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Hawaii American Water Files Rate Request Driven by $41 Million in Wastewater System Investments

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Hawaii American Water has filed a rate adjustment request with the Hawaii Public Utilities Commission (HPUC) for its wastewater service customers in Hawaii Kai, Mauna Lani, and Waimea. The request reflects $41 million in local wastewater infrastructure replacement and upgrades across all three districts. If approved, the typical single-family customer on Oahu will see a monthly rate increase of about $9, while customers on Hawaii Island will see an increase of approximately $30 to $35 per month.

The proposed rate changes aim to fund essential infrastructure improvements, including treatment plants, collection systems, and pump stations. The company expects any approved rate changes to take effect in mid-2025, pending HPUC approval. This filing underscores Hawaii American Water's commitment to replacing aging infrastructure, ensuring safe and reliable service, and complying with environmental regulations.

Hawaii American Water ha presentato una richiesta di adeguamento tariffario alla Commissione Pubblica per i Servizi (HPUC) per i suoi clienti del servizio fognario a Hawaii Kai, Mauna Lani e Waimea. La richiesta riflette 41 milioni di dollari per la sostituzione e l'aggiornamento delle infrastrutture fognarie locali in tutti e tre i distretti. Se approvata, il cliente tipico di una famiglia unifamiliare a Oahu vedrà un aumento mensile della tariffa di circa 9 dollari, mentre i clienti dell'isola di Hawaii subiranno un incremento di circa 30-35 dollari al mese.

Le modifiche tariffarie proposte mirano a finanziare importanti miglioramenti infrastrutturali, inclusi impianti di trattamento, sistemi di raccolta e stazioni di pompaggio. L'azienda si aspetta che eventuali modifiche tariffarie approvate entrino in vigore a metà del 2025, in attesa dell'approvazione dell'HPUC. Questa richiesta sottolinea l'impegno di Hawaii American Water a sostituire le infrastrutture obsolete, garantire un servizio sicuro e affidabile e rispettare le normative ambientali.

Hawaii American Water ha presentado una solicitud de ajuste tarifario a la Comisión de Utilidades Públicas de Hawái (HPUC) para sus clientes del servicio de aguas residuales en Hawaii Kai, Mauna Lani y Waimea. La solicitud refleja 41 millones de dólares en reemplazo y mejoras de infraestructura de aguas residuales locales en los tres distritos. Si se aprueba, el cliente típico de una vivienda unifamiliar en Oahu verá un aumento mensual de aproximadamente 9 dólares, mientras que los clientes de la isla de Hawái verán un incremento de aproximadamente 30 a 35 dólares al mes.

Los cambios tarifarios propuestos tienen como objetivo financiar mejoras esenciales en la infraestructura, incluidos plantas de tratamiento, sistemas de recolección y estaciones de bombeo. La empresa espera que cualquier cambio tarifario aprobado entre en vigor en mediados de 2025, sujeta a la aprobación de la HPUC. Esta presentación subraya el compromiso de Hawaii American Water con la sustitución de infraestructuras envejecidas, asegurando un servicio seguro y fiable y cumpliendo con las regulaciones ambientales.

하와이 아메리칸 워터는 하와이 카이, 마우나 라니, 와이메아의 폐수 서비스 고객을 위해 하와이 공공 유틸리티 위원회(HPUC)에 요금 조정 요청을 제출했습니다. 이 요청은 세 개의 지역에서 4,100만 달러의 지역 폐수 인프라 교체 및 업그레이드를 반영합니다. 승인될 경우, 오아후의 전형적인 단독 주택 고객은 월 약 9달러 인상된 요금을 보게 되며, 하와이 섬의 고객은 약 30~35달러의 월 인상을 보게 됩니다.

제안된 요금 변경은 처리 시설, 수거 시스템 및 펌프 스테이션을 포함한 필수 인프라 개선을 자금 지원하는 것을 목표로 하고 있습니다. 회사는 승인된 요금 변경이 HPUC 승인에 따라 2025년 중반에 시행될 것으로 예상합니다. 이번 신청서는 하와이 아메리칸 워터가 노후된 인프라를 교체하고, 안전하고 신뢰할 수 있는 서비스를 보장하며, 환경 규정을 준수하는 데 대한 헌신을 강조합니다.

Hawaii American Water a déposé une demande d'ajustement tarifaire auprès de la Commission publique des services d'Hawaï (HPUC) pour ses clients de service d'eaux usées dans Hawaii Kai, Mauna Lani et Waimea. La demande reflète 41 millions de dollars pour le remplacement et l'amélioration de l'infrastructure locale d'eaux usées dans les trois districts. Si elle est approuvée, le client type d'une maison unifamiliale à Oahu verra une augmentation mensuelle d'environ 9 dollars, tandis que les clients de l'île d'Hawaï verront une augmentation d'environ 30 à 35 dollars par mois.

Les changements tarifaires proposés visent à financer des améliorations essentielles de l'infrastructure, y compris des usines de traitement, des systèmes de collecte et des stations de pompage. La société s'attend à ce que les changements tarifaires approuvés entrent en vigueur à mi-2025, sous réserve de l'approbation de la HPUC. Ce dépôt souligne l'engagement de Hawaii American Water à remplacer les infrastructures vieillissantes, à garantir un service sûr et fiable, et à respecter les réglementations environnementales.

Hawaii American Water hat beim Hawaii Public Utilities Commission (HPUC) einen Antrag auf Tarifänderung für seine Abwasserkunden in Hawaii Kai, Mauna Lani und Waimea eingereicht. Der Antrag spiegelt 41 Millionen Dollar für den Ersatz und die Modernisierung lokaler Abwasserinfrastruktur in allen drei Bezirken wider. Wenn genehmigt, wird der typische Einfamilienhaushalt auf Oahu eine monatliche Erhöhung von etwa 9 Dollar feststellen, während Kunden auf der Hawaii-Insel mit einer Erhöhung von etwa 30 bis 35 Dollar pro Monat rechnen müssen.

Die vorgeschlagenen Tarifänderungen zielen darauf ab, wichtige Infrastrukturverbesserungen, einschließlich Kläranlagen, Sammelsystemen und Pumpstationen, zu finanzieren. Das Unternehmen geht davon aus, dass alle genehmigten Tarifänderungen voraussichtlich mitte 2025 in Kraft treten werden, vorbehaltlich der Genehmigung durch das HPUC. Dieser Antrag unterstreicht das Engagement von Hawaii American Water für den Ersatz alter Infrastruktur, die Gewährleistung eines sicheren und zuverlässigen Dienstes sowie die Einhaltung von Umweltvorschriften.

Positive
  • $41 million investment in wastewater infrastructure improvements
  • Upgrades to treatment plants, collection systems, and pump stations
  • Focus on long-term, efficient, and consistent investment in wastewater operations
Negative
  • Significant rate increases for customers, up to $35 per month on Hawaii Island
  • Long period since last rate adjustments for some systems (2003 for Mauna Lani, 2011 for Waimea)

Insights

Hawaii American Water's $41 million investment in wastewater infrastructure is a significant capital expenditure that reflects the company's commitment to long-term sustainability and regulatory compliance. This proactive approach to infrastructure upgrades can potentially reduce future maintenance costs and mitigate environmental risks.

The proposed rate increases of $9 per month for Oahu customers and $30 to $35 for Hawaii customers are substantial, especially considering the long gap since previous rate adjustments in some areas. While necessary for funding improvements, these increases may impact customer affordability and satisfaction in the short term.

Investors should note that the regulatory review process, which can take up to nine months or more, introduces uncertainty in the timing and extent of rate implementation. This could affect the company's ability to recover its investments promptly, potentially impacting near-term financial performance.

The $41 million investment in wastewater infrastructure demonstrates Hawaii American Water's proactive stance in addressing aging infrastructure challenges. This is important in the utilities sector, where outdated systems can lead to service disruptions and environmental issues.

The focus on treatment plants, collection systems and pump stations indicates a comprehensive approach to system upgrades. Projects like the Mauna Lani Effluent Well Rehabilitation and Waimea Wastewater Treatment Plant Clarifier Improvement are essential for maintaining operational efficiency and environmental compliance.

However, the significant time gap between rate adjustments in some areas (e.g., 20 years for Mauna Lani operations) suggests potential challenges in maintaining consistent investment levels. This 'catch-up' approach might lead to more substantial rate shocks for customers compared to more frequent, smaller adjustments.

The rate adjustment request filed with the Hawaii Public Utilities Commission (HPUC) highlights the complex regulatory environment in which Hawaii American Water operates. The extensive review process, including public hearings and scrutiny by the Division of Consumer Advocacy, demonstrates the checks and balances in place to protect consumer interests.

The company's proactive communication about the rate increase, including plans for customer notifications and website updates, aligns with best practices in regulatory compliance and transparency. This approach may help mitigate potential pushback from customers and regulators.

However, the substantial proposed rate increases, particularly for Hawaii island customers, may face regulatory challenges. The HPUC will likely scrutinize the necessity and timing of these increases, potentially leading to adjustments in the final approved rates. This regulatory uncertainty could impact the company's financial planning and investor expectations.

HONOLULU--(BUSINESS WIRE)-- On August 2, Hawaii American Water filed a rate adjustment request with the Hawaii Public Utilities Commission (HPUC) for its Hawaii Kai, Mauna Lani, and Waimea wastewater service customers reflecting $41 million in local wastewater infrastructure replacement and upgrades in all three districts. The request reinforces the company’s commitment to replace aging infrastructure, provide safe and reliable service, and comply with environmental regulations.

“We carefully plan investments in our wastewater system to help protect natural resources and the public health and safety of the communities we serve in Honolulu and Hawaii Counties,” said Kevin Tilden, President of California American Water and Hawaii American Water. “Our approach for long-term, efficient, and consistent investment in our wastewater operations as we manage costs helps us deliver high-quality, affordable and reliable service to our customers.”

If approved as filed, the requested funds will support infrastructure improvements for treatment plants, collection systems, and pump stations. Examples of these projects include:

  • Mauna Lani Effluent Well Rehabilitation Project
  • Waimea Wastewater Treatment Plant Clarifier Improvement Project
  • Hawaii Kai Pump Station Improvement Project

If approved, the typical single-family customer on Oahu will see a monthly rate increase of approximately $9. On Hawaii, the typical single-family customer will see a rate increase of approximately $30 to $35 per month. The last rate adjustments for the systems on the island of Hawaii were September 2003 for Mauna Lani operations and January 2011 for Waimea operations. The company last filed a rate case for the Hawaii Kai system, on the island of Oahu, in 2021 with rates effective July 2022. The current application will fund needed infrastructure improvements and will take effect in the summer of 2025, pending approval by the HPUC.

The proposed rates in the rate application are to be reviewed by the HPUC. This process includes multiple opportunities for customer involvement including public hearings and can take up to nine months or more. Customers will be notified of the public hearings and the company’s proposed tariffs and other additional information about the filing will be included on the company’s website, HawaiiAmWater.com.

The company anticipates that any rate changes proposed through this filing will not become effective until mid-2025, after a final rate order is issued by the HPUC.

Rates will remain unchanged until this request undergoes extensive scrutiny by the Division of Consumer Advocacy and approval by the HPUC.

About American Water

American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in the United States. With a history dating back to 1886, We Keep Life Flowing® by providing safe, clean, reliable and affordable drinking water and wastewater services to more than 14 million people with regulated operations in 14 states and on 18 military installations. American Water’s 6,500 talented professionals leverage their significant expertise and the company’s national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors and other stakeholders.

For more information, visit amwater.com and join American Water on LinkedIn, Facebook, X and Instagram.

About Hawaii American Water

Hawaii American Water, a subsidiary of American Water, provides high-quality wastewater services to approximately 30,000 people.

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Media

Nichole Baxter

Senior Manager, External Affairs

California and Hawaii American Water

Nichole.Baxter@amwater.com

Source: American Water

FAQ

What is the amount of Hawaii American Water's rate adjustment request filed on August 2?

Hawaii American Water filed a rate adjustment request reflecting $41 million in local wastewater infrastructure replacement and upgrades across its Hawaii Kai, Mauna Lani, and Waimea service areas.

How much will the monthly rates increase for Hawaii American Water customers if the request is approved?

If approved, typical single-family customers on Oahu will see a monthly rate increase of approximately $9, while customers on Hawaii Island will see an increase of about $30 to $35 per month.

When are the new rates for Hawaii American Water (AWK) expected to take effect?

The company anticipates that any approved rate changes will not become effective until mid-2025, after a final rate order is issued by the Hawaii Public Utilities Commission (HPUC).

What infrastructure improvements will be funded by Hawaii American Water's (AWK) rate adjustment request?

The requested funds will support improvements to treatment plants, collection systems, and pump stations, including projects like the Mauna Lani Effluent Well Rehabilitation, Waimea Wastewater Treatment Plant Clarifier Improvement, and Hawaii Kai Pump Station Improvement.

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