Kauai Island Utility
adds plant to co-opThe purchase first must get
approval from a state panel
The Kauai Island Utility Co-op will pay $40.2 million to Dominion Resources Inc. of Virginia to buy a power plant that supplies about 40 percent of the island's electricity.
Currently the year-old plant is operated and managed on a contract basis by a company called Pure Energy.
Last year, the co-op purchased Kauai Electric from Citizens Utilities Co. for $270 million. With the latest purchase, the co-op will generate electricity for the entire island.
Co-op President Alton Miyamoto said he anticipates that the utility will save $2.5 million to $3 million in the first year by purchasing the plant instead of buying power from Kauai Power Partners, the company that built the plant a year ago.
KPP is a wholly owned subsidiary of Consolidated Natural Gas which, in turn, is owned by Dominion.
The purchase of the Kauai Power Partners plant must first be approved by the state Public Utilities Commission.
Miyamoto said he expects to file an application with the commission next week. If approved, the deal could be closed by year end, he said.
"It's a huge benefit to our members. I think there are so many positive things with this purchase that our members will support it," he said.
