Kauai power company’s nuts and bolts

Some facts about the Kaua‘i Island Utility Cooperative:

» Established in 2002, after the previous owner of the island’s electric company, Citizens Communications Co., decided to get out of the business nationally. Citizens sold the utility to KIUC for $215 million. (The utility had previously done business as Kauai Electric, a subsidiary of McBryde Sugar that merged with Lihue Plantation’s Waiahi Electric Co. in the early 1950s.)

» The cooperative serves about 32,700 meters islandwide, or more than 24,000 active members, residential and business combined.

» The effective rates paid by members for residential service, as of Feb. 1, is about 41.4 cents per kilowatt hour.

» The largest expense is the cost of power generation, totaling $94.5 million, with fuel costs the largest component, about 53.6 percent of revenues, according to the most current figures (Jan. 1-Oct. 31) in 2011.

» Net revenues beyond a set marginal level go into accounts for members; after a period the accounts are "retired," and then members receive "patronage capital" checks. Officials say that for an average residential customer, these can be in the $20 range. Since 2002, KIUC has returned $24.5 million to members in the form of patronage capital retirements and billing credits.

» KIUC is working with the consultant Free Flow Power, a national expert in small hydro technology, to explore the viability of developing additional generation capacity. Initial applications have been filed with federal authorities on four projects, with the goal of boosting hydro capacity to about 20-30 megawatts, roughly triple what it is now.

» KIUC has partnered with Xtreme Power Inc. to install a 1.2-MW battery energy storage system at the Koloa Substation.

» In February last year, KIUC partnered with REC Solar to purchase power from a 1.2-MW photovoltaic solar farm in Kapaa.

» The co-op has agreed to purchase power from a proposed biomass energy facility planned near Koloa. The fuel will include waste wood, invasive trees and vegetation grown on about 2,000 acres.

» The utility has signed a purchase agreement Kauai Farm Fuels for biodiesel derived from agricultural byproducts.