PUC holds hearing on Hawaii American Water’s request for 11.45% increase in Hawaii Kai rates

The Public Utilities Commission (PUC) held a public hearing on docket PC‑20240038 this evening in Honolulu on Hawaii American Water Company’s application for a general rate increase and certain tariff changes for its Hawaii Kai, Mauna Lani and Waimea districts.

Lee Mansfield, manager of Hawaii American Water, said the company is seeking a 2025 test‑year net revenue increase of $1,382,060 for the Hawaii Kai district — about an 11.45% increase over present rates. "We're asking for roughly 11 and a half percent across all of our customer classes," Mansfield said, adding the roughly estimated customer impact is about "$9 a month for our single family customers, and $7.75 roughly for our multifamily customers." Mansfield described investments the company says have driven the request, including roughly $9,600,000 in plant infrastructure improvements to date and about $7,000,000 planned going forward, and said that about 60% of the requested increase is due to capital investments while about 40% is due to higher operating costs.

Mansfield cited recent projects the company says have reduced operating costs and improved safety: a photovoltaic installation that lowered purchased electricity needs, a 2020 renovation of biological reactors that reduced energy use about 30%, and the installation of an ultraviolet disinfection system that eliminated the company’s use of chlorine gas for disinfection. He also described ongoing work to rehabilitate an aging pump station on Gavai High Street (one of four) and the addition of a chemical‑receiving tank to reduce spill risk.

Michelangelo, executive director of the Division of Consumer Advocacy at the Department of Commerce and Consumer Affairs, told the commission the DCA represents consumer interests before the PUC and will independently evaluate the company’s request. "As part of our analysis, we'll conduct discovery where we will request data and information to evaluate the company's support for the requested revenue increases," Michelangelo said. The DCA reiterated that it will later submit its analysis and recommendations to the commission for a decision.

Chair Leo Asuncion reminded attendees that the hearing’s scope is limited to taking testimony and not to answering the applicant’s questions, and he provided filing and contact information for both the DCA and Hawaii American Water and instructions for how members of the public could submit written comments to the docket (PC‑20240038). No members of the public testified during the hearing. The commission and the consumer advocate will continue their review of the application; the process will conclude with a written decision in the docket.

Details recorded in the hearing record: the company identified service to Hawaii Kai and Portlock (ZIP code 96825) and stated the application also covers the Mauna Lani and Waimea districts; the DCA repeated the company’s stated district figures for Hawaii Kai ($1,382,060), Mauna Lani ($897,060) and Waimea ($194,450).