It was a simple question which temporarily stumped a newsman in a position to know the correct answer: Why do customers of Kaua’i Electric pay some of the highest rates in the nation for electricity? According to Alton Miyamoto of
It was a simple question which temporarily stumped a newsman in a position to know the correct answer:
Why do customers of Kaua’i Electric pay some of the highest rates in the nation for electricity?
According to Alton Miyamoto of Kaua’i Electric, the short answer is fuel prices and the cost of maintaining purchased-power agreements, mainly payments to Amfac for electricity the former Lihu’e Plantation power plant supplies to the utility.
About 7.7 cents of the 23-cent charge per kilowatt hour goes for fuel and the purchased-power agreement between KE and Amfac, Miyamoto said.
A longer answer – and a bit different one – came from Maurice Kaya, administrator of the Energy, Resources and Technology Division of the state Department of Business, Economic Development and Tourism.
Kaua’i customers have had to pay the costs of rebuilding Kaua’i Electric’s system after devastating hurricanes in 1982 and 1992, and to also pay for more redundant systems that give the utility greater reliability.
That greater reliability is necessary because as an island 100 miles away from the next-nearest electrical system, it’s impossible – or at least cost-prohibitive – for Kaua’i Electric to borrow or buy surplus power from neighboring electrical utilities, said Kaya.
Further, all of these costs are spread over a relatively small customer base (about 30,000 customers) compared to some other systems in Hawai’i, the mainland and the world, Kaya explained.
It is that isolation, and hence the need for redundant systems, that should push the island in the direction of intensified development of alternative, on-island energy sources, said Kaya, whose office is the energy-policy arm of state government.
As such, one of the focal points of Kaya’s division is the promotion of energy-efficiency technologies.
“Mainly, our role is to offer suggestions as to how people can reduce their costs by pursuing conservation investments, and also encouraging that the utility companies pursue alternatives that will not be as volatile or so highly dependent on oil,” Kaya said.
At the invitation of state Rep. Mina Morita (D-12th District) and Glenn Sato of the Kaua’i County Office of Economic Development, Kaya will speak at a public forum at Kaua’i War Memorial Convention Hall next Tuesday at 6:30 p.m.
Kaya will report on the energy consumption status on Kaua’i and its economic impact on residents. He will also explain where Hawai’i’s oil supply comes from, its source in the future, and how Hawai’i’s energy is produced.
Last year, 9.9 percent of Kaua’i Electric’s power was generated through biomass, 5.4 percent through hydropower, and 84.7 percent through oil.
This year, with Lihu’e Plantation no longer using as much bagasse as it did last year, the island’s hydroelectric generating facilities currently supply Kaua’i with approximately 6 percent of KE’s power.
Kaua’i Electric has entered into an agreement to purchase power from a potential developer of wind power, once that electricity becomes available. Currently, that potential developer is negotiating with a landowner for a site for the facility, Miyamoto said.
A Kapa’a man has most of the county permits necessary to put up a single windmill on his residential property which would provide enough power for his entire home. To date, he has not erected that windmill.
Regarding Kaya’s presentation, the county wanted to provide a general background on where electricity and energy come from, and where they go.
“Energy is such an important issue, and the county sees public workshops as an effective way to educate and inform Kaua’i’s residents,” said Mayor Maryanne Kusaka. “Recently, several key energy issues have developed in the community, including the pending sale of Kaua’i Electric, KE’s announcement of an energy purchase contract with a wind developer, and the recent interest in a hydroelectric project on the Wailua River by a private developer.
“Each one of us needs to understand the energy issues better. The county hopes to raise awareness through education.”
Kaya has more than 28 years of experience in energy and environmental engineering in Hawai’i. He currently administers statewide energy programs which have achieved national recognition.
Former U.S. energy secretary Bill Richardson appointed Kaya to a two-year term as chairman of the Federal State Energy Advisory Board. That appointment was sustained by current Secretary of Energy Spencer Abraham.
The 21-member advisory board develops recommendations for the U.S. Department of Energy and Congress regarding ifederal energy efficiency and renewable energy programs.
Staff Writer Paul C. Curtis can be reached at mailto:pcurtis@pulitzer.net or 245-3681 (ext. 224).
