California Water Service Group subsidiary Hawaii Water has filed an application with the Hawaii Public Utilities Commission (HPUC) to recover costs for investments in the Kukio water and sewer systems and to serve its customers.
If approved as filed, the application would provide approximately $2.73 million in annual revenue to deliver safe, reliable water and wastewater service to Hawaii Water’s North Kona customers. The requested revenue would address system improvements and operating costs incurred since Hawaii Water’s last rate adjustment application was filed in 2019, as well as expected costs through 2027, including almost $1.66 million for the water system and nearly $1.07 million for the sewer system.
Specifically, the revenue sought by Hawaii Water is expected to help fund the recovery of about $5.53 million in water system improvements and $2.76 million in sewer system projects that have been completed since the last application was filed, some of which include:
- Reverse-osmosis treatment plant controller upgrade and membrane replacements essential to continuing to meet water quality standards.
- New pressure-reducing valve station to help regulate water pressure.
- Upgrade of the Supervisory Control and Data Acquisition (SCADA) radio networks that support 24/7 remote-monitoring of the water and wastewater systems.
- A significant number of aging pump, motor, and valve replacements to help keep the systems functioning properly.
- Sewer pump station pump replacements, control upgrades, and discharge piping replacements to maintain system reliability.
- Replacement of a gravity sewer main to prevent leaks and operational concerns.
An additional $7.92 million in water system projects and $14.93 million in sewer system projects are planned for completion by 2027 and included in the request, such as:
- Rehabilitation and upgrade of a critical well and pumping facilities to expand water supply reliability.
- Replacement of aging valves to improve water system reliability and control.
- Installation, repair, and replacement of emergency backup power generators to help maintain water pressure during power interruptions and improve fire protection.
- Significant improvements to upgrade the Kukio Wastewater Treatment Plant to a moving-bed bioreactor process and install a necessary effluent disposal facility.
“We are focused on providing safe, reliable, high-quality water and wastewater services to our Kona-area customers while operating in an efficient and environmentally responsible manner,” said Martin A. Kropelnicki, Group Chairman and CEO. “These investments support that commitment and help us continue to deliver quality, service, and value to our customers and community long-term.”
The HPUC will review and analyze Hawaii Water’s application, operations, investments, finances, and service prior to issuing a decision and setting Hawaii Water’s new rates. Hawaii Water delayed filing for rate adjustments, as its last application in 2019 did not result in an effective decision until 2023 due to pandemic-related delays. Any rate changes from this application could become effective in mid-2027.
