NOTICE OF PUBLIC HEARING
APPLICATION OF OLOWALU WATER COMPANY, INC.
FOR APPROVAL OF RATE INCREASES AND REVISED RATE SCHEDULES
AND CHANGES TO ITS TARIFF
Docket No. 2025-0409
The STATE OF HAWAI’I PUBLIC UTILITIES COMMISSION ("Commission"), pursuant to Hawai’i Revised Statutes §§ 269-12 and 269-16, HEREBY GIVES NOTICE that it will hold a public hearing regarding OLOWALU WATER COMPANY, INC.’s (“OWC”), request for a rate increase, as stated in its: Application For Approval of Rate Increase and Revised Rate Schedules and Changes to Its Tariff, filed on December 30, 2025 (“Application”). The public hearing will be held on:
Tuesday, March 3, 2026 at 3:30 p.m.
Lahainaluna High School
980 Lahainaluna Rd.
Lahaina, Hawai’i 96761
OWC is a public utility authorized to provide potable and non-potable water service within its service territory in the Olowalu region of West Maui. Through its Application, OWC is seeking Commission approval to increase its annual revenue by $879,849, or about $325.5%, over total revenues at present rates pursuant to the following increases in rates and standby charges:
POTABLE WATER RATES:
User Current rate Proposed rate Increase Increase
Consumption (per 1,000 gallons) (per 1,000 gallons) ($) (%)
Including Energy
Cost Adjustment
0-10,000 Gal $2.25 $3.00 $0.75 33.3%
10,001-25,000 Gal $2.53 $5.45 $2.92 115.4%
25,001-50,000 Gal $3.13 $10.43 $7.30 233.2%
POTABLE WATER STANDBY CHARGES:
Meter Size Current Standby Proposed Change Change($) Change (%)
Charge to Standby Charge
5/8 in $28.80 $28.35 -$0.45 -1.6%
3/4 in $31.68 $42.53 $10.85 34.2%
1 in $34.56 $70.88 $36.32 105.1%
1.5 in $26.00 $141.75 $115.75 445.2%
2 in $26.00 $226.80 $200.80 772.3%
NON-POTABLE WATER RATES:
User Current rate Proposed rate Increase Increase
Consumption (per 1,000 gallons) (per 1,000 gallons) ($) (%)
Including Energy
Cost Adjustment
0-10,000 Gal $1.09 $3.64 $2.55 233.9%
10,001-25,000 Gal $1.09 $5.64 $4.55 417.4%
25,001-50,000 Gal $1.09 $8.16 $7.07 648.6%
NON-POTABLE WATER STANDBY CHARGES:
Meter Size Current Standby Proposed Change Change($) Change (%)
Charge to Standby Charge
5/8 in $21.60 $11.30 -$10.30 -47.7%
3/4 in $21.60 $16.95 -$4.65 -21.5%
1 in $21.60 $28.25 $6.65 30.8%
1.5 in $24.48 $56.50 $32.02 130.8%
2 in $28.80 $90.40 $61.60 213.9%
3 in $36.00 $169.50 $133.50 370.8%
4 in $27.00 $282.50 $255.50 946.3%
The requested increases are based on an estimated total revenue requirement of $1,150,116 for the 2026 test year and 11.18% rate of return on Applicant’s average test year rate base of $1,080,477.
OWC also requests amendments to its current tariff rules, including modifying:
(a) Rule XXIII to increase the facilities reserve charges for replacing water meters, as follows:
Meter Size Existing Charge Proposed Reserve Charge
5/8 in $3,350.00 $12,060.00
3/4 in $4,690.00 $18,884.00
1 in $8,710.00 $33,356.00
1.5 in $19,430.00 $71,948.00
2 in $34,170.00 $125,012.00
3 in $77,050.00 $279,380.00
4 in $137,350.00 $496,460.00
6 in $308,670.0 $1,977,428.00
(b) (Proposed) Rule XXVI to initiate an automatic power cost adjustment charge with a base electricity cost of $1.777/1,000 gallons; and
(c) (Proposed) Rule XXI to initiate a power cost pass-through rider for the non potable system.
The foregoing is a brief summary of the requests included in OWC’s Application. Copies of the 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/, selecting “Search Cases and Filings,” and typing in “2025-0409”. In addition, copies of OWC’s Application are also available for review by contacting the Commission’s 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 OWC’s Application. If you need an auxiliary aid/service or other accommodation due to a disability, please contact the Commission 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.
Written comments may be submitted to the Commission online via the Commission’s website for public comments, or may be mailed to the Public Utilities Commission, 465 South King Street, Room No. 103, Honolulu, Hawai’i 96813, or e mailed to puc.comments@hawaii.gov. All written statements should reference Docket No. 2025-0409 and include the author’s name and the entity or organization that the author represents, if any. Motions to Intervene or Participate in this proceeding shall comply with subchapter 4, Rules of Practice and Procedure Before the Public Utilities Commission, Hawai’i Administrative Rules, Title 16, Chapter 601. A motion to intervene or participate in this proceeding shall be filed by March 13, 2026.
Jon S. Itomura
Chair
(SA1519068 2/05, 2/12, 2/19, 3/02/26)
