NOTICE OF PUBLIC HEARING
APPLICATION OF LAIE WATER COMPANY, INC.
FOR APPROVAL OF RATE INCREASES,
REVISED RATE SCHEDULES, AND CHANGES TO ITS TARIFF
Docket No. 2016-0229
The STATE OF HAWAII PUBLIC UTILITIES COMMISSION (“Commission”), pursuant to
Hawaii Revised Statutes §§ 269-12 and 269-16, HEREBY GIVES NOTICE that it will hold a
public hearing relating to the Application of LAIE WATER COMPANY, INC. (“LWC”), filed on
September 1, 2016 (with Errata to the Application and Exhibits filed on October 7, 2016), for
Commission approval of rate increases, revisions of rate schedules, and changes to its tariff.
The public hearing will be held as follows:
Monday, November 7, 2016, at 6:00 p.m.
Laie Elementary School Cafeteria
55-109 Kulanui Street
Laie, Oahu
LWC is a public utility that provides water utility services, including the gathering, storage,
transmission, distribution, and other provision of water, within its authorized service area in
Laie, on the island of Oahu.
LWC seeks the Commission’s approval for a January 1, 2017 through December 31, 2017
test year net revenue increase of $901,953 for its water operations, which amounts to an
approximate increase of 79% over the pro forma revenue amount of $1,145,913 at present
rates for the 2017 test year. LWC states that the proposed revenue increase would provide
LWC with an opportunity to earn an 8.27% rate of return on its prudently incurred costs for
utility assets and its prudently incurred expenses.
LWC seeks a rate increase to the fixed monthly charges and usage charges for its
current residential and non-residential customer categories. LWC’s proposed rates combine
the current residential and non-residential customer categories into a single residential and
non-residential customer category. LWC’s application states that it seeks to put the proposed
water rates into effect upon the date of authorization by the Commission.
LWC’s present and proposed charges are as follows:
Present Rate s
Residential Service
Monthly Charge Per Customer
Usage Charge – 13,000 or less gallons per month
Usage Charge – Over 13,000 under 30,001
gallons per month
Usage Charge – Over 30,001 gallons per month
Present Rate
Per month or per 1000 gallons
$5.00 per month
$2.66 per 1000 gallons
$3.20 per 1000 gallons
$4.77 per 1000 gallons
Non-Residential Service
Monthly Billing Charge Per Customer
Usage Charge – 13,000 or less gallons per month
Usage Charge – Over 13,000 under 30,001
gallons per month
Usage Charge – Over 30,001 under 400,001
gallons per month
Usage Charge – Over 400,001 gallons per month
Present Rate
Per month or per 1000 gallons
$5.00 per month
$2.66 per 1000 gallons
$3.20 per 1000 gallons
$4.77 per 1000 gallons
$5.65 per 1000 gallons

LWC additionally requests that the Commission: (1) approve LWC’s proposed revisions to its
Tariff No. 1 (“Tariff”) by incorporating a new Section 7.2 of its Rules and Regulations relating to the
requirements for contribution-in-aid-of-construction (“CIAC”) (the proposed new Section 7.2 replaces
the current Section 7.2, regarding the Water System Facilities Charge, and includes information
about when, as a condition of receiving service to a New Customer Facility or a Substantially
Modified Customer Facility, a customer or developer may be required to pay a nonrefundable CIAC);
(2) amend certain additional Rules and Regulations in its Tariff, including, without limitation, updating
the tap-in/connection charge from $3,100 to $4,200 for any new or replacement connection;
and (3) grant such other and further relief, including any interim rate increase, as may be just,
reasonable, and equitable. LWC is not seeking to modify the flat monthly rate or tap-in/connection
charge for its flat monthly rate customer.
The Commission will investigate whether the proposals in the Application, including revisions to
its rate schedules, are just and reasonable. The total revenue requirement for the 2017 calendar
test year will not exceed the $901,953 amount over revenues at present rates that LWC requests.
However, the increase in rates and charges to be finally approved by the Commission, if any, may
be higher or lower than LWC’s proposed rates and charges noted herein.
Copies of LWC’s Application are available for public review through (1) the Commission’s
electronic Document Management System, accessible at http://dms.puc.hawaii.gov/dms/, Docket
Quick Link 2016-0229, or (2) at Laie Water Company, Inc. (55-510 Kamehameha Highway, Laie,
Hawaii 96762). In addition, copies of LWC’s Application are also available for review by contacting
the Commission’s Honolulu Office [(808) 586-2020], or the Division of Consumer Advocacy [(808)
586-2800].
All interested persons are invited to attend the public hearing to state their views on LWC’s
Application. Statements may also be mailed to the Public Utilities Commission, 465 South King
Street, Room No. 103, Honolulu, Hawaii 96813, or e-mailed to Hawaii.PUC@hawaii.gov. All written
statements should reference Docket No. 2016-0229. Special accommodations for personswith
disabilities can be made if requested reasonably in advance by contacting the Commission’s
Honolulu Office.
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 filed with the
Commission’s Honolulu Office by November 17, 2016.
_______________________________________________________________________
Randall Y. Iwase
Chair
(SA923054 10/15, 10/22, 10/29, 11/5/16)~