Hawaii Water Service proposes phased rate increases for Waikoloa utilities

The Public Utilities Commission held a public hearing on February 11, 2025, to discuss the General Rate Increase Application submitted by Waikoloa Utilities. The meeting featured testimony from various stakeholders, including utility representatives and community members, focusing on the proposed rate adjustments necessary for maintaining and improving water services in the Waikoloa area.

Jeff Volk, General Manager of Hawaii Water Service, presented the case for the rate increase, highlighting that the last adjustment occurred in February 2019. He noted that current rates no longer reflect the actual costs of providing safe and reliable water service, as operational costs have significantly risen over the past six years. Volk emphasized the necessity of capital investments to comply with health regulations and maintain infrastructure, stating that nearly $33 million has been invested in the Waikoloa system since the last rate adjustment.

The proposed rate increase will occur in two phases. For a typical household using 11,000 gallons of water monthly, the water bill would rise from approximately $51.80 to $69.46 in the first phase, representing a 34% increase, and then to $92.24 in the second phase, a further 32% increase. The impact on larger users, such as Waikoloa Resorts, was also addressed, indicating similar adjustments.

Community feedback included concerns about the timing of the rate increase, with some residents, like Carly Riddle, suggesting that the increases be phased over a longer period to ease the financial burden on consumers. The hearing allowed for public testimony, with participants expressing both support and opposition to the proposed changes.

The commission will consider the testimonies and the utility's justification for the rate increase before making a decision. The outcome of this hearing will significantly impact the cost of water services for residents and businesses in the Waikoloa area.