KIUC's Rate Case - Kauai Island Utility Cooperative

STATEMENT OF
OPERATIONS
For the period 01/01/2009 – 4/30/2009
By Karissa Jonas, Controller
KIUC operations through April 30, 2009, are being
impacted negatively by the weak economy and low fuel
costs. Electricity usage on the island has significantly
decreased, primarily due to the reduction in visitors to the
island. KIUC is doing everything it can, while maintaining
safety and reliability, to reduce costs in various areas to
continue to meet the co-op’s loan covenants. Revenues,
expenses, and net margins totaled $36.7 million, $36.8
million and $0.1 million, respectively, for the four-month
period ending April 30, 2009.
As is the case for all electric utilities, the cost of power
generation is the largest expense, totaling $18.5 million
or 50.3 percent of revenues. Fuel costs are the largest
component of power generation, totaling $13.8 million or
37.5 percent of revenues, and representing 74.6 percent
of the cost of power generation. As a point of reference,
fuel costs have decreased by 55 percent or $16.7 million,
from $30.5 million a year ago. This has resulted in the
substantial decrease in the member’s monthly electric
bills. The remaining $4.7 million or 12.8 percent of
revenues and 25.4 percent of the cost of power
generation represents the cost of operating and
maintaining the generating units.
The cost of operating and maintaining the electric lines
totaled $1.6 million or 4.3 percent of total revenues. The
cost of servicing our members totaled $1.3 million or 3.4
percent of revenues. Administrative and general costs—
which include marketing and communications, legislative
and regulatory expenses, engineering, executive, financial
Depreciation &
Amortization
15.3%
Administrative &
General Net
of Non-Operating
Margins
9.8%
2 Days
110 miles
August 8-9, 2009
Taxes
8.5%
Percentage of Total Revenue
Member Services
3.4%
Interest
8.7%
and corporate services, and board of directors expenses—
totaled $3.9 million or 10.5 percent of revenues.
Being very capital intensive, depreciation and
amortization of the utility plant costs $5.6 million or 15.3
percent of revenues. Although not subject to federal
income taxes, state and local taxes amounted to $3.1
million or 8.5 percent of revenues. Interest on long-term
debt, at a very favorable sub-5 percent interest rate, totals
$3.2 million or 8.7 percent of revenues. Non-operating
net margins added $0.3 million to overall net margins.
Revenues less total expenses equal margins of ($0.1
million) or (0.3 percent) of revenues. Margins are
allocated to consumer members and paid when
appropriate.
PARTING SHOT
Net Margins
-0.3%
Transmission & Distribution
Operation & Maintenance
4.3%
www.ParadiseRideKaua‘i.com
Fuel & Purchased
Power Costs
37.5%
Production Operation &
Maintenance
12.8%
The annual fundraising event for Malama Pono Kaua‘i AIDS Project
www.malama-pono.org
We’re always looking for interesting items to feature in Parting Shot. If
you have an item to share with readers, please e-mail
currents@kiuc.coop or send it to: KIUC Currents, 4463 Pahe‘e Street,
Suite 1, Līhu‘e, HI 96766-2000.