More important than ever to attend Kaua‘i Island Utility Cooperative annual meeting
Kaua‘i Island Utility Cooperative members are invited and encouraged to attend the 2025 Annual Membership Meeting next week to learn more about the cooperative’s activities and accomplishments from past year and first part of this year, as well as its goals and plans for the future.
Copies of the co-op’s 2024 Annual Report will be available during the July 30 meeting, and a chili and rice plate will be served. The first 200 members who arrive also receive a complimentary 5-pound bag of rice.
This year’s annual membership meeting is perhaps more important than ever to attend.
The utility cooperative reported in June during its Annual Breakfast Briefing that the overall economic climate at the time wasn’t the balmiest.
Tariffs, tax policy and grant funding were all unclear, with the impact on Kaua‘i Island Utility Cooperative possibly significant and pending renewable energy projects likely to be affected by decisions yet to be made by policymakers.
Officals were concerned electricity sales could decrease if visitor arrivals and spending declined, and changes in oil prices were feared to impact monthly kilowatt-hour costs.
Operating and maintenance costs were also up by almost 2% from 2024 by the beginning of June.
And the co-op’s equity ratio — a key indicator of an electric cooperative’s financial health, representing the portion of assets financed by member equity rather than debt — was 35.72% as of June 5.
Kaua‘i Island Utility Cooperative started 2025 with $146 million in equity and $237 million of debt.
Median equity ratio for electric co-ops remained a strong 45% in 2024, according to an annual report about key nationwide financial trends completed by National Rural Utilities Cooperative Finance Corporation.
Anything below the 45% benchmark generally signifies higher financial risk — for a cooperative and its lenders. It also implies an increased reliance on borrowed funds to finance operations and assets, as well as challenges with lenders.
It could even limit a cooperative’s future borrowing capacity, especially at favorable rates.
However, the ideal equity ratio depends on a co-op’s specific cirumstances and context as well as its business model; the key is to strike a balance — leverage debt to grow opportunity and maintain strong equity for long-term financial success.
And Kaua‘i Island Utility Cooperative has some impressive positive notes to share since last year, too.
Cost of commodities — the fuel and purchased power the co-op uses to supply electricity to its customers — was down 10.4% from last year by the beginning of June.
A decrease in the cost of what a co-op pays for its commodities can lead to fewer operating costs and more financial flexibility.
Furthermore, megawatt-hour sales were up by 4.4% by June 5 compared with the same time in 2024, which means the Garden Isle’s electric co-op is seeing increased revenue and there is additional potential for financial stability and an opportunity to plan for and meet rising demand for services and service upgrades around the island.
The decrease in cost of commodities and increase in megawatt-hour sales are also positives for the Kaua‘i co-op’s member-owners, as strong financial health and growth translate to better service and possibly even improved infrastructure and lower rates.
There are always nuances, however, such as new infrastructure means new additional costs with new maintenance, along with operational costs and other new expenses.
Long-term trends and volatility in commodity costs also remain a factor the co-op will have to watch closely, as well as other cost pressures including price hikes with materials and equipment for infrastructure maintenance and expansion.
Success is possible. It just takes strategic planning coupled with smart and responsible financial management.
The 2025 Annual Membership Meeting will be an opportunity for members to get an update on what has changed since the June breakfast briefing event.
Agenda for the July 30 membership meeting
- Welcome
- Approval of Minutes
- July 31, 2024, Annual Membership Meeting
- Annual Report and Financial Report
- Questions from Members (See below for information about how to submit questions in advance)
- Door Prizes
- Adjournment
Questions must be submitted in written form and sent via email to connections@kiuc.coop. They should be received no later than noon July 28 by Kaua‘i Island Utility Cooperative.
The 2025 Annual Membership Meeting will be conducted at Kaua‘i Philippine Cultural Center, located at 4475F Nūhou St., in Līhuʻe. Doors open at 5:30 p.m., with the presentation beginning at 6 p.m.
Visit Kaua‘i Island Utility Cooperative’s website or call 808-246-4300, available 24 hours a day, for additional information or to learn more about the co-op.
Click here to send an online message to the utility cooperative.
News reporter Nathan Christophel contributed to this story.
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