APPLICATION OF LANAI WATER COMPANY, INC. FOR AMENDMENT OF ITS CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY PURSUANT TO SECTION 269-7.5 TO PROVIDE NON-POTABLE WATER SERVICE IN MANELE-HULOPOE, LANAI, AND FOR APPROVAL OF RULES AND REGULATIONS, AND RATES

DOCKET NO. 2008-0322

The PUBLIC UTILITIES COMMISSION of the STATE OF HAWAII (“Commission”), pursuant to Hawaii Revised Statutes (“HRS”) §§ 269-12 and 269-16, HEREBY GIVES NOTICE that it will hold a public hearing on Thursday, March 12, 2009, at 6:00 p.m. at Lanai High and Elementary School Cafeteria, 555 Fraser Avenue, Lanai City, Lanai, Hawaii, regarding the application of LANAI WATER COMPANY, INC. (“Applicant”), filed on December 26, 2008, for Commission approval to amend its Certificate of Public Convenience and Necessity (“CPCN”) to provide non-potable water service in the area of Manele-Hulopoe, Lanai, State of Hawaii, and for approval of its rules, regulations, and rates (“Application”).
Applicant is a public utility that is authorized by the Commission to provide potable water distribution services to Koele, Lanai City, Lanai Airport, Kaumalapu Harbor, and Manele-Hulopoe. Applicant proposes to amend its CPCN so that it may also provide non-potable water service in the area of Manele-Hulopoe. Applicant, which does not currently charge for non-potable water services, proposes to commence charging for these services at the following initial rates:
User Charge (2-month billing cycle) Proposed Rate (per 1,000 gallons)
Single Family (SF)/ Multi Family (MF) (AOAO)/
Home Owners’ Association (HOA)
Tier 1 <1,000 per day (per lot for SF, per unit for MF, or per acre for HOA) $5.81
Tier 2 >1,000 & <2,500 per day (per lot for SF, per unit for MF, or per acre for HOA) $7.55
Tier 3 >2,500 per day (per lot for SF, per unit for MF, or per acre for HOA) $9.30

All Other
Tier 1 <1,000 per day per acre $5.81
Tier 2 >1,000 & <2,500 per day per acre $7.55
Tier 3 >2,500 per day per acre $9.30

Service Charge (meter reading) charge per meter per two-month billing cycle)
Meter Size (inches in decimal format) Rate every two months
1.000 – 1.500 $10.00
2.000 $25.00
3.000 $50.00
4.000 $75.00
6.000 $150.00
8.000 – 10.000 $250.00

Water facilities capacity charge per connection
Single Family Lot $14,500.00
Multi-Family Unit $7,000.00
All Other $14,500.00

The rates finally approved by the Commission, if any, may be higher or lower than Applicant’s proposed rates and charges.
Copies of the Application are available for public review by contacting Applicant [(808) 565-3358], the Commission’s Maui District Office [(808) 984-8182], or the Division of Consumer Advocacy [(808) 586-2800]. All interested persons are invited to attend the public hearing to state their views. Statements may also be mailed to the Public Utilities Commission at 465 South King Street, Room 103, Honolulu, Hawaii 96813, or emailed to Hawaii.PUC@hawaii.gov. All written statements should reference Docket No. 2008-0322. Any motions to intervene or participate in this proceeding shall be filed with the Commission by March 23, 2009. Special accommodations for persons with disabilities can be made if requested reasonably in advance by contacting the Commission’s Honolulu Office.

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Carlito P. Caliboso
Chairman