APPLICATION OF NORTH SHORE WATER COMPANY, LLC
FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY
TO PROVIDE WATER SERVICES ON THE ISLAND OF OAHU,
DISTRICT OF WAIALUA, AND FOR APPROVAL OF RULES AND RATES

Docket No. 2008-0180

The PUBLIC UTILITIES COMMISSION (“Commission”) of the STATE OF HAWAII, pursuant to Hawaii Revised Statutes (“HRS”) §§ 269-16 and 269-12, HEREBY GIVES NOTICE that it will hold a public hearing on Monday, November 10, 2008, at 6:00 p.m. at Waialua High and Intermediate School Cafeteria (67-160 Farrington Highway, Waialua, Hawaii) regarding the application of NORTH SHORE WATER COMPANY, LLC (“North Shore Water”), filed on September 12, 2008, for a certificate of public convenience and necessity (“CPCN”) to continue to provide water service on the island of Oahu in the district of Waialua, and for approval of its proposed rates, charges, and rules (“Application”).
North Shore Water, a Hawaii limited liability company, is owned by Dillingham Ranch Aina LLC and currently provides water service to customers located in Mokuleia in the district of Waialua, on the island of Oahu. North Shore Water’s current rates and charges were set by Decision and Order No. 23471, issued on May 31, 2007, in Docket No. 2006-0137, in which the Commission restricted North Shore Water from charging more than the Board of Water Supply rates and charges in effect on October 1, 2006. Through this Application, North Shore Water is seeking a CPCN to continue to provide water to its current customers and, among other things, approval of a rate increase of approximately $90,160 or about 175.55%, over total revenues at present rates for the calendar 2009 test year (“Test Year”). The requested increase is based on an estimated revenue requirement of $141,520 for the Test Year, and a proposed rate of return of 0.4185%. North Shore Water is also requesting the establishment of a Repair and Maintenance Reserve of $12,518 for the Test Year.
Specifically, with regard to its rates and services, North Shore Water is proposing to: (1) increase its Monthly Water Consumption Charge and exchange its current Billing Charge for a new monthly Meter Charge, see chart below; (2) impose an Automatic Power Cost Adjustment Clause to cover the increasing cost of electricity; (3) establish a Repair and Maintenance Reserve through an additional assessment of $0.35 per each 1,000/gallons of water consumed by customers who receive water from North Shore Water’s bulk meters; and (4) establish its Rules governing water service.
The following illustrates North Shore Water’s proposal to: (1) increase its Monthly Water Consumption Charges; and (2) impose new Meter Charges:

Present Rates Proposed Rates
Monthly Water Consumption Charge:

Multi Family Block I (Gallons)
First 9,000 or any part thereof $2.00 $4.10

Multi Family Block II (Gallons)
9,001 – 22,000 or any part thereof $2.40 $4.90

Multi Family Block III (Gallons)
Over 22,000 $3.59 $7.30

Single Family Block I (Gallons)
First 13,000 or any part thereof $2.00 $4.10

Single Family Block II (Gallons)
13,001 – 30,000 or any part thereof $2.40 $4.90

Single Family Block III (Gallons)
Over 30,000 $3.59 $7.30

Ag Residential Block I (Gallons)
First 13,000 or any part thereof $2.00 $4.10

Ag Residential Block II (Gallons)
Over 13,000 $0.85 $1.80

Non Residential [MBC & Episcopal]
All Usage $2.24 $4.60

Non Potable
All Usage $0.85 $1.70

Billing Charge (Monthly): $4.18 $0

Meter Charge (Monthly):

¾” meters $0 $48.00

2″ meters $0 $108.00

3″ meters $0 $168.00

North Shore Water asserts that it is fit, willing, and able to provide the water service that it is proposing and requests that the Commission approve the proposals set forth in the Application including its request for an increase in rates. Further, North Shore Water represents that it requires the rate increase since it has been operating at a net loss and has projected losses for future years.
The Commission will investigate and determine whether the proposals in the Application, including the proposed revenue increases and revisions to North Shore Water’s rate schedule, are just and reasonable. The total revenue requirement for the Test Year will not exceed the amounts that North Shore Water requests in the Application. However, the increases in rates and charges to be approved by the Commission, if any, may be higher or lower than North Shore Water’s proposed rates and charges which are noted above.
All interested persons are urged to attend the public hearing to state their views orally, in writing, or both. Written statements may be submitted prior to or at the public hearing. Statements may be submitted to the Public Utilities Commission, 465 South King Street, Room No. 103, Honolulu, Hawaii, 96813 via postal mail or personal delivery. Statements can also be submitted to the Commission through e-mail at Hawaii.PUC@hawaii.gov. All written statements should reference Docket No. 2008-0180 and include the following information: (1) name of the person submitting the written statement; (2) organization the person submitting the written statement represents (if any); and (3) address of the person submitting the written statement.
Motions to intervene or participate in this proceeding must comply with Subchapter 4, Rules of Practice and Procedure Before the Public Utilities Commission, Hawaii Administrative Rules, Title 6, Chapter 61. A motion to intervene or participate in this proceeding must be filed with the Commission by Thursday, November 20, 2008.
Copies of North Shore Water’s Application and supporting documents are available for public inspection during regular business hours at the following locations:

1. PUBLIC UTILITIES COMMISSION
465 South King Street, Room No. 103
Honolulu, Hawaii 96813
Phone: (808) 586-2020

2. DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS
DIVISION OF CONSUMER ADVOCACY
335 Merchant Street, Room No. 326
Honolulu, Hawaii 96813
Phone: (808) 586-2800

3. NORTH SHORE WATER COMPANY, LLC
68-540 Farrington Highway
Waialua, Hawaii 96791
Phone: (808) 637-8088

Special arrangements to accommodate persons with disabilities can be made if requested reasonably in advance of the public hearing by contacting the Commission’s Honolulu Office.