NOTICE OF PUBLIC HEARING

APPLICATION OF SOUTH KOHALA WASTEWATER CORP.
FOR APPROVAL OF RATE INCREASES AND REVISED RATE SCHEDULES

DOCKET NO. 05-0333

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 SOUTH KOHALA WASTEWATER CORP. (“SKWC”), filed on December 30, 2005, for approval to increase its wastewater 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 (Waikoloa Sanitary Sewer Company, Inc., dba West Hawaii Sewer Company) and 05-0334 (KRWC Corporation, dba Kohala Ranch Water Company)

SKWC is a public utility providing wastewater treatment service to the residences, hotels, and commercial establishments in the South Kohala area. SKWC seeks Commission approval of a general rate increase of approximately $312,539, or approximately 46%, over total revenues at present rates. The requested increase is based on an estimated total revenue requirement of $1,101,359 for the 2006 calendar test year. In particular, SKWC seeks the following changes in its rates:

Present Proposed Change in amount Percentage
increase_
Service Charges

Single Family $55.25 $80.69 $25.44 46%

Multi-Family $44.17 $64.56 $20.39 46%

Hotel (per room) $63.09 $92.19 $29.10 46%

Commercial (per $4.54 per $6.63 per $2.09 per 46%
1,000 gallons of 1,000 gls. 1,000 gls. 1,000 gls.
water used)

Operating Reserve

Single Family $5.53 $8.07 $2.54 46%

Multi-Family $4.42 $6.46 $2.04 46%

Hotel (per room) $6.31 $9.22 $2.91 46%

Commercial (per $0.45 $0.66 $0.21 46%
1,000 gallons of
water used)

SKWC states that: (1) its Application represents its first request for an increase in its wastewater rates since its initial rates were approved in 1997; (2) since then, its operating expenses have significantly increased over its operating revenues, such that its current revenues are insufficient to cover its operating expenses; (3) by its Application, it seeks to eliminate its significant operating losses, and achieve a reasonable return on investment on its approved test year rate base.
The Commission will investigate whether the proposed general increase in SKWC’s wastewater rates and charges, and its revisions to its rate schedules, are just and reasonable. The total revenue requirement for the 2006 calendar test year will not exceed the $312,539 amount over revenues at present rates that SKWC requests. However, the increase in rates and charges to be finally approved by the Commission, if any, may be higher or lower than SKWC’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 Hawaii.PUC@hawaii.gov.
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:

PUBLIC UTILITIES COMMISSION PUBLIC UTILITIES COMMISSION
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

SOUTH KOHALA WASTEWATER CORP. DEPARTMENT OF COMMERCE
6th Floor AND CONSUMER AFFAIRS
62-100 Kauna’oa Drive DIV. OF CONSUMER ADVOCACY
Kamuela, HI 96743 335 Merchant Street, #326
Phone: (808)880-3305 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 (SB05521286 2/15, 2/20, 2/27, 3/6/06)