Page 2 of 7

Supporting documents included:

1. STIPULATION FOR DISMISSAL WITH PREJUDICE; AND ORDER (Exhibit A)
2. KIUC deferral form (Exhibit B)
3. Formal Complaint and Notification to KIUC letter (Exhibit C)
4. Smart meters, AMI, AMR, and their respective definitions (Exhibit D)
Nature of Complaint
The landmark Federal Court case of ADAM ASQUITH vs. KAUAI ISLAND UTILITY
COOPERATIVE for injunctive relief ended in an out of court settlement when KIUCs motion to
dismiss was voluntarily withdrawn on April 25, 2012.
The case was settled without going to trial. This was agreed upon at the first hearing on the injunction
where the judge severely admonished KIUC. KIUC agreed that they did not want it to go to trial and
agreed to settle with Adam on his complaint.
The settlement agreement was presented to the court for approval and signed by both parties on May 31,
2012. The STIPULATION FOR DISMISSAL WITH PREJUDICE; AND ORDER (see Exhibit A),
was approved and so ordered by Federal Court Judge Helen Gillmor on June 1, 2012.
Condition 1 of this agreement states:
"KIUC agrees that it will not seek to install (including but not limited to requesting from the
Hawaii Public Utilities Commission ("PUC") permission or authorization to install a smart meter
on premises where the electricity accounts are in Plaintiff's name), and will not voluntarily install
without court order or an order or determination of the PUC, any smart meters on premises where
the electricity accounts are in Plaintiff's name without Plaintiff's permission."
Page 3 of 7

By legal definition, making such an agreement with one (1) member of the Cooperative, KIUC is required
by PUC regulations and state law to have this settlement apply to all Cooperative members.
Under General Order No. 7 of the Hawaii PUC Standards for Electric Utility Service in the State of
Hawaii, section 1.2 Application of Rules, item f states:
f. Each electric utility may of its own accord establish uniform non-discriminatory rules more
favorable to its customers than the rules herein established.
KIUC of its own accord established such a rule by signing and agreeing to the above settlement and its
conditions. This new rule must be applicable as a uniform non-discriminatory rule to all cooperative
members.
Adam Asquith stated to me and I quote,
KIUC admitted that they cannot offer me (Adam) a special deal and these new conditions must
be offered to all members under their PUC regulations.
To clarify Condition 1, and establish this new KIUC rule as required by PUC regulations, the term
Plaintiff now becomes Co-op Member as below:
Condition 1 of this agreement creates this new rule:
"KIUC agrees that it will not seek to install (including but not limited to requesting from the
Hawaii Public Utilities Commission ("PUC") permission or authorization to install a smart meter
on premises where the electricity accounts are in Co-op Member's name), and will not
voluntarily install without court order or an order or determination of the PUC, any smart meters
on premises where the electricity accounts are in Co-op Member's name without Co-op
Member's permission."
This new rule has the following legal guidelines that KIUC has agreed to follow and implement:
Page 4 of 7

1. KIUC must have Co-op Member's permission before installation of any smart meter on
premises where the electricity accounts are in Co-op Member's name.

2. KIUC will not request permission or authorization to install any smart meters from the PUC
where the electricity accounts are in Co-op Member's name.

3. KIUC must have a court order or an order or determination of the PUC to install any smart
meters without permission of Co-op Member.
The continued rollout of smart meters (see Exhibit D) on Kauai by KIUC is in direct violation of PUC
regulations and state law, as well as undermining the Federal court approved settlement with Adam
Asquith. It is also discriminatory and exposes the Cooperative to multiple lawsuits, the cost of which will
ultimately be borne by the co-op members.
KIUC has stated on its website:
Settlement Reached in Smart Meter Installation Complaint
FOR IMMEDIATE RELEASE
Lhue, Kauai, HI 06/04/12 Kauai Island Utility Cooperative and Adam Asquith have
reached a settlement in Mr. Asquiths effort in federal court to block the installation of a smart
meter on his home.
The settlement provides to Mr. Asquith the same assurance KIUC gives to those who fill out a
deferral form: You dont have to have an advanced meter if you dont want one.
Specifically, the settlement states that KIUC will not install a smart meter on Mr. Asquiths
property without his permission and will not seek authorization from the Hawaii Public Utilities
Commission to install a smart meter there.
Page 5 of 7

The terms of the settlement apply only to Mr. Asquith. The decision whether to defer can only be
made by the customer whose name is on the KIUC account.

KIUC denies application of General Order No. 7 of the Hawaii PUC Standards for Electric Utility
Service in the State of Hawaii, section 1.2 Application of Rules item f by stating The terms of the
settlement apply only to Mr. Asquith. KIUC is also claiming it can make rules and settlements with
individual Co-op members, thus creating un-equal status and discrimination among Co-op members.
KIUCs statement The settlement provides to Mr. Asquith the same assurance KIUC gives to those who
fill out a deferral form is equally unsettling, as the deferral form (see Exhibit B) contains no such terms
or assurances as stipulated within the Settlement.
Both of these statements and the claims they make are misleading and exposes the Cooperative to
multiple lawsuits, the cost of which will ultimately be borne by the co-op members.
Must each Co-op member file suit in Federal Court to get the same settlement that Adam Asquith has?
Does KIUC have the right to discriminate against Co-op members who cant afford to file a lawsuit?
As a Co-op member and owner, the cost of defending KIUCs discriminatory stance is not in the best
interests of the cooperative, and will lead to more lawsuits being filed.
By denying the rights of Co-op members in this manner, it is imperative that the PUC act quickly and
decisively to provide immediate relief and establish equality that extends to all KIUC Cooperative
members. Such action will also limit our exposure to lawsuits and its associated costs.



Page 6 of 7

Statement of Remedial Action Desired
All installations of smart meters (see Exhibit D) on and after June 1, 2012 were done without permission
as defined by KIUCs settlement with Adam Asquith, are illegal in the eyes of the law, and exposes the
Cooperative to multiple lawsuits, the cost of which will ultimately come out of the members' pockets.
As KIUC has yet to make this settlement applicable in a uniform and non-discriminatory manner, and
continues to break PUC regulations and undermine the rights of its cooperative members, I submit that
immediate relief be granted as follows:
1. Uphold and enforce the settlement between KIUC and Adam Asquith as a uniform and non-
discriminatory rule which applies to all Co-op members.
2. Halt all non-consent smart meter installations on co-op members immediately.
3. Initiate an immediate moratorium on smart meter installations, until such a time that an Opt-In
form is available to the Co-op members.
4. KIUC violated the Co-op members trust and exposed the cooperative to multiple lawsuits by
starting the smart meter deployment in May, while negotiating a settlement that would make such
a deployment subject to further litigation. As such, all smart meters that were installed from April
25, 2012 onward must be made consensual by the co-op member in writing as an Opt-In
agreement; otherwise KIUC must remove the smart meter and replace it with the Co-op
members original or analog meter.

5. KIUC should be reprimanded for the excesses, hubris and abuse of power shown and heaped
upon the Co-op members that have caused such damage to the trust and standing of our Utility
among Kauais citizens. The Officers and Board should be required to make a formal apology to
4463 Pahee Street, Suite 1 Lhue, Kauai, HI 96766-2000 (808)246-4300 www.kiuc.coop

kluc ls oo epool oppottoolty ptovlJet ooJ employet.


Advanced Meter Insta||at|on Deferra| Iorm

(use separaLe form for each accounL)

As a member of kaua'l lsland uLlllLy CooperaLlve (kluC), l am aware of my opporLunlLy Lo defer lnsLallaLlon of an
advanced meLer (SmarL MeLer") aL my home or place of buslness, and by deferrlng lnsLallaLlon, l do so wlLh Lhe
undersLandlng LhaL l wlll noL be recelvlng Lhe beneflLs of an advanced meLer. l undersLand LhaL, kluC has agreed
Lo defer Lhe lnsLallaLlon aL Lhls Llme whlle lL conLlnues Lo analyze Lhe lmpacLs LhaL are caused by members who
declde noL Lo recelve an advanced meLer and how Lo address Lhose lmpacLs. 1he deferral program does noL
reflecL a flnal deLermlnaLlon by kluC regardlng advanced meLer lnsLallaLlons and kluC may declde Lo obLaln cosL
recovery for Lhe cosLs and lmpacLs caused from Lhose members who declde noL Lo recelve an advanced meLer.

l wlsh Lo defer lnsLallaLlon of advanced meLerlng aL my home/buslness.

l would llke Lo Lalk wlLh a kluC represenLaLlve abouL Lhe advanced meLer lnsLallaLlon prlor Lo maklng a
declslon on wheLher Lo defer lnsLallaLlon. ConLacL number: _____________________________


Member name (prlnLed):_______________________________________________________________________


Member slgnaLure: ___________________________________________________________________________


uaLe: _________________________________ AccounL number: ______________________________________


hyslcal Address of Servlce: _____________________________________________


_____________________________________________

SubmlL by mall:
kaua'l lsland uLlllLy CooperaLlve
Advanced MeLer ueferral lorm
4463 ahe'e SLreeL, SulLe 1
Llhue, Pl 96766-2000

SubmlL by emall: lnfo[kluc.coop

SubmlL by fax: (808)246-4313


ClllCL uSL CnL? - vL8lllCA1lCn Cl MLM8L8/ACCCun1 lnlC8MA1lCn
From: Mark Naea
Sent: Tuesday, June 12, 2012 4:58 PM
To: David Bissell ; Jim Kelly ; KIUC BOD
Cc: Hawaii PUC
Subject: Formal Complaint and Notification to KIUC

To: KIUC Officers, Board, employees, its contractors and interested parties,
RE: By Permission Only Opt-In Agreement as defined within the settlement agreement with Adam Asquith
This is a Formal Complaint and Notification
Dear Sirs,
I hereby formally request that you cease and desist all smart meter installations without permission of the account
holder (co-op member). By your settlement agreement with Adam Asquith, the STIPULATION FOR
DISMISSAL WITH PREJUDICE; AND ORDER, recorded in Federal court on June 1, 2012, and your own
statements to Adam Asquith, you are now required and bound by both PUC Regulations and state law to the
following conditions of said settlement:
1. KIUC must have Co-op Member's permission before installation of any smart meter on premises where
the electricity accounts are in Co-op Member's name.

2. KIUC will not request permission or authorization to install any smart meters from the PUC where the
electricity accounts are in Co-op Member's name.

3. KIUC must have a court order or an order or determination of the PUC to install any smart meters
without permission of Co-op Member.
All installations of smart meters on and after June 1, 2012 were done without permission as defined by your
settlement, are illegal in the eyes of the law, and exposes the Cooperative to multiple lawsuits, the cost of which
will ultimately come out of the members' pockets.
As KIUC has yet to make this landmark case public, and continues to break state law, PUC regulations, and
undermine the right of its cooperative members, I submit this FORMAL COMPLAINT and NOTICE TO CEASE
AND DESIST as follows:
1. Stop all illegal smart meter installations immediately.
2. End the Smart Meter Pilot program immediately.
3. Replace all illegally installed smart meters with their original or analog meter.
4. Initiate an immediate moratorium on smart meters based on the settlement agreement.
5. Begin Public hearings to clean up this mess and apologize to the co-op members.
If the above actions are not initiated by KIUC with a written response stating compliance, no later than 10:00 am
Friday June 15, 2012, I will have no recourse but to file a FORMAL COMPLAINT with the PUC and begin
Court proceedings in order to protect my interests as a co-op member and owner.
Sincerely
Mark Naea
6581 Puupilo Rd.
Kapaa, HI 96746
ADVANCED METERING INFRASTRUCTURE & SMART METERS

Smart Meters are electronic measurement devices used by utilities to communicate information for billing
customers and operating their electric systems. The combination of the electronic meters with two-way
communications technology for information, monitor, and control is commonly referred to as Advanced
Metering infrastructure (AMI).
A smart meter provides functionality beyond the basic measurement of consumption of the supplied
commodity. A smart metering system is where smart meters are connected to other devices via a series of
technologies that enables meters to be read and data transferred without human intervention (sometimes
called AMR) and so enable an enhanced level of service.
Previous systems, which utilized one-way communications to collect meter data were referred to as AMR
(Automated Meter Reading) Systems. AMI has developed over time, from its roots as a metering reading
substitute (AMR) to todays two-way communication and data system.
Conventional electromechanical meters served as the utility cash register for most of its history. At the
residential level, these meters simply recorded the total energy consumed over a period of time typically a
month. Smart meters are solid state programmable devices that perform many more functions, including most
or all of the following:

Time-based pricing
Consumption data for consumer and utility
Net metering
Loss of power (and restoration) notification
Remote turn on / turn off operations
Load limiting for bad pay or demand response purposes
Energy prepayment
Power quality monitoring
Tamper and energy theft detection
Communications with other intelligent devices in the home
Smart meter technology not only provides a highly efficient method for obtaining usage data from customers,
but it also can provide up-to-the-minute information on consumption patterns since the meter reading devices
can be programmed to provide data as often as needed. Many of the newer AMR meters provide the same
functionality. AMR can also be used for Time-of-Use pricing applications and pinpointing outages.
AMI is also envisioned as including a Home Area Network (HAN), whereby various devices throughout a
household - these may include lighting, thermostats, and other electrical appliances, etc. would be in wireless
contact with a central coordination and data collection node within the residence. The HAN would enable such a
household to receive data describing its electrical usage behavior, and enable optimal energy usage efficiency.
Smart Meters transfer data wirelessly with a radio-frequency (RF) transmission to a nearby Neighborhood Area
Networks (NANs) for transmission to service providers over Wide Area Networks (WANs).