Notice of Public Hearing – Hawaii-American Water Company Rate Increase (Docket No. 2024-0038)

Posted on Oct 1, 2024 in Public Notice

The State of Hawaii Public Utilities Commission will conduct three public hearings regarding Hawaii-American Water Company’s (HAWC) application for rate increases and revised rate schedule and rules on Friday, October 25, 2024 on Oahu and October 28, 2024 on Hawaii Island. All are invited to attend the public hearings and state their views on the application, which is described further below.

Public Hearing Information

Date & Time Utility Service Territory Location
October 25;
5:45 p.m. (or 5 minutes after completion of the prior matter)*		 Oahu – Hawaii Kai Hybrid Participation Options

In-person
Public Utilities Commission Hearing Room
465 S. King Street, Room 103
Honolulu, Hawaii 96814

Online (via web browser or WebEx mobile device app)

Link: https://hpuc.my.webex.com/hpuc.my/j.php?
MTID=m2255b735ff7ed8a6805558617a364302

Meeting Number: 2558 610 7635
Meeting Password: 2PqUvJS7hg3

Telephone
Dial-in Number: +1-650-479-3208
Access Code: 2558 610 7635
October 28;
5:15 p.m. (or 5 minutes after completion of the prior matter)*		 Hawaii Island – Mauna Lani In-person
Natural Energy Laboratory of Hawaii Authority (NELHA)
Hale Iako Building, Collaboration Area
73-987 Makako Bay Drive
Kailua-Kona, Hawaii 96740
October 28;
5:30 p.m. (or 5 minutes after completion of the prior matter)*		 Hawaii Island – Waimea In-person
Natural Energy Laboratory of Hawaii Authority (NELHA)
Hale Iako Building, Collaboration Area
73-987 Makako Bay Drive
Kailua-Kona, Hawaii 96740

* The Hawaii-American Water Company rate increase public hearing will be held directly following the public hearing for a separate matter, the Gas Company, LLC dba Hawaii Gas’ rate increase application in Docket No. 2024-0158.

Special assistance: Webex meetings will include automated closed captioning. If you require other auxiliary aids/services or other accommodation for online or in-person participation, contact the PUC at (808) 586-2020, or [email protected] as soon as possible. Requests made as early as possible have a greater likelihood of being fulfilled.

Brief Summary of Application

Hawaii-American Water Company is a public utility authorized by the Hawaii Public Utilities Commission since 1974 to provide:

  1. Wastewater collection, treatment, and disposal service to the residences, condominiums, commercial and other establishments and facilities in the Hawaii Kai community on the island of Oahu, State of Hawaii (“Hawaii Kai”);
  2. Wastewater services to the residents, occupants, homeowner associations, hotels and commercial establishments at the Mauna Lani Resort area on the island of Hawaii (“Mauna Lani”); and
  3. Wastewater services to the residential, commercial and other customers in the Waimea area on the island of Hawaii (“Waimea”).

 
On August 2, 2024, HAWC filed an application, and supplemented the application with a filing on August 23, 2024 (together, the “Application”), requesting Commission approval of a 2025 test year net revenue increase of $1,382,060 in total revenues or approximately 11.45% over total revenues at present rates for Hawaii Kai; $897,060 in total revenues or approximately 64.90% over total revenues at present rates for Mauna Lani; and $194,450 in total revenues or approximately 32.60% over total revenues at present rates for Waimea.

Among other things, HAWC is also requesting adding a new rule for the Catastrophic Event Tracking Mechanism; adding a new rule for Capital Infrastructure Surcharge Mechanism; revising the Schedule of Wastewater Rates for residential, commercial and public authority customers; and adding a new section for an Automatic Power Cost Adjustment Clause.

According to HAWC, its operating costs have increased since its last general rate increase and it has made annual investments in plant and equipment for its operations that are necessary for the safe and reliable provision of Applicant’s regulated service. HAWC says that its customer base and resulting operating revenues have remained relatively constant for Hawaii Kai, and have increased for Mauna Lani and Waimea, but not at a pace to offset the rising costs.

HAWC’s present and proposed charges are as follows:

HAWAII KAI
Customer Class Current Proposed Percentage Change
Residential Units:
Single-Family Residential Unit
(monthly service charge per dwelling unit)		 $79.21 $88.28 11.45%
Multi-Family Residential Unit
(monthly service charge per dwelling unit)		 $67.40 $75.12 11.45%
Commercial (Non-Residential) Units:
Food Service Operation $18.98 per 1k gallons of water used $21.15 per 1k gallons of water used 11.43%
Non-Food Service Operation $11.65 per 1k gallons of water used $12.98 per 1k gallons of water used 11.42%
Public Authority–Other $11.65 per 1k gallons of water used $12.98 per 1k gallons of water used 11.42%
Public Authority–Dwelling $4.40 per 1k gallons of wastewater treated $4.90 per 1k gallons of wastewater treated 11.36%
MAUNA LANI
Customer Class Current Proposed Percentage Change
Residential Units:
Residential Condos
(monthly service charge per dwelling unit)		 $45.78 $75.49 64.90%
HOA
(monthly service charge per dwelling unit)		 $45.78 $75.49 64.90%
Commercial (Non-Residential) Units:
Commercial Sewer
(monthly service charge per equivalent unit)		 $45.78 $75.49 64.90%
Commercial Hotel
(monthly service charge per hotel room unit)		 $45.78 $75.49 64.90%
WAIMEA
Customer Class Current Proposed Percentage Change
Residential Units:
Single-Family Unit
(monthly flat-rate charge)		 $108.47 $143.83 32.60%
Multi-Family Unit
(monthly flat-rate charge)		 $108.47 $143.83 32.60%
Commercial (Non-Residential) Units:
All Other Facilities
(including commercial, recreational, schools, churches, etc.)		 $14.41 per 1k gallons of water used $19.10 per 1k gallons of water used 32.55%

To view the full Application and all docketed documents, see the “DOCUMENTS” tab for Docket No. 2024-0038.

The Commission will investigate whether Hawaii-American Water Company’s proposal in the Application is just and reasonable.

Public Comments and Statements

Comments may be submitted in writing or given orally during the hearing. All written comments will be publicly accessible on the PUC’s Case and Document Management System.

  • COMMENTS DURING THE HEARING:
    Persons wishing to give oral comments should register at the time of the hearing. Submission of written comments in addition to giving oral comments is highly encouraged.
  • WRITTEN COMMENTS:
    All written comments should reference Docket No. 2024-0038 and include the author’s name and the entity or organization that the author represents, if any. Submit written public comments via the following methods:

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