Kauai Electric postpones rate hike

Advertiser Staff and News Services

The Public Utilities Commission has approved an arrangement that will allow Kaua'i's power utility to forestall rate increases expected in 2002. The PUC is allowing Kauai Electric to temporarily keep fuel savings it expects to gain in the purchase of electricity from a new, more efficient power plant.

The facility, which Kauai Power Partners plans to have up and running next year, will burn the petroleum distillate naphtha.

Kauai Electric will continue to assess customers its normal fuel adjustment clause, which is based on lower-efficiency power generators. The savings will offset costs associated with the establishment of a new power plant.