NOTICE OF PUBLIC HEARING
APPLICATION OF HAWAII ELECTRIC LIGHT COMPANY, INC.
FOR APPROVAL OF RATE INCREASES AND
REVISED RATE SCHEDULES AND RULES
DOCKET NO. 05-0315
NOTICE IS HEREBY GIVEN that pursuant to chapters 91 and 269, Hawaii Revised Statutes (\u201DHRS\u201D), the STATE OF HAWAII, PUBLIC UTILITIES COMMISSION (\u201DCommission\u201D), will hold a public hearing relating to the application of HAWAII ELECTRIC LIGHT COMPANY, INC. (\u201DHELCO\u201D), filed on May 5, 2006, for approval of a general rate increase and revised rate schedules and rules. The public hearing will be held as follows:
Date: Monday, June 26, 2006
Time: 6:00 p.m.
Location: Hilo High School Cafeteria
556 Waianuenue Avenue
Hilo, HI 96720
Date: Tuesday, June 27, 2006
Time: 6:00 p.m.
Location: Kealakehe Intermediate School Cafeteria
74-5062 Onipaa Street
Kona, HI 96740
HELCO is an operating public utility engaged in the production, purchase, transmission, distribution, and sale of electricity on the island of Hawaii. HELCO seeks Commission approval of a general rate increase of approximately $29,931,100, or 9.24 percent, over revenues at present base rates. The requested increase is based on estimated total revenue requirements of $354,019,700 for the normalized 2006 calendar test year (based on actual fuel prices effective on February 1, 2006 and an 8.65 percent rate of return on HELCO\u2019s average rate base).
HELCO\u2019s present rates are the result of a Commission decision issued in February of 2001 for the HELCO 2000 test year rate case. HELCO states that it has filed this request for a general rate increase due primarily to the addition of plant and equipment in HELCOs system, and increasing costs of labor, materials, contract services, depreciation and other operating expenses. HELCO states that without further rate relief, its rate of return on average rate base will be approximately 4.1 percent for the normalized 2006 test year, as compared to the 9.14 percent authorized by the Commission in 2001.
HELCO requests that its general rate increase and the revisions to its rate schedules and rules take effect in two (2) steps:
1. Interim Increase: An interim increase in rates equal to which the Commission finds HELCO is \u201Dprobably entitled,\u201D based on the evidentiary record, pursuant to HRS § 269-16(d); and
2. Final Increase: A general rate increase upon the Commission\u2019s issuance of its final Decision and Order that provides for the amount of the total requested revenue increase that was not included in the interim rate increase.
The projected revenue to be generated by sales at present and proposed rates, the total increase requested in terms of dollars and by percentage, and the allocation of the increase among the various classes of service in terms of dollars and by percentage are as follows:
Sales Sales
Revenues at Revenues at Proposed Proposed
Rate Class Present Rates Proposed Rates Increase Increase
($000s) ($000s) ($000s) % Increase
Schedule R $129,577.5 $141,557.6 $11,980.1 9.25 %
Residential
Schedule G $33,909.0 $37,044.1 $3,135.1 9.25 %
General Service,
Non-Demand
Schedule J $95,527.2 $105,672.6 $10,145.4 10.62 %
General Service,
Demand
Schedule H $4,805.7 $5,250.0 $444.3 9.25 %
Commercial
Cooking, Heating,
Air Conditioning
& Refrigeration
Service
Schedule P $58,114.9 $62,146.6 $4,031.7 6.94%
Large Power
Service
Schedule F $1,249.9 $1,393.6 $143.7 11.50 %
Street Light
Service
Total Sales $323,184.2 $353,064.5 $29,880.3 9.25%
Revenues
Other Operating $904.4 $955.2 $50.8 5.62%
Revenues
Total Revenues $324,088.6 $354,019.7 $29,931.1 9.24%
The actual amount of increase for each rate schedule may be different from the proposed amounts, as a result of the Commissions decision in this proceeding.
HELCO is also proposing to modify its Rule No. 8, section E, Returned Check Charge by changing its title to Returned Payment Charge. HELCO is proposing to make this change in title to reflect the different payment options (e.g., automatic bill payment, credit card, and debit card in addition to check payments) that are now available to customers, and to allow HELCO to apply the same service charge on returned payments (due to insufficient funds) made through any of these options.
The Commission will determine whether the proposed revenue increase, changes in rate schedules and rules, and other matters requested or proposed by HELCO, are just and reasonable. The Commission will hold an evidentiary hearing sometime after the conclusion of the public hearing unless HELCO and the applicable parties in this docket, at their option and upon the Commission\u2019s approval, waive the evidentiary hearing. The total revenue increase for the 2006 test year will not exceed the $29,931,100 over revenues at present base rates (based on February 1, 2006 fuel prices) that HELCO requests. However, the increase in rates and charges to be finally approved by the Commission, if any, may be higher or lower than the proposed rates and charges for the various rate schedules of service 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, #103, Honolulu, Hawaii, 96813. Statements may also be sent by electronic mail to the Commission\u2019s 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 Commission, Hawaii Administrative Rules, Title 6, Chapter 61. A motion to intervene or participate in this proceeding shall be filed with the Commission\u2019s Honolulu office by July 7, 2006.
Copies of HELCO\u2019s application and supporting documents are available for public inspection during regular business hours at the following locations:
PUBLIC UTILITIES COMMISSION
465 S. King Street, #103
Honolulu, HI 96813
Phone: (808) 586-2020
HAWAII ELECTRIC LIGHT COMPANY, INC.
1200 Kilauea Avenue
Hilo, Hawaii 96720
Kona Baseyard
74-5519 Kaiwi Street
Kailua-Kona, Hawaii 96740
Waimea Baseyard
66-1591 Kawaihae Road
Kamuela, Hawaii 96743
HAWAIIAN ELECTRIC CO., INC.
900 Richards Street
Honolulu, HI 96813
Phone: (808) 543-5670
DEPARTMENT OF COMMERCE
AND CONSUMER AFFAIRS
DIVISION OF CONSUMER ADVOCACY
335 Merchant Street, #326
Honolulu, HI 96813
Phone: (808) 586-2800
Special needs to accommodate persons with disabilities can be made if requested reasonably in advance by contacting the Commission\u2019s Honolulu office.
________________________________
Carlito P. Caliboso
Chairman (SB05523179 6/4, 6/11, 6/18, 6/25/06)
