Kauai electric rates may soon rise as inflation takes its toll on the price of paradise
By Kristen Consillio
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LIHUE, Hawaii (KITV) — Inflation is taking a huge toll on many residents already struggling to pay for rent, food and other necessities. And there’s another possible hike in the cost of living in paradise — this time on Kauai.
Kauai’s electricity provider says it has no choice but to raise rates for all 30,000 residential and commercial customers because sales just aren’t keeping up with inflation.
Kauai Island Utility Cooperative (KIUC) is asking the Hawaii Public Utilities Commission to approve an increase of 9.4%. For the average residential customer using 500 kilowatt hours a month, that means they’ll be paying about $19 more on their monthly bill.
“The thing is people who can install photovoltaic, take the tax credits, own their own houses, they can seek a lot of different ways to mitigate the electricity rate increases. But it’s those that can least afford it they are going to be most impacted,” said Mina Morita, former chairwoman of the PUC who lives in Hanalei. “There’s a real social-justice issue.”
The utility says the hike is necessary because over the past 12 years it’s only seen a 5% increase in sales.
“Having flat sales and (inflation) going up almost 40%, there’s only one answer to maintain your financial viability. We have to raise rates,” said David Bissell, CEO of KIUC. “The last thing KIUC wants to do with as a cooperative is have to do another rate increase in a relatively short period of time because of high inflation.”
At the same time, more customers are moving to solar energy and those who are left on the grid end up paying higher prices because there are fewer people to share the costs.
KIUC says it’s working hard to keep increases at or below inflation by restructuring debt, reducing employees and the amount of diesel it uses. It’s also investing in large-scale renewable energy projects that reduces costs for its customers.
“I’m not sure there’s an ultimate solution other than trying to be creative on how we treat the less fortunate or the ones that are having financial hardships,” he added. “That’s the ultimate best way to control a rate increase is to use less energy.”
This is only the second time in the utility’s 20-year history that it’s having to raise rates. The higher price is not expected to show up on bills until the second half of next year.
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