touchstone celebrates 15 years...increased member engagement. “we want to bring power to the...

28 M ay 2013

Power LinesEnergy News For Consumers

Touchstone Celebrates 15 YearsBy marketing co-op values and offering programs that benefit consumer-members, the brand ID for the nation’s electric cooperatives rounds a major milestoneBy Reed Karaim

In marking its 15th birthday, Touchstone Energy Cooperatives, the branding pro-gram for the nation’s electric coopera-tives, can point to a host of accomplish-ments. It has 741 member co-ops from around the United States—up nearly 100 from just five years ago, and double the original enrollment of 371 on its official launch date of April 4, 1998. And more than 50 different programs help electric cooperatives bolster operations and bet-ter serve their consumer-members.

But perhaps its greatest achievement can be summed up in three words: increased member engagement.

“We want to bring power to the doorstep of every electric cooperative by offering them the tools they need to cement bonds with their members,” says Jim Bausell, Touchstone Energy Cooperatives’ chief operating officer. “At the end of the day, co-op consumers must trust that the brand stands for real value.”

There is solid evidence Touchstone Energy Cooperatives member co-ops are earning that trust. In the fourth quar-ter of 2012, the American Customer Satisfaction Index, which regularly sur-veys consumer attitudes toward some 200 companies, recorded an all-time-high rating of 85 for Touchstone Energy Cooperatives. That is nine points higher than investor-owned electric utilities and among the highest scores recorded by any industry group.

Twenty co-ops scored a 90 or above, which is usually achieved only by high-end car brands and large household appliance manufacturers.

Touchstone Energy Cooperatives

services include the Co-op Connections Card, which provides co-op consumers with discounts at participating local and national retailers and pharmacies; ener-gy education programs such as “Super Energy Saver,” aimed at teaching chil-dren grades K-5 about electricity, electri-cal safety and energy savings, and “Get Charged! Electricity and You,” targeted toward teaching middle school students about electric cooperatives and electric-ity in general; hot-air and cold-air bal-loons; SitesAcrossAmerica.com, a web-based clearinghouse of commercial and industrial properties available in electric cooperative service territories; and ongo-ing national advertising and energy-effi-ciency campaigns.

“The brand makes even more sense than it did in 1998,” says Bausell. “Given all of the challenges reaching people today, it exists as a critical component in making sure that a local cooperative’s message rings loud and clear.”

Services GaloreTouchstone Energy Cooperatives’ early work centered on building public aware-ness of four values all electric coopera-tives share: innovation, accountability, integrity and commitment to commu-nity.

“Touchstone Energy is all about bring-ing home the value of membership in an electric cooperative to the people at the end of the line who use the power we generate,” says Geoff Oldfather, man-ager of communications, marketing and public relations at Arizona’s Generation & Transmission Cooperatives in Benson, Arizona, and a member of the Touchstone Energy Cooperative board. “That’s why we do everything we can to

support and promote the Touchstone Energy programs—like the Co-op Connections Card—that saves money for those folks at the end of the line who rely on us for safe, affordable and reliable electric power.”

As a board member, Oldfather says he has been especially proud of the oppor-tunity to work with other board mem-bers from electric co-ops from all over the country.

“I’ve been struck by how committed they are to doing what we call ‘living the brand’—living the four core Touchstone Energy values: integrity, accountability, innovation and commitment to commu-nity,” Oldfather says. “As we celebrate 15 years of building the brand around those values, we’re also looking ahead to see how we can energize the membership with more programs like Together We Save—the program that’s helped thou-sands of people find ways to save energy and money.”

“Touchstone Energy is about the future of energy use in our country,” Oldfather says. “Through it, our elec-tric co-op members will lead the way in finding new technologies, new methods and, most importantly, renewed commit-ment to ensuring we have a sustainable energy future for our children,” he adds.

One way Touchstone contributes to the future of electric cooperatives involves a new online learning platform, Cooperative University.

“It will give member co-ops virtual classrooms to reach folks,” Bausell says. “Each co-op will have its own channel and be able to host training programs for employees and directors/trustees. It recognizes that, in many cases, co-op leaders can’t just attend a conference and

M ay 2013 29

absorb everything. Issues and technology move so quickly, it’s critically important for co-ops to spend time continually learning.”

As part of the effort, NRECA and Touchstone Energy Cooperatives will offer training and educational materi-als, notably energy-efficiency and safety information, online discussion boards and social media.

“I see this platform as being as impor-tant to the future of electric co-ops as Cooperative.com has been over the past decade,” Bausell says.

Co-op Connections CardArguably the most successful Touchstone Energy Cooperatives offering has been the Co-op Connections Card. The free cards and key fobs—38 million in cir-culation, customized with the name and logo of 446 participating electric co-ops in 46 states—gives consumers access to more than 25,000 discounts bro-kered nationally by Touchstone Energy Cooperatives or arranged by individual electric co-ops with local merchants.

In addition, co-op consumers nation-wide have saved about $60 million at more than 60,000 pharmacies since Co-op Connections began in May 2007. The cards also can be used for trips to the dentist, optometrist or audiologist—even taking pets to the veterinarian.

“The Co-op Connections program offers significant benefits to our mem-bers,” says Dianne Porter, marketing and communications coordinator for Golden Valley Electric Association in Fairbanks, Alaska says. “While we have programs that focus on residential members, we really didn’t have something to offer our small businesses. Through the Co-op Connections program, we’re able to form valuable partnerships with our local businesses. It’s great for them and it’s great for our members.”

In 2009, the brand unveiled an ener-gy-efficiency promotional campaign, Together We Save, centered around the

TogetherWeSave.com website. This year, the website will add a self-directed energy audit to let users tailor energy-efficiency action plans for their residences.

“The tool is perfect for those who’ve already taken the home tour on the web-site and learned about simple energy-savings steps,” says Alan Shedd, Touchstone Energy Cooperatives director of resi-dential and com-mercial energy programs. “It will let them make wiser choices about whether to invest in more signifi-cant energy-efficient upgrades, such as new windows or appliances. It will even guide someone through deciding if they can do an energy-efficiency improve-ment project on their own, or if hiring a contractor may be a better idea.”

The Next 10 YearsIn its first 15 years, Touchstone Energy Cooperatives has worked to boost pub-lic recognition of the co-op difference and assist member co-ops in instituting a series of best operational standards, practices and benchmarks.

As the brand grows, Martin Lowery, NRECA executive vice president of external affairs, sees it lending expertise even more directly to co-op member engagement.

“Touchstone Energy Cooperatives is studying how to help cooperatives

enhance local outreach activities and really be viewed as integral parts of the regions they serve—which will lead to goodwill and better member trust and loyalty,” he says. “The brand could end up creating resource libraries on top-ics such as infrastructure development, water quality and other areas critical to supporting consumer-driven quality-of-life improvement efforts. This kind of undertaking goes well beyond electric service and focuses on the real purpose of cooperatives.”

Back in 1998, Touchstone Energy Cooperatives came into being with a sin-gle TV ad. Since then, Bausell has wit-nessed the emergence of “a true brand” that encompasses every element the cooperative identity.

“I hope the day will come where every electric co-op calls Touchstone Energy Cooperatives their own,” he says. n

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The Northwest Ductless Heat Pump Project is an initiative of the Northwest Energy Efficiency Alliance, an alliance of Northwest utilities and energy efficiency partners.

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Ductless Systems Have 3 Main ComponentsAn indoor unit, mounted on a centrally-located wall

An outdoor unit, that sits on the ground

A remote control to adjust settings

The indoor and outdoor units are connected by a small bundle of cables, including a refrigerant line. These cables only require a 3 inch hole in the wall for installation, without expensive or invasive ductwork.

More Flexible Adding a ductless heat pump increases the flexibility of your home’s heat-ing system. Working with your existing heating system, just one ductless system is enough to heat and cool the average Northwest home. Keeping your existing heating system in place ensures bedrooms and bathrooms remain at desired temperatures, even on the coldest days.

More Efficient Ductless systems heat and cool homes at a fraction of the cost of base-boards and wall heaters. Combined with utility rebates and tax credits, upgrading is simple and affordable.

DISCOVER DUCTLESS: GoingDuctless.com

HEATING & COOLING SYSTEMS WORKDUCTLESSHOW

“Our new ductless system is a tremendous improvement over ourprevious electric heat.The system provides

consistent, balanced andcontinual heat, and I get

AC in the summer.”

Vivianne - Everett, WA

4 M AY 2013

Save Energy & MoneyDuctless systems use 25% to 50%

less energy to heat your home.

Experience a More Comfortable Home

Ultra quiet fans evenly circulate air throughout rooms, eliminating

hot and cold spots.

Utility Rebates & Tax Credits AvailableReceive up to $1,500 in utility

rebates! Contact your local utility to find out if you qualify.

Air Conditioning Comes Standard

Systems come standard with air conditioning.

Low-Cost Easy Installation

Installation is quick, simple and inexpensive, which means little or

no disruption to your home.

DISCOVER DUCTLESS HEATING & COOLING SYSTEMSA ductless heat pump is a highly efficient and easily installed primaryheating and cooling system for electrically heated homes. These systems are safe, quiet and heat rooms evenly at a fraction of the cost of baseboards or wall heaters.

HEATING & COOLING SYSTEMSDUCTLESS

YOUR ELECTRIC HEATUPGRADE

SAVE UP TO

25-50ON YOUR

HEATING BILL

%





hot and cold spots.











SAVE UP TO

25-50ON YOUR

HEATING BILL

%

A Touchstone Energy® Cooperative

DUCTLESSHEATING & COOLING SYSTEMS

YOU CAN SAVE UP TO

$1,000 rebate or aZero-interest loan up to $9,000

on approved credit.

4 M AY 2013

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The Northwest Ductless Heat Pump Project is an initiative of the Northwest Energy Efficiency Alliance, an alliance of Northwest utilities and energy efficiency partners.

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Ductless Systems Have 3 Main ComponentsAn indoor unit, mounted on a centrally-located wall

An outdoor unit, that sits on the ground

A remote control to adjust settings

The indoor and outdoor units are connected by a small bundle of cables, including a refrigerant line. These cables only require a 3 inch hole in the wall for installation, without expensive or invasive ductwork.

More Flexible Adding a ductless heat pump increases the flexibility of your home’s heat-ing system. Working with your existing heating system, just one ductless system is enough to heat and cool the average Northwest home. Keeping your existing heating system in place ensures bedrooms and bathrooms remain at desired temperatures, even on the coldest days.

More Efficient Ductless systems heat and cool homes at a fraction of the cost of base-boards and wall heaters. Combined with utility rebates and tax credits, upgrading is simple and affordable.

DISCOVER DUCTLESS: GoingDuctless.com

HEATING & COOLING SYSTEMS WORKDUCTLESSHOW

“Our new ductless system is a tremendous improvement over ourprevious electric heat.The system provides

consistent, balanced andcontinual heat, and I get

AC in the summer.”

Vivianne - Everett, WA

AND HOW THEY WORK

For more information visit:www.laneelectric.com/conservation-renewables/heat-pump-program

M AY 2013 5





hot and cold spots.











SAVE UP TO

25-50ON YOUR

HEATING BILL

%





hot and cold spots.











SAVE UP TO

25-50ON YOUR

HEATING BILL

%

M AY 2013 5

Golden Valley Electric

And the Winners Are...

Congratulations to this year's GVEA Cover Photo Contest Winners

Sue Beck, Fairbanks Fungi, August 2013Brock Coby, Sly Fox, May 2013Karen Clautice, Gliding on Edge, March 2014Daniel Hauer, Pipeline Glow, December 2013Krista Heeringa, Essential Fairbanks Footwear, September 2013Jenny Matthews, American Bench, July 2013Peter McRoy, Marten in Tree, October 2013Bryan Pherson, Lighting Up UAF on New Year's Eve, January 2014Sebastian Saarloos, Ice Age, November 2013Lesli Walls, Dandelion Stars, June 2013Sheri Walsh, Musher on the Move, February 2014Colby Wright, Afternoon Icicles, April 2014

Although not chosen for a cover, several images were selected for the Simple Pleasures – content page of the magazine – throughout the comingyear. Check there, too, for more great Interior Alaska images from your fellowGVEA members. You can view the winning photos at gvea.com/ruralite.

Every year, GVEA awards scholar-ships to deserving students. To receive a scholarship, a student or immediate family member must be a member of the co-op and submit an application. Winners are chosen by committee. Here are the 2013 scholarship winners:

$2,000 continuing education:• Cody Klingman attending UAF• Jaguar Kristeller attending Massachusetts Institute of Technology• Avalon Lee attending the Peabody Institute of Johns Hopkins

$2,500 academic:• Kelsey Monahan, Lathrop High School

• Mikko Sayre, West Valley High School• Karinna Vohden, West Valley High School

$15,000 academic:Irene Anderson who will be studying biology at UAF with the intention of becoming a veterinarian.

There will be one more scholarship winner this summer. GVEA’s Career & Technical Education Scholarship will be awarded in August. Last year’s winner was Jacquelyn Ballard who is working toward her nursing degree.

The money for these scholarships comes from unclaimed capital credits,

so these awards do not increase the electric bills of our members.

You can find more information about Golden Valley scholarships at gvea.com/inside/scholarship

And Congratulations to GVEA's 2013 Scholarship Recipients

452-1151 • 1-800-770-GVEA • www.gvea.com

6 m ay 2013

Director's CornerHave you ever won-dered how our electric rates are determined? Do you understand your electric bill and the various charges? Let's review the basics of your elec-tric bill.Customer Charge – covers a portion of the fixed costs of providing electric service including meter reading, bill-ing and customer service. Utility Charge – covers costs for power plants and substations, interest on loans, depreciation, as well as wires, power poles and transformers. Basically the costs of operating the utility.Fuel and Purchased Power Charge – covers the cost of fuel (oil and coal) to generate electricity as well as power we purchase from other utilities. Our new Eva Creek Wind farm is generating elec-tricity and adds zero cost to this category.

Here’s a basic outline of how your elec-tric cooperative comes up with its rates.Rate Study

The first step in the process is to conduct a Rate Study. The preparation can take more than a year of analysis and is costly. GVEA uses well-respected utility experts in the field of cost-of-service anal-ysis and rate design to assist the Board of Directors in developing GVEA's rates.

The Rate Study answers these basic questions:

• How much does it cost to operate the utility? (Identifying a "test year")

• How much revenue does the utility need to collect?

• How does the utility design rates so

that members pay the costs they cause the utility to incur. In the utility business this is the “cost causer cost payer” concept.

During the rate study a “test year” is estab-lished. The “test year” refers to a recent year that reflects financial and operating condi-tions in a given year and ideally a stable year. Our last rate study used 2007 as the test year.

The next step is to break down the costs according to the their function. This is called “functionalization.” These basic functions include:

• Generation – generating electricity• Transmission – moving bulk electric-

ity from power plants to substations• Distribution – actual delivery to mem-

bers via wires, poles and transformers• Customer Care – customer service

and responsiveness Once costs are functionalized, they

are "allocated" to different rate catego-ries. Our rate categories of Residential, Commercial and Industrial are relatively standard across the country.

The next step is to design rates for each of the rate categories that follow the cost causer cost payer concept. The rates designed by GVEA must be scrutinized by the office of Regulatory Affairs and Public Advocacy (RAPA) and approved by the Regulatory Commission of Alaska (RCA).

In designing rates it's important that our cooperative keeps its mission state-ment in focus. Our mission is to provide our member-owners and communities with quality electric service, quality customer service, and innovative energy solutions at fair and reasonable prices.

Tom DeLong currently serves as the Vice Chairman of the board. He and his wife, Ann, have two daughters in college in the lower 48. He has worked at ABR, Inc. Environmental Research & Services as the Offi ce/Contracts Manager for the last 21 years. Tom has also owned and operated Tolovana Hot Springs, a remote natural hot springs since 1987. Tom is very interested in the study of utility rates, conservation, energy effi ciency and renewable energy. Hobbies include skiing, table tennis, fi shing, hunting and fl ying.

District 1 includes the area south of College Road, Aurora Subdivision, Geist Road, University West, Chena Ridge, Goldhill Road, Ester and the Parks Highway. The District 2 seat will be up for election in 2014.

Our mission ...to provide...quality electric service, quality customer service and innovative energy solutions at fair and reasonable prices.

Tom DeLongDistrict 2 director since 2005

M AY 2013 7

Plumas-Sierra REC

A rural environment in Northern California is a beautiful place to live, but living in the urban interface doesn’t come without its risks. Many residents build their homes and landscapes without fully understanding the impact a fire could have on them. Local, state, and federal fire officials emphasize that people can help protect themselves from the dev-astating losses to wildfires and prevent fires from starting around their homes by following home protection guidelines in this article. By doing so, homeowners are not only making their homes more survivable, but are also creating “defen-sible space” for themselves, as well as for firefighters who are sent to protect homes in the event of a wildfire. The goal is to

protect your home while providing a safe area for firefighters. Firewise homes and communities allow firefighters to concen-trate on fighting the wildfire—which ulti-mately saves more homes and lives.

Each year, wildland fires consume hundreds of homes in the wildland urban interface. Studies show that as many as 80 percent of the homes lost to wildland fires could have been saved if their own-ers had only followed a few simple fire-safe practices. In addition, wildland fire related deaths occur because people wait too long to leave their home.

Your fire department takes every pre-caution to help protect you and your property from wildland fire. However, the reality is that in a major wildfire

event, there will simply not be enough fire resources or firefighters to defend every home. Successfully preparing for a wildland fire enables you to take personal responsibility for protecting yourself, your family and your property.

Learn more about how to keep your family safe and reduce your home’s risk for wildfire damage at www.firewise.org. Additionally, complimentary brochures, booklets, pamphlets, videos and much more can be found on the information and resources page of the website and ordered online through the Firewise catalog.

Article courtesy of Plumas National Forest, Beckwourth Ranger District Fire Prevention, (530) 836-2575, www.fs.fed.us.

With proper permits, dry vegetation grown on your property can be burned. Green vegetation should be dried 3-6 weeks before burning. Debris burning is encouraged during winter and spring months while conditions are wet and fire danger is very low. Always use caution while burning. Consider alternatives to burning, such as: composting, chipping and shredding, or green waste pickup from your local disposal company.

Requirements for Debris Burning:

• Check with your local fire agency for burn permit requirements.

• Burn a maximum pile size of four feet in diameter.

• Clear all flammable material and vegetation within 10-feet of the outer edge of the pile.

• A water supply is required at the burning site and must be ready to use.

• An adult must be in attendance with a shovel until the fire is dead out.

• No burning shall be undertaken unless weather conditions (par-ticularly wind) are such that burning can be considered safe.

• Dry, natural vegetation, grown on the property can be burned outdoors in open piles, unless prohibited by local ordinances.

• No household garbage can be burned.

• Burning can only be done on per-

missive burn days; you must call prior to igniting your burn pile.

• Burn Permits are only valid on per-missive burn days as determined by the State Air Resources Board or the local Air Pollution Control District (APCD) www.fire.ca.gov.

Safe debris Burning

4 M AY 2013

Landscaping is among the first elements of a home that others notice. The balance of colorful plants, trees, shrubs, rocks, mulch, and other landscaping materi-als helps establish a home’s personality, and it can enhance the beauty and value of any property. If managed effectively, landscaping can also serve as a fuel break, protecting a home in the event of a wildfire.

The primary goal for firewise landscaping is fuel reduction—limit-ing the level of flammable vegeta-tion and materials surrounding the home and increas-ing the moisture content of remain-ing vegetation. Firewise landscap-ing also allows plants and gardens to reveal their nat-ural beauty by leav-ing space between individual and groups of plants and trees.

Whether conducting regular mainte-nance on existing landscaping or design-ing a new setting, the following tips can help homeowners prepare the area surrounding the home for an intense wildfire.

Consider the entire “home ignition zone”, which extends up to 200 feet from the home in high hazard areas. Firewise communities divide this area into three zones, depending on the hazard level for your area. Assess your landscaping sev-eral times a year to ensure that it is lean, clean, and green.

Use the Zone ConceptZone 1 (All Hazard Area) is the 30 feet

adjacent to the home and its attachments. This well-irrigated area encircles the

structure and all its attachments (wooden decks, fences, and boardwalks) for at least 30 feet on all sides.

• Plants should be carefully spaced, low-growing and free of resins, oils, and waxes that burn easily.

• Mow the lawn regularly. Prune

trees up to six to ten feet from the ground.

• Space conifer trees 30 feet between crowns. Trim back trees that over-hang the house.

• Create a ‘fire-free’ area within five feet of the home, using non-flam-mable landscaping materials and/or high moisture content annuals and perennials.

• Remove dead vegetation from under deck and within 10 feet of house.

• Consider fire-resistant material for patio furniture, swing sets, etc.

• Firewood stacks and propane tanks should not be located in this zone.

• Water plants, trees and mulch regularly.

• Consider zeroscaping if you are affected by water-use restrictions.

Zone 2 (Moderate and High Hazard Area) is 30 to 100 feet from the home.

Plants in this zone should be low-growing, well irrigated, and less flammable.

• Leave 30 feet between clusters

of two to three trees, or 20 feet between individual trees.

• Encourage a mixture of deciduous and coniferous trees.

• Create ‘fuel breaks’, like driveways, gravel walkways and lawns.

• Prune trees up six to ten feet from the ground.

Zone 3 (High Hazard Area) is 100 to 200 feet from the home.

Thin this area, although less space is required than in Zone 2.

• Remove smaller conifers that are growing between taller trees.

• Remove heavy accumulation of woody debris.

• Reduce the density of tall trees so canopies are not touching. n

Lean, Clean and Green Landscaping

M AY 2013 5

By Jim KellyWith four kids and a big house filled

with the usual appliances andelectronics, Keven and Cyn-D Hananohave always been sensitive to the size of their electric bill.

They have used a solar hot watersystem for many years—a big help when you and your kids are into youthbasketball and the showers and washingmachine seem like they are alwaysrunning.

As they have expanded their Lihuehome during the past 18 years, theydesigned the windows and ventilation to make the best use of trade winds, and installed ceiling fans in nearly everyroom. They use compact fluorescentbulbs and preach the gospel of turningoff lights and electronics when they arenot being used.

To find out how much they could saveby turning off the lights at night, thefamily experimented for a month, usingonly four camping lanterns. Their billdropped by $80.

“It was kind of fun and it was prettyeye-opening,” Keven said.

But even with the two older childrenaway at school and aggressiveconservation efforts, the Hananosfound they still were spending morethan $300 to $350 a month onelectricity. So with the help of a savingsbond that had recently matured, theydecided to invest in a photovoltaicsystem for their home.

They are among hundreds of Kaua‘iresidents who have chosen to use thepower of the sun to generate electricity.Helped by a dramatic reduction in thecost of components and generousfederal and state tax breaks, familiesand businesses are embracing PV as away to save money and contribute to theisland’s efforts to become energyindependent.

By the end of this year, customers’solar on Kaua‘i is expected to generatemore than 9 megawatts of electricity,

meeting about 4 percent of the island’sannual energy needs, or enough topower about 2,800 homes.

With the cost of an average PV system $25,000 to $30,000, it’s a biginvestment for most families, but thereare big potential savings, too.

For the Hananos, the savings couldknock their monthly bill down to lessthan $100.

But the amount of savings depend on whether a family can adjust itselectricity use to take advantage of thetime when the PV is producing, roughlybetween 10 a.m. and 4 p.m. Turning onlights and TVs and using big appliancessuch as washers and dryers at night,when the PV system isn’t on, will startrunning up the electric bill again.

“Your time of use is extremelyimportant,” said Nathan Wood, ageneral contractor from Wailua who isbuilding the Hananos’ system. “Youhave to look at your habits. If you’re notusing much electricity during the dayand most of your use is at night, thenhaving a big PV system probably isn’tgoing to make as much of an impact onyour bill as it could.”

Solar contractors usually start with adetailed review of a customer’s energyuse to determine if PV is the rightchoice. Most contractors recommend an aggressive effort at energyconservation—replacing old appliances,using compact fluorescent bulbs andconsidering a solar hot water system—before moving into PV.

MAY 2013 5

Members and Community

SUNNY TIMES FOR SOLARSome Basics to Consider Before Making an Investment

Contractor Nathan Wood says families with PV need to maximize their daytime electrical use to get themost savings.

Currents_May2013_Layout 1 4/26/13 9:30 PM Page 5

6 KIUC CURRENTS

“I try to help people reduce theirenergy use first,” said Charlie Cowden, alongtime Kaua‘i solar installer. “PVshould be the last thing you do, not thefirst thing. Most people can still make alot of headway on efficiency.”

For some customers, especially smallhouseholds with relatively low electricbills, the payback on the investment inPV will be longer.

For Paul D. Jones, an engineer wholives in Wailua Homesteads, the choiceto install a small PV system was drivennot only by the potential savings, but bythe knowledge he was reducing hiscarbon footprint.

He uses a propane-fired, on-demandwater heater and does without manylarge appliances, such as a dishwasherand a dryer. Before having a PV system

installed, his monthly bill rangedbetween $85 and $110. Now it is usuallyless than $20.

But even with a relatively light load,Jones figures his investment in PV willpay for itself in about four and a halfyears.

“As far as modifying personal habits, Ido notice my attempt to run the vacuumcleaner when the sun is shining,” hesaid. “We have a KIUC-provided In-Home Display to monitor our electricconsumption in real time. It’s fun to seehow consumption is affected by usingvarious appliances. Whenever the sunshines, it makes me smile; I can feel andsee the money falling from the sky. TheIHD turns green and displays thewindmill icon, letting us know we arefeeding power back into the utility grid.”

The ‘zero’ utility billSiting of the PV system is extremely

important. A wide expanse of south-facing roof is ideal, especially if it is inan area of the island where there isn’t alot of heavy cloud cover.

Wood uses a device called a SolmetricSunEye on the roof of a house. Thisinstrument, along with a complexsoftware program, is used to measurehow much sunlight is hitting it atvarious times of the day and in differentseasons. This helps determine how big asystem is needed and whether there areshadows from trees, a neighbor’s houseor any other obstructions. Even theshadow cast by a vent pipe can affect asystem’s efficiency.

Then it is up to the homeowner todecide how large a system to install.

An average customer using about 450kilowatt-hours per month could seesignificant savings by installing arelatively small system of 10 panels thatwould supply most of the household’sdaytime energy needs. This would workespecially well for someone who is homeduring the day and can run electronicsand other appliances then.

But most customers want to “zeroout” their electric bills, which meansgenerating excess electricity to sell toKIUC—although the zero bill is a myth,since all customers pay a minimumcharge. That also means installing alarger system that will produce

SOLAR COSTS, FINANCING OPTIONSMost Kaua‘i contractors charge between $5 and $7 a watt to install a system, depending on its complexity and whether

any major electrical work is required. Solar panels vary in output and cost, but most produce between 200 and 250watts. There are also a wide variety of inverters, which convert the direct output current from the PV system to theutility’s alternating current.

At $6 a watt, a 20-panel system using 250-watt panels and producing 5 kilowatts would cost about $30,000. With afederal tax deduction worth $9,000 and a state tax deduction worth $5,000, the final cost would be $16,000.

A homeowner has two financing options: buy the system or lease it. With a lease, the leasing company takes the taxcredit. That is factored into the overall cost and monthly payment.

“In general, if you have good home equity and decent credit it makes more sense to buy,” said Mark Duda ofRevolusun. “If you don’t owe any taxes, a tax break doesn’t do you any good, which is why some people find the leasemore appealing.”

Many banks and credit unions offer “green” loans with low-interest financing. Bridge loans can cover the gap betweenthe purchase of the system and issuance of the tax credits.

Leases are typically for 20 years, with monthly payments calculated according to the amount of electricity the systemproduces. Some companies offer prepaid leases. After six years, the point at which the tax credits run out, customersmay have the option to buy the system.

Unlike leasing a car, PV leases are unique to every customer. They also can be complicated, so it is important to makesure you understand exactly what you will be paying. You also need to be clear about what happens if you sell your house.


MAY 2013 7

sufficient electricity to cover theamount used during peak hours atnight, when most families are usinglights, electronics and appliances.

“If they’re expecting a zero utility billI tell them that’s going to be a longerreturn on their investment,” Wood said.“You’re basically having to double yourdaytime production in order to offsetyour nighttime load, and that meansmore panels.”

Many customers also considerleasing, which involves minimal up-front costs and monthly paymentsbased on the amount of power thesystem is producing. Some leases areprepaid up front. Most leases alsoinclude maintenance and repair.

The main components of a systemare the panels, the racks that attach thepanels to the roof and the inverters.Inverters, which convert the powercreated by the PV panels into electricityfor the grid, are the key to the efficiencyand durability of the system. Theycome in a range of prices.

“You don’t have to become an expert,but we try to talk people crediblythrough the discussion on why theydon’t want to skimp on the inverter,”said Mark Duda, the founder ofRevolusun in Honolulu and head of theHawai‘i PV Coalition.

Choose the contractorcarefully

Choosing a qualified contractor isimportant—especially since thenumber of businesses offering PV

services has quadrupled in the lastseveral years.

“You’re buying something that isattached by drilling holes into yourprized possession, your house, so thatreality ought to drive you to do a reallyclose look at who will be doing thework,” Duda said. “You don’t necessarilywant the cheapest person to do the workbecause some corner they would cutcould start shaving time off that 25-yearinvestment you’re making.”

Some contractors work with a roofingcontractor to attach the PV racks to thehouse. Those roofers may offer aseparate warranty on their work.

In addition to being bonded andhaving the appropriate licenses, askyour contractor for references and findout how long they have been in thebusiness of installing PV systems.

And realize that the PV business isextremely competitive.

Some companies employ the “hardsell,” warning that time is running outon tax benefits or the utility’s PVcapacity. Dozens of jobs for solarsalespeople are posted on Craigslist,offering potential commissions of$100,000 with no experience necessary.

Keven Hanano said he interviewedseveral contractors before deciding tohire Wood. He said it was important tohim to support a local business and toknow he would stand behind his work.

“That’s probably one of the biggestthings: to know that they will bearound,” Hanano said.

THE SCOOP ONSCHEDULE Q

There are two ways KIUC payscustomers for excess powergenerated by PV systems.

One is called Schedule Q . Itreflects the amount KIUC wouldhave had to pay to generate thepower if the co-op did not buy itfrom you. Because KIUC generatesmost of its electricity by burningoil, this so-called “avoided cost”calculation is tied to the price ofoil.

The Schedule Q paymentchanges monthly. During the pastfour years, it has fluctuatedsignificantly—from 10 cents to 29cents.

As more renewables come online and KIUC burns less oil, theamount paid under Schedule Q isexpected to drop.

The way Schedule Q is calculatedalso may change. The PublicUtilities Commission is in theprocess of reviewing themethodology of the Schedule Qrate for all Hawai‘i utilities.

Keep in mind the PUC, notKIUC, determines the waySchedule Q payments are set.

The bottom line for customers:As you calculate the potentialreturn on your PV investment,don’t assume the Schedule Q ratewill stay constant.

The second way KIUC pays forexcess PV power is through theNet Energy Metering Pilot. Underthe NEM program, KIUCpurchases excess power from youat a fixed rate with fixed terms: 20cents per kilowatt-hour for 20years.

The NEM Pilot is available onlyto owners of systems producingless than 50 kilowatts, so it isavailable to most homeowners. ANEM program for larger systems isalready fully subscribed.

Participation in NEM will beavailable until June 3, 2014, oruntil the program is fullysubscribed, whichever comes first.


8 KIUC CURRENTS

FAQ ON PVI’ve decided to put in a PVsystem. What is the first step?

Go to www.kiuc.coop and downloadan interconnection request application,or have your contractor do it. Theapplication can be found under About Us and Tariffs. Look for TariffNo. 2 – Distributed Generation –Interconnection Policies andProcedures.

If your system is going to be 10kilowatts or less—which is the casewith most residential systems—lookfor Tariff No. 2, Attachment 5. If yoursystem is greater than 10 kW, look for Tariff No. 2, Attachment 2.Applications also are available at the co-op office.

Why do I need to submit anapplication?

The Hawai‘i Public UtilitiesCommission requires customers tosubmit an application to KIUC for anengineering review. This step isextremely important and ensures thePV system can be safely and reliablytied into the utility grid. This step alsoallows KIUC to tell you whether youwill have to pay any interconnectioncosts. For example, the size of yoursystem may require the co-op to installa larger transformer. The engineeringreview will describe the interconnectioncosts, if any. KIUC can recommendways to reduce your costs by changingthe size of your proposed system.

How much does the applicationcost?

Most residential systems are below10 kW, so there is no cost for theapplication. There is a $100 non-refundable processing fee if theinterconnection request is for a systemgreater than 10 kW.

How long does the applicationprocess take?

For systems producing less than 10kW, which are most residential systems,KIUC will acknowledge receipt of theapplication within five business days.KIUC then will evaluate the applicationand notify you within 15 days of thereceipt of the application whetheradditional information is needed or ifthe application is complete.

For systems larger than 10 kW, KIUChas 20 business days to acknowledgereceipt of the application. KIUC thenhas 30 business days to review theapplication.

If the application is approved, KIUCwill send an interconnection agreementand the customer has 30 business daysto sign and return the agreement. If theapplication is not approved, KIUC has10 business days to schedule a meetingwith the customer to discuss theiroptions.

Will KIUC always buy the extraenergy my PV system produces?

There is a limit to how much PV theco-op’s system can take. On a sunnyafternoon when all of the PV systemson the island are at their maximumoutput, there may be more power beinggenerated than there is demand. Sothere may be times KIUC’s systemwon’t accept all of the solar poweravailable. That is known as curtailment.

Will my system provide electricitywhen there is a power outage?

No. The electricity you generate goesdirectly into the grid. When the grid isdown, that means there is no power.Residential battery storage systems andgenerators are available, but they areexpensive.

I heard KIUC’s circuits are fillingup and you may not approve myinterconnection application if thePV rush continues. Is that true?

There is still plenty of room for newPV on our circuits. We work closelywith PV contractors. They will get

plenty of notice if any of our circuitsare getting close to saturation. Don’tget rushed into buying a systembecause you are worried there is adeadline.

Does a PV system require aspecial kind of meter?

KIUC requires smart meters for newPV systems. The smart meter suppliesKIUC with precise measurements of theoutput of your PV system. Thisprovides the data needed to maintainsystem stability. Since 2008, KIUC hasgone from having 50 PV systems tomore than 2,000 expected by the end ofthis year. The co-op simply cannotguess how much power they are addingto the grid at any one time. The outputof PV systems is affected by cloudcover, time of day and even the time ofyear, making system stability evenmore critical.

Do you have any suggestions onwho I should select to install my PV?

It is up to you. There are bigdifferences in pricing, depending on the quality and durability of thecomponents. Ask friends and neighborsfor recommendations. The PV businessis extremely competitive, so get severalbids before deciding.

If I have additional questionsregarding the interconnectionprocess, who do I call?

If your system is 10 kW or less, call246.4300. If your system is greaterthan 10 kW, call 246.8287. And you canalways email [email protected].

THE PV ‘GOLD RUSH’The number of PV systems installed on Kaua‘i nearly doubled

from 2011 to 2012.

*Projected0

500

1000

1500

2000

2500

2009 2010 2011 2012 2013*


By Jim KellyThose set-top boxes used for home-

entertainment systems have quicklybecome one of the biggest users ofelectricity in the average household,sucking up more power than even therefrigerator.

A 2011 study by the NaturalResources Defense Council found thetypical high-definition, cable-digitalvideo recorder set-up used 446 kilowatt-hours a year. At 44 cents a kWh onKaua‘i, that comes out to $196.24 ayear, or about $16 a month.

Add in a 42-inch flat screen TV at 181kWh and that’s another $80 a year.

And if you have a couple of these set-ups in your house, well, you can figure itout.

The problem with DVRs is they are onall of the time, busily searching for andrecording shows even when your TVisn’t on.

And unlike many other homeelectronics that can be shut off whennot in use, turning off the DVR defeatsits purpose, which is to record showswhen you’re not around. If you do turnthem off, they can be a hassle to resetand take a long time to reboot.

In its 2011 report, the NRDC foundthat more than 80 percent of U.S. homes

subscribe to some form of pay TVservice, with nearly 160 million set-topboxes in use. The report found thoseboxes consumed 27 billion kWh ofelectricity in 2010—enough to powerthe entire state of Maryland.

Producing that power releases 16million metric tons of carbon dioxide(CO2) into the air—the equivalent ofthe output of nine coal-fired powerplants, the NRDC said.

Because of the high cost of electricityin Europe, The New York Timesreported in June 2011 that cable TVproviders and box manufacturers therehave moved quickly to design systemsthat can operate in a “deep-sleep” modethat uses far less power than U.S.systems. But they still can take a minuteor two to reboot—somethingunappealing to American TV watchers.

And cable andsatellite TV providershave resisted addinganything to the boxesthat will make themmore expensive orcomplex.

But there is somegood news. StricterEnergy Star standardsfor set-top boxes are

set to take effect this year, and the U.S.Environmental Protection Agency istightening the requirements for homeentertainment systems to be qualified asEnergy Star products.

Cable companies also are looking atways to use one main DVR for an entirehousehold connected to smaller boxesthat can be powered down in separaterooms. The increasing use of streamingvideo is expected to drive energyefficiency in TVs and DVRs.

For now, consider whether yourhousehold needs multiple cable-DVRset-ups, or if you can get by with one.

And for all other electronics, usepower strips to turn them off when theyare not in use. This includes computers,printers, DVD players and TVs with“instant-on” features.

14 KIUC CURRENTS

Issues and Ideas

DIGITAL RECORDERS, CABLE BOXES COST NEARLY $200 A YEAR IN ELECTRICITY

Annual energy use of set-topboxes and other appliances

Typical HD-DVR and cable box set-up 446New 21-cubic-foot Energy Star refrigerator 415Energy Star 42-inch LCD TV 181Compact fluorescent bulb (in kWh) 17

Source: Natural Resource Defense Council


Be Prepared for Kitchen FiresInvest in an extinguisher for your kitchen and learn how to use it

Most house fires start in the kitchen, but just a quarter of homeowners keep a fire extin-guisher there. If your kitchen is without this important life-saving device, invest in one today for as little as $40.

Fire extinguishers are designed to help you stop a small fire from growing, which will buy you and your family time to safely leave your home. Do not count on a fire extinguisher to put out the fire. Your goal during any fire should be to flee to safety.

Here are tips for buying and using a fire extinguisher:

• Use your portable fire extinguisher only on self-contained fires, like one that starts in a waste-basket or a pot on the stove. If the fire grows beyond that contained space and catches walls, drapes, cabi-nets, furniture or anything else on fire, stop spraying and get out of the house.

• Do not use a fire extinguisher in a room filled with smoke. Once you cannot see, you will not be able to target the fire. And when you start breathing in smoke, you are risking your life.

• After you buy a fire extinguisher, learn how to use it—and teach everyone in the house. Remember the word PASS: Pull the pin, and point the fire extinguisher’s nozzle away from your face. Aim low, pointing the device at the base of the fire. Squeeze the lever slowly, applying even pressure. Sweep the

nozzle from side to side.• Base the size of the fire extinguisher on the size

of the room, but do not buy one so heavy that some family members cannot easily lift and use it.

• Select a multipurpose model that can be used on all kinds of home fires.

• Look for a label from Underwriters Laboratories or another independent testing lab before buying a fire extinguisher.

• Keep an extinguisher in the kitchen and another one on each floor of the house. Store it near an exit so it is easy to get to during a fire and so you can make a quick exit if the fire starts to spread.

• Replace your fire extinguisher every 10 years, even if you never used it. The contents of a portable fire extinguisher are pressurized. Over time, they can de-pressurize, leaving the unit useless in a fire.

Escambia River

Keeping You in the Loop … Tree-trimming locations: Escambia River Electric Cooperative right-of-way crews will trim trees and clear

vegetation from power lines in the South Pineville and O C Phillips areas. Utility pole inspections: as required by the Public Service Commission, EREC will undergo the inspection

and treatment of utility poles. Contractors will be working in the munson area.

EREC appreciates you using caution near co-op crews and contract crews at work. Please give the crews and their equip-ment space to work safely and keep you out of harm’s way.

Keep It Safe

28 m ay 2013

The power is in your hands.

POOL SAFETYOver time, pool lights and pumps may become faulty and create hazards. Make sure your pool has only properly installed lighting and equipment. Receptacles near pools should have ground fault circuit interrupters. It’s a good idea to have your pool lights and pool pump checked annually for any potential safety hazards.

The power is in your hands...be safe.

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N

S

EW

Shade your air conditioner from direct light but do not

block airflow.

In the Florida Keys, you should plant trees onthe East and West side of your home to most effectively reduce solar radiation.

Tint windows not shaded byvegetation. Window tint can

reduce heat exchange by 30%.

Since tree canopies do not usually extend over a home’s roof,

good attic insulation is the best defensewhen the sun is directly over head.

Close curtains or blinds onsun exposed windows.

MAY 2013 5

Shade Your Home to Reduce Cooling CostPlanting vegetation to shade your home can reduce energy consumption by 20-30%

Increase the Efficiency of Your Home’s Cooling SystemMaintain Your Cooling System• Clean or replace A/C filters every30 days.

• Use a programmable thermostat tobetter manage your settings day and night.

• Set A/C to highest comfort level.• Use fans to augment cooling but

turn off when not in the room.Ceiling fans do not cool a room.They just make you feel cooler.

• Have your A/C tuned up by aprofessional. Help your A/C run as

efficiently as possible by having itchecked by a qualified professional.

• Consider buying a new, efficientA/C system that has a SeasonalEnergy Efficiency Ratio (SEER) of 16or higher. For room units, select aSEER of 12 or higher.

• Find and seal cracks, gaps, leaksand check insulation.

• If applicable, consider addinginsulation to ceilings, walls andattics. It can reduce cooling costsby 5% to 25%.

Fight Against Humidity• Use bathroom exhaust fans toremove humidity whenshowering.

• Use the kitchen exhaust fan toremove heat and humidityproduced while cooking.

• Avoid running humidifying, heat producing appliances(i.e. washer, dryer, dishwasher)during the heat of the day.

• Cover aquariums to keepmoisture in.

Consult the FKEC Guide to Home Energy Efficiency for more ways to save.The guide is available online at www.FKEC.com or at the Co-op offices.

FKEC-May-2013-Final_Layout 1 4/11/13 11:48 AM Page 3

Use Portable Generators SafelyWhen Superstorm Sandy knocked out power to millions on the East Coast last fall, many of those affected turned to portable standby generators to help keep food safe, lights on, and safety and medi-cal equipment operating.

The growing popularity of emergency generators has resulted in several million being placed in homes and small businesses across the nation. However, only a small percentage are hooked up or used correctly.

SafeElectricity.org—an outreach program of the Energy Education Council—urges consumers to understand proper generator safety steps. The non-profit organization has more than 400 electric coop-erative members and many others who share the mission of teaching the public about electrical safety and energy efficiency.

“Generators can be a lifesaver for some and can improve the quality of life after a natural disas-ter such as a hurricane, tornado or earthquake,” explains Molly Hall, executive director of the Safe Electricity program. “However, it’s critical that proper safety precautions be taken to prevent acci-dents that could affect you, a family member, neigh-bor or utility lineworker.”

Generators can be temporarily or permanently installed. A permanent generator is wired into a house by a qualified electrician using a transfer switch. This protects you, your neighbors and repair crews from electricity backfeeding onto power lines. This can seriously injure anyone near those lines, especially co-op crews working to restore power. A temporary generator fired by gasoline or die-sel fuel should not be attached to a circuit breaker, fuse or outlet.

The improper use of a standby generator can lead to injury or death. When using a generator, follow these tips to keep you and your family safe:• Read and follow all manufacturer’s operating instructions

to properly ground the generator. Be sure you understand them before starting it up.• Standby generators should have a transfer safety switch

installed by a professional. Portable generators should never be plugged directly into a home outlet or electrical system. Use an extension cord to plug appliances into an outlet on the generator. • Never operate a generator in a confined area, such as a

garage. Generators produce gases, including deadly carbon monoxide. They require proper ventilation.• Remember, when venturing outside after a severe storm,

stay away from downed power lines and be alert to the possibil-ity tree limbs or debris may hide an electrical hazard. Assume any dangling wires you encounter are electrical, and treat all downed or hanging power lines as if they are energized. Warn others to stay away and contact your electric utility. • Generators pose electrical risks, especially when operated

in wet conditions. Use a generator only when necessary if the weather creates wet or moist conditions. Protect the generator by operating it under an open, canopy-like structure on a dry sur-face where water cannot form puddles or drain under it. Always ensure your hands are dry before touching the generator.• When you refuel the generator, make sure the engine is

cool to prevent a fire, should the tank overflow.• There should be nothing plugged into the generator when

you turn it on. This prevents a surge from damaging your gen-erator and appliances.• Keep children and pets away from the generator, which

could burn them. nFor more safety information on the use of portable and standby generators and safety after a storm, go to www.SafeElectricity.org.

Keep this in your home’s emergency kit or with your generator.

Never connect a standby generator into your home’s electrical system. There are only two safe ways to connect a standby generator to your equipment:

Stationary Generator:

Generate Safely Safe Generator Operation

An approved generator transfer switch, which keeps your house circuits separate from the electric co-op, should be installed by a professional.

Portable Generator:

Plug appliances directly into the outlet provided on the generator.

Set up and run your generator in a well-ventilated area outside the home. Make sure it is out and away from your garage, doors, windows and vents. The carbon monoxide generated is DEADLY.

Developed jointly by the Energy Education Council & Rural Electricity Resource Council

Source: SafeElectricity.org

Start the generator BEFOREconnecting appliances.

Use a heavy-duty extension cord to connect electric appliances to the outlet on the generator.

Glades ElectricNeighbors Working for Neighbors

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touchstone celebrates 15 years...increased member engagement. “we want to bring power to the...

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