While not an item before the Kaua‘i Island Utility Cooperative board of directors at its meeting yesterday, Gay & Robinson’s planned ethanol plant was the topic of discussion during public testimony. Ben Sullivan, member of Apollo Kaua‘i, a group advocating
While not an item before the Kaua‘i Island Utility Cooperative board of directors at its meeting yesterday, Gay & Robinson’s planned ethanol plant was the topic of discussion during public testimony.
Ben Sullivan, member of Apollo Kaua‘i, a group advocating sustainability and energy alternatives, said KIUC should publicly debate the project’s energy implications.
“At the core is a desire to see much broader discourse engage the community much more vigorously,” Sullivan said.
He emphasized that such a large, meaningful project is a critical policy issue for KIUC, particularly the means of powering the plant.
Even though the cooperative has no direct jurisdiction over the Gay & Robinson project, it could end up purchasing surplus energy from the company.
While Gay & Robinson has denied that the ethanol refinery will be coal-powered, it has a multi-fuel permit that allows for fossil fuel use.
Walt Barnes, former and founding KIUC board member, began his testimony on the need for longer terms for board members. But when asked his opinion on the Gay & Robinson project, he said it would be “immoral” to allow a coal-fired facility to increase greenhouse gas emissions when the focus should be on reducing them.
Barnes, a scientist at AT&T Labs, said coal costs less than oil but produces 50 percent more carbon. He asked the board to consider ways to reduce greenhouse gas emissions by 60 percent over the next 50 years and to adopt a resolution to that effect.
Utility planning is done in the long term, he said, which is why such a goal is not unreasonable.
After hearing from the public, board Chair Dennis Esaki acknowledged the importance of the subject for KIUC.
“We have to keep our lights on, but I guess we’re at a turning point where we can’t ignore greenhouse gas emissions,” Esaki said. He added, though, that renewable does not mean free, and rates won’t necessarily drop by choosing “greener” energy sources.
Moving to the agenda items, the board approved an additional $500,000 for retubing of the Port Allen waste heat boiler, which turns hot exhaust gas into steam to drive the steam turbine.
According to Production Manager Brad Rockwell, the project intended to increase reliability of the tubes when it received funding in the 2007 budget. But further investigation revealed that excess heat was escaping from the exhaust stack.
Rockwell said the additional funds will go toward increasing the system’s efficiency.
Also receiving board approval was a motion to fund about $500,000 to relocate utility poles due to a highway-widening project from Wailua to the Kapa‘a Bypass Road.
According to board member Peter Yukimura, KIUC has been asked to move poles on the makai side of the Wailua bridge. Yukimura noted that the right-of-way agreement stipulates that KIUC pay the first $10,000 in costs and split the remainder.
KIUC’s estimated contribution will be $525,000.
In the final action item requiring funding, the board approved roughly $8,600 to hire a facilitator to lead a strategic planning workshop in late August for nine KIUC staff members and the full board.
According to board member Derek Kawakami, Sue Diciple was selected for her qualifications and experience working with cooperatives. He added that the fee is “very reasonable considering her credentials.”
In reviewing the figures for June, KIUC President and CEO Randy Hee addressed outages and fuel prices.
For the month, there were two “reportable” outages and nine outage events.
Fuel prices rose this month, as expected, though Hee said they were still below the 2005 and 2006 peaks.
Hee noted that recent state legislation instituted a one cent per gallon tax on diesel fuel, which Hee estimated could result in an added cost of $16,000 this year.
But adaptive volt repairs to the Lihu‘e and Kapa‘a sub-stations could increase efficiency and save up to $1 million annually. Hee explained that the fixes optimize voltage that is fed to customers, which means they have to purchase less.
According to Chief Financial Officer David Bissell, sales revenue was greater than the budgeted figures, and sales growth was seen across all customer classes — a change from last year’s flat levels.
The heat rate, however, was up, which measures the fuel required to create each kilowatt hour sold.
Rockwell said the unexpected failure of the second largest generator earlier in the year pushed back regular maintenance — which usually takes place during February through April — until the highest-demand months of June and July.
Looking forward, Rockwell said that a cool fall and winter could help the heat rate get back on track.
“If the weather cooperates, … demand would be down and we could meet some of our heat rate targets,” Rockwell said.
The next regular board meeting will be Aug. 28 at 1:30 p.m. at the KIUC building in Puhi.
