Kaua'i Electric suitors spar over cost control

By Jan TenBruggencate
Advertiser Kaua'i Bureau

LIHU'E, Kaua'i — The two Kaua'i entities that want to buy Kaua'i Electric Co. squared off this week over a preliminary report that suggests county ownership could save consumers money.

The county and the Kaua'i Island Utility Co-op are conducting appraisals and looking into the purchase of the utility, which is owned by Citizens Communications, an East Coast firm.

A report from county consultant R.W. Beck Inc. said the county would be better at controlling costs and could reduce rates, while the co-op could only keep rates at present levels, if each paid the same price, which was set at $185 million for calculation purposes.

County administrative assistant Wallace Rezentes Sr. said Beck's final report won't be out until Aug. 15, but the initial report suggests that either county or co-op ownership would be easier on consumers' wallets than continued ownership by either Citizens or another investor-owned company.

KIUC board Chairman Gregg Gardiner said its studies suggest that the co-op could keep costs under better control than suggested by the Beck figures.

Rezentes said Beck concluded that a co-op could pay up to $185 million for the utility and keep rates at current levels for roughly five years. The county could pay $185 million and cut rates by 4.5 percent, Rezentes said.