KAUAI ISLAND UTILITY COOPERATIVE
FOR APPROVAL OF RATE CHANGES AND INCREASES,
REVISED RATE SCHEDULES AND RULES, AND OTHER MATTERS

Docket No. 2022-0208

The STATE OF HAWAII PUBLIC UTILITIES COMMISSION ("Commission"), pursuant to Hawaii Revised Statutes §§ 269-12 and 269-16, HEREBY GIVES NOTICE that it will hold a public hearing relating to the Application of Kauai Island Utility Cooperative (“KIUC”), filed on December 28, 2022, for Commission approval of rate changes and increases, revised rate schedules, and changes to its tariff. The public hearing will be held as follows:
Tuesday, March 28, 2023, at 6:00 p.m.
King Kaumuali’i Elementary School Cafeteria
4380 Hanamaulu Road
Lihue, Hawaii 96766

KIUC is a not-for-profit electric cooperative engaged in the production, transmission, distribution, purchase, and sale of electric energy on the island of Kauai, Hawaii.
KIUC seeks Commission approval of an increase of $16.7 million in its electric revenues, or approximately 9.42% over the pro forma total electric revenue amount of $177.0 million at present rates, based on a 2023 test year. If approved, the proposed revenue increase will provide KIUC with a Debt Service Coverage (DSC) Ratio under its loan indenture for the 2023 test year of 1.75.
KIUC proposes to allocate the proposed revenue increase among its customer classes through rate changes and increases as summarized below:

PRESENT PROPOSED
CUSTOMER CLASS DESCRIPTION RATES RATES
SCHEDULE "D" – Residential Service
Customer Charge per customer $10.58 $13.50
per month

Minimum Charge per customer $13.50 $13.50
per month

SCHEDULE “G” – General Light and Power Service
Customer Charge per customer $23.82 $25.00
per month

Energy Charge per kWh per kWh
Non-Fuel Energy Charge per kWh $0.16626 $0.22599
(Non-Fuel and Non-Purchased (all kWh)
Power Energy Cost only)
Fuel and Purchased Power per kWh $0.19143 $0.20188
Energy Charge (all kWh)

Minimum Charge per customer $26.45 $25.00
per month

SCHEDULE “J” – General Light and Power Service
Customer Charge per customer $39.69 $40.00
per month

Demand Charge per kW of $6.62 $8.28
monthly
demand

SCHEDULE "L" – Large Power Primary Service*
Customer Charge per customer $355.08 $355.00
per month

Demand Charge per kW of $13.94 $14.90
monthly
demand

Energy Charge
Non-Fuel Energy Charge
(Non-Fuel and Non-Purchased
Power Energy Cost only) per kWh per kWh
First 400 kWh per $0.11273 $0.16549
kW demand
All Over 400 kWh per $0.08998 $0.16549
kW demand
Fuel and Purchased Power per kWh $0.19143 $0.20188
Energy Charge (all kWh)

SCHEDULE "P" – Large Power Secondary Service*
Customer Charge per customer $369.38 $355.00
per month

Demand Charge per kW of $11.14 $14.90
monthly
demand

Energy Charge
Non-Fuel Energy Charge
(Non-Fuel and Non-Purchased
Power Energy Cost only) per kWh per kWh
First 400 kWh per $0.12236 $0.16549
kW demand
All Over 400 kWh per $0.09834 $0.16549
kW demand
Fuel and Purchased Power per kWh $0.19143 $0.20188
Energy Charge (all kWh)

SCHEDULE “SL” – Street Lighting
Fixture Charge
Standard incandescent fixtures per fixture per $3.63 $4.54
<= 4,000 lumens month
Standard mercury vapor fixtures per fixture per $6.25 $7.81
<= 21,000 lumens month

Standard high pressure sodium
vapor fixtures
<= 100 watt per fixture per $6.25 $7.81
month
101-150 watt per fixture per $6.25 $7.81
month
151-200 watt per fixture per $6.47 $8.09
month
201-250 watt per fixture per $6.47 $8.09
month
251-400 watt per fixture per $6.75 $8.44
month
Standard light emitting diode
(LED) fixtures
<= 45 watt per fixture per $8.18 $10.23
month
46-98 watt per fixture per $8.48 $10.60
month
99-130 watt per fixture per $8.57 $10.71
month

Energy Charge per kWh per kWh
Non-Fuel Energy Charge per kWh $0.22387 $0.31166
(Non-Fuel and Non-Purchased (all kWh)
Power Energy Cost only)
Fuel and Purchased Power per kWh $0.19143 $0.20188
Energy Charge (all kWh)

*Note: KIUC proposes to combine Schedules "L" and "P" into a new Schedule "LP."

As part of its Application, KIUC also requests, among other things, that the Commission: (1) approve changes to its existing tariff (KIUC Tariff No. 1) to effectuate its proposed rate changes and increases, as well as changes to its depreciation rates and to its existing Energy Rate Adjustment Clause mechanism; (2) approve the recovery over a 10-year amortization period of the balance of the lost gross margins regulatory asset established by Decision and Order No. 37252, filed on July 31, 2020, in Docket No. 2020-0088; (3) approve the recovery over a 10-year amortization period of the balance of the regulatory asset resulting from the pension tracking mechanism established by the Decision and Order, filed on September 9, 2010, in Docket No. 2009-0050; and (4) grant such other relief, including any interim rate increase, as may be applicable, required, just, and/or reasonable under the circumstances and/or in order for KIUC to implement its proposed revenue and rate increases.
The Commission will investigate whether the proposals in the Application, including revisions to KIUC’s rate schedules, are just and reasonable.
The foregoing is a brief summary of the requests included in KIUC’s Application. Copies of KIUC’s Application are available for public review through the Commission’s electronic Document Management System, accessible at http://dms.puc.hawaii.gov/dms/, Docket Quick Link 2022-0208. In addition, copies of KIUC’s Application are also available for review by contacting the Commission’s Kauai District Office [(808) 274-3232] or Honolulu Office [(808) 586-2020], or the Division of Consumer Advocacy [(808) 586-2800].
All interested persons are invited to attend the public hearing to state their views on KIUC’s Application. Written statements may also be mailed to the Public Utilities Commission, 465 South King Street, Room No. 103, Honolulu, Hawaii 96813, or e mailed to puc.comments@hawaii.gov. All written statements should reference Docket No. 2022-0208 and include the author’s name and the entity or organization that the author represents, if any.
Motions to Intervene or Participate in this proceeding shall comply with subchapter 4, Rules of Practice and Procedure Before the Public Utilities Commission, Hawaii Administrative Rules, Title 16, Chapter 601. A motion to intervene or participate in this proceeding shall be filed with the Commission’s Honolulu Office by April 10, 2023.