NOTICE OF PUBLIC HEARING
APPLICATION OF MANELE WATER RESOURCES, LLC
FOR REVIEW AND APPROVAL OF RATE INCREASES; REVISED RATE SCHEDULES;
AND CHANGES TO ITS TARIFF
Docket No. 2019-0311
The STATE OF HAWAII PUBLIC UTILITIES COMMISSION (“Commission”), pursuant to Hawaii Revised Statutes §§
269-12 and 269-16, HEREBY GIVES NOTICE that it will hold a public hearing relating to the Application of Manele
Water Resources, LLC (“MWR”), filed on September 9, 2019, as corrected and supplemented on October 8, 2019, for
Commission approval of rate increases; revised rate schedules; and changes to its tariff. The public hearing will be held
as follows:
Thursday, December 12, 2019, 4:15 p.m.
Lana’i Senior Center
309 Seventh Street
Lana’i City, Lana’i, Hawaii 96763
MWR is a public utility that provides: (1) wastewater collection and treatment services to residential, commercial and
recreational customers; and (2) R-1 reclaimed water to the Challenge at Manele Bay golf course for irrigation purposes
within its authorized service area in the Manele-Hulopoe area on the island of Lana’i, Hawaii. MWR seeks Commission
approval of a 2020 test year net revenue increase of $707,849 for its wastewater operations or approximately 211%
over the pro forma revenue amount of $335,524 at present rates. MWR states that, if approved, the proposed revenue
increase will provide MWR with the ability to recover its incurred operating costs. MWR does not seek the opportunity
to earn a fair and reasonable return on its investment (aka, rate of return) on its rate base or recover the depreciation
expense on its plant in service at this time; however, MWR reserves the right, if deemed necessary, to do so in its next
rate case.
MWR’s present and proposed charges are as follows:
PRESENT CHARGES:
Manele Water Resources, LLC Manele Tariff No. 1
Lana’i, Hawaii Original Sheet Page 30
SEWER RATE SCHEDULE
MONTHLY FLAT RATE
Residential
Single-Family $56.74/Month per Dwelling
Multi-Family $42.21/Month per Dwelling
Hotel $92.12/Month per Guestroom
MONTHLY USAGE CHARGES:
Commercial/Recreational*
Non-Food Service $9.98 per 1,000 Gallons of
Potable Water Used
Food Service $10.07 per 1,000 Gallons of
Potable Water Used
Boat Harbor $10.05 per 1,000 Gallons of
Wastewater Pumped from the
DLNR Pump Station
* These customers will also be charged a Fixed Service Charge of $12.00 per month
R-1 RECLAIMED WATER SALES**
User Charge $0.25 per 1,000 Gallons
**For R-1 Water Sold to Challenge at Manele Golf Course
PROPOSED CHARGES:
PROPOSED WASTEWATER RATE SCHEDULE
RESIDENTIAL SINGLE-FAMILY
MONTHLY FLAT RATE SERVICE CHARGE PER DWELLING
Customer Meter Step 1 Step 2 Step 3 Step 4
Classification Size (effective upon (effective (effective (effective
approval) 6 months after 6 months after 6 months after
the effective the effective the effective
date of Step 1) date of Step 2) date of Step 3)
Singe Family-
One Dwelling 5/8″ $76.71 $103.71 $140.22 $189.58
RESIDENTIAL MULTI-FAMILY
MONTHLY FLAT RATE SERVICE CHARGE PER DWELLING
Customer Meter Step 1 Step 2 Step 3 Step 4
Classification Size (effective upon (effective (effective (effective
approval) 6 months after 6 months after 6 months after
the effective the effective the effective
date of Step 1) date of Step 2) date of Step 3)
Multi-Family-
One Dwelling 5/8″ $56.49 $75.60 $101 .18 $135.42
Multi-Family-
One Dwelling 1″ $59.87 $84.91 $120.43 $170.83
Multi-Family-
Three Dwellings 1″ $151 .94 $182.31 $218.75 $262.50
Multi-Family-
Four Dwellings 1″ $188.53 $210.51 $235.06 $262.50
HOTEL MONTHLY FLAT RATE SERVICE CHARGE [PER GUEST ROOM]
Customer Step 1 Step 2 Step 3 Step 4
Classification (effective upon (effective (effective (effective
approval) 6 months after 6 months after 6 months after
the effective the effective the effective
date of Step 1) date of Step 2) date of Step 3)
Hotel $125.46 $170.86 $232.69 $316.90
COMMERCIAL MONTHLY FLAT RATE SERVICE CHARGE
Customer Meter Step 1 Step 2 Step 3 Step 4
Classification Size (effective upon (effective (effective (effective
approval) 6 months after 6 months after 6 months after
the effective the effective the effective
date of Step 1) date of Step 2) date of Step 3)
Commercial 5/8″ $20.39 $34.64 $58.86 $100.00
Commercial 1 – 1/2″ $28.45 $67.45 $159.92 $379.17
Commercial 2″ $30.23 $76.15 $191.82 $483.33
COMMERCIAL MONTHLY SEWER TREATMENT CHARGE
In addition to the applicable Monthly Flat Rate Service Charge to Commercial customers as noted above, there shall
also be a monthly sewer treatment charge based on each 1,000 gallons of metered domestic water consumption used
by Commercial customers as calculated by Manele Water Resources , LLC equal to the following for the designated
customer classification of standard use:
Customer Meter Step 1 Step 2 Step 3 Step 4
Classification Size (effective upon (effective (effective (effective
approval) 6 months after 6 months after 6 months after
the effective the effective the effective
date of Step 1) date of Step 2) date of Step 3)
Commercial All $10.22 $10.47 $10.72 $10.963
R-1 RECLAIMED WATER SALES**
Customer Step 1 Step 2 Step 3 Step 4
Classification (effective upon (effective (effective (effective
approval) 6 months after 6 months after 6 months after
the effective the effective the effective
date of Step 1) date of Step 2) date of Step 3)
R-1 User Charge
per 1,000 gallons $0.33 $0.43 $0.57 $0.75
**For R-1 Water Sold to Challenge at Manele Golf Course
In addition to the monthly fixed charges and monthly volumetric charges, MWR’s sewer rate schedules include an
automatic power cost adjustment charge per 1,000 gallons of metered water provided by MWR per month.
As part of its Application, MWR also requests, among other things, that the Commission (1) approve changes to its
existing “Rules and Regulations Covering the Provision of Sewer Service and Rate Schedules” (“Tariff”), including,
without limitation, changes to its Sewer Rate Schedule, and updating its Automatic Power Cost Adjustment Clause for
wastewater services (Rule XIV); and (2) grant such other relief as may be just and reasonable under the circumstances.
The Commission will investigate whether the proposals in the Application, including revisions to MWR’s rate
schedules, are just and reasonable. The total revenue requirement for the 2020 calendar test year will not exceed the
$707,849 amount over revenues at present rates that MWR requests. However, changes to rates and charges that are
finally approved by the Commission, if any, may be higher or lower than MWR’s proposed rates and charges herein.
The foregoing is a brief summary of the requests included in MWR’s Application. Copies of MWR’s Application are
available for public review through the Commission’s electronic Document Management System, accessible at https://
dms.puc.hawaii.gov/dms/, Quick Link 2019-0311. In addition, copies of MWR’s Application are also available for
review by contacting MWR [(808) 565-3664], the Commission’s Maui District Office [(808) 984-8182] or Honolulu Office
[(808) 586-2020], or the Division of Consumer Advocacy [(808) 586-2800].
All interested persons are invited to attend the public hearing to state their views on MWR’s Application. Written
statements may also be mailed to the Public Utilities Commission, 465 South King Street, Room No. 103, Honolulu,
Hawaii 96813, or e-mailed to Hawaii.PUC@hawaii.gov. All written statements should reference Docket No. 2019-0311.
Special accommodations for persons with disabilities can be made if requested reasonably in advance by contacting
the Commission’s Honolulu Office.
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 16, Chapter 601. A motion to
intervene or participate in this proceeding shall be filed with the Commission’s Honolulu Office by December 23, 2019.
______________________________
James P. Griffin
Chair
(SA1246499 11/21, 11/28, 12/5, 12/11/19)