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Editorials
Wednesday, August 16, 2000State rejects Kauai
electric company saleThe issue: The Public Utilities Commission has rejected the sale of Kauai Electric to a cooperative.
THE state Public Utilities Commission has protected the public interest by rejecting the purchase of Kauai Electric by a cooperative. The problem, as the state board pointed out, is that the proposed price was so high that the new owners would probably be forced to raise electrical rates. Kauai's rates are already said to be the highest of any regulated electric company in the country.
The agreement between Kauai Electric's owner, Citizens Utilities, and the Kauai Island Utility Co-op had a purchase price of $270 million -- $93 million more than the value the commission had placed on the company for rate-making purposes. The commission called the difference an "acquisition premium" and noted that it had never permitted acquisition premiums to be recovered from ratepayers.
Kauai Electric customers pay about 24 cents per kilowatt hour. The average consumer used about 500 kwh last month and paid $118.12.
The commission said it had determined that the cooperative would be unable to meet its loan commitment under the deal without applying for a rate increase. That was contrary to the co-op's contention that rates would stabilize and eventually drop.
The question is what happens now. The co-op chairman, Gregg Gardiner, said discussions are continuing between his group and the owner in the hope of fashioning a new deal. Gardiner said new terms have been negotiated, but the PUC ruled before the co-op could present a revised proposed agreement. It isn't known whether the proposal satisfies the commission's objections.
Kauai Mayor Maryanne Kusaka has hired a consultant to make an appraisal of Kauai Electric with a view to acquiring the company. No decision by the county is expected on acquisition until the appraisal has been completed. Following the PUC decision, Kusaka issued a statement saying she would consult with her staff and meet with the county council to determine future courses of action.
Acquisition by the county, whether by condemnation or negotiated sale, would not be desirable because of the financial obligations it would entail. However, it might be necessary if no alternative is available.
Reunions of Korean
families after decades
THERE were tears aplenty as families separated half a century ago by the Korean War were reunited in both Seoul and the Communist capital of Pyongyang. It was the first such occasion since 1985. This time 100 North Koreans were flown to Seoul and 100 South Koreans were taken to Pyongyang.
The separation of the divided families has been total. There is no mail, telephone or other means of direct contact between private citizens of the two Koreas, which have been bitter rivals for decades.
The deep differences between the two societies was evident even in the reunion. And North Korea's intentions remained a puzzle.
Loyalty to the Communist system appeared to be the most important criterion for the North in selecting the participants in the reunions. By contrast, South Korea chose its 100 finalists by lottery.
Many of the North Koreans visiting Seoul wore pins with the image of their late leader, Kim Il-sung, who for decades has been vilified in the South. Kim's son, Kim Jong-il, now rules the North.
At least one of the North Korean participants even made a political statement, suggesting that the operation may have simply been another propaganda effort. "As I have this emotional reunion, I cannot help thinking about the generosity of our Great Leader Comrade Kim Jong-il," said Li Bok-yon, 73, as his two South Korean sons listened awkwardly.
Meanwhile South Korean media executives who met with Kim Jong-il over the weekend quoted him as saying he had made a "laughing" offer to give up North Korea's rocket program in exchange for help in launching its satellites.
The executives said Kim mused that the idea must have given the United States "a bad headache." He also confirmed that North Korea is selling missiles to Syria and Iran.
Kim's proposal to stop rocket development in exchange for help in launching its satellites was disclosed by Russian President Vladimir Putin after their July 19 meeting. American officials have tried to confirm the proposal, without success.
Relations between the Koreas have improved dramatically since their leaders met last June and pledged to work for eventual reunification. But the political tinge of the reunion and Kim Jong-il's perplexing statements cast a shadow of doubt over Pyongyang's real intentions.
Published by Liberty Newspapers Limited PartnershipRupert E. Phillips, CEO
John M. Flanagan, Editor & Publisher
David Shapiro, Managing Editor
Diane Yukihiro Chang, Senior Editor & Editorial Page Editor
Frank Bridgewater & Michael Rovner, Assistant Managing Editors
A.A. Smyser, Contributing Editor
