Hawaii American Water Reaches Revenue Settlement to Fund Infrastructure and Service Improvements

Rhea-AI Summary

Hawaii American Water has reached a settlement agreement with Consumer Advocates at the HPUC for new rates affecting Hawaii Kai customers, the first adjustment since 2011. Effective July, the new rates will generate an additional $1.7 million annually to support local infrastructure. The average increase for customers is approximately 17%, raising single-family service fees from $67.08 to $78.60 monthly. Since 2011, over $32 million has been invested in wastewater improvements, including UV disinfection and solar upgrades, enhancing environmental protection and service quality.

Positive

• Expected to generate an additional $1.7 million in annual revenue for infrastructure improvements.
• Major investments of over $32 million since 2011 in wastewater treatment enhancements.

Negative

• Average rate increase of approximately 17% could burden customers.
• Single-family customer monthly rates rising from $67.08 to $78.60 may affect affordability.

Settlement reinforces Company’s commitment to providing reliable wastewater service that contributes to the protection of the environment

HONOLULU--(BUSINESS WIRE)-- Hawaii American Water has filed a settlement agreement with Consumer Advocates at the Hawaii Public Utilities Commission (HPUC) on new rates for its Hawaii Kai customers. This is the first time Hawaii American Water has adjusted rates for these customers since 2011 and the updated rates are expected to go into effect in July of this year. In the last decade, Hawaii American Water has made improvements that protect the environment by adding additional disinfection, increasing renewable energy use and reducing waste.

The new rates will provide approximately $1.7 million in additional annual revenue for investments in local infrastructure maintenance, repair and replacement. The average increase for all customers amounts to an approximately 17-percent increase. For the average single family customer monthly rates would increase from $67.08 to $78.60, for multi-family customers the cost for monthly service would increase from $57.08 to $66.88.

“This settlement completes a vital process to sustain high quality wastewater infrastructure and service,” said Lee Mansfield, Manager of Hawaii American Water. “We are pleased to reach a settlement and look forward to using the new revenue to continue improving wastewater services for our Hawaii Kai customers.”

Since 2011, Hawaii American Water has made more than $32 million in investments to improve wastewater treatment and services. Major projects have included the installation of ultraviolet disinfection treatment, sludge de-watering facility, solar energy upgrades, replacing and improving pumps at our lift stations and treatment plant and other process improvements. The vast majority of the settlement funds these capital improvements and the remainder funds higher operating costs, including wage increases that have occurred over the last decade.

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

About American Water: With a history dating back to 1886, American Water (NYSE: AWK) is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs more than 6,400 dedicated professionals who provide regulated and regulated-like drinking water and wastewater services to more than 14 million people in 24 states. American Water provides safe, clean, affordable and reliable water services to our customers to help 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/20220506005543/en/

Hawaii American Water

Evan Jacobs

Hawaii American Water

Director of External Affairs

Phone: 707-495-6135

Email: evan.jacobs@amwater.com

Source: Hawaii American Water

FAQ

What is the new rate settlement by American Water (AWK) for Hawaii Kai customers?

American Water has filed a settlement for new rates that will increase service fees for Hawaii Kai customers, effective July.

How much additional revenue will the new rates generate for American Water (AWK)?

The new rates are expected to generate approximately $1.7 million in additional annual revenue.

What is the average rate increase for customers of American Water (AWK) in Hawaii Kai?

The average increase for all customers is about 17%, with single-family rates rising from $67.08 to $78.60 monthly.

When will the new rates for American Water (AWK) customers take effect?

The new rates are scheduled to take effect in July.

What investments has American Water (AWK) made in wastewater services since 2011?

Since 2011, American Water has invested over $32 million in wastewater treatment improvements.