• Bills won’t impact KIUC rates • Flexibility will help protect KIUC members • Kaua‘i bodyboarders shine in the spotlight Bills won’t impact KIUC rates Regarding the letter titled “How will bills benefit KIUC rate structure?”, SB 1045 and HB
• Bills won’t impact KIUC rates • Flexibility will help protect KIUC members • Kaua‘i bodyboarders shine in the spotlight
Bills won’t impact KIUC rates
Regarding the letter titled “How will bills benefit KIUC rate structure?”, SB 1045 and HB 815 don’t have anything to do with rates and will not affect the amount that customers are paid for their solar power. The Public Utilities Commission determines the method by which customers are paid.
What does this legislation do for KIUC? It gives the PUC the ability to recognize that a member-owned, not-for-profit cooperative is different than an investor-owned utility. In areas where it makes sense, the PUC can regulate us differently than Hawaiian Electric Co. and its subsidiaries. This can likely save us considerable money in regulatory-related expenses.
So-called Schedule Q payments for solar are based on what costs KIUC “avoids” by receiving the energy from the PV panels instead of burning oil.
We expect our power-generation costs to decrease as we bring more renewable projects online. As our costs drop, the amount paid for power under Schedule Q will also drop.
KIUC does not pay one price for PV and then double it in our rates. The difference between our retail rates and what we pay for purchased power reflects all the costs of providing utility service to all members 24 hours a day. These costs include maintaining the lines and generating plants that provide reliable power whether the sun is shining or not.
There are many ways to obtain information about KIUC and we have extensive information about PV interconnection on our website, www.kiuc.coop. You can also call 246-4300 or send an email to info@kiuc.coop and we’ll get back to you with answers to your questions.
And as always, members are welcome to ask questions at our monthly board meetings. The schedule is posted on our website.
Jim Kelly
Communications manager KIUC
Flexibility will help protect KIUC members
In his April 5 opinion piece, Walter Lewis mischaracterizes House Bill 815 and Senate Bill 1045, current legislation concerning KIUC. Hawai‘i’s laws do not make a distinction between investor-owned utilities and electric cooperatives, so the Hawai‘i Public Utilities Commission (HIPUC) must apply all applicable laws and administrative rules equally, often to the detriment of the cooperative model and its principles and at substantial cost to its members.
Hawai‘i laws governing electric utilities are structured to regulate profit-driven, investor-owned utilities where tension exists in addressing shareholder and ratepayer interests. However, electric cooperatives are nonprofit, member-owned organizations that typically align ratepayer/member interests.
Lawmakers did not contemplate the electric cooperative model when enacting Hawai‘i’s regulatory laws. Therefore, it would be appropriate for the Legislature to grant the HIPUC discretion to review regulatory laws and rules, and to allow for the waiver of application of those laws and rules when found to be unjust, unreasonable, and not in the public interest with respect to electric cooperatives.
These bills include safeguards for the electric cooperative customer. Waiver and exemption applications must go through a proceeding where the Consumer Advocate is required to be a party and other qualified parties may participate. Evidence must show the law or rule under review to be unjust, unreasonable, not in the public interest and in conflict with the principles of electric cooperatives. Resulting decisions and orders are appealable to the Hawai‘i Intermediate Court of Appeals.
Until laws specific to electric cooperative regulation are enacted, allowing the HIPUC some flexibility and discretion helps to protect the interest of Kauai’s electricity customers.
Hermina Morita
Chair HIPUC
Kaua‘i bodyboarders shine in the spotlight
Mahalo Mayor Bernard for proclaiming Jeff Hubbard Day and celebrating the life of our world champion and the pro bodyboarding circuit.
USBA and IBA have played a major role in the presentation of Hubbard. On the KBA amateur to professional side of things, the newly-crowned Kaua‘i opio professionals of 2012 should be congratulated as well.
The Kaua‘i opio rocked the industry. They traveled across the country to New Jersey following the USBA tour, back to California, then to Pipeline, where Kauaian youth showed their counterparts a thing or two. One youth had many of the pro riders perplexed with his ability to pull off a certain maneuver with style and grace that eludes kupuna bodyboarders.
KBA celebrated six years providing our talented athletes the venue and opportunity to rise to the occasion. Amateur to professional status has been accomplished. KBA will continue to prep our opio and feed the industry with the younger set as in 2012 with a 12-year-old bodyboarder at Pipeline competing with the experiences and techniques of older bodyboarders. Kaua‘i is at the forefront and we hope to continue to shine as we have with the Hubbard men at the helm.
Debra Kekaualua
Kapa‘a
