PUC holds public hearing on Hawaii Gas’ request for a $24.3 million rate increase; Lanai customers face about $6 monthly rise

The Public Utilities Commission on Oct. 2024 held a public hearing on docket 2024-0158, where Hawaii Gas sought approval to raise total annual revenue by $24,346,000—about a 17.67% increase over current effective rates—and to revise tariff schedules and riders.

Chair Leo Asuncion opened the hearing and described the scope and procedures for testimony, including a recorded hearing and a later, private question-and-answer period with company and Consumer Advocate staff. The hearing notice and the company’s application were placed in the PUC’s public docket management system (CDMS) on Sept. 18, 2024; the company’s application was filed July 26, 2024.

Nathan Nelson, general counsel for Hawaii Gas, summarized the company’s presentation, saying this is the utility’s first requested rate increase since 2018 and citing infrastructure investments and rising operations and maintenance costs as drivers. Nelson said the company is proposing to "harmonize rates across all neighbor islands." He presented a bill-impact example for Lanai: "average residential customers whose average consumption is about 13.7 therms a month would see their bill increase from $66 at existing rates to about $72," an increase of roughly $6 per month.

Nelson also said the filing requests approval of tariff changes, a main upgrade program, and an insurance premium recovery rider; the company asked the Commission to grant "other relief as may be just and reasonable under the circumstances." Hawaii Gas submitted a public presentation titled "Hawaii Gas Rate Proceeding Maui County Public Presentation, October 2024." The presentation was provided to the Commission and placed in the public record.

The Division of Consumer Advocacy, represented by Executive Director Michelangelo of the Department of Commerce and Consumer Affairs, reiterated the consumer-office role: "The Consumer Advocate represents the interests of consumers in regulated public utility and transportation matters before the Public Utilities Commission by advocating for the provision of safe and reliable utility services delivered cost effectively, equitably, and in line with the state's clean energy goals." Michelangelo restated the company's requested revenue increase and said the company is seeking a 9.05% rate of return on rate base and approval of two tariff riders.

Michelangelo said the Consumer Advocate will "independently review the reasonableness of" Hawaii Gas' requested increases, conduct discovery to obtain data and supporting information, and later submit the results of that review to the Commission. Tonight’s hearing was limited to taking testimony; the Advocate and the Commission will continue the formal review through the docket, and the process concludes with the Commission’s written decision.

No members of the public registered to provide testimony during the recorded hearing portion; the Commission reiterated options to submit written comments referencing docket 20240158 to PUC@hawaii.gov or by mail to the PUC offices at 465 South King Street, Room 103, Honolulu, HI 96813. After the recorded hearing concluded, an unidentified attendee asked why the company’s harmonization proposal would apply to neighbor islands but not Oahu; the company and Consumer Advocate remained for a private Q&A session following adjournment.

The Commission did not take any formal votes at the hearing. The proceeding remains open for written comments and discovery; the Division of Consumer Advocacy will file its analysis later in the docket before the Commission issues a written decision.