• KIUC’s side of electrical rates KIUC’s side of electrical rates By Alton Miyamoto A recent editorial (Editor’s note: a letter to the editor, not an editorial viewpoint from The Garden Island ) in The Garden Island raised some questions
• KIUC’s side of electrical rates
KIUC’s side of electrical rates
By Alton Miyamoto
A recent editorial (Editor’s note: a letter to the editor, not an editorial viewpoint from The Garden Island ) in The Garden Island raised some questions about how the rising cost of fuel was affecting our electric rates. Here is the correct information.
First, KIUC is not a parenthetical cooperative. The members on this Island fought a good and successful fight to gain control of their own energy futures. We know our rates are high. We commend and are grateful to our members for their remarkable efficiency. Kaua‘i consumers have consistently used less power than any other island, and this is a good first step in reducing your bill.
While we are a cooperative, we are still a regulated utility. Kaua‘i’s high rates are a result of a combination of things: we’re a stand alone electric utility, we are still paying for recovery from two major hurricanes, and the extremely high price of fuel, which the Public Utilities Commission instructs all electric utilities to recover from consumers.
Since August 2003 there has been a 151% Energy Rate Adjustment Clause (ERAC) increase:
June 2004 n ERAC .0852
August 2003 n ERAC .0339
.0513 (151% increase in ERAC)
Using a $2.60 price today less August’s 2003 suggested price of $1.49, the increase in a gallon of gas at the pump is $1.11 or an increase of 74%. Here’s the calculation:
$1.11 ˜ $1.49 = .74 x 100 = 74% increase.
The cost of diesel fuel has increased 57 percent.
June 2004 n $1.6160/gal
Aug 2003 n $1.0265/gal
$.5895/gal (Increase of 57%).
Utility rates are complex and here in Hawai‘i are set by the PUC. However, one thing that KIUC, your cooperative, can and is doing to bring down your cost of electricity is giving you a refund in the form of patronage capital at the end of the year if there is any cash left over after paying expenses. In addition the board and management continue to work toward maintaining a balance between governing and operating an efficient business and meeting the goals of the community.
The co-op is delivering on it’s mission, “To provide high quality, reliable and competitively valued electric service in a safe and environmentally responsible manner consistent with sound business practices and the seven cooperative principles, and to improve the quality of life for our members and for Kaua‘i.”
Alton Miyamoto is President and CEO of KIUC.
