• Let reality prevail
• KIUC’s rate case
• Bird deaths unfortunate
Let reality prevail
A Latin injunction holds “do not speak ill of the dead.” The media seems to have embraced this motto with enthusiastic abandon.
First example — the late Michael Jackson. Viewed in recent years as a has-been androgynous pedophile, death transformed him to a beloved idol.
The second example is the late Teddy Kennedy, a tabloid favorite viewed as a lecherous buffoon. Remember the jokes, “better to hunt with Cheney than ride with Teddy.” Again, death transformed him to a noble, dedicated lawmaker.
Yes, it is sad when someone overdoses or dies of cancer. We do not need to pretend the victim was brimming with virtue. Reality should prevail.
Suzanne Woodruff, Kapa‘a
KIUC’s rate case
First, a disclosure: My law firm and I are General Counsel for KIUC so this letter comes from that perspective.
I cannot and do not speak for KIUC or its board, but I’ll give you my personal opinion. No one likes rate increases, including me, and, I feel reasonably confident, KIUC’s staff and board who have the thankless task of putting the proposed increase in place.
However, when costs go up, a business needs to increase revenue to stay viable and this generally means price increases, especially if sales volume goes down as currently is the case for KIUC.
Although KIUC is a “not for profit” entity, it is no different from other businesses in that regard. You can’t expect KIUC to sell at a price below what it takes to properly run its business and keep it financially viable, and my understanding is that the PUC’s procedures won’t allow that either.
Unfortunately, the time has come when an increase in revenue is now needed for KIUC, like it would be for most businesses that had not had a price increase for the last 13 years to cover increased costs. That is why I understand the application was filed and why I support it.
KIUC’s base rates have not been changed since they were put in place in 1996 by its predecessor, Citizens Communication’s Kaua‘i Electric Division, despite the fact that over that nearly 13-year period there have been significant increases in teh costs of the non-fuel and purchased power items embedded in these old rates (like salaries and other personnel costs, services and materials KIUC purchases, rents, etc.).
KIUC has been able to accomplish this amazing feat for several reasons:
1. KIUC’s cost of capital is much less than KE’s was so KIUC doesn’t need as much revenue, and the larger amount was built into the current rates in 1996;
2. Because of its cooperative nature, KIUC does not have to make a profit to satisfy shareholders so KIUC could use part of its “margins” to pay the increased costs; and
3. The production plants that KIUC now owns are much more efficient than the production plants that existed in 1996.
I am confident that if the company had remained in the hands of Citizens Communications, Kaua‘i’s electric consumers would have seen two or mroe increases in rates during these 13 years, and would not have seen any of the $20 million in refunds they received or the balance of the margins assigned to each KIUC member.
Under Citizens Communications, the profits would have not remained on Kaua‘i as they mostly do with KIUC but instead would have been sent to the owners of Citizens’ publicly traded shares.
I am not privy to the many factors that have gone into the current application, but I have a great deal of trust in KIUC’s professional staff and its board and accept that they have done their best, and that that the application was done with the best interests of Kaua‘i’s citizens and KIUC’s members in mind.
I also know that the Consumer Advocate and the PUC have very competent staff whose charge it is to make sure whatever is decided is in the best interest of KIUC’s members and customers and KIUC itself.
David W. Proudfoot, Esq., Lihu‘e
Bird deaths unfortunate
We all drive vehicles and fly in airplanes to travel from island to island, to the Mainland, and or other countries. These vehicles and airplanes are modern technologies man has invented to save time for people to reach their destination quicker and be safe from weather conditions like snow, wind, rain, or heat.
While these vehicles and airplanes are in motion it’s very unfortunate when a bird decide to take a flying dive in front of a moving vehicle or a flock of birds fly in the path of an airplane. There is nothing we can do to sop them in their path.
Today we search for new ideas to lower our electric bill because oil prices are so high and our electric bills are ridiculously high. We now look to the natural resources — sun, wind, and water. Some look to burning trash.
I too am in favor of wind farms.
Howard Tolbe, ‘Ele‘ele
