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Notice #: 05527861
Public Hearings



DOCKET NO. 2006-0409

The PUBLIC UTILITIES COMMISSION of the STATE OF HAWAII (\u201DCommission\u201D), pursuant to Hawaii Revised Statutes §§ 269-16 and 269-12, HEREBY GIVES NOTICE that it will hold a public hearing on March 28, 2007, 6:00 p.m., at the Waikoloa Elementary School Cafeteria, 68-1730 Hooko Street, Waikoloa, island of Hawaii, relating to the Application of WEST HAWAII UTILITY COMPANY (\u201DWHUC\u201D), filed on December 29, 2006, for approval to increase its water and sewer rates.
WHUC is a public utility that provides water and sewer services to the condominiums, hotels, and other commercial establishments located within the Waikoloa Beach Resort service area on the island of Hawaii. WHUC seeks Commission approval of general rate increases of: (1) $1,594,313, or 52%, over revenues at present rates for its water service; and (2) $1,107,089, or 132%, over revenues at present rates for its sewer service. The requested increases are based on an estimated total revenue requirement of $6,901,957 for the 2007 calendar test year (including non-potable irrigation service revenues), and an overall rate of return of 11.8%.
In general, WHUC states that its last increase in rates took effect in 1997, and since that time: (1) it has and continues to make significant investments in its utility plant to meet the increasing demands on its facilities; and (2) its current rates will not be sufficient to cover its operating costs in the future, or to earn a fair rate of return.
WHUC\u2019s present and proposed water and sewer charges are as follows:

Minimum Monthly Water Service Charge

Meter Size
Present Rates Proposed Rates % Increase

5/8\u201D & 3/4\u201D $ 7.20 $ 10.92 52%
1\u201D $ 13.80 $ 20.93 52%
1-1/2\u201D $ 24.20 $ 36.70 52%
2\u201D $ 33 $ 50.04 52%
3\u201D $ 66 $100.09 52%
4\u201D $110 $166.81 52%
6\u201D $220 $333.62 52%
8\u201D $396 $600.52 52%

Monthly Water Quantity Charge

Present Charge
Proposed Charge % Increase

$2.68 per thousand gallons (\u201DTG\u201D) $4.06 per TG 52%

Minimum Monthly Private Fire Service Charge

Meter Size
Present Rates Proposed Rates % Increase

4\u201D $110 $166.81 52%
6\u201D $220 $333.62 52%
8\u201D $396 $600.52 52%

Minimum Monthly Sewer Service Charge

Present Rates Proposed Rates % Increase

Residential – $4.25 per month $9.86 per month 132%
Condo/Hotel per living unit per living unit

Commercial $10 per connection $23.21 per connection 132%
per month per month

Monthly Sewer Consumption Charge
(For Residential – Condo/Hotel and Commercial)

Present Charge Proposed Charge % Increase

$1 per TG/metered $2.32 per TG/metered 132%
potable water potable water

As part of its Application, WHUC also requests the Commission\u2019s approval to: (1) revise its Automatic Power Cost Adjustment clause, to reflect current motor efficiencies and electric costs per kWh; and (2) reduce the monthly non-potable irrigation consumption charge assessed to golf courses, from $0.30 per TG to $0.29 per TG, a percentage decrease of approximately 3.3%.
The Commission will investigate whether the proposed general increases in WHUC\u2019s water and sewer rates and charges, and other matters set forth in the Application, are just and reasonable. The investigation will include an evidentiary hearing to be scheduled sometime after the conclusion of the public hearing; provided that the parties, at their option and upon the Commission\u2019s approval, may waive the evidentiary hearing.
The total revenue requirement for the 2007 calendar test year will not exceed the $6,901,957 amount over present rates that WHUC requests. However, the increases in rates and charges to be finally approved by the Commission, if any, may be higher or lower than WHUC\u2019s proposed rates and charges noted above.
All interested persons are invited 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\u2019s e-mail address at All written statements should reference Docket No. 2006-0409 and include the following information: (1) name of the person submitting the written statement; (2) organization the person submitting the written represents (if any); and (3) address of the person submitting the written statement.
Motions to Intervene or Participate in this proceeding shall comply with Subchapter 4, Rules of Practice and Procedure before the Commission, Hawaii Administrative Rules, Title 6, Chapter 61. A motion to intervene or participate in this proceeding shall be filed with the Commission by Monday, April 9, 2007.
Copies of WHUC\u2019s Application and supporting documents are available for public inspection during regular business hours at the following locations:

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

AND CONSUMER AFFAIRS 150 Waikoloa Beach Drive
DIV. OF CONSUMER ADVOCACY Waikoloa, Hawaii 96738
335 Merchant Street, Room 326 Phone: (808) 886-1800
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\u2019s Honolulu Office.

Carlito P. Caliboso
Chairman (SB05527861 3/5, 3/12, 3/19, 3/26/07)