NOTICE OF PUBLIC HEARING

IN THE MATTER OF THE APPLICATION OF HAWAII-AMERICAN WATER COMPANY FOR APPROVAL OF RATE INCREASES AND REVISED RATE SCHEDULES AND RULES

DOCKET NO. 2007-0180

The PUBLIC UTILITIES COMMISSION of the STATE OF HAWAII (“Commission”), pursuant to Hawaii Revised Statutes §§ 269-12 and 269-16, HEREBY GIVES NOTICE that it will hold a public hearing on Monday, January 7, 2008, 6:00 p.m. at Hahaione Elementary School Cafeteria, 595 Pepeekeo Street, Honolulu, Hawaii, 96825 relating to the Application of HAWAII-AMERICAN WATER COMPANY (“HAWC” or “Applicant”) filed on October 29, 2007, for Commission approval of its proposed rate increases and revised rate schedules and rules for service.
HAWC is a public utility authorized to provide wastewater collection, treatment, and disposal service to the residences, condominiums, and commercial establishments in the Hawaii Kai community on the island of Oahu, State of Hawaii.
Regarding its Hawaii Kai operations, HAWC, in effect and through its Application, seeks Commission approval of a general rate increase of up to approximately $1,324,488, or approximately 15.9 percent (15.9%), over total revenues at present rates for the calendar 2008 test year (“Test Year”).
HAWC’s current rates and charges are based on interim rates that were approved by the Commission and became effective as of July 25, 2006 in its pending 2005 rate case proceeding in Docket No. 05-0103, as well as positions taken by HAWC with respect to the Public Authority – Other and Public Authority – Dwelling classifications as further discussed below. HAWC states that its requests for approval to increase its authorized revenues are necessary at this time to allow HAWC to cover increases in its operating costs since the time of its 2005 rate case proceeding and to allow it to continue to invest in system improvements and upgrades in the Hawaii Kai area.
HAWC’s current and proposed rates and charges are as follows:

Customer Class Current Proposed Percent Increase
Residential Units:

Single-Family Residential $54.55 $63.65 16.68%
Unit (monthly service charge
per dwelling unit)
Multi-Family Residential Unit $45.75 $53.40 16.72%
(monthly service charge per
dwelling unit)
Commercial (Non-Residential):
Food Service Operation $13.10 per $14.24 per 8.70%
1,000 gallons 1000 gallons
of water of water
consumed consumed
Non-Food Service Operation $7.90** per $9.20 per
(including Public Authority 1,000 gallons 1,000 gallons
– Other*) of water of water 16.46%**
consumed consumed
Public Authority – Dwelling*** $2.93** per $3.26 per 1,000
1,000 gallons gallons
of water of water
consumed consumed 11.26%**

*Public Authority – Other refers to the sewerage services provided by HAWC to the City and County of Honolulu (“City”), State of Hawaii (“State”) and other facilities (including parks, schools, fire station and Lunalilo Homes).
**The current rate of $7.90 per 1,000 gallons per water consumed for Public Authority – Other and $2.93 per 1,000 gallons per water consumed for Public Authority – Dwelling are based on HAWC’s positions taken in the 2005 rate case proceeding as well as in another proceeding before the Commission. However, and as acknowledged by HAWC in its Application, the actual ratemaking treatment for the Public Authority – Other and Public Authority – Dwelling class has not yet been determined by the Commission as a result of an unresolved dispute between HAWC, the City, and the State. See Exhibit 4 of HAWC’s Application for an additional discussion of the current rates utilized by HAWC for purposes of this Application.
*** The Public Authority – Dwelling class refers to the services provided by HAWC to the City for the City’s residential customers in Hawaii Kai, including Kuliouou Valley, Portlock, Paiko and other areas which fall outside of HAWC’s service territory, but which are served directly by the City’s sewerage system and then connected to HAWC’s wastewater system for distribution and processing.

The Commission will investigate whether the proposed increases in HAWC’s rates and charges noted above are just and reasonable. The total revenue requirement for the Test Year will not exceed the approximately $1,324,488 amount over revenues at present rates that Applicant requests. However, the overall increases in rates and charges to be finally approved by the Commission, if any, may be higher or lower than HAWC’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 or delivered to the Public Utilities Commission, 465 South King Street, #103, Honolulu, Hawaii 96813. Statements may also be sent by electronic mail to the Commission’s e-mail address at Hawaii.PUC@Hawaii.gov. All written statements should reference Docket No. 2007-0180 and include the following information: (1) name of the person submitting the written statement; (2) organization the person submitting the written statement 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 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 January 17, 2008.
Copies of the Application and supporting documents are available for public inspection during regular business hours at the following locations:

PUBLIC UTILITIES COMMISSION
465 South King Street, #103
Honolulu, HI 96813
Phone: (808) 586-2020

DEPARTMENT OF COMMERCE
AND CONSUMER AFFAIRS
DIVISION OF CONSUMER ADVOCACY
335 Merchant Street, #326
Honolulu, HI 96813
Phone: (808) 586-2800

HAWAII-AMERICAN WATER COMPANY
6700 Kalanianaole Highway, Suite 206
Honolulu, Hawaii 96825
Phone: (808) 394-1280

Special arrangements to accommodate persons with disabilities can be made if reasonably requested in advance of the public hearing by contacting the Commission’s Honolulu office at the address listed above.

_______________________
Carlito P. Caliboso
Chairman
(SB05533181 12/17, 12/24, 12/31, 1/5/08)