Posted: October 15, 2026
The Hawaii Public Utilities Commission (HPUC) has adopted a settlement agreement reflecting Hawaii Water’s investments to help keep its Kapalua water and wastewater systems safe and reliable, while addressing higher operating and purchased water costs. The decision enables the California Water Service Group subsidiary to increase annual revenue by about $1.94 million and adjusts rates accordingly.
The revenue increase, which is based on a settlement reached between Hawaii Water and the Consumer Advocate, includes nearly $1.47 million for the water system and more than $469,000 for the wastewater system. It recognizes $5.86 million in capital improvements that Hawaii Water has made to enhance local water quality, system reliability, and sustainability.
Among the infrastructure improvements made in the Kapalua systems, Hawaii Water:
- Upgraded critical potable water storage facilities to improve supply reliability.
- Replaced aging valves to improve system reliability and control.
- Replaced backup generators to help maintain water pressure during power interruptions and strengthen fire protection.
- Upgraded the sewer pump station serving the D.L. Fleming State Beach Park with surface-serviceable pumps and aboveground controls to help improve access, response time, reliability, and efficiency.
- Replaced lift station and sump pumps to reduce the potential for future wastewater system leaks.
The increase also acknowledges higher operating expenses, including about $1.7 million annually for purchased potable and non-potable water, increased labor costs, and the effects of inflation. Purchased water costs are passed directly to customers on a dollar-for-dollar basis.
“Since acquiring the Kapalua systems, we have invested strategically to allow us to provide safe and reliable water and wastewater services for our local customers,” said Marty Kropelnicki, Chairman and CEO. “We have also worked hard to control expenses to keep service affordable while protecting the environment—an increasingly urgent priority amid Maui’s recent drought conditions.”
This is the first general rate increase for the Kapalua systems since Hawaii Water acquired them in 2021. New rates become effective this month.
