LIHU‘E — The Kaua‘i Island Utility Cooperative’s Board of Directors on Tuesday gave its approval to a Construction Work Plan that serves as the first step toward applying for low-interest government loans but does not yet include explicit details of
LIHU‘E — The Kaua‘i Island Utility Cooperative’s Board of Directors on Tuesday gave its approval to a Construction Work Plan that serves as the first step toward applying for low-interest government loans but does not yet include explicit details of a possible new fossil-fuel-burning combustion turbine.
“A lot of discussion needs to be had on generation,” said first-year KIUC Director Ben Sullivan, adding that now is the “time to relook at load and fuel forecasts” as the co-op balances its desire to fund renewable energies with the need to maintain coverage for its thousands of members in the short run.
The Construction Work Plan, which covers potential short-term projects through 2012, is required by the U.S. Department of Agriculture’s Rural Utilities Service as a prerequisite for any loan filings and was accepted unanimously by the board.
KIUC President and CEO Randy Hee clarified in a Wednesday phone interview that the plan, as currently constructed, covers transmission, distribution and smaller building facilities but not generation, which will be included in an addendum that could be approved as soon as the October meeting.
KIUC staff told the board Tuesday that while the Construction Work Plan does not presently include generation facilities, the distribution projects that are featured in the plan are tied together with the potential Kapaia combustion turbine, and Hee told the board transmission depends on loads and generation, noting that KIUC made some assumptions about the location of energy sources when designing the Construction Work Plan.
He said Wednesday a so-called GenX facility would likely be located in Kapaia and would burn both traditional oil and biodiesel if KIUC is unable to get a renewable project off the ground quickly enough.
“We need to do some parallel path work in order that the renewables don’t come on stream, we may add a unit that might initially be running on a petroleum,” Hee said, noting that a new oil-burning combustion turbine has not received any authorization from the board and has had no funds allocated or even requested.
Hee said the combustion turbine could cost in the range of $70 million.
With the long-rumored investment in a new oil-burning facility now creeping onto the horizon, some members spoke out against the idea.
“Members are highly dissatisfied with this direction. We keep hearing that this is a ‘parallel project,’ but parallel to what? Why are we moving more rapidly on this than on anything else?” asked Andrea Brower of Malama Kaua‘i in prepared testimony at the meeting Tuesday. “We need to pause and ask ourselves a fundamental question: Do we want to spend even another penny on infrastructure that maintains our dependence on fossil fuels?”
Hee said KIUC hopes to move forward on a biomass project on former Gay and Robinson land, a proposal that he described as KIUC’s “best opportunity right now for renewable project.” He said the Kapaia combustion turbine is simply a backup that is being planned for because all generation facilities have long lead times.
“Updating our grid technologies, renewable energy projects, and a major effort to encourage conservation are no small tasks. However, the longer we delay in moving in this direction, the more difficult it will be and the more we will pay for it tomorrow,” Brower said. “It is my opinion that a majority of members are willing to pay a little more today in order to secure a sustainable, stable, and resilient energy future for their children.”
A KIUC spokesperson said Wednesday the Construction Work Plan would not be available to the public until after it was sent to RUS, which may have happened as early as Thursday.
The board will be workshopping on generation possibilities on Oct. 14, 15 and 16, and could be adding generation projects to the Construction Work Plan soon.
• Michael Levine, assistant news editor, can be reached at 245-3681 (ext. 252) or mlevine@kauaipubco.com.
