Kauaʻi Island Utility Cooperative says that revenue from its current electricity rates is not enough to cover rising wildfire mitigation costs.
KIUC expects to spend almost $55 million by the end of next year to implement its wildfire mitigation plan, which was approved by the state Public Utilities Commission in May.
The utility told state regulators in a recent filing that without a timely way to recoup these funds, it could face financial repercussions.
It requested that the PUC approve a new surcharge on customers’ bills. For the typical Kauaʻi resident, bills could go up by about $13 a month starting next year.
In a ruling last Thursday, the PUC allowed KIUC to record its wildfire expenses, but stopped short of greenlighting the utility to put a new surcharge on customers’ bills or recover funds through other means.
The commission said in its decision that it would continue to investigate the matter.
