APPLICATION FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO PROVIDE NON-POTABLE WATER DISTRIBUTION SERVICE IN THE WAIHEE, WAIEHU, PUUOHALA, WAILUKU, AND WAIKAPU AREAS AND FOR APPROVAL OF RULES AND REGULATIONS PURSUANT TO SECTION 269-7.5, HAWAII REVISED STATUTES; APPROVAL OF RATES AND CONTRACTS PURSUANT TO SECTION 269-16, HAWAII REVISED STATUTES; APPROVAL OF WAIVERS PURSUANT TO SECTION 6-61-92, HAWAII ADMINISTRATIVE RULES; AND APPROVAL OF AFFILIATE TRANSACTIONS PURSUANT TO SECTIONS 269-19 AND 269-19.5,
HAWAII REVISED STATUTES

DOCKET NO. 2008-0025

The PUBLIC UTILITIES COMMISSION of the STATE OF HAWAII (“Commission”), pursuant to Hawaii Revised Statutes (“HRS”) §§ 269-16 and 269-12, HEREBY GIVES NOTICE that it will hold a public hearing on Wednesday, May 14, 2008, at 6:00 p.m. at Maui Waena Intermediate School Cafeteria, 795 Onehee Avenue, Kahului, Maui, Hawaii, regarding the application, filed on February 8, 2008, by WAILUKU WATER DISTRIBUTION COMPANY, LLC (“WWDC”) and WAILUKU WATER COMPANY, LLC (“WWC”) (jointly, “Applicants”), requesting, among other things, approval of a Certificate of Public Convenience and Necessity (“CPCN”) to provide non-potable water distribution service in certain areas of Waihee, Waiehu, Puuohala, Wailuku, and Waikapu on the island of Maui, Hawaii; and approval of rates and certain contracts pursuant to HRS § 269-16 (“Application”).
The Application states that WWC and its predecessors-in-interest have operated an extensive surface water diversion system, which was originally used to irrigate sugar cane plantations on Maui. Applicants state that WWC is in the process of transforming the historical plantation ditch system into a public utility pursuant to HRS Chapter 269. WWDC, whose only member is WWC, was formed in 2007 for the sole purpose of owning and operating the public utility facilities that would provide the proposed non potable water distribution service.
In the Application, Applicants request, among other things, that the Commission: (1) approve a CPCN for WWDC, authorizing it to provide the proposed service; (2) permit WWDC to honor certain existing contracts (including a contract with the County of Maui) by approving the inclusion of such agreements in WWDC’s tariff; (3) approve initial rates for all other customers; and (4) approve the disposition of plant and equipment from WWC to WWDC for utility service and to a third party.
For customers with certain long term water delivery agreements, Applicants request that the Commission permit WWDC to honor the rates and terms set forth in such agreements by approving the inclusion of such agreements in WWDC’s tariff. For all other customers, Applicants propose a flat rate of $0.90 per 1,000 gallons. Applicants’ proposed rates would allow WWDC to earn an additional $170,242, producing final total annual sales revenue of $1,239,857. Applicants also seek to establish a rate base and fix a rate of return for WWDC in this proceeding. However, Applicants state that the proposed rates will not fully compensate the utility for its projected operating expenses.
The Commission will investigate and determine whether the proposals in the Application, including the proposed revenue increases and revisions to rate schedules, are just and reasonable. The total revenue requirement for the test year will not exceed $1,239,857. However, the increases in water rates and charges to be finally approved by the Commission, if any, may be higher or lower than Applicants’ 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. All written statements should reference Docket No. 2008-0025 and must 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 May 27, 2008.
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, Room 103 MAUI DISTRICT OFFICE
State Office Building #1 State Office Building #1
54 S. High Street, Room 218 54 S. High Street, Room 218
Wailuku, HI 96793 Wailuku, HI 96793
Phone: (808) 984-8182 Phone: (808) 984-8182
Honolulu, HI 96813
Phone: (808) 586-2020 or
Toll free: 984-2400

WAILUKU WATER DISTRIBUTION COMPANY, LLC DEPARTMENT OF COMMERCE
255 East Waiko Road AND CONSUMER AFFAIRS
Wailuku, HI 96893 DIVISION OF CONSUMER ADVOCACY
Phone: (808) 244-9570 335 Merchant Street, #326
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.