Hawaii American Water Applies for New Revenue to Fund Infrastructure and Service Improvements

Rhea-AI Summary

Hawaii American Water has filed a request for new rates for its Hawaii Kai wastewater customers, the first since 2011. The proposed rates aim to generate $2.1 million in revenue for vital infrastructure improvements. If approved, average rates would rise from $67.08 to $81.27 for single-family customers and from $57.08 to $69.16 for multi-family customers. The Hawaii Public Utilities Commission will review the proposal, which includes a public hearing, with potential rates taking effect around July 15, 2022.

Positive

• Hawaii American Water proposes a revenue increase of approximately $2.1 million to fund essential infrastructure improvements.
• Since 2011, over $32 million has been invested in wastewater treatment and service upgrades.
• 83% of the rate increase request is allocated for capital improvements.

Negative

• The proposed increase represents a 21% rise in revenue, which may face customer pushback.
• Costs for single-family and multi-family customers will increase significantly.

Hawaii American Water has filed an application to set new rates for its Hawaii Kai wastewater customers. The last time Hawaii American Water filed a rate case application for its Hawaii Kai operations was in 2011. The new rates would fund needed infrastructure improvements and take effect in the summer of 2022, pending approval by the Hawaii Public Utilities Commission (HPUC).

This application is seeking to raise approximately $2.1 million in additional revenue to be invested in local infrastructure maintenance, repair, and replacement. This increase is based on 2011 authorized revenues calculated at current rates. The average increase for all customers, if approved as filed, is just pennies per day and amounts to an approximately 21 percent increase in revenue for the company. For the average single family customer monthly rates would increase from $67.08 to $81.27, for multi-family customers the cost for monthly service would increase from $57.08 to $69.16.

Since 2011, Hawaii American Water has made more than $32 million in investments to improve wastewater treatment and service. Major projects have included the installation of ultraviolet disinfection treatment, new solar energy and upgrades to reduce energy costs, replacing and improving pumps in lift stations and at our treatment plant and other process improvements. Approximately 83 percent of the request for increased rates is to fund these capital improvements and the remainder is to cover higher operating costs, including wage and salary increases that have occurred over the last decade.

“Our proposal is driven by prudent investments made to maintain and improve our infrastructure to protect the environment and provide excellent wastewater service,” said Rich Svindland, president of Hawaii American Water. “We want to continue to provide customers excellent value for their service and maintain our systems to provide high-quality wastewater service.”

The increased rates proposed in the rate petition are a request only. The HPUC will make the final decision regarding the actual increase. The HPUC will hold a public hearing on this request to get input from customers and the public. The HPUC will notify customers of the time, date, and location once the hearing is set. Rates will remain unchanged until this request undergoes extensive public scrutiny by the HPUC. This process will include extensive, independent review. The process is expected to conclude next year, with new rates taking effect around July 15, 2022.

Hawaii American Water, a subsidiary of American Water (NYSE: AWK), provides quality wastewater services to approximately 25,000 people.

With a history dating back to 1886, American Water is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs more than 7,000 dedicated professionals who provide regulated and market-based drinking water, wastewater, and other related services to 15 million people in 46 states. American Water provides safe, clean, affordable, and reliable water services to our customers to make sure we keep their lives flowing. For more information, visit amwater.com and follow American Water on Twitter, Facebook, and LinkedIn.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210819005805/en/

FAQ

What is Hawaii American Water's proposed rate increase for Hawaii Kai customers?

Hawaii American Water has proposed a rate increase to generate approximately $2.1 million for infrastructure improvements.

When was the last rate case application filed by Hawaii American Water?

The last application was filed in 2011.

How much will the monthly rates increase for single-family customers?

Monthly rates for single-family customers would increase from $67.08 to $81.27.

What percentage increase in revenue is Hawaii American Water seeking?

The company is seeking an approximate 21% increase in revenue.

When will the new rates potentially take effect?

If approved, the new rates could take effect around July 15, 2022.