NOTICE OF PUBLIC HEARING

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 regarding Kaupulehu Waste Water Company’s (“Applicant” or “KWWC”) request for a general rate increase as stated in its Application to file an Application for Approval of an increase in its Rates and Charges and for changes in its Rules and Regulations filed on February 28, 2025 (“Application”). The public hearing will be held in person on:

Monday, May 5, 2025, at 5:30 p.m.
Natural Energy Laboratory of Hawaii Authority (NELHA)
Hale Iako Building, Collaboration Area
73-970 Makako Bay Drive
Kailua-Kona, Hawaii 96740
Map: https://nelha.hawaii.gov/wp-content/uploads/2023/08/Administration- Map-e1691779801617.png

Rates Change

Description Present Proposed Dollar %

Standby Charge
Non Metered Water Revenue Affiliate $25.00 $65.15 $40.15 161%

The requested increases are based on an estimated total revenue requirement of $1,989,171 for the 2025 Test Year and a rate of return of 9.07% on Applicant’s average Test Year rate base of $5,082,530.
KWWC also requests that, to the extent that HRS § 269-19.5 is applicable, the Commission approve the transfer of “Ownership Assets” from KWWC’s owner Hualalai Investors, LLC (“HILLC”) to KWWC. These “Ownership Assets” include the following five elements:
Dissolved Air Flotation system; which was completed and placed
in-service on September 13, 2024;
Replacement of Aeration Basin Liner, which was completed and placed in service on November 25, 2024;
New Dewatering Screw Press, which was completed and placed
in-service on July 15, 2024;
Replacement of two main vertical turbine type effluent pumps with new effluent pumps, which were completed and placed in-service on May 14, 2023; and
Screening Landscaping and Lava Rock Wall, which is planned for completion in the 2025 Test Year.
Finally, KWWC requests the following proposed changes to its existing Rules and Regulations:
Rule I.6 (Consumer): Revise the definition of “consumer” to also include “customer”;
Rule V. 1 (Application for Service): Correct a typographical error in the fifth sentence of this rule (i.e., replace “falls” with “fails”);
Rule VI.12 (Credit Deposit): Remove the interest on customer deposits and replace with a provision requiring an increased credit deposit amount from customers whose service has been shut off due to nonpayment of the customer’s wastewater bills, as well as to make other corrective changes;
Rule VIII (Payment of Bills): Establish a $35 charge for returned checks;
Rule XII (Restoration of Wastewater Services): Increase the charge for restoration of service from $100.00 to $200.00. This change would also be made to the Important Shut-Off Notice for Nonpayment of Wastewater Bill (Exhibit C) and Important Shut-Off Notice for violation of Rules and Regulations (Exhibit D);
Rule XIV.2 (Obstructions): Expand and clarify that obstructions include landscaping and that a customer is required to remove obstructions;
Rule XXIII.5 (Taxes on Payments): Require a customer to pay the applicable income taxes on contributions in aid of construction under a specific identified situation; and
Rule XXVI.1 (Automatic Power Cost Adjustment Charge): Revise and update the base amount used to compute the automatic power cost adjustment charge to reflect electrical cost increases experienced by KWWC from the previous base established in the last rate case proceeding, and change the adjustment computation from tri-annual to quarterly.
The foregoing is a brief summary of the requests included in KWWC’s Application. Copies of the Application, and other filings are available for public review through the Commission’s electronic Case and Document Management System, accessible at https://hpuc.my.site.com/cdms/s/search and typing in “2023-0456” into the search bar. In addition, copies of the Application are
also available for review by contacting the Commission’s Honolulu Office [(808) 586-2020], Hawaii District Office [(808) 974-4533], or the Division of Consumer Advocacy [(808) 586-2800].
The purpose of the public hearings is to receive testimony on the views of the general public regarding the Application. All interested persons are invited to attend the public hearings to state their views on KWWC’s Application. The Commission may impose time limits for each person’s testimony so that all in attendance will have the opportunity to speak at the public hearings. Statements may also be
e-mailed to the Public Utilities Commission at puc@hawaii.gov or mailed to the Public Utilities Commission, 465 South King Street, Room 103, Honolulu, Hawaii 96813. All written statements should reference Docket No. 2023-0456.
Any person may request an auxiliary aid or service or an accommodation due to a disability by contacting the Commission no later than 5 business days prior to the hearing date.
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 (“HAR”), Title 16, Chapter 601, including the filing deadline in HAR § 16-601-57(1).

______________________________
Leodoloff R. Asuncion, Jr.
Chair
(WHT1490056 4/11, 4/18, 4/25, 5/03/25)