Kaua‘i Island Utility Cooperative commits to 100 percent renewable energy by 2033

LIHU‘E — The new Kaua‘i Island Utility Cooperative strategic plan commits to an ambitious target of 100 percent renewable energy by 2033.

This is 12 years ahead of the state mandate requiring utilities shift to 100 percent renewable power by 2045.

“Our strategic plan reflects a desire to continue our movement towards 100 percent renewable in an accelerated manner for both environmental and economic reasons,” said KIUC CEO David Bissell in a statement to The Garden Island. “Renewable energy is not always cheaper than fossil-fuel-sourced, however, renewables have had a stabilizing effect on KIUC’s rates, especially during the past 18 months of volatile oil pricing.”

KIUC currently produces about 70 percent of its energy through renewables, a combination of solar, hydro and biomass.

The specifics of how the organization will reach the goal will be ironed out in a plan to be developed by Dec. 2023.

The in-development West Kaua‘i Energy Project will be a large part of that effort.

The solar and hydro project, a partnership with the for-profit AES Corporation and scheduled for completion in late 2025, is projected to bring the island’s renewable generation to nearly 90 percent.

Struggles and rate increases

The strategic plan reiterates KIUC’s plan to file a base rate increase with state Public Utilities Commission later this year. Bissell estimated in September the increase would be about 6 percent. While effective rates fluctuate month-to-month based on the cost of fuel and purchased power, the base rates have remained steady for the last 13 years.

“Our pending rate increase is not from our push for renewables,” Bissell said, “but rather from inflation, rising interest rates, environmental compliance costs and essentially flat sales in the 12 years since our last rate case.”

KIUC has kept effective rates below that of other islands as a result of their heavy reliance on renewables. While electricity rates have grown by 30-50 percent on other islands over the last 18 months amid supply chain issues, KIUC’s only increased about 10 percent.

The plan discusses some of the other difficulties facing the organization, including employee turnover and struggles with service on the North Shore.

“KIUC has traditionally experienced employee retention rates well above the national average, reducing the cost of turnover and stabilizing operations. Similar to other employers, COVID-19 and the associated economic downturn changed the landscape for KIUC on employee retention, particularly with early retirements being taken by long-term employees. Competing for employees is time-consuming and costly, creating new financial strain for KIUC,” the plan reads.

The plan further describes North Shore reliability as a challenge, due to limited transmission service along with remote and environmentally sensitive access. The plan anticipates significant infrastructure investments to improve North Shore reliability in the coming years.

KIUC is seeking public comments on the plan, which can be found on the KIUC website, kiuc.coop/strategicplan2023.

“We have worked hard on this plan,” said KIUC Board Member and Strategic Planning Committee Chair Jim Mayfield. “Being a member-owned cooperative, we are very interested in receiving public comments, and we would expect that changes to the plan may occur based on those comments.”

Comments are being accepted until Nov. 1.

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Guthrie Scrimgeour, reporter, can be reached at 808-647-0329 or gscrimgeour@thegardenisland.com.