<strong>Public</strong> <strong>Utilities</strong> <strong>Commission</strong> <strong>Annual</strong> Report <strong>2004</strong>-<strong>05</strong>State of Hawaii Page 22Figure 3Five-<strong>Year</strong> Comparison of <strong>Commission</strong>-ApprovedTelecommunications Utility CIP$18,000,000$16,000,000$14,000,000$12,000,000CIP Amount$10,000,000$8,000,000$6,000,000$4,000,000$2,000,000$-FY 2000-01 FY 2001-02 FY 2002-03 FY 2003-04 FY <strong>2004</strong>-<strong>05</strong>Verizon Hawaii/Hawaiian Telcom $6,089,171 $3,019,288 $1,734,200 $- $17,090,401FYE. PRIVATE WATER AND SEWAGE UTILITIES PROCEEDINGS.The <strong>Commission</strong> regulates 36 privately owned water and sewage treatment utilities thatserve suburban, rural, and resort areas throughout the State. The majority of these utilities arelocated on the neighbor islands.During the Fiscal <strong>Year</strong>, the <strong>Commission</strong>’s key proceedings in this area included ratecases and requests for Certificates of <strong>Public</strong> Convenience and Necessity (“CPCNs”).1. COMMISSION APPROVES RATE INCREASES.During this Fiscal <strong>Year</strong>, the <strong>Commission</strong> approved rate increases for the following waterand sewage utilities:MOSCO, Inc (“MOSCO”). In August <strong>2004</strong>, the <strong>Commission</strong> approvedMOSCO’s request for a rate increase of $92,928 in additional revenues.MOSCO’s increase in rates consist of increases in its monthly flat rate chargefrom $22 to $44 per unit and its minimum charge for inspecting a serviceconnection and its deposit fee. MOSCO provides wastewater service in itsservice area of Kaluakoi on the island of Molokai.
<strong>Public</strong> <strong>Utilities</strong> <strong>Commission</strong> <strong>Annual</strong> Report <strong>2004</strong>-<strong>05</strong>State of Hawaii Page 23Hawaii Water Service Company, Inc. (“HWSCI”). In February 20<strong>05</strong>, the<strong>Commission</strong> approved a rate increase of $238,500 in additional revenues forHWSCI. The <strong>Commission</strong> approved the parties’ stipulation, in part, and denied it,in part. It disallowed the inclusion of the costs of the two (2) new wells inHWSCI’s test year plant-in-service and rejected the parties’ proposed ratedesign. The <strong>Commission</strong> instructed HWSCI to submit a new rate schedule. InApril 20<strong>05</strong>, the <strong>Commission</strong> approved the parties’ primary rate design, asproposed in their stipulated rate design. The rate increase consists of increasesin the monthly standby charge by 22.4 per cent and the monthly waterconsumption charge by 6.5 per cent. HWSCI provides water service in itsservice area of Kaanapali on the island of Maui.Puhi Sewer & Water Co., Inc. (“Puhi”). In August <strong>2004</strong>, the <strong>Commission</strong>approved the parties’ stipulated agreement providing a rate increase of $449,392in additional revenues for Puhi. The parties agreed to a three (3)-year phase-inperiod for the 65 per cent rate increase. Puhi provides wastewater collection andtreatment services to residential, commercial and industrial customers within itsservice territory on the island of Kauai.Waikoloa Water Company, Inc., dba West Hawaii Water Company(“Waikoloa Water”). In June 20<strong>05</strong>, the <strong>Commission</strong> granted Waikoloa Water ageneral rate increase of $23,759 in additional revenues. The <strong>Commission</strong>authorized an increase in Waikoloa Water’s fixed monthly charges and monthlyconsumption charges. The <strong>Commission</strong> granted this rate increase in a proposeddecision and order. 72. COMMISSION APPROVES NEW AND AMENDED CPCNS.During the Fiscal <strong>Year</strong>, the <strong>Commission</strong> approved the following new and amendedCPCNs for water and sewage utilities:Makena Wastewater Corp. (“MWC”). In September <strong>2004</strong>, the <strong>Commission</strong>granted MWC a CPCN to provide wastewater treatment services for a masterplanneddevelopment project developed by Makena Resort Corporation in theMakena area on the island of Maui.North Shore Wastewater Treatment, L.L.C. (“NSWT”). In June 20<strong>05</strong>, the<strong>Commission</strong> granted NSWT a CPCN to provide wastewater service within itsproposed service area in Kahuku on the island of Oahu.Kukio Utility Company, LLC (“Kukio”). In May 20<strong>05</strong>, the <strong>Commission</strong>approved Kukio’s application to expand its existing service territory to providewater and wastewater service to certain additional properties. Prior to the<strong>Commission</strong> approval, Kukio’s existing service territory consisted of Phase 1 of amaster planned community known as the Kukio Beach Club on the island ofHawaii. Kukio will expand its authorized service territory to include portions of:(1) Phase 2 of the master planned community, (2) Phase 3 north and south of the7 The <strong>Commission</strong> granted this rate increase in a proposed decision and order, asmandated by Act 168, SLH <strong>2004</strong> (“Act 168”). Act 168 streamlines the rate review process forpublic utilities with annual gross revenues under $2 million. The <strong>Commission</strong> is required to issueits decision within six (6) months from the filing date of a general rate increase application. InJuly 20<strong>05</strong>, the <strong>Commission</strong> adopted its proposed decision and order approving Waikoloa Water’sgeneral rate increase.