Co-op deal for Kaua'i Electric advances

By Jan TenBruggencate
Advertiser Kaua'i Bureau

LIHU'E, Kaua'i — The state Public Utilities Commission yesterday granted preliminary approval of the sale of Kaua'i Electric to the Kaua'i Island Utility Co-op.

"We are now one step closer to being able to offer reduced electricity costs, local ownership and local control to the people of Kaua'i," said co-op chairman Gregg Gardiner.

The order is subject to further inquiry and position statements by all the parties to the case.

"We reserve the right to continue our review," said PUC legal counsel Catherine Awakuni.

In recent weeks, the state consumer advocate and the Navy, which are parties to the case, joined with KIUC and Kaua'i Electric owner Citizens Communications in a stipulation that recommends the PUC approve the sale.

The stipulation calls for a $3 million payment by Citizens to rate payers in the year following the sale, and refunds of excess electric bill payments to rate payers.

The county is the only remaining party in the case that opposes the transfer, and Mayor Maryanne Kusaka said the order is primarily an aid to preserving the sale's financing through the federal Rural Utilities Service, rather than a clear indication of how the PUC will ultimately rule.

"I am heartened by the fact that the PUC is giving itself more time to deliberate before making a final decision, and that it has pledged to fully review the issues raised by the county's position statement before that decision is made," Kusaka said.

The commission ordered the parties to submit final position statements by Sept. 10, and indicated it plans to rule on the sale by Sept. 17.