LIHU‘E — Kaua‘i Island Utility Cooperative held a quarterly update Wednesday night in the KIUC Main Conference Room. It was an opportunity for the co-op to share information and to also hear thoughts from members, a news release states.
Topics included in the presentation were the rate case, a seabird update, the “Smart Grid” project, energy storage project, legislative barrel tax, and a renewable update.
Chief Financial Officer David Bissell reported on the status of KIUC’s rate case. “Interveners in the rate case reached a settlement and the PUC issued an interim order,” he said.
KIUC expects new rates to go into effect by June, with a final rate order from the PUC sometime after June. Bissell addressed member concerns on how the rate case will affect residential customers by pointing out that the estimated increase on a residential customer’s bill will be approximately $8 per month, but will be less if fuel costs increase.
KIUC, like virtually all utilities, will continue to pass on fuel cost changes to customers through an Energy Rate Adjustment Clause. However, KIUC’s margins and customer bills will not be as dependent on this adjustment under the new rates since the operating efficiency adder will be much lower, the release says.
The seabird update presented by Support Services Manager Carey Koide included the final 2009 Save Our Shearwater numbers. Of the 265 Newell’s shearwater recovered, 231 were released; of the 15 Hawaiian Petrel that were recovered, 10 were released; and of the two band-rumped storm petrel that were recovered, one was released.
Koide also updated the audience on KIUC’s Habitat Conservation Plan. KIUC submitted its proposed HCP as well as applications for incidental take permit and license to the U.S. Fish and Wildlife Services and the Hawai‘i Department of Land and Natural Resources Division of Forestry and Wildlife in October 2007, he said.
In December 2008, USFWS and DOFAW concluded that they were unable to approve a long-term HCP and incidental take permit and license for the species, Koide said. KIUC, by recommendation of the agencies, modified its HCP in April 2009 to cover a five-year period.
Currently KIUC is awaiting DOFAW’s response to comments during DOFAW’s public review process that closed in December 2009. USFWS has yet to announce its own public review process in the federal register.
Koide also discussed KIUC’s commitment and future plans for mitigation and additional studies of the species, the release says. To date, KIUC has expended more than $4 million for voluntary mitigation, development of the HCP, and to defend against threatened criminal and civil enforcement actions. KIUC has also committed over $3.6 million in mitigation and minimization measures, including additional studies that will directly benefit the protected species once an incidental take permit and license are issued.
In 2003 when DOFAW was no longer able to fund SOS, KIUC seized the opportunity to partner with them, providing funding and technical support for the ongoing program, saving hundreds of seabirds, the release says.
However, KIUC was disappointed when informed earlier in the day that despite these mitigation efforts and others, the U.S. Department of Justice obtained an indictment of the co-op for violations of the Migratory Bird Treaty Act and Endangered Species Act.
‘Smart Grid’
KIUC’s “Smart Grid” project, presented by Engineering Manager Michael Yamane, will bring many benefits to co-op members, the release says. Among the potential benefits listed were greater accuracy, fewer estimated bills, no meter readers on property, billing date flexibility, a way to monitor energy consumption, improved power quality, faster outage restoration, and potential energy efficiency savings for members.
The “Smart Grid” project will install 33,000 smart meters, an island-wide communications infrastructure and associated hardware and software. The demonstration project, funded by the American Recovery and Reinvestment Act, will span a five-year period with two years of installation and three years of data-sharing as required by the grant.
Yamane also spoke about KIUC’s energy storage project. KIUC currently has approximately 4 MW of customer sited PV system throughout the island with the largest system being 800 KW and so far has not noticed technical issues. However, “KIUC is looking at adding utility scale PV ranging between 1-3 MW in size,” he said.
Photovoltaics’ response to cloud cover, voltage variations on feeders, and system frequency excursions will be an issue on a small island system, the release says. These technical issues can be mitigated with energy storage.
Yamane said the co-op applied for grants and funding with National Rural Electric Cooperative Association and Cooperative Research Network but was unsuccessful. KIUC also has been working with Hawai‘i Natural Energy Institute for funding. The co-op has approved $5 million in its 2010 -11 capital budget for the project.
Yamane also addressed the impact the legislative barrel tax will have on KIUC and its members. Yamane estimated a 2.5 cent/gallon additional tax on fuel would equate to approximately a $700,000 impact on the co-op’s margins and approximately $0.77 per month increase to residential member bills.
Renewable projects
President and CEO Randy Hee gave a renewable energy update. He addressed renewable energy projects that the co-op is working on or are in talks with potential developers. The projects include solar, biomass, landfill gas and hydro.
KIUC continues to work with a developer of a 10-15 MW solar thermal energy project in the Kekaha/Waimea area. KIUC is also working with developers for three separate photovoltaic projects that total 5 MW in Kapa‘a, Koloa and Kilauea.
Talks continue with Green Energy for a 6.4 MW biomass projects utilizing albizia and other tree crops on Knudsen Lands. A possible 20 MW biomass project is also being studied.
Landfill gas remains an option as a joint project between PMRF and the county that could generate 1.6 MW of power.
“Hydro continues to play a large part in our renewable portfolio. We are completing a cultural study for long term lease and evaluating upgrade potential for our Upper Waiahi Hydro system. Improvements to existing equipment could increase current output by 300 KW. Other potential projects include 8 MW for Kekaha/Koke‘e Ditch system; 4-10 MW for Olokele Ditch; 4 MW for Upper Wainiha; and 6.6 MW at Wailua Falls,” said Hee.
Increasing end user efficiency is also a goal of KIUC and the Replace, Recycle, Save Energy Star Efficient Appliance Rebate that begins today will help 360 members receive a $250 rebate by replacing their existing refrigerators with new Energy Star refrigerators, the release says. Once those rebates are gone, KIUC will begin offering a $50 refrigerator rebate in addition to the $50 clothes washer rebate currently available through June 30 and the existing solar programs KIUC’s Energy Services section offers.
Visit www.kiuc.coop for more information.
