Consumer advocates urge commission to appoint receiver for PWS amid funding concerns

In a recent status conference held by the Public Utilities Commission (PUC) in Hawaii, significant discussions centered around the temporary rate increase request for the PWS (Public Water Supply) and the potential appointment of a receiver to manage the utility's operations. The meeting, which took place on May 8, 2025, highlighted pressing concerns regarding the health and safety of utility customers amid ongoing operational challenges.

Mike Angelo, representing consumer advocates, emphasized the urgent need for a receiver to oversee PWS operations, citing a history of inadequate maintenance and the looming risk of foreclosure related to a critical land deal. Angelo pointed out that essential infrastructure, such as fire hydrants, has not been properly maintained, raising alarms about public safety. He noted that without the successful completion of the land deal, PWS may struggle to secure additional funding necessary for its operations.

The discussion also touched on the proposed temporary rate increase, which the consumer advocates do not oppose, provided there is transparency regarding how the funds will be utilized. Angelo stressed the importance of ensuring that any increase in rates directly supports the utility's operational needs and is accompanied by ongoing reporting to the community.

Commissioners raised questions about the interplay between the proposed rate increase and the appointment of a receiver. Angelo clarified that while both actions could occur simultaneously, the appointment of a receiver is crucial for maintaining trust within the community and ensuring that operations continue smoothly, especially in light of potential legal challenges related to the foreclosure.

The process of appointing a receiver, as outlined under Hawaii Revised Statutes, is complex and may take several months, involving community input and vetting of candidates. Angelo indicated that discussions with PWS regarding receivership have not yet occurred, but he expressed a willingness to engage in further dialogue.

As the meeting concluded, the PUC acknowledged the urgency of the situation, particularly given that PWS reportedly has no funds left as of April 30. The commission plans to deliberate on the temporary rate increase request and aims to issue a written decision soon. The outcome of these discussions will be critical for the future of PWS and its customers, as the commission seeks a sustainable solution to the utility's ongoing challenges.