According to Kaua‘i Island Utility Cooperation (KIUC) President and CEO Alton Miyamoto, 2003 financial health is “very strong, indicating significant progress made by the KIUC.”
Miyamoto outlined the KIUC’s financial report from January to July of this year in preparation for the co-op’s annual membership meeting and celebration scheduled for today at the Kukui Grove Pavilion from 11 a.m. to 4 p.m. The general membership meeting will commence at 1 p.m.
According to the financial report, revenues totaled $57.5 million, expenses were $51.5 million and margins were $6 million from January to July.
The cost of power generation was the largest expense, totaling $22.5 million or 40 percent of revenues. Administrative and general costs totaled $4.1 million or 7 percent of the revenues.
Operations and maintenance of electric lines costs $1.6 million or 3 percent of the total revenues. Member services from January to July equaled 2 percent of total revenues or $1.1 million.
In addition to the aforementioned items, the depreciation of the utility totaled 14 percent of total revenues or $8.4 million. The interest on long-term debt was $8.8 million or 15 percent of total revenues.
“So far, we have exceeded our financial projections,” Miyamoto said.
Also in the report, the KIUC outlined financial date compiled from November to December of 2002.
The data included revenues and patronage capital. Operating revenues from November to December of 2002 totaled $16,053,723. The operating expenses in that time frame was $12,600,411. The gross operating margins after interest expense amounted to $944,649 (net was $939,391).
The net cash provided by operating activities totaled $2,289,422. The net increase in cash in that time span was $5,472,007.
“In our first 10 months, we have exceeded our financial forecast and begun to deliver on the promise of a cooperative here on Kaua‘i,” said KIUC Chairman of the Board of Directors Gregg Gardiner. “The margins we have assigned to our members through July exceed $6.7 million and our free cash flow for this period exceeds $20 million.
“The Board of Directors is pleased that the employees and management of KIUC have been able to deliver such outstanding results for our members.”
In August, Gardiner, along with board directors Dennis Esaki and Ron Kouchi, traveled to Manila to attend a PHILRECA (Philippines Rural Electric Cooperative Association) conference.
During that conference, the KIUC entered a sister cooperative relationship with Ilocos Sur Electric Cooperative, Inc. (ISECO), headquartered in Santiago, a municipality in the Ilocos Sur province in the Philippines on August 7. It serves the 34 towns of Ilocos Sur.
According to KIUC officials, “Ilocos Sur was chosen as a sister co-op as a result of KIUC directors attending the NRECA annual conference in Nashville, Tennessee, where they met a delegation from the Philippines, including Director Harry Segire, vice-chair of the ISECO board and consulted with the Filipino Council. Ilocos Sur was the ideal choice because approximately one-third of Kaua‘i’s residents are of Filipino ancestry, many of them from the Ilocos region.
While this relationship is one way for our cooperative to help the families of our members; the relationship with ISECO will be beneficial to us as well.”
At Saturday’s first annual meeting, the agenda of activities for the formal meeting include a call to order from Gardiner, an introduction of dignitaries and directors, the presentation of the annual report from Miyamoto and a question and answer session in which members can address KIUC officials with their concerns.
“We want to encourage all members to attend the meeting,” Miyamoto said. “The purpose of the meeting is to inform them about our financial progress and answer any questions that they might have about the KIUC.”
In addition to the formal meeting, there will be local food, Aloha Breeze with Larry Rivera, Russell Wellington, Jason Suzawa and Andy Bumatai, prizes including a Mokihana Travel Las Vegas get-away for two.
The meeting is sponsored by Otsuka’s, Mokihana Travel, Uohara Agency, Lihue Barbecue Inn, Coldstone Creamery, Hale Kauai, Inkspot Printing, Kukui Grove Shopping Center and others.
For more information about the meeting, call 246-4383.
Business Editor Barry Graham can be reached at 245-3681 Ext. 251 or mailto:email@example.com