LIHU‘E — With Saturday’s election just days behind them, the three new members of the Kaua‘i Island Utility Cooperative Board of Directors wasted no time getting to work. Ben Sullivan, Steve Rapozo and Stu Burley were officially sworn in Tuesday
LIHU‘E — With Saturday’s election just days behind them, the three new members of the Kaua‘i Island Utility Cooperative Board of Directors wasted no time getting to work.
Ben Sullivan, Steve Rapozo and Stu Burley were officially sworn in Tuesday morning, replacing Raymond Paler, Dee Crowell and Dane Oda on the nine-member board in time to vote for the body’s officers for the coming year.
In a surprise move, Dennis Esaki stepped down from his position as chairman of the board, and Teofilo “Phil” Tacbian was named as his replacement.
“We feel we’ll get more involvement from others in here,” Esaki said when asked why he no longer wanted to be in charge. “Sometimes you can get more done if you’re not the chair.”
Esaki will serve as chairman emeritus, which will allow him to advise the board’s seven committees. He will also continue to serve on the National Rural Electric Cooperative Association’s Marketing and Communications Committee, and will make three trips each year in that role. Other officers — all of whom were the only ones nominated for their position and all of whom were approved unanimously — include Vice Chair Peter Yukimura, Treasurer Allan Smith and Secretary David Iha. Carol Bain and the three newcomers round out the panel.
Sullivan, who earned the most votes in the election, said his primary goal is to help the board better engage the community.
“The community can help the decision-making process in a meaningful way,” he said. “Everyone knows we need to move to renewables … we need a loud voice calling out to the community.”
Just hours after the swearing-in ceremony and officer appointments, the board returned for its first regular monthly meeting under its new leadership and immediately received some gloomy forecasts.
Chief Financial Officer David Bissell said abnormally cold winter weather — February’s average temperature was a chill-inducing 70 degrees and the month’s 139 fueling degree days marked the lowest in more than a decade — allowed hotels to turn off their air conditioners, driving megawatt-hour sales even lower than was expected under the poor economic climate.
February sales were down some 12 percent from the budgeted total of 37,200 megawatt-hours, and down some 20 percent from the projected $10.9 million. KIUC has pulled in just $18 million through the first two months of 2009, compared to $29 million over the same stretch in 2008.
“My opinion is that the economy has not hit bottom” yet on Kaua‘i, Bissell said, adding he expected the numbers to rebound as the temperatures increased, and that one-half to two-thirds of the problems were weather-related. “Events are ganging up on us.”
Of foremost concern is the cooperative’s obligation to meet a minimum times interest earned ratio of 1.25 in two of three years as part of its covenant. If 2009 continues along the same path as its first two months have, KIUC’s ratio for the year will come in very close to that mark, Bissell said.
As the need for renewable energy sources grows more urgent and the financial viability of the cooperative becomes more questionable, the new directors take office during a critical moment in KIUC history.
“With this opportunity, we have a responsibility to act quickly and decisively … to stave off real economic hardship,” Sullivan said after being sworn in. “There is a lot of work to do, so it’s appropriate that we get right to it.”
