Posted on: Tuesday, March 2, 2004

Electric bills on Kaua'i up about $5

By Jan TenBruggencate
Advertiser Kaua'i Bureau

PUHI, Kaua'i — Electricity consumers on Kaua'i can expect a $5 hike in average power bills in March due to an 11 percent hike in the cost of fuel oil, sold by Chevron to the Kaua'i Island Utility Cooperative.

Fuel costs have not been so high since a spike in April 2003, when the company's costs hit $55 a barrel, or about $1.30 a gallon.

KIUC representative Anne Barnes said that the recent hike took the utility's cost from $1.15 in February to $1.29 per gallon in March, the highest month-to-month increase the firm has experienced.

The high oil prices are not just a local phenomenon. The U.S. Department of Energy's Energy Information Administration Web site (eia.doe.gov) shows that spot fuel oil prices nationwide are the highest they've been since March 2003.

"Chevron's 11 percent increase from last month to this month will cost our members an additional one cent per kilowatt-hour. For an average household, that's about $5 added to their March bill," said utility vice president Faye Akasaki.

Fuel represents 38 percent of KIUC operating costs, and company officials said unpredictable prices for fuel are fueling the utility's efforts to identify alternative power sources. The firm is conducting feasibility studies into renewable energy resources.

"We must significantly reduce our dependence on oil while supplying a reliable source of power at the lowest possible cost," said KIUC board chairman Gregg Gardiner.