAA<br />

weather radio will alert you to changes in<br />

the weather.<br />

2) Watch the sky. Make sure you, or a team<br />

leader, monitor weather conditions. This is<br />

extremely important if you need time to get<br />

to a safe place.<br />

3) Coaches and officials need a safety plan.<br />

Outdoor events are prone to lightning<br />

strikes. If you or your children take part in<br />

outdoor recreational activities, make sure<br />

leaders have specific guidelines for<br />

postponing outdoor activities BEFORE a<br />

thunderstorm approaches. The safety of the<br />

community must be the priority.<br />

4) When thunder roars, go indoors. When you<br />

are able to hear thunder, remember that<br />

you are close enough to be struck by<br />

lightning even if it is not raining. Get<br />

indoors immediately. Once indoors, stay<br />

there for 30 minutes after hearing the last<br />

rumble of thunder before going back<br />

outside. REMEMBER: The first strike of<br />

lightning may occur very near to you. Keep<br />

an eye on the sky if clouds begin to build<br />

and darken.<br />

5) Get away from water. Stop activities such<br />

as swimming, boating, fishing and camping,<br />

and quickly seek a substantial shelter.<br />

6) Avoid contact with corded phones. Phone<br />

use is the leading cause of indoor lightning<br />

injuries in the United States. Cordless<br />

phones are safe, as long as lightning does<br />

not strike you while you are removing the<br />

phone from its charging cradle. Cell phones<br />

are the safest method of communication.<br />

7) Stay away from windows and exterior<br />

doors. Windows and doors provide a path<br />

for a direct strike to enter a home.<br />

8) Stay off of porches and decks. Although a<br />

porch or deck may be covered, it does not<br />

offer the same protection as a house or<br />

other substantial building.<br />

9) Avoid contact with electrical equipment or<br />

cords. If you plan to unplug any electronic<br />

equipment, do so well before the storm<br />

arrives. Do not forget to disconnect<br />

televisions and radios from outdoor<br />

antennas.<br />

10) Stay away from plumbing and plumbing<br />

appliances. Avoid contact with pipes,<br />

dishwashers, washing machines and electric<br />

water heaters, which use both water and<br />

electricity. Also, do not take a shower or<br />

bath during a thunderstorm.<br />

11) Be alert for direct lightning strikes. If your<br />

home or a neighbor’s home is directly struck<br />

by lightning, call the fire department<br />

immediately. Be sure to have the electrical<br />

wiring in your home inspected by a qualified<br />

electrical contractor as soon as possible.<br />

AUGUST <strong>2011</strong> 19


Renewable Outlook<br />

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

20 KIUC CURRENTS<br />

By Steve Rymsha<br />

KIUC believes the climate change problem and its feared effects are among the most serious of the<br />

environmental issues we face today. As we transition away from fossil fuels, members also benefit from<br />

decoupling electricity generation costs from the volatility in world oil supplies and price. To that end, the board<br />

and management of the co­op have updated KIUC ’s Strategic Plan to achieve a high standard of sustainability<br />

with regard to power supply, and provide fair and competitively valued rates. What follows is a concise recap of<br />

actions taken, and projects in progress and completed. We currently are operating at more than 13 percent<br />

renewable, but in the next few years are taking action to surpass state and federal requirements to reduce<br />

greenhouse gases. Kaua‘i’s eight hydroelectric power plants provide a steady flow of electricity to KIUC.<br />

Hydro<br />

1/12/11 KIUC signed a memorandum of agreement with Free Flow Power Corp., which will allow the two firms to<br />

jointly explore development of hydroelectric energy projects on Kaua‘i. “This is the first step in a lengthy public<br />

process to explore the viability of several hydroelectric projects,” said KIUC President and CEO David Bissell. “Our<br />

members have long recognized the hydroelectric potential on Kaua‘i, and we feel now we have the financial<br />

resources and the proven developer to move forward.” If successful, these generation assets will be owned by KIUC,<br />

providing long­term rate stability under much more attractive terms than through a power purchase agreement.<br />

Green Energy Hydro LLC – 130 kW<br />

■ 170 homes annually.<br />

■ Began operations in Q3 2009 at the Port Allen<br />

warehouse.<br />

■ Building integrated photovoltaic systems;<br />

completed the first week of February.<br />

■ Replaced roof and installed 68­kW roof integrated<br />

photovoltaic system—20 homes annually.<br />

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

■ New systems have been installed on poles near<br />

Kaua‘i Humane Society<br />

■ Forty­eight systems will be installed in <strong>2011</strong> to<br />

further evaluate the cost effectiveness and<br />

resource potential.<br />

Ground­Mount PV<br />

■ KIUC and Alexander & Baldwin announced plans<br />

for a 6­MW utility­scale solar PV facility. (Story on<br />

page 11).<br />

■ KIUC signed two power purchase agreements with<br />

a total capacity of 4 MW. Once online, these<br />

projects will be the two largest solar farms in all of<br />

Hawai‘i.<br />

■ 1,100 homes annually.<br />

■ Through these installations, KIUC will continue as<br />

a leader in the integration of photovoltaic<br />

systems. Additionally, these projects will help<br />

utilities around the world better understand the<br />

physical limitations of PVs on distribution circuits.<br />

■ KIUC signed a contract with Xtreme Power to<br />

provide a battery energy storage system that will<br />

be located at the substation being supplied by the<br />

3­MW farm. This storage system not only will<br />

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

provide support for island­wide photovoltaic<br />

systems. KIUC is interested in signing additional<br />

photovoltaic power purchase agreements in <strong>2011</strong>.<br />

KIUC is in discussions with numerous landowners.<br />

Biomass<br />

■ KIUC signed a power purchase agreement with<br />

Green Energy Team LLC for a biomass to energy<br />

project to be located near Koloa. This project will<br />

reduce Kaua‘i’s dependence on fossil fuels by 3.7<br />

million gallons per year, and provide biomass­fired<br />

generation to serve the energy needs of more<br />

than 8,500 Kaua‘i households.<br />

■ KIUC continues to assess the development of a<br />

second biomass­to­energy facility at Port Allen or<br />

an alternative site.


The KIUC Charitable Foundation (KIUC­CF)<br />

donated $1,000 for the “Free School Supplies<br />

Day” at Kukui Grove Center on July 23. The event<br />

was sponsored by Kaua‘i Family Magazine and<br />

partner businesses to provide free school supplies<br />

for Kaua‘i’s keiki.<br />

The KIUC­CF also allocated funds for three<br />

$1,000 scholarships for the <strong>2011</strong>­2012 academic<br />

year at Kaua‘i Community College.<br />

Last year, the KIUC­CF scholarships were<br />

awarded to liberal arts students Jade Lehua Cano,<br />

Kainoa Matias, and Kehaulani Medeiros, who<br />

were selected by the Liberal Arts Scholarship<br />

Selection Committee.<br />

Eligibility requirements for the scholarship<br />

include being a resident of Kaua‘i who has<br />

graduated from a high school on Kaua‘i or has<br />

obtained a GED equivalency and is enrolled at KCC<br />

full time with a minimum of 12 credits. They must<br />

By Shelley Paik<br />

KIUC IN THE COMMUNITY<br />

KIUC Charitable Foundation Releases<br />

Funds for ‘Free School Supplies Day’<br />

and Scholarships for KCC Students<br />

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

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

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

college, or a GED equivalent are required.<br />

Interested students may apply through the<br />

University of Hawai‘i Foundation.<br />

“We are pleased to continue this scholarship at<br />

KCC to assist our Kaua‘i students with furthering<br />

their academics,” said KIUC Charitable Foundation<br />

President Allan Smith.<br />

In 2005, Gov. Linda Lingle signed legislation<br />

enabling KIUC to keep and use for charitable<br />

purposes unclaimed refunds that previously<br />

would have been turned over to the state for its<br />

use. None of these funds come from KIUC assets.<br />

The KIUC Charitable Foundation is governed by<br />

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

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

KIUC Charitable Foundation<br />

members present a check<br />

for the Kaua'i Family<br />

Magazine school supply<br />

drive. From left, KIUC­CF<br />

President Allan A. Smith,<br />

KIUC­CF board members<br />

Trinette Kaui and Steve M.<br />

Rapozo, Kaua‘i Family<br />

Magazine Publisher Chrissy<br />

Schecter, KIUC­CF board<br />

member Kathryn Williams,<br />

“Free School Supplies Day”<br />

coordinator Mary Navarro<br />

and KIUC­CF board member<br />

Carol Bain.<br />

AUGUST <strong>2011</strong> 21


22 KIUC CURRENTS<br />

By Carey Koide<br />

A Continuing Partnership<br />

KIUC and the Kaua’i Humane Society prepare for the <strong>2011</strong> shearwater season<br />

Kaua’i residents generally are familiar with our<br />

unique native species, which include the Newell’s<br />

Shearwater and the less common Hawaiian Petrel<br />

and the Band­rumped Storm Petrel. Although<br />

these birds spend most of their lives at sea, they<br />

return to Kaua’i’s steep­sloped interior to breed in<br />

the spring and summer. Each fall, that year’s<br />

fledgling birds make their maiden flight to sea<br />

guided by the light of the moon and stars, and will<br />

not return until they approach breeding age<br />

several years later.<br />

A fledgling’s initial flight to sea can be perilous.<br />

For example, they are so attracted to bright lights<br />

they often fly in circles around them until they are<br />

exhausted and land or, in some cases, collide with<br />

obstacles such as buildings. Once grounded, these<br />

seabirds have extreme difficulty regaining flight<br />

from flat ground. Without rescue, they are nearly<br />

certain to die due to attack by predators (such as<br />

dogs and cats), being run over by cars, or from<br />

dehydration or starvation.<br />

Each fall the call goes out to Kaua’i residents to<br />

watch for and retrieve downed seabirds, which<br />

are then collected by the Save Our Shearwaters<br />

(SOS) program. Following a prompt evaluation,<br />

and in some cases some care and feeding, nearly<br />

all seabirds handled by SOS are released back to<br />

the wild—more than 30,000 seabirds so far.<br />

Some of the greater achievements in the SOS<br />

program in recent years has been the continued<br />

partnerships that include several non­profit<br />

organizations, government agencies, and other<br />

entities, all working together for the greater good<br />

of protected seabirds on Kaua‘i.<br />

Kaua‘i Humane Society (KHS) continues to<br />

manage and operate the SOS program, which is<br />

fully funded by KIUC. Dr. Joanne Woltmon of the<br />

Kaua‘i Veterinary Clinic and Linda Elliot, president<br />

and director of the Hawai‘i Wildlife Center,<br />

continue to provide rehabilitation guidance and<br />

direction to KHS staff. The Kaua‘i Fire Department<br />

continues to sponsor housing of aid stations at


Photos by Tracy Anderson<br />

each of its stations during the fledgling season<br />

from September 15 to December 15. This provides<br />

for a convenient drop off point across the island,<br />

with easy access for those on Kaua‘i recovering<br />

any downed seabirds. All of this, is under the<br />

watchful eyes of Thomas Kaiakapu, Kaua‘i wildlife<br />

manager, for the Hawai‘i Department of Land and<br />

Natural Resources.<br />

Improvements in bird handling and rehabilitation<br />

protocols of these seabirds increase the likeliness<br />

of their survival. The collection and analysis of<br />

blood work upon their arrival and prior to release<br />

has provided additional information used to<br />

evaluate the health and condition of the birds<br />

while under the care of SOS personnel and<br />

rehabilitation experts.<br />

KHS is installing two small pools to provide incare<br />

housing for more stable birds and a more<br />

natural medium for the birds to recover in. This<br />

will prevent many of the secondary complications<br />

these birds are prone to developing while being<br />

kept in captivity.<br />

It also will provide a more effective system to<br />

enable them to become waterproof. Seabird<br />

feathers need to be in optimum condition<br />

(undamaged and free of contaminants) before<br />

release as feathers are the birds’ protection from<br />

the elements and keep them dry while diving for<br />

food. Birds preen unsoiled feathers into place and<br />

interlock them in such a way as to repel water,<br />

which keeps them warm and dry while they are<br />

out at sea.<br />

Despite these efforts, the population of these<br />

seabirds appears to be steadily declining.<br />

Scientists believe the greatest threats to these<br />

species are loss of suitable breeding habitat, and<br />

predation by alien predators such as rats and cats<br />

in the breeding colonies that remain. But<br />

mankind’s lights and structures also can have an<br />

adverse effect.<br />

Reducing Light Attraction<br />

By eliminating stray light through its lamp<br />

replacement program completed in 2004, KIUC<br />

has reduced the number of young birds that get<br />

confused and fall rather than continue out to sea.<br />

You can help reduce light attraction by:<br />

■ Turning off unnecessary outdoor lights.<br />

■ Replacing fixtures that scatter light in all<br />

directions—such as globe and carriage lights—<br />

with directional fixtures that point down and<br />

away from the beach.<br />

■ Shielding the light source. Materials such as<br />

aluminum flashing can be used to direct light<br />

where it is needed and keep it off the beach.<br />

■ Replacing white incandescent, fluorescent and<br />

high­intensity lighting with a 40 watt or less<br />

yellow bug light.<br />

■ If you have large windows, draw drapes at<br />

night to keep interior lights from attracting the<br />

birds.<br />

■ If you live near a county ballpark, check your<br />

neighborhood for grounded seabirds. If the<br />

park is not in use, but the lights are still on,<br />

turn off the lights.<br />

AUGUST <strong>2011</strong> 23


Ongoing<br />

Improvements<br />

Construction continues at the Kaua‘i<br />

Humane Society as crews work<br />

to build two small pools to provide<br />

in­care housing and a more natural<br />

setting where the birds can recover.<br />

Check back in the October issue of<br />

KIUC Currents for an update on the<br />

improvements.<br />

24 KIUC CURRENTS<br />

When Rescuing a Seabird is Necessary<br />

To prepare for seabird recovery, please follow<br />

these recommendations:<br />

■ Keep an old towel and a ventilated cardboard<br />

box, pet carrier or other non airtight container<br />

in your car. If you are on foot, just the towel<br />

will do.<br />

■ If you find a downed bird, gently pick it up<br />

from behind with the towel, carefully<br />

wrapping the material completely around its<br />

back and wings. Place it in a container as soon<br />

as possible. Be aware of the shearwaters’<br />

long, pointed bill. Don’t be worried too much<br />

because the birds are usually docile, but<br />

wrapping the bird in a towel will protect you<br />

and the bird.<br />

■ Keep the bird covered and in a quiet, shaded<br />

location. Do not feed, water or handle it.<br />

■ Take the recovered bird to the nearest<br />

shearwater aid station right away (see the list<br />

to locate the aid station nearest you).<br />

■ Do not attempt to release the bird yourself. It<br />

may have internal injuries, or be too tired or<br />

weak to survive. Throwing the bird into the air<br />

could cause more injury. Let the trained SOS<br />

program staff examine the bird and decide<br />

when, where and how to let it go.<br />

■ On the board provided at the aid station, write<br />

information about where you found the bird.<br />

The best information would be a street<br />

address or street intersection, the number of<br />

a nearby utility pole or highway mile marker. If<br />

you are in a hurry, you can leave your<br />

telephone number so staff can call you to get<br />

additional information about the bird you<br />

found.<br />

The SOS team thanks everyone for their<br />

support, and will continue to work with all of<br />

Kaua‘i, to make this a successful program. Mahalo<br />

for your support.<br />

SOS Aid Station<br />

Locations<br />

West<br />

Waimea Fire Station<br />

Hanapēpē Fire Station<br />

Kalaheo Fire Station<br />

Port Allen Chevron<br />

PMRF<br />

South<br />

Kōloa Fire Station<br />

Central­East<br />

Līhu’e Fire Station<br />

Kapa’a Fire Station<br />

Matson Nawiliwili<br />

Kaua’i Humane Society<br />

North<br />

Kilauea Medical Group<br />

Hanalei Fire Station<br />

Hanalei Liquor Store


STOP FLU AT SCHOOL<br />

HAWAI‘I STATE DEPARTMENT OF HEALTH<br />

Stop Flu at School<br />

Attention, parents of students in kindergarten through eighth grade<br />

Stop Flu at School consent forms due September 9!<br />

Vaccination is a child’s best protection against influenza (flu).<br />

The Department of Health will conduct its annual school­based<br />

flu vaccination program, Protect Hawai‘i’s Keiki: Stop Flu at<br />

School, this fall. All students, kindergarten through eighth<br />

grade, attending participating schools statewide are able to<br />

receive a free flu vaccination at school. Visit<br />

http://flu.hawaii.gov/SFAS_schedule.html for the list of<br />

participating schools and their clinic dates.<br />

Consent forms and additional information about the Stop<br />

Flu at School program will be distributed through<br />

participating schools in <strong>August</strong>.<br />

Participating is easy! Just read the information packet,<br />

choose the type of flu vaccine (nasal spray or shot) you want<br />

your child to receive, complete the appropriate consent form,<br />

and sign, date, and return the consent form to your child’s<br />

teacher by September 9, <strong>2011</strong>.<br />

For more information about the Stop Flu at School program,<br />

visit http://flu.hawaii.gov/SFAS.html or call 211.<br />

Hundreds of purple people walking for a purpose and having<br />

fun at the same time; what a wonderful way to spend a<br />

Saturday morning, October 8, at Kukui Grove Shopping Center.<br />

The Walk To End Alzheimer’s ® is the largest awareness building<br />

program hosted by The Alzheimer’s Association, Kaua‘i chapter.<br />

It is a fun and exciting event that recognizes this devastating<br />

illness that affects thousands on Kaua‘i and their family, friends<br />

and love ones.<br />

Walkers who participated last year raised money to help Kaua‘i families. The Kaua‘i chapter’s core services provide<br />

caregiver training, education, clinics, one-on-one counseling and support groups. Our <strong>2011</strong> goal is to recruit more<br />

than 160 walkers and raise at least $22,500 for Kaua‘i.<br />

For more information to participate in the walk, go to http://walktoendalz.kintera.org or please contact Humberto<br />

Blancoat by phone or email.<br />

Where: Kukui Grove Shopping Center, Lihue, Kaua‘i<br />

When: Saturday, October 8, <strong>2011</strong> - 8 a.m.<br />

Length: As many laps around the mall as you choose<br />

Contact: Humberto Blancoat, 245.3200 or<br />

humberto.blanco@alz.org.<br />

AUGUST <strong>2011</strong> 25


KIUC KEIKI<br />

Four Smiling Faces<br />

<strong>2011</strong> NRECA Youth Tour<br />

KIUC Youth Tour delegation<br />

at breakfast with<br />

U.S. Congresswoman<br />

Mazie K. Hirono.<br />

26 KIUC CURRENTS<br />

By Amy Niwa<br />

Once a year, I remember seeing four smiling<br />

faces on the cover of KIUC Currents, which comes<br />

in the mail. It wasn't until later I learned why<br />

there were faces of students on what I found to<br />

be a “grown­up” magazine. It wasn’t until later<br />

that I dreamed of some day being one of those<br />

faces. When information to be part of the Youth<br />

Tour came around, I leaped at the opportunity,<br />

along with my best friend.<br />

“I was nervous to enter,” said John Medeiros of<br />

Waimea High School, who also shared the friendly<br />

competition with peers. “I remember going to the<br />

interview really nervous and then getting a phone<br />

call later that evening saying that I had been<br />

selected. I was jumping up and down, all happy<br />

that I won.”<br />

Feelings of joy and excitement for the trip also<br />

ran through me. It was an amazing feeling to be<br />

selected.<br />

Finally the day came. When we landed in Kansas<br />

City, Missouri, making our way to Topeka, Kansas,<br />

we quickly noticed the difference in geography—<br />

from the ocean and mountains of Kaua'i to the flat<br />

land of Kansas. It was quite the learning<br />

experience. Thankfully, we Hawaiians landed a day<br />

early to adjust to the five­hour time difference and<br />

said our goodbyes to rice and aloha.<br />

Then the day came that we met our new friends<br />

from Kansas. They asked us all of the typical<br />

questions you could think of: Do you live in a grass<br />

shack? Do you go surfing and dance hula every<br />

day? We laughed, explained what Hawai‘i is<br />

REALLY like and even pulled their leg a bit.<br />

From there we made our way to the “Get<br />

Acquainted Banquet,” where flower leis,<br />

macadamia candies and a demonstration of how<br />

badly we are at singing was shared among the<br />

group, as the rules and expectations were<br />

explained.<br />

Interviews for the Youth Leadership Council<br />

followed, as each one of us explained what it<br />

would mean to be selected and how coming from<br />

Hawai‘i we would be able to share what we know<br />

as the “aloha spirit.”<br />

The next day we made our way to the Kansas<br />

Capitol building and got to know more about each<br />

other. We toured the Wolf Creek generation<br />

station and got a tour at Lyon­Coffey Electric<br />

<strong>Cooperative</strong>, including bucket truck rides. We<br />

then flew to Washington, D.C., where the touring<br />

began! One of the things I remember most about<br />

Youth Tour was being asked, “Where/what’s


Hawai‘i/Kansas?” I remember being warned prior<br />

to the trip about that question, but it doesn’t<br />

really count until you walk into the lobby and are<br />

surrounded by 200 something kids all asking you<br />

for a pin because you’re from Hawai‘i.<br />

We viewed the Pentagon memorial. Did you<br />

know it is unlawful to take a picture of the<br />

Pentagon while on the Pentagon grounds? We<br />

found out shortly after we got there. It was fun to<br />

watch Kansans super­amazed by fish at the<br />

National Aquarium. After multiple tries, we made<br />

it on the big screen at a major league baseball<br />

game and participated in a crowd wave with well<br />

more than 3,000 people. It was exciting. We also<br />

toured Arlington National Cemetery, the<br />

Holocaust Memorial Museum and several<br />

Smithsonians, where we saw Monet and the only<br />

DaVinci piece on this side of the globe.<br />

The culture was an amazing experience I will<br />

never forget.<br />

The Hawai‘i delegration<br />

prepares for the lei<br />

presentation to the<br />

Kansas delegation.<br />

The entire Kansas/Hawai‘i<br />

delegation at the Kansas<br />

State House in Topeka.<br />

AUGUST <strong>2011</strong> 27


The Kaua‘i delegation<br />

admires the<br />

Washington, D.C., skyline<br />

from the John F. Kennedy<br />

Center for the Performing<br />

Arts roof before attending<br />

the theater.<br />

The entire delegation<br />

lets loose.<br />

28 KIUC CURRENTS<br />

“This experience taught me more than what I<br />

would have learned in a regular history class,” said<br />

Kristen Sugihara of Kaua'i High School. “Youth Tour<br />

gave me a clearer understanding of how our<br />

nation came to be, taught me lifelong lessons and,<br />

most importantly, taught me which building has<br />

284 bathrooms (Pentagon)!”<br />

As a group, we grew close fast, bonded and<br />

created relationships that typically take months.<br />

We learned that although we come from opposite<br />

places, we are similar groups of people.<br />

John was selected to represent Hawai‘i in the<br />

<strong>2011</strong> YLC and continue the “aloha spirit” he<br />

displayed not only with the ’ohana of the<br />

Hawai‘i/Kansas delegation, but the other 43<br />

participating states.<br />

As the days of the tour continued, we also<br />

toured Mt. Vernon, and the Lincoln, Vietnam,<br />

Korean, Jefferson, Roosevelt and World War II<br />

memorials. We even took the picture of four<br />

smiling students in front of our nation’s capitol,<br />

which started this journey for me.<br />

We enjoyed breakfast with the congressional<br />

delegation from both Hawai‘i and Kansas.<br />

It was inspiring to hear that even though<br />

Hawai‘i representatives live on the other side of<br />

the country, they manage to stay connected with<br />

home. It was even more amazing to witness<br />

Hawai‘i making it all the way to D.C.<br />

“The NRECA Youth Tour opened my eyes to a<br />

world of possibilities,” said Kristen.<br />

As the trip came to a close, we learned not only<br />

about the history of our nation, but about<br />

ourselves. We created memories and cried tears<br />

of joy as this delegation started out as two and<br />

ended as one. We started out as strangers,<br />

became friends and, in the end, became ’ohana,<br />

leaving no one behind.<br />

The opportunity to be part of the <strong>2011</strong> Youth<br />

Tour was a once­in­a­lifetime experience.<br />

The <strong>2011</strong> Hawai‘i Youth Tour students would like<br />

to thank the National Rural Electric <strong>Cooperative</strong><br />

Association, KIUC and the community. We were<br />

honored to be chosen to represent the island of<br />

Kaua‘i.<br />

I can proudly say we left our homes as 38<br />

individuals, but came back as ONE big happy<br />

family.


2012 Calendar of Student Art<br />

We are waiting for your entries. KIUC’s 9th annual Calendar of Student<br />

Art contest is ready to go. Packets have been sent to Kaua’i schools, and<br />

we’re excited to see the artwork students will produce this year!<br />

KIUC’s Calendar of Student Art contest was designed to encourage<br />

and promote young artists on the island; the artwork of Kaua’i<br />

students will be featured in KIUC’s 2012 calendar. Our contest again<br />

will celebrate the arts and showcase each grade level’s student talent.<br />

It is our hope that participation in this contest will play a part in<br />

encouraging a lifelong love of art.<br />

As in previous years, kindergartners will design the cover, first<br />

graders will depict January, second graders are assigned February and<br />

so on through December, with 12th graders.<br />

The deadline is Friday, October 14, <strong>2011</strong>. All entries must be received<br />

by 4 p.m. at the KIUC offices, located at 4463 Pahe’e Street, Līhu’e.<br />

For more information, please contact Shelley Paik at 246.4378,<br />

or via e­mail at spaik@kiuc.coop.<br />

2012 Contest Rules<br />

Who can enter: Any Kaua’i student attending any public or private<br />

school or schooled at home, who is currently in grades kindergarten<br />

through grade 12.<br />

Artwork can be submitted by teachers, students, parents, guardians<br />

or others as a group or class project.<br />

Students may enter as often as they wish.<br />

How the contest works: Match the grade the student is in during the<br />

current (<strong>2011</strong>­2012) school year to the corresponding month.<br />

Students should draw or paint a picture to illustrate their assigned<br />

month.<br />

Artwork will be judged on artistic merit, creativity and how well the<br />

assigned month is depicted. Acceptable artwork includes still life,<br />

landscapes, portraits, etc., as long as the monthly theme is somehow<br />

portrayed.<br />

All elements of the artwork (lines, paint, color, shapes, shading,<br />

highlights, etc.) must be the work of the student whose name<br />

appears on the back of the artwork.<br />

No tracing is allowed.<br />

All artwork must be original and not be copied from other<br />

copyrighted sources without substantial creative changes; renderings<br />

or other paintings or published photographs that are deemed to be<br />

too exact to the source will be disqualified.<br />

How to submit the artwork: Drawings should be no larger than 11x14<br />

inches and no smaller than 8x10 inches. (Paintings or canvas can be<br />

larger.) Drawings on white or light­colored paper will reproduce best.<br />

Do not use ruled paper.<br />

Most any medium is acceptable, as long as the art is relatively flat.<br />

Charcoal and pastel drawings should be sprayed with a fixative. Do<br />

not use glitter, sand, liquids or other elements that can flake off or<br />

otherwise damage the works of other students.<br />

Artwork in the horizontal or landscape position best fits the<br />

calendar’s format.<br />

Do not mount, mat, laminate or frame artwork.<br />

Do not fold or crease artwork.<br />

How to identify your artwork: On the back of each entry, in the lower<br />

right­hand corner, include: name, age, grade, school, name of<br />

parents or guardians, home address, phone number and e­mail<br />

address.<br />

Information on each entry must be legible.<br />

Artwork created digitally on computer may be entered as long as<br />

rules on originality and copyrighted sources are followed. Resolution<br />

must be at least 300 dpi at 8x10 inches. Contact contest officials<br />

listed below for file format requirements and other details for digital<br />

submissions.<br />

The name and school of each winning student will be printed in the<br />

calendar, along with the student’s photograph. Photos of winning<br />

students will be requested after the winners are announced.<br />

Judging and prizes: A panel of judges will pick winners.<br />

Calendar winners will receive $100.<br />

Additional artwork may be chosen as honorable mentions and will<br />

be printed in a special section of the calendar. Honorable mentions<br />

will receive $50.<br />

An overall “Artist of the Year” will be selected. The “Artist of the<br />

Year” will receive $100 and will be featured in KIUC Currents<br />

magazine.<br />

Judges also may select Award of Merit winners, who will receive<br />

certificates.<br />

Some artwork will be selected for our Calendar Art Advertising<br />

Program.<br />

All artwork and reproduction rights become the property of KIUC.<br />

Artwork will not be returned.<br />

Deadline: Friday, October 14, <strong>2011</strong>. All entries must be received by<br />

4 p.m. at the KIUC office, located at 4463 Pahe’e Street, Līhu’e.<br />

For more details: Please contact Shelley Paiki at 246.4378,<br />

or via e­mail at spaik@kiuc.coop.<br />

1st grade - January 5th grade - May 9th grade - September<br />

2nd grade - February 6th grade - June 10th grade - October<br />

3rd grade - March 7th grade - July 11th grade - November<br />

4th grade - April 8th grade - <strong>August</strong> 12th grade - December<br />

Kindergarten students will draw the cover art.<br />

There is no theme for kindergartners; any subject, season, event, etc., is acceptable.<br />

<strong>2011</strong> Calendar<br />

of Student Art<br />

AUGUST <strong>2011</strong> 29


30 KIUC CURRENTS<br />

By John Medeiros<br />

Mr. Medeiros<br />

Goes to Washington<br />

As the Youth Leadership Council representative<br />

for Hawai‘i, Medeiros learns and shares some<br />

valuable lessons.<br />

I’m John Medeiros, delegate for the state of<br />

Hawai‘i, from the island of Kaua‘i. I’d like to first<br />

thank Kaua‘i <strong>Island</strong> <strong>Utility</strong> <strong>Cooperative</strong>, NRECA and<br />

the redshirts of the Youth Leadership Council for<br />

such an amazing opportunity. From someone who<br />

experienced it all firsthand, I can honestly say it is<br />

a blessing. I’d like to extend my gratitude to Aunty<br />

Anne Barnes, Aunty Shana Read and the rest of<br />

our chaperones, who kept us under control.<br />

I’d also like to give a friendly warning: I<br />

generally speak in anecdotes. On Kaua‘i we’d say a<br />

person can “wala’au planny.” And trust me, I<br />

wala’au plaaaanny.<br />

With that said, I recall a particular summer—<br />

seventh grade, so a good four years ago—the<br />

eighth­graders at our school were allowed a quote<br />

under their yearbook picture. Something short,<br />

and most times it’d be a representation of a jersey<br />

number, a shout­out to a best friend in the corner<br />

of a page or a relationship, an inside joke … that<br />

kind of thing. So I was pleasantly surprised—and<br />

amused—when I read this one, and its exact<br />

words are stuck in my memory to this day:<br />

“Children are the future. Scared?” I thought it was<br />

perfect. Short, bittersweet, clever, hit the heart<br />

and the mind with one stone. And, I must say, it<br />

troubled me to think that someone my age,<br />

somewhere, will one day become the president.<br />

Someone my age is going to become a corporate<br />

billionaire in charge of people, assets, money. So,<br />

yes, in answer to that question, I was scared.<br />

But this Youth Tour changed my frame of mind<br />

for good. Everything was different. Everything was<br />

new to me, a brand new experience. The<br />

atmosphere of the place was unique,<br />

overwhelming, worlds apart from the home I<br />

knew … and I loved every second of it. They said<br />

it’d be the trip of a lifetime. They were right. They<br />

said it’d be a journey, an adventure, even. All an<br />

understatement. My understanding of the world<br />

around me was tested. All of the conclusions I had<br />

drawn were out the window. And all this<br />

difference, all this change, tends to grow on you.<br />

So, time for some background. The four<br />

delegates from Hawai‘i met up with 34 from<br />

Kansas, and formed the Hawai‘i­Kansas<br />

Delegation. Those Kansans … they are an<br />

incredible group of people. More aloha than a<br />

majority of the people I know in Hawai‘i, and<br />

that’s seriously saying something. Humble,<br />

respectful, funny … all of them, every single one!<br />

You couldn’t help but have fun in their company,<br />

and when we had to leave them, we were crying<br />

buckets. Don’t get me wrong. I wasn’t there for<br />

the socializing. But often what can make or break<br />

a trip are the people you spend it with—and man,<br />

they made it. The monuments, memorials, they<br />

took our breaths away. But the friendships we<br />

made were monumental and memorable in<br />

themselves.<br />

For the youth from Hawai‘i, our tour started<br />

when we arrived in Kansas. Now, I’ve been to the<br />

mainland a few times, but I’ve only ever visited<br />

two locations: Disneyland in California and Disney<br />

World in Florida. Not too bad. That’s both ends of<br />

the country covered. But I’ve never been<br />

landlocked; I’ve never stepped off a plane and<br />

asked myself as I looked around, “where’s the<br />

ocean?” The longest drive I’ve ever been on was<br />

two hours—and that record was set on the Youth<br />

Tour. On Kaua‘i, everyone knows just about<br />

everyone. The system that Kaua‘i’s citizens go by<br />

to communicate with each other has been<br />

dubbed “The Coconut Wireless,” where word of<br />

mouth spreads faster than tornado winds.<br />

Meanwhile, back at the ranch … ha … what<br />

really hit me was how different we Hawaiian­<br />

Kansans could be from one another, and yet how<br />

close we became. When a few of them told me<br />

they had never seen the ocean before, I had to


John takes time to say hello to Kansas Youth Leadership<br />

Council representative Audrey Boeken.<br />

pick my jaw up off the floor; they had to do the<br />

same, however, when I said I’d never seen a<br />

tornado, and that the two­hour drive between<br />

states (which I had also never done before) was a<br />

journey and a half. To put it lightly, we were<br />

worlds away. And there hasn’t been a day that’s<br />

passed that I’ve been too busy to remember all<br />

the fun we had up there together.<br />

Geographically, there isn’t a place in the United<br />

States farther away from Washington, D.C., than<br />

Kaua‘i. I mean, maybe Ni’ihau, a neighbor island,<br />

but that doesn’t count. Almost 5,000 miles, half of<br />

the Pacific Ocean, and six hours of a time<br />

difference separate the two. But I realized that it<br />

doesn’t matter what part of the country you come<br />

from: whether you farm in Kansas, whether you<br />

surf in Hawai‘i—everything in between. We’re all<br />

part of the same country, the same nation, united<br />

under the same guidelines, the same government.<br />

Youth Tour brought life to the government I<br />

hadn’t known.<br />

Being 5,000 miles away from the nation’s<br />

capital, I have a pretty unique perspective toward<br />

it. I think we become, both physically and<br />

mentally, distanced from our government. We<br />

read about the Constitution, and the Declaration<br />

of Independence, where their beautifully­scripted<br />

words and pure poetic quality is typed onto<br />

textbooks, countless times, and we lose their<br />

feeling, lose their meaning. The Revolutionary<br />

War, Independence Day … I can honestly say it<br />

didn’t have as much significance to me as I’d have<br />

liked. But Youth Tour … never in my life did I think<br />

I’d stand six inches from the Constitution, the<br />

framework of our very government. I never<br />

thought I’d live to see the Declaration of<br />

Independence right there in front of me. Fourth of<br />

July this year, my family and I went to a beach on<br />

the west side of our island. It’s a gorgeous<br />

beach—Barking Sands, at Major’s Bay—and we<br />

watched the military base shoot up 10 minutes of<br />

fireworks. They lit up the sky above the ocean. It<br />

was beautiful. It took on new meaning for me as<br />

they played the Star­Spangled Banner on the<br />

loudspeakers. I had been to the very place that<br />

song was born: Fort McHenry. I had visited the<br />

document, seen it with my own eyes—the text<br />

that had set America free, made the United States<br />

independent.<br />

And as I stood there on the porch of a cottage<br />

overlooking the beach, watching the fireworks<br />

overhead, I could look down and imagine those<br />

documents in front of me, clear as day, and one of<br />

the awesome friends I had made back on Youth<br />

Tour putting a hand on my shoulder and saying,<br />

“Amazing, isn’t it? Over 200 years ago, they signed<br />

this thing and set us free.” He had voiced my<br />

thoughts right then and there. That level of<br />

humility, that level of respect and appreciation, is<br />

something I have never encountered. To know<br />

that the people around me were feeling what I<br />

was feeling, were impacted like I was impacted …<br />

needless to say, it is powerful.<br />

Youth Tour re­instilled a passion in me to learn<br />

all that I can. Youth Tour put me in a room of<br />

1,400 people, all strangers from distant lands,<br />

with separate flags, accents, upbringings—all<br />

brought together. It is a phenomenal experience.<br />

Now, readers, I challenge you: When these 43<br />

delegates step up to the plate to give their<br />

testimonies, think to yourself, “Children are the<br />

future. Scared?”<br />

Much mahalo and aloha!<br />

Hawai‘i delegation ladies<br />

have some fun with John.<br />

AUGUST <strong>2011</strong> 31


32 KIUC CURRENTS<br />

Photos By Shelley Paik<br />

Rise and<br />

Shine!<br />

1. Eggs<br />

Eggs<br />

6 eggs<br />

4 ounces cream cheese, cubed<br />

¼ cup water<br />

Pinch of salt<br />

Pepper to taste<br />

Break eggs into a bowl and whisk with water.<br />

Add cream cheese. Heat a pan and set to medium<br />

heat. Pour egg mixture into pan and stir eggs,<br />

scraping the bottom of the pan. When the eggs<br />

are cooked through and cheese has melted,<br />

remove from heat and serve.<br />

2<br />

2. Loco Moco<br />

1<br />

Hamburger<br />

1 pound hamburger<br />

1 small onion, chopped<br />

2 slices bread, soaked in water or milk, then<br />

torn into pieces<br />

2 tablespoons ketchup<br />

1 teaspoon salt<br />

1 teaspoon pepper<br />

Gravy<br />

1 can beef broth<br />

¼ cup sherry<br />

½ cup water<br />

Drippings from pan hamburgers were cooked in<br />

4 tablespoons cornstarch, mixed with equal<br />

amount of water to form a liquid<br />

Fried eggs<br />

Cooked rice<br />

Mix hamburger with onion, bread, ketchup, salt<br />

and pepper. Form into patties and cook on<br />

medium heat until browned on both sides to<br />

desired doneness. Set aside hamburger patties<br />

and keep drippings in the pan. Add beef broth and<br />

sherry to pan. Deglaze pan, bring mixture to a boil<br />

and add water. Slowly add cornstarch mixture to<br />

thicken the gravy. In a bowl, place rice on the<br />

bottom, then a hamburger patty and a fried egg.<br />

Cover with gravy.


3<br />

3. Breakfast Burrito<br />

1 10­count package 8­inch flour tortillas<br />

6 eggs<br />

6 sausage links, cut into small pieces (we used<br />

Banquet Brown ’n Serve)<br />

1 green bell pepper, chopped<br />

1 small onion. chopped<br />

1 potato, cooked and cut into small cubes<br />

4 ounces shredded cheddar cheese<br />

Salt and pepper to taste<br />

Salsa<br />

Sauté onions and bell pepper for 5 minutes. Mix<br />

in potato and sausage; heat for a few minutes.<br />

Crack eggs into a separate container; add ¼ cup<br />

water and mix well. Add eggs to sausage mixture.<br />

Stir until well mixed. When eggs are cooked, add<br />

cheese until melted. Remove from heat. Scoop<br />

about ¼ cup of the egg mixture onto heated<br />

tortilla and top with salsa. Fold and serve. Makes<br />

10 burritos.<br />

4. Potato, Ham and<br />

Sausage Breakfast<br />

8 cups sliced red potatoes<br />

6 tablespoons butter<br />

6 green onions, chopped<br />

2 cups diced ham steak, cooked<br />

1 package precooked sausage<br />

1½ to 2 cups heavy cream<br />

2 to 3 tablespoons flour<br />

2 cups shredded cheese<br />

2 tablespoons kosher salt<br />

1 clove garlic<br />

Bring potatoes and salt to a boil. Remove from<br />

heat. Secure one clove of garlic to a fork and put<br />

into water for 45 seconds and remove. Drain<br />

partly cooked potatoes and reserve ⅓ cup of the<br />

potato water. Melt butter on medium low heat.<br />

Add onions and saute until cooked. Add diced<br />

ham and sausage that has been cooked to<br />

microwave instructions and diced. Add flour;<br />

blend and add cream gradually, stirring constantly.<br />

When it starts to bubble, add 1½ cups of cheese.<br />

Cook until cheese is melted and add remaining ⅓<br />

cup of potato water. Spray a 3­quart casserole dish<br />

with nonstick cooking spray. Layer potatoes and<br />

then sauce. Continue repeating until all<br />

ingredients are used. Bake in a 325­degree oven<br />

for 30 minutes. Sprinkle remaining cheese on top<br />

Bake in oven for 5 minutes and serve.<br />

4<br />

AUGUST <strong>2011</strong> 33


KIUC BOARD OF DIRECTORS<br />

A Message From the Chairman<br />

34 KIUC CURRENTS<br />

Aloha,<br />

On July 8, <strong>2011</strong>, our members gave us a strong message to continue our efforts to<br />

identify areas on this island where there is high potential for hydropower. With this<br />

mandate, we are going forward with our plans. We are continuing our outreach<br />

program and will hold community meetings in various communities on Kaua‘i. The<br />

dates and times will be announced in the media.<br />

Since our last issue of Currents, we received approval of our Habitat Conservation<br />

Plan from the Fish and Wildlife Service of the Department of the Interior. This<br />

approval came shortly after our meeting with Interior officials in May. Our staff,<br />

headed by Carey Koide, manager of our support services department, is hard at work<br />

implementing the terms of the plan.<br />

We are associated with several organizations, including the National Rural Electric<br />

<strong>Cooperative</strong> Association. It assisted KIUC from day one, from forming our<br />

cooperative to purchasing Kaua‘i Electric Co. from Citizens Utilities, to organizing and training the board of<br />

directors and much more. It put us in touch with the Rural Utilities Service of the Department of Agriculture and<br />

the National Rural Utilities <strong>Cooperative</strong> Finance Corporation, which provided all of the financing to KIUC. To this<br />

day, NRECA continues to represent us in Congress and protect us from laws that could adversely affect our<br />

existence as a utility. It provides training for all of our board members and staff.<br />

We are fortunate to have an organization such as NRECA that we can call upon when needed. Our<br />

representative on the NRECA Board of Directors is our past Chairman Dennis Esaki. He serves on the Executive<br />

Committee representing Region 9, which includes 11 western states. He also serves as chairman of the Marketing<br />

and Communications Committee, and sits on the International Committee. Although he no longer serves on<br />

KIUC’s board, Dennis continues to serve us in this capacity. Mahalo, Dennis, for your tireless efforts.<br />

To all of our members, mahalo for your support and understanding of your board of directors and staff at KIUC<br />

as we move forward during these trying times.<br />

KIUC’s <strong>2011</strong><br />

Membership Meeting<br />

Save the date for the KIUC Membership Meeting on Sunday,<br />

September 25, <strong>2011</strong>, at the Kaua‘i War Memorial Convention<br />

Hall from 4 p.m. to 6 p.m.<br />

Doors will open at 4 p.m., with the first 300 members<br />

receiving a bag of rice. All members in attendance will receive<br />

an annual report and reusable shopping bag. We also will have<br />

Co­op Connections Cards available.<br />

Kalaheo School’s Sunshine Express will perform prior to the<br />

business meeting, which begins at 4:30 p.m.<br />

Bring your family and neighbors to learn about what KIUC<br />

has been doing, and enjoy a light dinner and entertainment.<br />

We hope you will join us!<br />

T. Phil Tacbian, Chairman of the Board<br />

KIUC<br />

Annual<br />

Membership<br />

Meeting


5/31<br />

6/28<br />

Board Actions<br />

for May and June <strong>2011</strong><br />

Meeting Date Item Description Board Action<br />

SPC BS<br />

Unfinished<br />

Business<br />

New<br />

Business<br />

Unfinished<br />

Business<br />

New<br />

Business<br />

Recommend staff provide a FERC workshop as soon as possible specifically before any<br />

meetings with the public. (Workshop scheduled for Thursday, June 2 with FFP).<br />

Approved<br />

Policy (SB) Board Policy No. 5, Conflicts of Interest and Conduct of Interested Persons (5/31/11 Rev). Approved<br />

Policy (SB) Board Policy No. 18, Board Member Qualifications and Eligibility (5/31/11 Rev). Approved<br />

Individual director and board email communication discussion.<br />

Exec (TPT) Selection of a board evaluation consultant.<br />

F&A (AAS)<br />

Renewable/Hydro Communication Outreach Plan budget through member vote<br />

not to exceed $150,000. Revised plan document to be sent to board reflecting<br />

approved amount or less (Executive BAR).<br />

Deferred to Member Relations<br />

Committee<br />

Deferred to Executive Session<br />

for discussion on individual<br />

contract proposals details<br />

Approved<br />

F&A (AAS) Attorney Invoice #3671 (Ebbin Moser & Skaggs) dated 4/15/11. HCP attorneys (Acctg BAR). Approved<br />

S. Rymsha Moloa‘a 1-MW photovoltaic power purchase agreement Approved<br />

MRC Board Resolution 05-11 approving the written ballot of Free Flow Power decision. Approved<br />

CB<br />

Exec (SMR)<br />

CB<br />

Conduct a pilot program using the Nominating Committee and one KIUC director<br />

to participate in mock ballot counting and have these people be the observer<br />

at the July 8 member ballot counting.<br />

Defer board evaluation consultant item to Executive Committee,<br />

with all directors invited to attend, to discuss.<br />

One member petitioner and one other member will be asked to serve as observers<br />

for the July 8 ballot counting. Director Yukimura will coordinate and<br />

General Counsel Proudfoot will be onsite to oversee.<br />

Approved<br />

Approved<br />

Directed no formal action<br />

MRC (CB) Oversight of the 2010 Revolving Loan Fund Report (MS BAR). Approved<br />

SPC (BS)<br />

SPC (BS)<br />

Policy (PY)<br />

Recommend the board and staff work together to design a comprehensive,<br />

community based Strategic Planning effort for our cooperative that would begin<br />

in the fall of <strong>2011</strong> and include vigorous outreach to our community.<br />

Allow all members of the board to attend the <strong>2011</strong> Asia Pacific Clean Energy<br />

Summit on Oahu September 12-15. Amendment to the motion: “as part of the<br />

Directors allotted 3 trips a year.”<br />

Board Policy No. 11, Patronage Capital Allocation & Retirement (revised to<br />

include the use of the Goodwin methodology for calculating patcap refunds).<br />

Motion failed<br />

Amendment passed; original<br />

motion passed<br />

Approved<br />

F&A (JT) Move $700,000 for Unit D9 18,000-hour overhaul from 2012 to <strong>2011</strong> (Prod BAR). Approved<br />

F&A (JT)<br />

F&A (JT)<br />

Increase Port Allen Maintenance Shop re-roof and PV installation project costs by<br />

$87,250. Total new budget $387,250 (Prod BAR).<br />

Approval for a 1-year extension of CFC letter of credit for Chevron, allowing time to file<br />

the CFC LOC changes to the PUC for approval (Acctg BAR).<br />

Approved<br />

Approved<br />

F&A (JT) Board Resolution 06-11, Certificate of Deposit for USFW Mitigation $250,000 letter of credit. Approved<br />

AUGUST <strong>2011</strong> 35


36 KIUC CURRENTS<br />

By Kathryn Williams<br />

Tariff Rule #10<br />

Rates and Optional Rates<br />

PURSUANT TO KIUC’S TARIFF RULE NO. 10, SECTION E.3, WHICH STATES,<br />

IN RELEVANT PART:<br />

E.3. Within 60 days after commencement of company’s service, the company shall provide the customer<br />

with a brief explanation of the existing rate schedule and billing practice, including termination of<br />

service procedures and policy:<br />

a. The explanation may be in the form of a brochure or written material sent to the customer;<br />

In addition to the $20 service connection fee charged, you have been placed under one of the following<br />

briefly described base rate schedules applicable to your class of service (for complete schedules you<br />

may view KIUC’s tariff located at www.kiuc.coop or come in to the Lihue office):<br />

Residential Service<br />

SCHEDULE “D”<br />

Applicable to single­phase residential service in single­family dwellings metered and billed separately by<br />

the company. This schedule does not apply where residence and business are combined.<br />

Rate:<br />

Customer Charge: (Per Customer per month) $10.58<br />

Energy Charge:<br />

Energy Rate Adjustment<br />

Clause (ERAC):<br />

All kWh (to be added to<br />

Customer Charge)<br />

All kWh (to be added to<br />

Customer Charge)<br />

$0.34743 per kWh<br />

See explanation at the bottom<br />

of the schedules<br />

The minimum monthly charge shall be $13.50 per customer, per month.<br />

The Resource Cost Adjustment (DSM & IRP) Surcharge shall be added to the Customer and Energy<br />

Charges, and energy cost adjustment.


Small Commercial<br />

SCHEDULE “G”<br />

Applicable to all consumers whose maximum demand is not greater than 30 kW for any 15 consecutive<br />

minutes during a month, or whose energy consumption is less than 10,000 kWh in any month and who<br />

do not qualify under Schedule “D.”<br />

Rate:<br />

Customer Charge: (Per Customer per month) $23.82<br />

Energy Charge:<br />

Energy Rate Adjustment<br />

Clause (ERAC):<br />

The minimum monthly charge shall be $26.45 per customer, per month.<br />

The Resource Cost Adjustment (DSM & IRP) Surcharge shall be added to the Customer and Energy<br />

Charges, and energy cost adjustment.<br />

Large Commercial<br />

SCHEDULE “J”<br />

Applicable when the customer’s energy consumption exceeds 10,000 kWh in any month or the<br />

customer’s load exceeds 30 kW during any consecutive 15­minute period in any month, and to all<br />

consumers whose maximum demand is not greater than 100 kW for any 15 consecutive minutes during<br />

a month, and who do not qualify under Schedule “D.”<br />

Rate:<br />

All kWh (to be added to<br />

Customer Charge)<br />

All kWh (to be added to<br />

Customer Charge)<br />

Customer Charge: (Per Customer per month) $39.69<br />

Demand Charge:<br />

Energy Charge:<br />

Energy Rate Adjustment<br />

Clause (ERAC):<br />

(To be added to Customer<br />

Charge)<br />

All kWh (to be added to<br />

Customer Charge)<br />

All kWh (to be added to<br />

Customer Charge)<br />

$0.35769 per kWh<br />

See explanation at the<br />

bottom of the schedules<br />

$6.62 per month per kW of<br />

monthly demand<br />

$0.32390 per kWh<br />

See explanation at the<br />

bottom of the schedules<br />

The minimum charge shall be the sum of the Customer Charge and the Demand Charge, but not less<br />

than $198.42 per month.<br />

The Resource Cost Adjustment (DSM & IRP) Surcharge shall be added to the Customer and Energy<br />

Charges, and energy cost adjustment.<br />

AUGUST <strong>2011</strong> 37


38 KIUC CURRENTS<br />

Large Power Primary Service<br />

(metered on the primary side of customer­owned transformers)<br />

SCHEDULE “L”<br />

Applicable to all power users with metered loads in excess of 100 kW during any consecutive<br />

15­minute period in any month. Such customers must sign a contract for service for a minimum period<br />

of twelve (12) months except for temporary services.<br />

Rate:<br />

Customer Charge: (Per Customer per month) $355.08<br />

Demand Charge:<br />

Energy Charge:<br />

The minimum charge shall be the sum of the Customer Charge and the Demand Charge.<br />

The Resource Cost Adjustment (DSM & IRP) Surcharge shall be added to the Customer and Energy<br />

Charges, and energy cost adjustment.<br />

Large Power Secondary Service<br />

(metered on the secondary side of KIUC­owned transformers)<br />

SCHEDULE “P”<br />

Available to all power users with metered loads in excess of 100 kW during any consecutive<br />

15­minute period in any month. Such customers must sign a contract for service for a minimum period<br />

of twelve (12) months, except for temporary services.<br />

Rate:<br />

(To be added to Customer<br />

Charge)<br />

(To be added to Customer<br />

Charge and Demand Charge)<br />

$13.94 per kW of monthly<br />

demand<br />

First 400 kWh per kW demand $0.30416 per kWh<br />

All Over 400 kWh per kW demand $0.28141 per kWh<br />

Energy Rate Adjustment<br />

Clause (ERAC):<br />

All kWh<br />

Customer Charge: (Per Customer per month) $369.38<br />

Demand Charge:<br />

Energy Charge:<br />

(To be added to Customer<br />

Charge)<br />

(To be added to Customer<br />

Charge and Demand Charge)<br />

See explanation at the<br />

bottom of the schedules<br />

$11.14 per kW of monthly<br />

demand<br />

First 400 kWh per kW demand $0.31379 per kWh<br />

All Over 400 kWh per kW demand $0.28977 per kWh<br />

Energy Rate Adjustment<br />

Clause (ERAC):<br />

All kWh<br />

See explanation at the<br />

bottom of the schedules<br />

The minimum charge shall be the sum of the Customer Charge and the Demand Charge.<br />

The Resource Cost Adjustment (DSM & IRP) Surcharge shall be added to the Customer and Energy<br />

Charges, and energy cost adjustment.


Street Lighting<br />

SCHEDULE “SL”<br />

Applicable to public street and highway lighting service. Available in general, where the company owns,<br />

maintains and operates the street lighting facilities and has already installed primary distribution<br />

circuits. Service supplied under this rate is subject to the rules of the company.<br />

Rate:<br />

1. Fixture Charge:<br />

a. Monthly charge for standard incandescent fixtures with no more than 4,000 lumen lamps $3.63<br />

per fixture, per month.<br />

b. Monthly charge for standard mercury vapor fixture with no more than 21,000 lumen lamps $6.25<br />

per fixture, per month.<br />

c. Monthly charge for standard high­pressure sodium vapor fixtures:<br />

100 watt $6.25 per fixture, per month<br />

150 watt $6.25 per fixture, per month<br />

200 watt $6.47 per fixture, per month<br />

250 watt $6.47 per fixture, per month<br />

400 watt $6.75 per fixture, per month<br />

2. Energy Charge:<br />

Energy Rate Adjustment Clause (ERAC)<br />

All kWh (to be added to Customer<br />

Charge)<br />

All kWh (to be added to Customer<br />

Charge)<br />

$0.41530 per kWh<br />

See explanation at<br />

the bottom of<br />

the schedules<br />

The minimum charge will be the Fixture Charge per fixture connected to the circuit.<br />

The Resource Cost Adjustment (DSM & IRP) Surcharge shall be added to the Customer and Energy<br />

Charges, and energy cost adjustment.<br />

If the company is asked to remove or relocate facilities within 60 months after installation, the customer<br />

shall make a contribution in the amount of the estimated net removal or relocation cost.<br />

Energy Rate Adjustment Clause (ERAC)<br />

The ERAC adjustment on your bill captures the fuel and purchase power costs that are not already<br />

included in KIUC’s fixed energy charges.<br />

Billing Terms<br />

Bills are due and payable upon receipt. Bills become past due if unpaid within 25 days of the bill date.<br />

When bills are not paid by the due date, electric service may be limited or disconnected. KIUC will<br />

require payment of all past due amount(s), reconnect fee(s), and possible credit deposit before full<br />

service is restored.<br />

Disconnecting Service<br />

Please contact Member Services not less than two (2) working days prior to closing your account or<br />

disconnecting service.<br />

AUGUST <strong>2011</strong> 39


40 KIUC CURRENTS<br />

By Maile Moriguchi<br />

Save on Your Prescriptions<br />

With Co­op Connections<br />

More than $32.4 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<br />

Members can pick up their Co­op Connections Card at KIUC’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.


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 KIUC.<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 have<br />

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 about joining processing,<br />

call the Help Desk at 877.448.6182.<br />

■ You can email to join at<br />

nominations@newbenefits.com.<br />

AUGUST <strong>2011</strong> 41


Statement<br />

of Operations<br />

For the period 01/01/<strong>2011</strong> – 06/30/<strong>2011</strong><br />

42 KIUC CURRENTS<br />

By Karissa Jonas, Controller<br />

We are pleased to report that the KIUC results<br />

of operations through June 30, <strong>2011</strong>, are strong<br />

as the weak economy continues to show<br />

measurable signs of recovery. Electricity usage on<br />

the island is 3 percent higher than in the prior<br />

year. Regardless of the improved sales volume,<br />

KIUC is still doing everything it can, while<br />

maintaining safety and reliability, to reduce costs<br />

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

to maintain a strong financial position.<br />

Revenues, expenses and net margins totaled<br />

$89.8 million, $83.3 million and $6.5 million,<br />

respectively, for the six­month period ending June<br />

30, <strong>2011</strong>.<br />

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

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

$54.4 million, or 60.5 percent of revenues. Fuel<br />

costs are the largest component of power<br />

generation, totaling $47.2 million, or 52.5 percent<br />

of revenues, and representing 86.7 percent of the<br />

cost of power generation. The remaining $7.2<br />

million, or 8.0 percent of revenues and 13.3<br />

percent of the cost of power generation,<br />

represents the cost of operating and maintaining<br />

the generating units.<br />

Percentage of Total Revenue<br />

Taxes<br />

8.4%<br />

Depreciation &<br />

Amortization<br />

7.4%<br />

Administrative &<br />

General<br />

Net of Non-Operating<br />

Margins<br />

6.4%<br />

Marketing &<br />

Communications<br />

0.5%<br />

Interest<br />

4.9%<br />

Member Services<br />

1.8%<br />

Net Margins<br />

7.2%<br />

Transmission & Distribution<br />

Operation & Maintenance<br />

2.9%<br />

Production Operation &<br />

Maintenance<br />

8.0%<br />

Fuel & Purchased<br />

Power Costs<br />

52.5%<br />

The cost of operating and maintaining the<br />

electric lines totaled $2.5 million, or 2.9 percent<br />

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

members totaled $1.6 million, or 1.8 percent of<br />

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

informed totaled $0.5 million, or 0.5 percent of<br />

revenues. Administrative and general costs—<br />

which include legislative and regulatory expenses,<br />

engineering, executive, human resources, safety<br />

and facilities, information services, financial and<br />

corporate services, and board of director<br />

expenses—totaled $6.0 million, or 6.7 percent of<br />

revenues.<br />

Being very capital intensive, depreciation and<br />

amortization of the utility plant costs $6.7 million,<br />

or 7.4 percent of revenues. Although not subject<br />

to federal income taxes, state and local taxes<br />

amounted to $7.5 million, or 8.4 percent of<br />

revenues. Interest on long­term debt, at a<br />

favorable sub­5 percent interest rate, totaled $4.3<br />

million, or 4.9 percent of revenues. Non­operating<br />

net margins added $0.2 million to overall net<br />

margins. Revenues less total expenses equal<br />

margins of $6.5 million, or 7.2 percent of<br />

revenues. Margins are allocated to consumer<br />

members and paid when appropriate.


Simple<br />

Pleasures<br />

A Hanalei Bay Sunset.<br />

Photo by Shelley Paik.<br />

Parting Shot<br />

Members of the KIUC board and management visited Washington, D.C. to discuss the future of<br />

KIUC on Kaua‘i, especially to update them on what has happened in the past years and how KIUC<br />

is moving forward. A side trip was made to General Shinseki, secretary of Veteran’s Affairs. He<br />

was a perfect host to KIUC representatives in his private office.<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: KIUC Currents, 4463 Pahe‘e Street, Suite 1, Līhu‘e, HI 96766­2000.<br />

AUGUST <strong>2011</strong> 43


<strong>August</strong> <strong>2011</strong><br />

Volume 8, Number 4<br />

<strong>2011</strong>­2012 KIUC Board of Directors<br />

Chairman: Teofilo “Phil” Tacbian<br />

Vice Chairman: Steve M. Rapozo<br />

Treasurer: David Iha<br />

Secretary: Allan Smith<br />

Board: Carol Bain, Stu Burley, Ben Sullivan,<br />

Jan TenBruggencate, Peter Yukimura<br />

Finance & Audit<br />

Chairman: Allan Smith<br />

Members: Stu Burley, Jan TenBruggencate,<br />

Peter Yukimura<br />

Government Relations/Legislative Affairs<br />

Chairman: David Iha<br />

Members: Stu Burley, Steve Rapozo, Allan<br />

Smith<br />

Member Relations<br />

Chairman: Steve Rapozo<br />

Members: Carol Bain, Ben Sullivan,<br />

Jan TenBruggencate<br />

Nominating Committee<br />

Chairman: Peter Yukimura<br />

Policy<br />

Chairman: Peter Yukimura<br />

Members: Carol Bain, Stu Burley, Ben Sullivan<br />

Strategic Planning<br />

Chairman: Ben Sullivan<br />

Members: Carol Bain, David Iha, Jan<br />

TenBruggencate, Peter Yukimura<br />

4463 Pahe‘e Street, Suite 1<br />

Līhu‘e, Hawai‘i 96766­2000<br />

808.246.4300 ■ www.kiuc.coop<br />

currents@kiuc.coop<br />

HI-130<br />

Powerlines<br />

The recent weeks have been exciting in terms of our<br />

renewable energy progress, especially with the announcement<br />

of A&B’s plan to develop a 6­MW photovoltaic facility in Po‘ipu.<br />

The completed facility will be the largest on Kaua‘i, and when<br />

added to the existing<br />

1­MW facility in Kapa‘a and the planned 3­MW facility in Po‘ipu,<br />

KIUC likely will have the highest percentage of solar on its system<br />

anywhere in the country.<br />

KIUC continues to work toward its portfolio approach<br />

to renewable energy to reduce dependence on imported oil and increase the amount of energy<br />

generated from Kaua‘i’s resources. In this issue we discuss the hydro vote and give a great pictorial<br />

of an existing hydroelectric project on Kaua‘i. The hydro communication process thus far has<br />

gained support of many, including our state representatives and senator, the mayor, some county<br />

council members, DLNR and other influential people in the community. We sincerely believe this<br />

process is the right thing for Kaua‘i to responsibly investigate potential hydro power. The KIUC<br />

Board of Directors is committed to this process through a Board Resolution that can be found on<br />

our website and is featured in part in this issue.<br />

An issue has surfaced in the past few days involving a group of petitioners questioning KIUC’s<br />

determination that a second petition calling for a member meeting on the board of directors’<br />

May 29 decisions did not have the required number of signatures to necessitate further action.<br />

We want you to know that we took a great amount of time and care in vetting all petitioners’<br />

signatures, and know that the results of this process are accurate. For your information, KIUC<br />

has included in this issue of Currents an explanation of the petition validation process.<br />

Also in this issue of Currents we are pleased to showcase Kaua‘i’s representatives to the<br />

National Rural Electric <strong>Cooperative</strong>s, Washington, D.C., Youth Tour. This is the eighth year KIUC<br />

has sent representatives on the tour, which is also known as “a trip of a lifetime!” The students<br />

had a wonderful time walking the same halls as some of the greatest leaders of our nation,<br />

visiting landmarks that represent the very core of what this nation stands for and discussing<br />

current issues with current leaders in Washington. John Medeiros of Waimea High School also<br />

served as Kaua‘i’s representative to the Youth Leadership Council, which met again in D.C. in<br />

July. John will be attending NRECA’s Annual Meeting in February, and will have the honor of<br />

carrying the Hawaiian flag at the opening ceremonies.<br />

If you missed the quarterly updates in late July or early <strong>August</strong>, we discussed how KIUC is<br />

moving forward with renewable energy, the new smart grid project and KIUC’s latest venture<br />

into social media. Much of this information we have included in this issue of Currents but we<br />

encourage you to follow us on twitter and/or Facebook to stay informed on up­to­date<br />

happenings at our co­op.<br />

Mahalo,<br />

David Bissell

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