KIUC ANNUAL MEETING Wednesday, July 25, 2018 2 2017: Putting Kauai - PowerPoint PPT Presentation

KIUC ANNUAL MEETING Wednesday, July 25, 2018

2 2017: Putting Kauaʿi on the Map CNN HBO Vice News Engadget Taiwan Public Television

3 Renewable Energy on Kauaʿi 44.4% of Kauaʿi’s power was produced from renewable sources in 2017 Biomass Hydro 7% 11% 49% Distributed Solar Utility Scale Solar 33%

4 Renewable Progress: 2017-2018 • TESLA Dispatchable PV Project • Operational March 2017 • AES Dispatchable PV • Lāwaʿi: 20 MW x 5 hours storage • (December 2018) • PMRF: 14 MW x 5 hours storage • (December 2019) When complete: 65% of evening peak power will come from Solar

5 TESLA 13 MW PV 52 MWh Storage

6 Renewable Future: Energy Storage

7 Renewable Energy Mix

8 Pumped Storage Hydro • Engineering and environmental studies on-going • Integrated irrigation delivery, hydro electric, and energy storage project • 25 MW size, 15% of Kauaʿi’s energy • Infrastructure improvements help DHHL, KAA, DLNR

9 Community Based Renewable Energy • Up to 3 megawatts total • Designed for customers unable to access rooftop solar • Renters, apartments, roof condition/placement, etc. • RFP to be issued in July • Award(s) by end of 2018 • Subscription process pending details of award(s)

10 Renewable Resources

11 Rates • KIUC has not had a general rate increase since 2009 • 2019 rates are expected to be about the same as 2018 • Likely 2030 rates will also be around the same as today • Inflation increases offset by generation savings

12 Rate Differential Comparison 2003 2017

13 Patronage Capital • KIUC will retire $3.2 million in patronage capital related to 2017 financial results. • Since formation KIUC has returned over $37 million to our members.

14 Resiliency • Kauaʿi’s efforts post ʿIniki (1992) and Iwa (1982) include: • 80% of transmission circuits are steel poles • 20% remaining circuits have storm guys on wood poles • Increased size standards for all wood poles • Hardened Līhuʿe circuit • Hurricane resistance headquarters • Satellite phones • AMI and outage management system • Power plants not exposed to storm surge and have black start capabilities

15 Member Services - SmartHub View and monitor energy Receive usage to find notifications Manage ways to reduce Payment when bill is energy and Methods available or save when payments are made hub smart View Bill Online Send messages to Online and notify us of Mobile Access account and service issues

16 Member Services – Energy Wise Energy Efficiency: • Home visits • Lighting Program • New efficient appliance replacement rebate program • Qualifying member appliance replacement program (QMARP) • Appliance meter tester program • Commercial retrofit program Water Heating: • Heat pump water heater rebate program • Solar water loan program • Solar water heater rebate program

17 Co-op Connections www.connections.coop

18 Co-op Connections connections@kiuc.coop

ANNUAL MEETING FINANCIAL REPORT Fiscal Year Ended December 2017 July 25, 2018

20 Financial Results - 2017  Solid year financially  Clean audit report  Met loan covenants  Increased equity

21 Times Interest Earned Ratio – YTD December 2017 KIUC stand-alone TIER 3.00 2.50 2.57 2.00 1.50 1.25 1.00 0.50 0.00 Times Interest Earned Ratio (TIER) RUS Minimum 2017 Actual

22 Equity Ratio – December 2017 KIUC stand-alone Equity as a % of Assets 33.1% Liabilities 66.9% as a % of Assets

23 Balance Sheet Summary – December 2017 KIUC Consolidated (in Millions) 12/31/2017 Net Utility Plant 311.0 83% Other Investments 2.3 1% Current Assets 47.4 13% Deferred Debits 11.8 3% TOTAL ASSETS 372.5 100% Controlling Equity Interest 110.5 30% Non-Controlling Equity Interest 20.4 5% TOTAL EQUITY 130.9 35% Long-term Debt, (less Current Maturities of 15.2) 192.8 52% Post-Retirement Benefits Obligation 0.6 0% Asset Retirement Obligation 2.5 1% Current Liabilities 34.0 9% Deferred Credits 11.8 3% TOTAL LIABILITIES 241.6 65% TOTAL EQUITIES AND LIABILITIES 372.5 100%

24 Key Results Comparison – YTD December 2017 KIUC Consolidated Key Results $160 147.8 $140 143.5 $120 $100 In Millions $80 79.8 79.0 $60 60.6 57.3 $40 9.0 6.6 $20 0.7 0.2 $0 Operating Commodities Expenses Non Operating Net Margin Revenue Expense Margins 2016 Actual 2017 Actual

25 Percentage of Total Revenue – YTD December 2017 KIUC Consolidated

26 Debt Service

27 Mahalo!