In 2007 Kaua‘i people and businesses spent more than $160 million, or over $3 million per week, for their electric power. This year costs are even higher. For residential consumers, KIUC charges earlier this year reached an appalling $.47 per
In 2007 Kaua‘i people and businesses spent more than $160 million, or over $3 million per week, for their electric power. This year costs are even higher. For residential consumers, KIUC charges earlier this year reached an appalling $.47 per kilowatt-hour, by far the highest rates in our nation. This burden is critically affecting Kaua‘i’s businesses and financially endangering our citizens.
The users of electric power on Kaua‘i have two compelling needs — to reduce the cost of the power and to replace the dependence of KIUC on fossil fuel generation with alternative energy sources. These needs are not now being met by KIUC.
KIUC announced last year that it would be converting over a 15 year period a portion of its use of fossil fuel for generation of power to one or more forms of alternative energy. However, at this date KIUC has only one completed power purchase agreement although it is in discussions with several parties. The signed agreement covers about 6.4 megawatts of power.
In August of this year a presentation was given to KIUC of the Western Renewable Energy, LLC (WRE) program to supply KIUC, following completion of necessary modular facilities and contractual arrangements, 19, 38 or 57 megawatts of power generated from bio-mass conversions at a target price of 16 cents per kilowatt. The WRE program would involve as a major component use of combustible materials from the county’s solid waste landfill in Kekaha. This would save the county a significant portion of its solid waste disposal costs and greatly extend the useful life of the landfill.
Implementation of the WRE program would require bringing together the participation of the county in providing WRE access to the Kekaha landfill and approving plans for the location and operation of the WRE generation facilities, and of landowners such as Grove Farm and private waste haulers with available biomass materials.
It is expected that it would take about two years following completion of governmental approvals to construct the necessary facilities to activate use of the WRE program. WRE is prepared to invest all funds required to this end and will require no expenditures by either the county or by KIUC.
The benefits of the WRE program for electric power users on Kaua‘i would be dramatic. Let’s assume that WRE builds two facilities, one adjacent to the Kekaha solid waste landfill and the other convenient to biomass materials. They would be environmentally friendly and offer 19+ megawatt capacities each and replace power now being generated by KIUC fossil fuel plants.
KIUC is presently charging its residential class members, who use about 35 percent of the power supplied, about 40 cents per kwh for their fossil-fuel generated power. Most other user classes pay slightly more. Those rates will rise if oil prices escalate as expected. If that power were being bought from WRE at 16 cents per kwh, and estimating an addition of 8 cents per kwh for distribution and administration costs including debt service, rates could be reduced an amount up to 20 cents per kwh. Such a saving would amount to as much as $50 million annually. To put it another way it is costing KIUC users something like $1 million per week to continue to have their service supplied by fossil fuel power.
WRE is, of course, not the only source for alternative energy power. Other systems have potential including solar, wind and hydro. But I am advised that WRE is the only firm that has stated it is ready at this time to provide the necessary investment in Kaua‘i for substantial alternative energy generating facilities.
In order to attain this WRE package a number of conditions must be met. Our county government must agree to give WRE access to the county solid waste landfill and to approve permits for the conversion facilities. WRE must obtain rights to obtain a suitable supply of organic materials from Kaua‘i landowners such as Grove Farm. KIUC must agree to a long-term power purchase contract. The state must provide a renewable energy certificate. And WRE must make the investment to construct the necessary facilities.
With the present formidable costs for fossil power, time is vital. We cannot justify a let’s-think-about-this-for-a-while attitude. KIUC’s announced concept of having alternative fuel for most of Kaua‘i’s requirements in 15 years is too little, too late. The sooner that the present costs can be reduced, and the reliance on foreign fossil fuel can be changed, the better it will be for our economy and our people. I am informed that KIUC is well aware of the importance to reduce power users costs and to lessen dependence on fossil fuel and would view constructively new ideas. The program WRE is prepared to commit to is really a win-win for our community. It will allow significant reduction in our costs for electric power, it will enable large reductions in the county’s costs for solid waste disposal, and the construction and operation of the new facilities will provide jobs for our people.
The WRE management is planning to visit Kaua‘i in December to provide information about their program and meet with our government leaders and KIUC officials. All of us are affected by how our island power needs are resolved. We should make every effort to inform ourselves about our position and what might be done to improve it.
• Walter Lewis is a resident of Princeville and writes a bi-weekly column for The Garden Island.
