NOTICE OF PUBLIC HEARING
APPLICATION OF AQUA PUHI, LLC, dba PUHI SEWER & WATER COMPANY
FOR REVIEW AND APPROVAL OF RATE INCREASES,
REVISED RATE SCHEDULES, AND CHANGES TO ITS TARIFF
Docket No. 2025-0213
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 AQUA PUHI, LLC, dba PUHI SEWER & WATER COMPANY (“Puhi S&W”), filed on June 6, 2025, for Commission approval of rate changes and increases, revised rate schedules, and changes to its tariff. The public hearing will be held as follows:
Tuesday, August 19, 2025, at 5:30 p.m.
Lihue State Office Building
3060 Eiwa Street, Rooms 209 A, B, & C
Lihue, Hawaii 96766
Brief Summary of the Application
Puhi S&W is a public utility that provides wastewater collection and treatment services to the residential, commercial, and industrial customers in the Lihue/Puhi areas on the island of Kauai. In addition, Puhi S&W provides non-potable water services to certain commercial customers in its authorized service territory. Puhi S&W also provides R-1 quality effluent to the Puakea Golf Course, and non-regulated septage dumping service to local septage haulers.
Puhi S&W seeks the Commission’s approval of a net revenue increase of $1,183,858, which represents an increase of approximately 54% over the pro forma revenue amount of $2,197,295 at present rates for a July 1, 2025, through June 30, 2026 test year. Puhi S&W asserts that the proposed revenue increase will provide Puhi S&W with the opportunity to earn a 7.82% rate of return on its prudently incurred costs for utility assets and recovery of its prudently incurred expenses.
Puhi S&W also clarifies that is not seeking to change its existing non-potable and effluent rates. If approved, Puhi S&W proposes to phase in its recommended rates/charges in a two-step increase. Puhi S&W’s present and proposed rates, including the proposed two step implementation schedule, are summarized as follows:
MONTHLY FLAT RATE SERVICE CHARGE PER METER SIZE
Customer Classification Present Proposed Rates
Rates
Step 1: Step 2:
Effective Effective 6
Upon Months After
Approval the Effective
Date of Step 1
Commercial/Industrial – 5/8″ Meter $248.00 $324.00 $388.91
Commercial/Industrial – 3/4″ Meter $328.00 $428.00 $512.85
Commercial/Industrial – 1″ Meter $450.00 $587.00 $701.86
Commercial/Industrial – 1-1/2″ Meter $540.00 $705.00 $841.29
Commercial – 2″ Meter $652.00 $851.00 $1,014.80
Commercial – 3″ Meter $988.00 $1,289.00 $1,535.41
TREATMENT CHARGE PER THOUSAND GALLONS OF WATER USE
Customer Classification Present Proposed Rates
Rates
Step 1: Step 2:
Effective Effective 6
Upon Months After
Approval the Effective
Date of Step 1
Commercial/Industrial $6.00 $7.830 $9.3740
(all meter sizes)
UNIT MONTHLY CHARGE
Customer Classification Present Proposed Rates
Rates
Step 1: Step 2:
Effective Effective 6
Upon Months After
Approval the Effective
Date of Step 1
Single Family Unit, $57.00 $74.39 $96.75
Condominium/Multi-Family Unit
EFFLUENT CHARGE
Present Proposed Rates
Rates
Step 1: Step 2:
Effective Effective 6
Upon Months After
Approval the Effective
Date of Step 1
Per thousand gallons $0.50 $0.50 $0.50
- NON-POTABLE WATER SERVICE
Present Proposed Rates
Rates
Step 1: Step 2:
Effective Effective 6
Upon Months After
Approval the Effective
Date of Step 1
Per thousand gallons $1.55 $1.55 $1.55
Additionally, Puhi S&W requests, among other things, that the Commission approve changes to its existing wastewater tariff (PSWC Tariff No. 1), including, without limitation: (1) changes to the sewer rate schedules, as described above, (2) updates to the Automatic Power Cost Adjustment Clause for wastewater services, (3) an increase of the connection fee from $125 to $275 (Rule 6.5), (4) clarification of the terms of the arrangement under Rule 13.6.5 in which under certain circumstances a customer may construct and install facilities, or arrange for their installation before dedicating the facilities to Puhi S&W, (5) replacing the existing service area map with a map with improved image quality, and (6) updating the Service Application and Connection Agreement form.
Puhi S&W asserts that current rates do not now and will not in the foreseeable future produce sufficient revenues to allow it to recover its prudently incurred expenses and earn a fair return on its prudently incurred investments.
The Commission will investigate whether the proposals in the Application, including revisions to Puhi S&W’s rate schedule, are just and reasonable.
The foregoing is a brief summary of the requests included in Puhi S&W’s Application. Copies of Puhi S&W’s Application 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, Docket Number 2025-0213. In addition, copies of Puhi S&W’s Application are also available for review by contacting the Commission’s Kauai District Office [(808) 274-3232] or Honolulu Office [(808) 586-2020], or the Division of Consumer Advocacy [(808) 586-2800]. If you need an auxiliary aid/service or other accommodation due to a disability, please contact the Commission’s Honolulu office at (808) 586-2020 as soon as possible. Requests made as early as possible have a greater likelihood of being fulfilled. Upon request, this notice is available in alternate/accessible formats.
All interested persons are invited to attend the public hearing to state their views on Puhi S&W’s Application. Statements may also be submitted online on the Commission’s public comments portal at https://hpuc.my.site.com/cdms/s/consumers/public-comments, 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. 2025-0213.
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 August 29, 2025.
______________________________
Leodoloff R. Asuncion, Jr.
Chair
(TGI1500474 7/29, 8/05, 8/12, 8/18/25)
