A one-time credit could be distributed to all customers in November 2004, according to members of the Kaua‘i Island Utility Cooperative (KIUC) board of directors.
Board members are thinking of offering the credit in an effort to give customers extra savings gained through the purchase of the Kauai Power Partners electric plant in Kapaia.
The total refund would be up to $1 million, and would be based on KIUC’s “financial planning to be conducted in 2004.”
“This refund will be in addition to the patronage capital scheduled to be refunded to our members in spring of 2004, and is in recognition of the anticipated additional benefits which will arise from the purchase of the KPP power plant,” stated Alton Miyamoto, president and chief executive officer of KIUC.
KIUC officials announced in August they had agreed to purchase the 26.4-megawatt power plant from Kauai Power Partners’ parent company Dominion Resources for $40.2 million, subject to approval by the state Public Utilities Commission.
“A refund to our customers should pass on some of the savings that will result from the KPP purchase,” said Gregg Gardiner, chairman of the KIUC board. “Reducing costs is a high priority for KIUC.”
The KPP plant has the highest efficiency of any of KIUC’s generating plants, and represents 40 percent of the cooperatives’ generation mix.
KIUC’s financial planning will include input from its lenders, and will be submitted to the state consumer advocate and the Public Utilities Commission.