Tag Archives: Eric Weinert

Great Info Meeting on How Kaua‘i Formed its Electric Utility Co-op

Richard Ha writes:

We had an interesting presentation Friday from two executives from Kaua‘i’s electrical utility, the Kaua‘i Island Utility Cooperative (KIUC). David Bissell is CEO, and Dennis Esaki was a founding member who only recently left the KIUC board.

Meeting

It was amazing to hear what KIUC went through to purchase Kaua‘i Electric Company and form the utility cooperative. The Kaua‘i County Council and mayor were originally against the purchase, and the PUC turned down its first purchase bid as not being in the best interest of the users. But the founding group continued to rework its plan and was ultimately successful the second time it presented a bid.

In total, it was about a two-year process and the group purchased Kaua‘i Electric Company in 2002 for $215 million. And, Esaki said, referring to the county administrators, “they’re all on board now.”

This month, Kaua‘i’s electricity rates are lower than any of the islands but O‘ahu’s (mostly because of the oil price decline). Most months, its rates are a little lower than the Big Island's and a little higher than Maui.

Since 2003, ratepayers have received $30 million in refunds and patronage capital — the amount of money left after all the bills are paid, and the co-op has met its lenders’ requirements. This is money that circulates back into the community. 

Members have $80 million in equity, which is what they own of the co-op. When the utility was purchased 12 years ago, it was 100 percent debt-financed, so the equity at that time was zero.

KIUC has gone from about five percent renewable energy in 2009 to 18 percent today. It will be at about 40 percent by the end of next year.

From the KIUC 2013 Annual Report (click to enlarge):

Annual report

  Annual Report p. 9

The organization of the co-op also reflects what the people of Kaua‘i want, because its board is selected by the people. Esaki and Bissel said that at first there was almost total, and repeated, board turnover as ratepayers regularly voted out board members who weren’t doing what they wanted. Eventually, they said, the board has stabilized.

Projects are financed through national co-op financing, which results in much lower financing costs.

You can watch a video of the meeting below. Thanks to Chester Lowrey for videotaping!

There was a lot of community interest in the KIUC presentation, with a good turnout from various community groups. The presentation was sponsored by three organizations:

The Big Island Community Coalition, the steering committee of which is made up of David DeLuz, Jr., Rockne Freitas, Michelle Galimba, myself, Wallace Ishibashi, Kuulei Kealoha Cooper, Ka‘iu Kimura, D. Noelani Kalipi, Robert Lindsey, H. M. Monty Richards, Marcia Sakai, Ku‘u Lehua Veincent, and William Walter.

The board of the Hilo-Hamakua Community Development Corporation, which is President Donna Johnson, Judi Steinman, Glenn Carvalho, Eric Weinert, Jason Moniz, Gerald DeMello, Colleen Aina, and Richard Ha.

And Hawai‘i Farmers and Ranchers United, which represents more than 90 percent of the farming goods produced on the Big Island.

Ed Olson donated the use of his Wainaku Executive Center for the meeting.

We have formed a steering committee to discuss this further. The committee consists of Gerald DeMello, Michelle Galimba, Wally Ishibashi, Donna Johnson, Eric Weinert, Vincent Paul Pontieux, Marco Mangelsdorf, Russell Ruderman, and myself. I’ll keep you posted on further developments.

Edited 12/21/14 at 10:45 pm; 1/5/15; 1/30/15.

You’re Invited to a Community Meeting re: Hamakua Agriculture

Richard Ha writes:

Save the dates:

  • Wednesday, October 29
  • Wednesday, November 5
  • Thursday, November 13
  • 6-8 p.m.
  • Laupahoehoe Community Public Charter School Bandroom

On these dates, the Hilo Hamakua Community Development Corporation will hold a series of community meetings to discuss agriculture on the Hamakua Coast. All are welcome (and refreshments are free).

We will take a 40,000 foot view of ag and its outside influences, and then look at the resources available to help us, such as the Daniel K. Inouye-Pacific Basin Ag Research Center (PBARC), the College of Tropical Ag and Human Resources (CTAHR), and the College of Ag, Forestry and Natural Resources Management (CAFNRM) at UH Hilo. 

There are many scientists researching various subjects. What do we want them to work on?

Farmers will be at the meeting to share their knowledge and experience.

Are you looking for land to farm? Kamehameha Schools/Bishop Estate with be there, and the Hamakua Ag Co-op has vacant land.

John Cross, former land manager for C. Brewer/Hilo Coast Processing, will attend. Did you know why all the sugar cane equipment had tracks, rather than rubber tires? Did you know that the plantations frequently planted banyan trees as significant landmarks? 

Jeff Melrose will be at the meetings. He recently did a study that's a snapshot of agriculture on the Big Island. He will talk about on what is grown on the Hamakua coast and why.

Come and talk story with the presenters, learn where you can get additional information, and speak up on what you would like to know more about in the future.

Ag & food security symposia