Posted on: Saturday, February 23, 2002

Kaua'i Electric appraised at $190 million

By Jan TenBruggencate
Advertiser Kaua'i Bureau

LIHU'E, Kaua'i — An appraisal of Kaua'i Electric, done for the county by Mainland consulting firm R.W. Beck, has concluded the utility is worth $190 million.

That is $80 million less than the sale price offered last year by Kaua'i Island Utility Co-op. That sale was rejected by the state Public Utilities Commission.

It is roughly $15 million more than the value upon which the PUC bases its rate calculations.

Utility owner Citizens Communications, a utility conglomerate, is selling its power companies and has been trying to market Kaua'i Electric for some time.

The company and the local cooperative, commonly known as KIUC, are said to be near a new sale agreement based on a price considerably lower than the rejected $270 million bid.

The R.W. Beck appraisal, which was released yesterday, said that any price of more than $190 million would transfer to Citizens Communications benefits that should go to the public.

The cooperative would be a nonprofit organization owned by ratepayers.

Kaua'i County also has considered acquiring the electric company, and in that case the owners would be the county's taxpayers.

Mayor Maryanne Kusaka said she believes the county should support the KIUC effort to buy the electric company, but should continue to do the groundwork for a county purchase in case the co-op's purchase fails.

The appraisal and a feasibility study by R.W. Beck cost the county $150,000.