KIUC's Future

SUBHEAD: On Thursday, 7 January 2010 KIUC will have a special Board Meeting that will include public comment.

Image above: Residential solar-voltaic generating system in Timaru, New Zealand. From http://www.smartenergyltd.co.nz/on-site-power-generation  

By Juan Wilson on 5 January 2010 in for Island Breath -
(http://islandbreath.blogspot.com/2010/01/kiucs-future.html)

On 10 August 2000 the Honolulu Star Bulletin reported:  
"The Kauai County Council yesterday "concurred" in a decision by Mayor Maryanne Kusaka to spend up to $100,000 to hire a consultant for an appraisal of Kauai Electric. Left open was the question of whether the county would use the appraisal to fight the purchase of Kauai Electric by a local business co-op before the Public Utilities Commission or as a preliminary step in an attempt by the county to purchase the utility." 
Such a course would have entailed risk. There may have even been discontinuity in service for a bit. Had the Kauai County let Kauai Electric go bankrupt, or refused to bailout then owners Citizen's Communications Company, we might be in better shape today. Had the county moved forward in taking over the failing utility, today we might have a debt free, non-profit publicly owned electric company... in other words - a real cooperative.

A BAD DEAL
But that was not to be, and in 2002 when Kauai Island Utility Cooperative took over Kauai Electric for whopping $215 million. From then on the Garden Island was condemned to live with a debt-burdened private utility company with no clue as to how to face the future.
 The underlying agenda for KIUC has been to not have anything disturb the lives of those that live on Kauai. That means no interruption or reduction in service. That means no significant change in lifestyle or working arrangements.

The result is that KIUC it wants to maintain continuity at any cost. KIUC has plans to move away from diesel fuel as the primary source of energy production on Kauai. It's just that how and when that happens just doesn't match up with how reality will unfold.
• KIUC plans to build another fossil fuel plant on island is patently absurd.
• KIUC is committed to a bio-fuel plant in what was once a sugarcane mill.
• KIUC wants to use 100 acres of farmland to build a solar thermal generator. 
This is so we can keep on doing what we are doing without a pause. All these plans amount to just burning more stuff (raising CO2) in place of growing food or living with less electricity. KIUC is not a cooperative. It is a monopoly corporation that has a huge debt obligation that the residents of Kauai are enlisted to service. It seems not capable of doing what is necessary to lead us into the future.  

A GOOD DEAL
KIUC should have adopted a strategy, that has often been suggested, that would lead to financing a distributed residential generating capacity rather than a centralized large scale system. These residential capacity would be home photo-voltaic systems, and home wind-generators (both built with battery storage capacity).

These residential systems would be attached to a "smart grid" operated by KIUC. Then KIUC would buy all the power provided by these residential systems; sell collected power to those not generating power; and charge a modest access fee to all attached to the cooperative's grid.

There are simple capitalizing instruments, like credit unions, that could offer to loan money to purchase residential generating systems that would at the cost we pay for KIUC power today. Over time KIUC would back away from being a power generating corporation and embrace being a the cooperative network of a distributed power-generating community.

An important point is that people need to realize that they can only use the energy that they can afford to produce themselves themselves. This direction is the opposite of the strategy KIUC is pursuing. They talk about conservation and alternative (centralized) energy sources, but the reality before us requires massive demand-destruction (using much less power) and distributed generation. Bottom line:

We need to burn less - not more! KIUC's schedule to meet its alternative generating plans is decades too late of the oncoming changes at hand.

The ability of financing true change in the KIUC system came and went with the peak of the housing bubble. We may be past the $147/barrel oil of 2008, but in 2009 oil prices nearly doubled to $80/barrel. If there is any economic recovery oil will be past $100/barrel is a flash. If there is no recovery we won't be able to afford KIUC's future plans.

Even so, there are important changes that can be made with little cost. Our state Public Utility Commision (PUC) would need to be involved and KIUC would have to alter its mission from "centralized reliability" to "distributed-flexibility". Three proposals bear repeating:  

ONE - Buy power from Co-op Members:
KIUC needs to get the cap lifted on co-generating restrictions (buying power from residential system). They should buy all power provided by users (at a reasonable discount). That means running the meter backwards and providing payment to co-op members.  

TWO - Let Co-op Members Buy From Each Other:
A condition of KIUC co-op membership is that members are restricted from buying power from anyone but KIUC. That is a damper on solutions we need to experiment with.  

THREE - Finance Distributed Power Generation:
KIUC should institute a non-profit financial program for small-businesses and home-owners to acquire wind and solar generating capacity.  

REALITY CHECK
It appears that neither the KIUC directors or cooperative members are comfortable with the future that is approaching. They dream of techno-fixes or any other means by which things might be kept just as they are. But that is just not going to happen. Each of us needs to determine how we will provide much more of our own energy, food, transportation and entertainment. If we act effectively we will be more independent and self-reliant. Things won't be worse than they are now - just different.

WHAT:
Special Meeting of the Board of Directors of Kauai Island Utility Cooperative (KIUC)  

WHEN:
Thursday, 7 January 2009 at 10:30am  

WHERE:
KIUC Main Conference Room at 4463 Pahee Street, Lihue, Kauai  

WHY:
Public Comment as required and consideration of Green Energy Team contract extension.  



See also:
Ea O Ka Aina: Municipal Bonds for Solar Panels 11/6/09

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