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Hawaii Gas seeks 17.7% revenue increase; PUC hearing draws business and consumer concerns
Summary
Hawaii Gas told the Public Utilities Commission it needs higher rates to cover infrastructure, resiliency and decarbonization investments, seeking roughly $24.36 million (about 17.67%); the Division of Consumer Advocacy will review the filing and public commenters urged caution over impacts on households and small businesses.
Hawaii Gas on Thursday presented its first base-rate increase request since 2018 to the Hawaii Public Utilities Commission, asking the commission to approve changes to rates, tariffs and two riders that, the company said, would help fund infrastructure upgrades, resiliency projects and efforts to accommodate renewable fuels.
Alicia Moy, president and CEO of Hawaii Gas, told the commission that the company has not sought a base-rate increase in seven years and described rising operations, maintenance, insurance and labor costs as drivers of the filing. She said the company has invested in safety, reliability and projects to reduce carbon intensity, and provided an illustrative impact: an average Oahu residential customer using 10 therms a month would see a bill rise by about $14, from roughly $60 to about $74.
The Division of Consumer Advocacy said it will independently evaluate the filing. Michelangelo, executive director of the division, stated the office’s review will include discovery and eventual recommendations to the commission; he identified the company’s requested total revenue increase as $24,360,000, about 17.67 percent, and said the filing seeks a 9.5 percent rate of return on rate base.
The PUC hearing allowed public testimony but did not resolve the application. The commission’s chair, Leo Asuncion, emphasized the session was to take testimony and that the written record (including a company presentation dated Oct. 25, 2024) and post-hearing filings will inform the commission’s decision. The PUC will issue a written decision after its review and after considering the consumer advocate’s analysis.
Several attendees urged careful scrutiny of the request. Business owners warned of near-term strain on restaurants and small operators; residents said the proposal would exacerbate cost-of-living pressures. Company representatives said they would remain after the formal hearing to answer additional questions.
The record includes a Hawaii Gas presentation submitted to the commission and public comments; the PUC maintains an open docket (20240158) and is accepting written comments by email at puc@hawaii.gov or by mail to the Public Utilities Commission, 465 South King Street, Room 103, Honolulu, HI 96813, referencing docket 20240158. The commission also published hearing notice in the Honolulu Star-Advertiser and filed the notice in its CDMS database.
