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 KIUC Fact Sheet
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May 1, 2002 |
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by: KIUC
 KIUC Fact Sheet
The Kaua`i Island Utility Co-operative is buying Kaua`i Electric from Citizens
Communications of Stamford Connecticut for $215 million dollars.
• Electric co-ops just like KIUC serve 35 million people in 46 states and
provide 43% of the US electricity distribution lines.
• KIUC will employ the same union and management employees that run KE today.
• KIUC’s purchase of KE is organized by an all volunteer, unpaid board
from Kaua`i.
• KIUC’s purchase of KE was supported, negotiated and completed by a
experts including investment bankers, financiers, accountants, attorneys, electrical
engineers, environmental engineers, and human resource consultants.
• The $215M purchase price negotiated by KIUC is $24M less than depreciated
replacement cost of KE determined by the consultant for the County of Kaua`i.
• The $215M purchase price negotiated by KIUC is below the “fair market
value” of KE determined by KIUC’s investment banker using market comparables.
• KIUC will not have to pay federal income tax.
• KIUC will not have to pay profits to investors.
• The purchase will result in free cash flow of between $20.5M to $26.6m
in the first three years and ultimately reach $87M to $110M over the first ten
years. Cash flow can be reserved to make KIUC financially sound – build equity.
• Some of the free cash flow will be used to reduce the burden of our high
electric rates through dividends, paid as early and in as large amounts as possible.
• Some of the free cash flow can be used to reduce our dependence on fossil
fuels.
• Ratepayers and citizens of Kaua`i are not liable for the debts of KIUC.
• Within 120 days after closing, an election by all co-op members - you -
will select the KIUC Directors.
• KIUC, as a co-op, qualifies for FEMA grants to repair the system after
a natural disaster instead of raising electric rates as happened after Iniki and
Iwa.
• KIUC’s purchase must be approved by the State of Hawai`i Public Utilities
Commission, with the participation of the State of Hawai`i Consumer Advocate and
other interveners.
For more information visit www.kiuc.com
KIUC Organizing Board of Directors
• John Bandmann - Retired Kaua`i Electric Baseyard Supervisor, Vice President
& Property Manager Lihu`e Lutheran Church.
• Brian Barbata - President of Senter Petroleum.
• Walter Barnes - Electrical engineer, software architect, former opponent
of KIUC.
Fran Brennan - Retired Executive Vice President, UNUM Corporation, former opponent
of KIUC.
• Peggy Cha - Provost of Kaua`i Community College. alternative energy proponent.
• Jerry Gibson - General Manager of Hyatt Resort, Kaua`i’s largest consumer
of electricity.
• Dennis Esaki - owner of Esaki Surveying and Mapping, Inc.
• Gregg Gardiner – Publisher 101 Things To Do, Founder Kaua`i Food Bank.
• Clyde Kodani - and President of Kodani & Associates Civil Engineers,
Vice Chair University of Hawai`i Board of Regents.
• Michael Loo - Director of Real Estate and Development for Princeville Corporation.
• Rohit Mehta - General Manager of the Princeville Community Association,
retired consultant for project financing, and business acquisitions to the electric
industry.
• Clinton Shiraishi – Attorney, Retired Judge, State Legislator, and
County Councilman.
• Freckles Smith – President Smith’s Tropical Paradise.
• Mary Thronas - Former Governor's Representative on the Island of Kaua`i,
Former president of Kaua`i County Council.
• Turk Tokita –Decorated 442nd WWII veteran, founder of Kaua`i People
Power.
• JoAnn Yukimura – Attorney, Former Mayor of Kaua`i, Environmentalist,
former opponent of KIUC.
• Roberta Wallace – Owner Gaylord’s Restaurant at Kilohana, proponent
of underground utility service lines.
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