Parker Ranch has formed a subsidiary called Paniolo Power Co. to provide electricity to the 130,000-acre Hawaii island ranch and the nearby community, using renewable energy sources.
Parker Ranch, in response to high electricity prices charged by Hawaii Electric Light Co., announced last fall it was exploring a plan to generate its own power that could serve the ranch, the town of Waimea and the surrounding area. Parker Ranch has good potential for wind, solar and biomass development, said Neil "Dutch" Kuyper, Parker Ranch chief executive officer.
"We think that the residents and businesses of the Big Island could be better served by a series of community solutions with regional-level distributed generation focusing on our plentiful renewable resources," Kuyper said.
The ranch decided to press ahead with its plans for a "community-based energy solution" for the greater Waimea and Kohala area following a positive assessment of the concept from a team of consultants, said Kuyper.
"The preliminary results from our energy team, led by Siemens (the German engineering conglomerate), tells us there is a real opportunity to attract capital to invest in our community grid concept," Kuyper said.
Paniolo Power, which filed its business registration Monday, already has begun discussions with potential operating and capital partners to manage and fund the effort, said Kuyper, a Hawaii native with a background in investment management.
Hawaii island residential electricity rates, which topped 40 cents a kilowatt-hour in February, are among the highest in a state where the average price of electricity is already three times the national average of 12.1 cents a kilowatt-hour.
In addition to finding operating and capital partners for the project, Parker Ranch also will assemble an advisory team to help it navigate the regulatory process, Kuyper said.
"We would be open to talking about ventures with other utilities in the state and outside the state. We will look at all options," he said. "We’re exposing an interesting idea to the marketplace that I think is compelling."
Parker Ranch is a working cattle ranch founded more than 160 years ago which supports health care, education and chartable giving in Waimea through a trust formed in 1992.
