NOTICE OF PUBLIC HEARING
IN THE MATTER OF THE APPLICATION OF WAIMEA WASTEWATER COMPANY, INC. FOR REVIEW AND APPROVAL OF
RATE INCREASES AND REVISED RATE SCHEDULES
DOCKET NO. 2008-0261
The PUBLIC UTILITIES COMMISSION of the STATE OF HAWAII (“Commission”), pursuant to Hawaii Revised
Statutes §§ 269-12 and 269-16, HEREBY GIVES NOTICE that it will hold a public hearing on Thursday, December
18, 2008, 6:00 p.m. at the Waimea Civic Center, 67-5189 Kamamalu Street, Kamuela, Hawaii, 96743 relating
to the Application of WAIMEA WASTEWATER COMPANY, INC. (“Waimea”), fi led on October 14, 2008, for approval
to increase its wastewater rates and revise its rate schedules.
Waimea is a public utility which provides wastewater collection and treatment services, as authorized by the
Commission, to residences, commercial establishments and others located in the South Kohala area on the
island of Hawaii.
Waimea seeks Commission approval of a net revenue increase of $293,615, or an approximate 126% increase
from the pro forma revenue amount of $232,704 at present rates for the 2009 calendar test year. Among other
requests stated in its Application, Waimea also seeks Commission approval to establish an Automatic Power Cost
Adjustment Clause (“APCAC”) which will allow it to increase or decrease its rates based on any corresponding
increase or decrease in the electricity cost charged to Waimea.
Waimea’s present and proposed rates, at the completion of a proposed three stage phase-in period, are as
follows:
Customer Class Present Rate Proposed Rate Percent Increase
Single Family Residential Unit $32.00 per month $99.20 per month 210%
Unit in a Multi-Family Dwelling $32.00 per month $99.20 per month 210%
North Hawaii Community
Hospital (NHCH)*
$6,200 per month* $13.175 per 1,000 gallons of
metered water fl ow or design
fl ow as determined by applicable
State or County design
standards.*
See notation
below*
All other facilities including
commercial, recreational,
schools, churches, etc.
$4.25 per 1,000
gallons of metered
water fl ow or design
fl ow as determined
by applicable State
or County design
standards.
$13.175 per 1,000 gallons of
metered water fl ow or design
fl ow as determined by applicable
State or County design
standards.
210%
*Waimea’s initial rates were approved and established in 1998, and included a monthly fl at rate charge of
$6,200 to NHCH. As part of this Application, Waimea believes it is more appropriate to convert NHCH from a
monthly fl at rate charge to a volumetric charge. In doing so, Waimea is proposing a proposed rate for NHCH
identical to the rate being proposed for Waimea’s six current commercial customers, as shown above. Waimea
proposes to delete NHCH as a separate rate class and to instead include NHCH as part of the “All other facilities
including commercial, recreational, schools, churches, etc.” customer class. Using the 2009 test year average
monthly water usage of 225,000 gallons per month for NHCH, NHCH’s total monthly volumetric charge under the
proposed rate of $13.175 per 1,000 gallons would be approximately $2,964 (225 x $13.175) rather than the
current monthly fl at charge of $6,200. This would result in a decrease for NHCH in monthly charges of approximately
$3,236 ($6,200 – $2,964) or approximately 52%.
If approved by the Commission, Waimea proposes to phase-in the proposed rate increase for its customers
over three (3) phases, as follows: (1) Phase I will be effective as of April 1, 2009; (2) Phase II will be effective as
of August 1, 2009; and (3) Phase III will be effective as of December 1, 2009. The phase-in will delay the start
of full revenue recovery by approximately nine months for Waimea if the Commission approves the new, proposed
revenue requirements requested by Waimea.
For residential customers (i.e., single-family and multi-family units), the rates, if approved, will increase as
follows:
Residential Rates
Current Flat Rate 2008 $32.00 per month
From April 1, 2009 (Phase I) $46.40 per month
From August 1, 2009 (Phase II) $67.28 per month
From December 1, 2009 (Phase III) $99.20 per month
For all other customers (i.e., all other facilities including commercial and recreational buildings, schools,
churches and hospitals like NHCH), the rates, if approved, will increase as follows:
Rates for All Other Customers (i.e., Non-Residential)
Current Volumetric Rate $4.25 per 1,000 gallons (fl at monthly
charge of $6,200 per month for NHCH)*
From April 1, 2009 (Phase I) $6.16 per 1,000 gallons
From August 1, 2009 (Phase II) $8.93 per 1,000 gallons
From December 1, 2009 (Phase III) $13.175 per 1,000 gallons
*See above regarding the current fl at monthly charge of $6,200 for NHCH.
Waimea states that its requests for approval to increase its wastewater rates and revise its rate schedules are
necessary to eliminate its current ongoing losses and to allow Waimea to recover all of its prudently incurred expenses
and earn a return on its prudently incurred investments in utility assets. At present rates, Waimea projects
a 2009 test year net operating loss of $130,814 and a negative 6.58% rate of return on an average rate base
of $1,987,044. The Commission will investigate the justness and reasonableness of the proposed increase in
Waimea’s rates, and its revisions to its rate schedules. Regarding its wastewater operations, the total revenue requirements
for the 2009 calendar test year will not exceed the $293,615 annual revenue increase over revenues
at present rates that Waimea requests. However, the increases in wastewater rates to be fi nally approved by the
Commission, if any, may be higher or lower than Waimea’s proposed rates 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 mailed or delivered
to the Public Utilities Commission, 465 South King Street, #103, Honolulu, Hawaii 96813. Statements may also
be sent by electronic mail to the Commission’s e-mail address at Hawaii.PUC@Hawaii.gov. All written statements
should reference Docket No. 2008-0261 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 shall 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 shall be fi led with the Commission by December 29, 2008.
Copies of the Application and supporting exhibits are available for public inspection during regular business
hours at any of the following locations:
PUBLIC UTILITIES COMMISSION PUBLIC UTILITIES COMMISSION
465 South King Street, #103 HAWAII DISTRICT OFFICE
Honolulu, Hawaii 96813 688 Kinoole Street, #106A
Phone: (808) 586-2020 Hilo, HI 96720
Phone: (808) 974-4533
WAIMEA WASTEWATER COMPANY, INC. DEPARTMENT OF COMMERCE
c/o PARKER RANCH, INC. AND CONSUMER AFFAIRS,
67-1435 Mamalahoa Highway DIVISION OF CONSUMER ADVOCACY
Kamuela, Hawaii 96743 335 Merchant Street, Room 326
Phone: (808) 885-7311 Honolulu, Hawaii 96813
Phone: (808) 586-2800
Special needs to accommodate persons with disabilities can be made if reasonably requested in advance of the
public hearing by contacting the Commission’s Honolulu Offi ce.
Carlito P. Caliboso
Chairman
Honolulu Star-Bulletin
Hawaii Tribune-Herald
West Hawaii Today
The Maui News
The Garden Island
November 27, December 4, 11, and 16, 2008~