Hawaii Gas Seeks $24.3 Million Rate Hike; PUC Holds Public Hearing as Consumer Advocate Begins Review

Hawaii Gas on Oct. 29 presented its request to the Public Utilities Commission (PUC) for a $24,346,000 revenue increase — about 17.67% over current rates for the normalized 2025 test year — and asked the commission to approve revisions to rate schedules, a main upgrade program and two tariff riders.

The request (PUC Docket No. 2024-0158) was summarized at a public hearing that the PUC convened as required by state law when a utility proposes a rate increase. Diamond Giacomelli, identified as manager of regulatory affairs at Hawaii Gas, submitted a presentation dated 10/29/2024 “as part of the record and stand on that presentation.” The company’s filing date in the record is 07/26/2024.

The Division of Consumer Advocacy said it will independently review Hawaii Gas’s request. Mike, who identified himself as executive director of the Division of Consumer Advocacy in the Department of Commerce and Consumer Affairs, told the commission the office will conduct discovery, request data and later submit analysis and recommendations to the PUC. “Consumer advocate will independently review the reasonableness of why gas has requested rate increases and revised rate schedules and rules,” he said during his remarks.

The hearing included public comment. Steve Parsons of Kauai, who identified himself as a Hawaii gas customer and a member of the Kauai Climate Action Coalition, told the commissioners that he and his group “generally are opposed to a rate increase,” raised concerns about gas appliances’ impacts on health and climate, and urged faster electrification. Parsons also urged Hawaii Gas to electrify its vehicle fleet and consider biodiesel to reduce emissions.

The commission’s chair outlined procedural rules for testimony: Hawaii Gas and the consumer advocate each were allotted five minutes to present; other speakers received three minutes. The PUC posted the hearing notice in West Hawaii Today on Oct. 26 and in the Hawaii Tribune-Herald and filed the hearing notice in its CDMS database on Sept. 3, 2024. The chair also provided instructions for submitting written comments referencing Docket No. 2024-0158 by email (PUC@hawaii.gov) or mail to the PUC office in Honolulu.

No commission vote or decision was taken at the hearing; the chair said the formal portion of the public hearing had concluded and that the PUC and the Division of Consumer Advocacy would continue their review and later issue a written decision. The record remains open for written comments and the consumer advocate and Hawaii Gas representatives offered to answer questions informally after the recorded session.

For the record: Hawaii Gas requested a total revenue increase of $24,346,000 (approximately 17.67%), requested approval of a rate of return of 9.05% on rate base provisions, and proposed revisions to rate schedules and tariff riders. The commission will adjudicate the request after the consumer advocate completes discovery and files recommendations.