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Notice #: 05521285
Public Hearings



DOCKET NO. 05-0334

NOTICE IS HEREBY GIVEN that pursuant to chapter 269, Hawaii Revised Statutes, the STATE OF HAWAII, PUBLIC UTILITIES COMMISSION (“Commission”) will hold a public hearing relating to the application of KRWC CORPORATION, dba KOHALA RANCH WATER COMPANY (“KRWC”), filed on January 5, 2006, for approval to increase its potable water rates and revise its rate schedules. The public hearing will be held as follows:

Date: Wednesday, March 8, 2006
Time: 6:00 p.m.
Location: Waimea Civic Center
67-5189 Kamamalu Street
Kamuela, Hawaii 96743

This public hearing will be heard at the same time and location as the public hearings held for Docket Nos. 05-0329 (West Hawaii Sewer Company) and 05-0333 (South Kohala Sewer Company).

KRWC is a public utility authorized to provide potable water service in the Kohala, Hawaii area. KRWC seeks Commission approval of a net general rate increase of approximately $776,079, or approximately 96.5%, over total revenues at present rates ($804,421), which include both the base rate revenues of $628,130 plus the Automatic Power Cost Adjustment Charge (“APCAC”) annualized at November 2005 levels of $176,291. The requested increase represents the net increase in the base charges after the associated APCAC, which customers are currently paying, is factored.

The requested increase is based on an estimated total revenue requirement of $1,580,500 for the 2006 calendar test year. In particular, KRWC seeks the following changes in its rates:

1. Monthly Customer Charge

Present Rates Per Meter Proposed Rate Per Meter
Size of Meter Per Month Per Month______

5/8” Meter $4.00 $10.00
3/4\u201D Meter $7.50 $10.00
1” Meter $11.50 $29.00
1 1/2\u201D Meter $22.00 $55.00
2” Meter $30.00 $76.00
3” Meter $60.00 $151.00
4” Meter $110.00 N/A
6” Meter $195.00 N/A
8” Meter $280.00 N/A

2. Water Consumption Charges per Customer per Month

Present Rates

$2.71 per 1,000 gallons, plus the APCAC amount calculated monthly in compliance with the APCAC process approved by the Commission in Decision and Order No. 15641, filed on June 10, 1997, in Docket No. 95-0331.

Proposed Rates

5/8” and 1” Meter per 1,000 gallons for usage from
0 to 45,000 gallons $4.6000 per 1,000 gallons
45,001 to 60,000 gallons $6.8558 per 1,000 gallons
60,001 to 75,000 gallons $10.2178 per 1,000 gallons
Over 75,000 gallons $15.2285 per 1,000 gallons

1 1/2” and 2” Meter per 1,000 gallons for usage from
0 to 300,000 gallons $4.6000 per 1,000 gallons
Over 300,000 gallons $6.8558 per 1,000 gallons

Special bulk sale rate for 3” Meter $4.6000 per 1,000 gallons

3. Private Fire Service Charge

Service Present Rates Per Month Proposed Rates Per Month

Hydrants $15.00 N/A
Standpipes $15.00 N/A
Other Facilities $2.50 per month per inch
Diameter of feeder main N/A

4. Meter Changes and Reinstalls

Service Present Rates Proposed Rates

Per change or reinstallation $50.00 $75.00

In addition, KRWC seeks to amend its existing tariff to assign specific charges to the following services:

1. Hydrant Rental and Usage

Service Present Rates Proposed Rates

Temporary Hydrant Installation
Charge N/A $600.00
Daily Rental Charge per hydrant
per day N/A $7.50
Usage Charge per 1,000 gallons
of metered usage N/A $4.60

2. Meter Installation Charge

Service Present Rates Proposed Rates

5/8” Meter N/A $1,350.00
3/4\u201D Meter N/A $1,350.00
1” Meter N/A $1,500.00
1 1/2\u201D Meter N/A $1,600.00
2” Meter N/A $1,700.00
3” Meter N/A $2,000.00

KRWC states that it has operated at a net loss for the last ten (10) years. For the calendar year 2004 and nine (9)-month period ended September 30, 2005, KRWC states that it generated net losses of $390,849 and $314,910, respectively. KRWC represents that in addition to allowing it to reduce its operating losses, the proposed rate increase will also have the effect of providing customers an incentive to conserve water resources.
The Commission will investigate the justness and the reasonableness of the proposed general increase in KRWC’s water rates and charges, and its revisions to its rate schedules. The total revenue requirement for the 2006 calendar test year will not exceed the $776,079 amount over revenues at present rates that KRWC requests. However, the increase in rates and charges to be finally approved by the Commission, if any, may be higher or lower than KRWC’s proposed rates and charges 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 to the Public Utilities Commission, 465 South King Street, Room 103, Honolulu, Hawaii, 96813. Statements may also be sent by electronic mail to the Commission’s e-mail address at
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 by March 20, 2006.
Copies of the application and supporting documents are available for public inspection during regular business hours at the following locations:

465 South King Street, #103 HAWAII DISTRICT OFFICE
Honolulu, HI 96813 688 Kinoole Street, #106A
Phone: (808) 586-2020 or Hilo, HI 96720
Toll free from the island of Hawaii, Phone: (808) 974-4533
at 974-4000, ext. 62020

59-916 Kohala Ranch Road DIV. OF CONSUMER ADVOCACY
Kamuela, HI 96743 335 Merchant Street, #326
Phone: (808) 880-1330 Honolulu, HI 96813
Phone: (808) 586-2800

Special accommodations for persons with disabilities can be made if requested reasonably in advance by contacting the Commission’s Honolulu office.

Carlito P. Caliboso
Chairman (SB05521285 2/15, 2/20, 2/27, 3/6/06)