At a political forum at Kula school in Waipake Saturday, six declared mayoral candidates took stands on a proposal by Kaua’i Island Utility Co-op to buy Kaua’i Electric for $215 million. The forum was held just days before a Public
At a political forum at Kula school in Waipake Saturday, six declared mayoral candidates took stands on a proposal by Kaua’i Island Utility Co-op to buy Kaua’i Electric for $215 million.
The forum was held just days before a Public Utilities Commission public hearing on the proposed utility sale. The hearing is set for 4:30 p.m. Wednesday at the Kauai War Memorial Convention Hall.
Hanalei resident Ray Chuan and Kaua’i County Councilman Bryan Baptiste called for a much-needed electricity rate reductions.
But residents may only see rates increase as long as corporations run the utility, cautioned Councilman Randal Valenciano. Corporations are accountable to their shareholders seeking profits and not to utility customers, Valenciano said.
Jeffrey Mallan said both the county and the co-op are controlled by the government, which he contended, doesn’t serve the best interest of residents.
Council Chairman Ron Kouchi said the only form of county ownership he would support would be a “form recommended by a governance committee,” and that would be an independent power authority. Semiautonomous in nature, the entity could bring about “retention of good employees.”
Dennis Nimkie said the county’s ownership of the facility would be a grave error. Several hundred more employees would have to be hired – at the expense of taxpayers – in the future to operate the facility, he said.
The subject of the Kaua’i Electric sale was among the hottest issues brought out at the forum.
The forum was sponsored by 12th grade government and economics students at school. The idea for it was initiated by Amy Martin, a parent of two students at the school.
The candidates had this to say about the sale:
– Chuan said “the reason for changing the electric provider on this island, which has the highest rates in the nation, is simply to protect the consumer, the rate payer. And how do we do that? By lowering the rate.”
Chuan said it didn’t matter whether the eventual operator of the utility is a “ventured-owned utility, a county power authority or another different eventual owner, or a local organization with members.
“Any of these will be fine as long as the public is benefited by it through a rate reduction,” Chuan said.
– Baptiste said the KIUC’s applications to the PUC proposing the completion of the sale of the utility are complicated, but the “bottom line is the rate relief to you, your neighbors and the people around you.”
Baptiste said as the application process plays itself out, more data will surface that will “show us, if, and, more importantly, when, there will be some rate relief for the people of Kaua’i.”
Baptiste also said he wants to see Kaua’i Electric employees retained because they are doing a good job.
– Nimkie said the county and KIUC are the two main contenders for the utility, but it would be too costly for Kaua’i taxpayers in the long run if the county takes it over.
Kaua’i Electric currently has about 100 employees, but “my gut reaction on this is that within five years, that will be 100 (employees) will be 200 and the next year after that, 300, 400.”
“The county would be creating jobs, but who would be paying for those salaries?” Nimkie said “That would be us.”
– Wallen said residents will lose out whether the county or the co-op takes over the utility.
Because both are controlled by the government, residents should not expect a fair deal from either. “In effect all of us citizens are in a no-win situation,” Mallan said.
A member of the Libertarian Party, Mallan said “we believe in no government. I am an anarchist in the highest sense of the way.”
– Valenciano said he would not support a “continued investor-owned utility” because the “duty of the corporation or investor-owned utility is to satisfy the stockholders, which probably means a rate increase.”
Valenciano also said that some people may be misinterpreting parts of a county study on the sale. “Its not true (that the study) favored county ownership,” he said.
Related to the study, a governance committee “came out a four-to-four vote, one supporting the purchase with certain conditions and one supporting a county-owned power authority through another form of conditions.”
– Kouchi said he hasn’t taken a position on the KIUC purchase proposal, and is waiting for a county consultant’s report that will provide an assessment on whether the deal is good or bad for Kaua’i.
Kouchi also said he supports the “people of Kaua’i, in some form or shape, owning the utility.”
“I do not want to se us continue to have a private investor own the utility and continue to see our rates increase.”
The PUC is reviewing a petition from KIUC for the purchase and must approve it before the sale can be finalized.
Two years ago, the co-op tried to buy Kaua’i Electric for $270 million, but the PUC rejected the proposal.
Last month, the PUC approved intervenor status in the proposed sale for the county and the U.S. Department of the Navy because both would be affected by the potential sale.
Staff writer Lester Chang can be reached at 245-3681 (ext.225) and mailto:lchang@pulitzer.net
