Kauai Island Utility Cooperative today filed a notice with the Public Utilities Commission saying it intends to seek a general rate increase this year.

"A base rate increase may be needed at this time to provide KIUC with financial stability during these difficult times and to meet various challenges on the horizon," said Randy Hee, KIUC president and chief executive officer. "We plan to file the formal application with the PUC in May,"

The "rate design studies" have not been completed, so it is too early to estimate the size of the rate hike, said Hee. "For now, we just want everyone to know that we are officially going to begin the process."

The studies will help calculate the revenues needed for KIUC to remain financially stable, and determine a rate structure that will assist KIUC in shifting its reliance away from fossil fuels, to promoting conservation and energy efficiency, and investing in renewable energy, Hee said.