NOTICE OF PUBLIC HEARING
APPLICATION OF LANAI WATER COMPANY, INC. FOR REVIEW AND
APPROVAL OF RATE INCREASES; REVISED RATE SCHEDULES;
AND CHANGES TO ITS TARIFF
Docket No. 2022-0233
The PUBLIC UTILITIES COMMISSION of the STATE OF HAWAII (“Commission”), pursuant to Hawaii
Revised Statutes (“HRS”) §§ 269-12 and 269-16, HEREBY GIVES NOTICE that it will hold public hearings
relating to the Application of LANAI WATER COMPANY, INC. (“LWC”), filed on November 21, 2022, for
review and approval of rate increases, revisions of rate schedules, and changes to its tariff. To increase
the opportunities for the public to offer testimony, the Commission will be holding two public hearings
as follows:
1. An in-person hearing:
Tuesday, February 21, 2023, at 4:00 p.m.
Lana`i High & Elementary School Cafeteria
555 Fraser Avenue
Lana`i City, Hawaii 96763
2. A virtual hearing:
Thursday, February 23, 2023, at 5:30 p.m.
Online (via web browser or Webex mobile device app)
Link:
https://hpuc.my.webex.com/hpuc.my/j.php?MTID=m044248d09c5df7d67691681f83a5c8c8
Meeting Number: 2557 950 4103
Meeting Password: cjGGXyXJ443
Telephone
Dial-in Number: +1-650-479-3208
Access Code: 2557 950 4103
Meeting Password: 25449995
LWC is a public utility authorized by the Commission to provide: (1) potable water distribution services
on the island of Lanai to Lanai City, Koele, Kaumalapau, ManeleHulopoe, Lanai Airport, Miki Basin and
Palawai Basin, Kaupili Road and Upper Kaumalapau Highway, and Upper Manele on the island of Lanai;
and (2) nonpotable (a.k.a. brackish) water distribution service to the Manele-Hulopoe area on the island
of Lanai.
LWC seeks to increase its revenues from its potable water distribution services by $2,103,729 (an
approximate 357% increase from present rates), based on a 2023 test year. LWC seeks to increase
its revenues from its non-potable water distribution service by $155,276 (an approximate 50% increase
from present rates), based on a 2023 test year. LWC proposes to implement this increase over five years.
LWC’s present and proposed rates, including proposed five-step implementation schedule, are
summarized as follows:
If approved, LWC proposes a 4-step phase-in of its proposed rate increases for both its potable and
non-potable water distribution services to mitigate or reduce any potential “rate shock” to its customers.
LWC’s present and proposed charges for its potable and non-potable water distribution services, as
set forth in Exhibits LWC-P 12 and LWC-B12 to its Application, are as follows:
Present Rates for Potable Water Distribution Services
User Charge (2 month billing cycle) Rates (per 1,000 gallons)
First 25,000 gallons $1.10
Over 25,000 gallons $1.62
Service Charge (meter reading) (charge per meter per two-month billing cycle)
Meter Size Rates
5/8 inch $5.00
3/4 inch $5.00
1 inch $10.00
1 1/2 inch $10.00
2 inch $25.00
3 inch $50.00
4 inch $75.00
6 inch $150.00
8 inch $250.00
10 inch $250.00
Hydrant $80.00
Tap-in Charge per connection
Single Family Unit $600.00
Multi-Family Unit $475.00
Commercial
5/8 inch meter $600.00
3/4 inch meter $475.00
1 inch meter $5,400.00
1 1/2 inch meter $8,900.00
2 inch meter $17,800.00
3 inch meter $57,000.00
4 inch meter $89,100.00
6 inch meter $178,200.00
8 inch meter $285,100.00
Agriculture
5/8 inch meter $700.00
3/4 inch meter $1,000.00
1 inch meter $1,700.00
1 1/2 inch meter $3,500.00
2 inch meter $5,700.00
Proposed Rates for Potable Water Distribution Services
Non-Agricultural Monthly Flat Rate Service Charge
Present Rates for Non-Potable Water Distribution Services
User Charge (2 month billing cycle) Rates (per 1,000 gallons)
Single Family
Tier 1 (<1,000 per day per lot) $3.57
Tier 2 (>1,000 & <2,500 per day per lot) $4.64
Tier 3 (>2,500 per day per lot) $5.72
Multi-Family
Tier 1 (<1,000 per day per lot) $3.57
Tier 2 (>1,000 & <2,500 per day per lot) $4.64
Tier 3 (>2,500 per day per lot) $5.72
Homeowners’ Association
Tier 1 (<1,000 per day per lot) $3.57
Tier 2 (>1,000 & <2,500 per day per lot) $4.64
Tier 3 (>2,500 per day per lot) $5.72
All Other
Tier 1 (<1,000 per day per lot) $3.57
Tier 2 (>1,000 & <2,500 per day per lot) $4.64
Tier 3 (>2,500 per day per lot) $5.72
5/8″ & 34″ $3.09 $4.02 $5.28 $6.93 $9.11
1″ $6.60 $9.09 $12.46 $16.91 $22.77
11/2″ $8.65 $14.32 $22.02 $32.16 $45.53
2″ $17.93 $26.38 $37.85 $52.93 $72.85
3″ $35.04 $50.67 $71.87 $99.77 $136.60
4″ $54.61 $81.24 $117.37 $164.91 $227.66
6″ $109.23 $162.47 $234.74 $329.81 $455.32
8″ $179.32 $263.81 $378.47 $529.35 $728.51
Hydrants/
Standpipes $48.69 $62.22 $80.57 $104.72 $136.60
Meter Size Step 1
(effective upon
approval)
Step 2
(effective one
year after the
effective date
of Step 1)
Step 3
(effective one
year after the
effective date
of Step 2)
Step 4
(effective one
year after the
effective date
of Step 3)
Step 5
(effective one
year after the
effective date
of Step 4)
0 to 5,000 $1.18 $1.31 $1.48 $1.70 $2.00
5,001 to 12,500 $1.36 $1.77 $2.32 $3.04 $4.00
12,501 to 50,000 $2.01 $2.63 $3.46 $4.55 $6.00
50,001 to 400,000 $2.31 $3.38 $4.85 $6.77 $9.30
Over 400,00 $2.40 $3.62 $5.27 $7.43 $10.30
Monthly usage
in level in
gallons
Step 1
(effective on
approval)
Step 2
(effective one
year after the
effective date
of Step 1)
Step 3
(effective one
year after the
effective date
of Step 2)
Step 4
(effective one
year after the
effective date
of Step 3)
Step 5
(effective one
year after the
effective date
of Step 4)
Non-Agricultural Monthly Water Charge
(in addition to the Monthly Flat Rate Service Charge, there shall also be a Monthly Water Usage
Charge based on each 1,000 gallons of metered domestic water)
0 to 200,000 $1.10 $1.10 $1.10 $1.10 $1.10
200,001 to 400,000 $2.31 $3.39 $4.85 $6.77 $9.30
Over 400,000 $2.40 $3.62 $5.27 $7.43 $10.30
Monthly usage
in level in
gallons
Step 1
(effective on
approval)
Step 2
(effective one
year after the
effective date
of Step 1)
Step 3
(effective one
year after the
effective date
of Step 2)
Step 4
(effective one
year after the
effective date
of Step 3)
Step 5
(effective one
year after the
effective date
of Step 4)
Agricultural Monthly Water Charge
(in addition to the Monthly Flat Rate Service Charge, there shall also be a Monthly Water Usage
Charge based on each 1,000 gallons of metered domestic water)
5/8 & 3/4″ $3.09 $4.02 $5.28 $6.93 $9.11
1″ $6.60 $9.09 $12.46 $16.91 $22.77
1 1/2″ $8.65 $14.32 $22.02 $32.16 $45.53
2″ $17.93 $26.38 $37.85 $52.93 $72.85
3″ $35.03 $50.67 $71.87 $99.77 $136.60
4″ $54.61 $81.24 $117.37 $164.91 $227.66
Meter Size Step 1
(effective upon
approval)
Step 2
(effective one
year after the
effective date
of Step 1)
Step 3
(effective one
year after the
effective date
of Step 2)
Step 4
(effective one
year after the
effective date
of Step 3)
Step 5
(effective one
year after the
effective date
of Step 4)
Agricultural Monthly Flat Rate Service Charge
Service Charge (meter reading) (charge per meter per two-month billing cycle)
Meter Size (inches in decimal format) Rates
0.625 $5.00
0.750 $5.00
1.000 $10.00
1.500 $10.00
2.000 $25.00
3.000 $50.00
4.000 $75.00
6.000 $150.00
8.000 $250.00
10.000 $250.00
Residential 5/8″ & 3/4″ $3.63 $4.87 $6.56 $8.36 $10.00
Multi Group I 1″ $8.00 $11.00 $15.20 $20.00 $25.00
Multi Group II 1 1/2″ $11.75 $19.85 $29.30 $40.10 $50.00
Multi Group III 2″ $22.63 $34.78 $48.96 $65.16 $80.00
Multi Group IV 3″ $43.75 $66.25 $97.50 $127.50 $150.00
Multi Group V 4″ $69.38 $107.63 $160.76 $211.76 $250.00
Customer
Classification
Meter Size Step 1
(effective
upon
approval)
Step 2
(effective one
year after
the effective
date of
Step 1)
Step 3
(effective one
year after
the effective
date of
Step 2)
Step 4
(effective one
year after
the effective
date of
Step 3)
Step 5
(effective one
year after
the effective
date of
Step 4)
Proposed Rates for Non-Potable Water Distribution Services
Non-Potable Water Rate Schedule
Residential 0 to 50,000 $4.40 $4.10 $3.76 $3.36 $3.00
50,001 to $4.85 $5.09 $5.36 $5.70 $6.00
100,000
100,001 to $5.15 $5.75 $6.46 $7.26 $8.00
300,000
Over 300,00 $5.38 $6.27 $7.30 $8.48 $9.57
Multi Group I 0 to 50,000 $3.58 $3.45 $3.31 $3.15 $3.00
50,001 to $4.03 $4.44 $4.93 $5.49 $6.00
100,000
100,001 to $4.33 $5.10 $6.01 $7.05 $8.00
300,000
Over 300,000 $4.56 $5.62 $6.86 $8.27 $9.57
Multi Group II 0 to 50,000 $3.52 $3.41 $3.28 $3.15 $3.00
50,001 to 100,000 $3.97 $4.40 $4.90 $ 5 . 4 0
$6.00
100,001 to $4.27 $5.06 $5.98 $6.90 $8.00
300,000
Over 300,000 $4.51 $5.58 $6.83 $8.08 $9.57
Multi Group III 0 to 50,000 $4.45 $4.14 $3.78 $3.43 $3.00
50,001 to $4.90 $5.13 $5.40 $5.68 $6.00
100,000
100,001 to $5.20 $5.79 $6.48 $7.18 $8.00
300,000
Over 300,000 $5.43 $6.31 $7.33 $8.35 $9.57
Multi Group IV 0 to 50,000 $3.94 $3.74 $3.51 $3.28 $3.00
50,001 to $4.39 $4.73 $5.13 $5.53 $6.00
100,000
100,001 to $4.69 $5.39 $6.21 $7.03 $8.00
300,000
Over 300,000 $4.93 $5.91 $7.05 $8.20 $9.57
Multi Group V 0 to 50,000 $3.70 $3.55 $3.38 $3.21 $3.00
50,001 to $4.97 $5.37 $5.82 $6.28 $6.00
100,000
100,001 to $5.27 $6.03 $6.90 $7.78 $8.00
300,000
Over 300,000 $5.51 $6.54 $7.75 $8.95 $9.57
In addition to requesting a revenue increase, LWC requests that the Commission approve proposed
revisions to its potable and non-potable tariffs by, among other things, imposing a service charge for
dishonored/returned checks and establishing certain criteria to qualify for its proposed new Agricultural
Potable Water Rate for potable water distribution customers.
The Commission will investigate whether LWC’s proposed relief is just and reasonable.
The foregoing is a brief summary of the requests included in the Application. Copies of the Application
are available for public review through the Commission’s electronic Document Management System,
accessible at http://dms.puc.hawaii.gov/dms/, Docket Quick Link 2022-0233. In addition, copies of
the Application are also available for review by contacting the Commission’s Maui District Office [(808)
984-8182] or Honolulu Office [(808) 5862020], or the Division of Consumer Advocacy [(808) 586-2800].
At the public hearings, the Commission will receive live testimony from the general public regarding
LWC’s Application and proposed general rate increase and revised rate schedules and tariff changes,
pursuant to HRS §§ 269-12(c) and 269-16(f). All interested persons are invited to attend either or both
public hearings to state their views on LWC’s Application verbally, in writing, or both. So that all in
attendance will have the opportunity to speak at the public hearings, the Commission may impose
time limits for each person’s testimony. Special accommodations for persons with disabilities can be
made if requested reasonably in advance by contacting the Commission’s Honolulu Office.
In addition, written statements may be mailed to the Commission at 465 South King Street, Room 103,
Honolulu, Hawaii, 96813, or sent by electronic mail to puc.comments@hawaii.gov. Written statements
should reference Docket No. 2022-0233 and include the author’s name and the entity or organization
that the author represents, if any.
Any motions to intervene or participate in this proceeding must comply with the applicable provisions
of the Commission’s Rules of Practice and Procedure Before the Public Utilities Commission, Hawaii
Administrative Rules, Title 6, Chapter 601. A motion to intervene or participate in this proceeding shall
be filed with the Commission’s Honolulu Office by March 6, 2023.
____________________________
Leodoloff R. Asuncion, Jr.
Chair
Customer
Classification
Monthly
usage in
level in
gallons
Step 1
(effective on
approval)
Step 2
(effective one
year after
the effective
date of
Step 1)
Step 3
(effective one
year after
the effective
date of
Step 2)
Step 4
(effective one
year after
the effective
date of
Step 3)
Step 5
(effective one
year after
the effective
date of
Step 4)
Non-Potable Monthly Water Charge
(in addition to the Monthly Flat Rate Service Charge, there shall also be a Monthly Water Usage
Charge based on each 1,000 gallons of metered domestic water)
Honolulu Star-Advertiser: January 31, 2023; February 7, 14, and 20, 2023.