While meeting with the president and chairman of Kaua’i Electric’s parent company earlier this week, Kaua’i County Councilman Ron Kouchi asked them to issue a press release clarifying the company’s continued intent to sell the utility. That would help control
While meeting with the president and chairman of Kaua’i Electric’s parent company earlier this week, Kaua’i County Councilman Ron Kouchi asked them to issue a press release clarifying the company’s continued intent to sell the utility.
That would help control rampant rumors regarding a possible sale or county acquisition, and allow the county and others to concentrate on other salient issues surrounding the utility rather than conducting rumor control, Kouchi said.
“It’s very difficult to get on focus, on point, to get to issues,” with the various rumors floating around about, among other things, alleged personality conflicts between the county, Kaua’i Electric and another of its suitors, Kaua’i Island Utility Co-op, he said.
Kouchi, the council chairman, and other members of the council met Monday with Leonard Tow, chairman and chief executive officer, and Rudy J. Graf, president and chief operating officer, of Citizens Communications, the Connecticut-based parent company of Kaua’i Electric.
Kouchi said the executives agreed to issue a press release. None came to The Garden Island in time for this article, but the latest official information is confirmed on Citizens’ Web pages: That the company remains committed to selling its public-service businesses to concentrate on acquisition and operation of telecommunications lines.
Also still for sale, according to the company, are its natural gas operations, including The Gas Company in Hawai’i, which like Kaua’i Electric is part of Citizens Energy Services, a branch of Citizens Communications.
Getting away from the rumor mill would help the county finish assessing the value of Kaua’i Electric and help the Committee on Governance of an Island Utility finish evaluating governance options, Kouchi said.
The Citizens executives met with Mayor Maryanne Kusaka while on Kaua’i for awards ceremonies for the company’s top managers and salespeople at the Hyatt Regency Kaua’i Resort & Spa in Po’ipu.
“The mayor was grateful for the opportunity to discuss the present state of affairs with Citizens, and to confirm their desire to sell Kaua’i Electric,” said Beth Tokioka, county spokeswoman.
Kusaka “updated them on the county’s activities, including an appraisal, and she stressed the importance of appraisal to the ultimate outcome of the sale,” Tokioka added.
Kusaka invited the men to address the Monday afternoon meeting of the Committee on Governance of an Island Utility, but they declined.
Kouchi said he told Tow and Graf that he’ll understand if they “vigorously defend” any condemnation proceeding initiated by the county to acquire Kaua’i Electric. Citizens has fiduciary responsibilities to its shareholders, Kouchi noted.
About a year ago, Citizens and the Kaua’i Island Utility Co-op reached an agreement to sell Kaua’i Electric to the co-op for $270 million. But the deal was scuttled when the state Public Utilities Commission denied the transfer application, saying the purchase price was so high it would likely mean increased electricity rates for consumers.
Customers of Kaua’i Electric already pay some of the highest rates in the country, per kilowatt hour, for electricity.
Gregg Gardiner, co-op board president, wouldn’t comment when asked whether he or other co-op representatives met with the Citizens officers while they were here.
Turk Tokita, founding member of Kaua’i People Power, a grassroots organization founded recently to build support for a controlled electric cooperative on Kaua’i, had lunch with Graf, though Tokita said he avoided the subject of the sale of Kaua’i Electric.
Tokita said Graf was interested in how Kaua’i People Power is supporting the efforts of Kaua’i Island Utility Co-op. He said Graf offered his assistance to Kaua’i People Power.
Staff Writer Paul C. Curtis can be reached at mailto:pcurtis@pulitzer.net or 245-3681 (ext. 224).
Staff Writer Dennis Wilken contributed to this report.
