NOTICE OF PUBLIC HEARING

IN THE MATTER OF THE APPLICATION OF
MILLER AND LIEB WATER COMPANY, INC.
FOR APPROVAL OF, AMONG OTHER MATTERS,
A RATE INCREASE AND REVISED RATE SCHEDULES

Docket No. 2006-0442

THE PUBLIC UTILITIES COMMISSION (“Commission”) of the STATE OF HAWAII hereby gives NOTICE that it will hold a public hearing, pursuant to chapter 269, Hawaii Revised Statutes, regarding the application of MILLER AND LIEB WATER COMPANY, INC. (“Miller & Lieb”), filed on November 8, 2006, for Commission approval of, among other matters, a rate increase and revised rate schedules (“Application”). The public hearing will be held as follows:

Date: Thursday, January 11, 2007
Time: 6:00 p.m.
Location: Keonepoko Elementary School Cafeteria
15-890 Kahakai Boulevard
Pahoa, Hawaii 96778

Miller & Lieb is a public utility authorized to provide water service to the residents and occupants of the Hawaiian Beaches subdivision, located in Pahoa, District of Puna, on the island of Hawaii. Through its Application, Miller & Lieb is seeking Commission approval of a general rate increase of up to $392,987, or about 123.9%, over total revenues at present rates for the calendar 2007 test year (“Test Year”). The requested increase is based on an estimated total revenue requirement of $710,147 for the Test Year, and a proposed rate of return of 9.5%.
Specifically, Miller & Lieb is proposing to: (1) increase its recurring Water Service Charge and non-recurring Water Service Connection Charge and impose certain new non-recurring charges, see chart below; (2) reset its electric power adjustment clause (“EPAC”) from the existing base rate of $0.228 per thousand gallons to $0.7604 per thousand gallons; and (3) make various revisions to its Rules and Regulations Governing Water Service.
The following illustrates Miller & Lieb’s proposed rate increases and new charges.

Present Rates Proposed Rates
Non-Recurring Charges:

Water Service Connection $250.00 per $1,500.00 per
Charge Connection Connection

Voluntary Disconnect and — $260.00 per
Reconnection Charge Request

Involuntary Disconnect and — $60.00 per
Reconnection Charge Instance

Return Check Fee — $30.00 plus
Bank Charge

Recurring Charge:

Water Service Charge (monthly) $12.00 plus $49.24
EPAC (includes EPAC)

Recognizing that its proposal would require an increase of over 100% from its existing base rate of $12.00 per month plus its current EPAC of approximately $10.00, Miller & Lieb is proposing to phase-in the increase so that its current total water service charge of approximately $22.00 per month is first increased to $36.00 per month (“Interim Rate”). This Interim Rate would be in effect for 12 months following the issuance of the Commission’s decision and order regarding Miller & Lieb’s rate increase request. Miller & Lieb represents that the instant rate case is designed to: (1) eliminate its current ongoing operating losses; (2) allow it to earn a fair return on its utility assets; and (3) allow it to make much needed repairs and improvements to its water system facilities.
The Commission will investigate whether the proposals in Miller & Lieb’s Application, including revisions to its rate schedules that propose to increase, establish, or adjust certain rates, are just and reasonable. The total revenue requirement for the Test Year will not exceed the $392,987 amount over revenues at present rates that Miller & Lieb requests. However, the overall increases in rates and charges to be finally approved by the Commission, if any, may be higher or lower than Miller & Lieb’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 submitted to the Public Utilities Commission, 465 South King Street, Room No. 103, Honolulu, Hawaii, 96813 via postal mail or personal delivery. Statements can also be submitted to the Commission through e-mail at Hawaii.PUC@hawaii.gov. All written statements should reference Docket No. 2006-0442 and include the following information: (1) name of the person submitting the written statement; (2) organization representing (if any); and (3) address of the person submitting the written statement.
Motions to intervene or participate in this proceeding must 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 must be filed with the Commission’s Honolulu Office by Monday, January 22, 2007.
A copy of Miller & Lieb’s Application and supporting documents are available for public inspection during regular business hours at the following locations:

1. PUBLIC UTILITIES COMMISSION
465 South King Street, Room No. 103
Honolulu, Hawaii 96813
Phone: (808) 586-2020

2. PUBLIC UTILITIES COMMISSION
HAWAII DISTRICT OFFICE
688 Kinoole Street, Room No. 106-A
Hilo, Hawaii 96720
Phone: (808) 974-4533

3. DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS
DIVISION OF CONSUMER ADVOCACY
335 Merchant Street, Room No. 326
Honolulu, Hawaii 96813
Phone: (808) 586-2800

4. MILLER AND LIEB WATER COMPANY, INC.
15-966 Punawai Street
Pahoa, Hawaii 96778
Phone: (808) 965-9882

Special arrangements to accommodate persons with disabilities can be made if requested reasonably in advance of the public hearing by contacting the Commission’s Honolulu Office, see above.

Carlito P. Caliboso
Chairman (SB05526488 12/20/06, 12/27/06, 1/3/07, 1/10/07)