KAILUA-KONA, HI – Kaupulehu Waste Water Company (KWWC), a public utility providing wastewater services to the Hualalai Resort area in Hawaii County, is seeking approval from the State of Hawaii Public Utilities Commission (PUC) for a significant rate increase and changes to its rules and regulations.

KWWC customers include a hotel, commercial establishments, condominium units, detached and attached single-family residential units, and golf course comfort stations in the Hualalai Resort. A public hearing is scheduled for Monday, May 5, 2025, at 5:30 p.m. at the Natural Energy Laboratory of Hawaii Authority (NELHA) in Kailua-Kona.

The proposed rate increase, detailed in Docket No. 2023-0456, aims to increase KWWC’s annual revenue by $1,164,012, a 141% jump from the current pro forma revenue of $825,159. The company cites a need for the increase to cover an estimated total revenue requirement of $1,989,171 for the 2025 Test Year and a desired rate of return of 9.07% on its average Test Year rate base of $5,082,530.

The proposed changes include substantial increases to both the standby charge and the variable charge per 1,000 gallons:

• Standby Charge (Non-Metered Water Revenue): Proposed to increase from $25.00 to $65.15, a 161% increase for both affiliated and non-affiliated customers.
• Variable Charge per 1,000 gallons (Metered Water Revenue): Proposed to increase from $3.95 to $9.49, a 140% increase for both affiliated and non-affiliated customers.
• Power Cost Adjustment (PCA): Proposed to be eliminated entirely for both affiliated and non-affiliated customers.

Beyond the rate adjustments, KWWC is also requesting the PUC approve the transfer of ownership assets from its owner, Hualalai Investors, LLC (HILLC), to KWWC. These assets include significant infrastructure improvements, such as a Dissolved Air Flotation system, a replacement Aeration Basin Liner, a new Dewatering Screw Press, replacement effluent pumps, and planned landscaping enhancements for 2025.

Furthermore, KWWC is proposing several changes to its existing Rules and Regulations, including:

• Revising the definition of “consumer” to also include “customer.”
• Correcting a typographical error in Rule V.1.
• Removing interest on customer deposits and increasing credit deposit amounts for customers whose service has been shut off for non-payment.
• Establishing a $35 charge for returned checks.
• Increasing the restoration of service charge from $100.00 to $200.00.
• Expanding and clarifying the definition of obstructions and requiring customers to remove them.
• Requiring customers to pay applicable income taxes on contributions in aid of construction.
• Revising and updating the base amount used to compute the automatic power cost adjustment charge, changing the adjustment computation from tri-annual to quarterly.

The public hearing at NELHA provides an opportunity for community members to voice their opinions and concerns regarding the proposed rate increase and rule changes. The PUC encourages all interested parties to attend and provide testimony.

Copies of the Application and related filings are available for public review through the PUC’s electronic Case and Document Management System at https://hpuc.my.site.com/cdms/s/search (search for Docket No. 2023-0456). Information can also be obtained by contacting the PUC’s Honolulu Office at (808) 586-2020, Hawaii District Office at (808) 974-4533, or the Division of Consumer Advocacy at (808) 586-2800.

Written statements can be emailed to puc@hawaii.gov or mailed to the Public Utilities Commission, 465 South King Street, Room 103, Honolulu, Hawaii 96813, referencing Docket No. 2023-0456.

Individuals requiring auxiliary aids or services due to a disability should contact the Commission at least five business days prior to the hearing. Motions to Intervene or Participate must comply with Hawaii Administrative Rules, Title 16, Chapter 601.