Multiple sources report that the Hawaii Public Utilities Commission has approved a settlement allowing Hawaii Water Service to increase annual revenue by approximately $1.94 million for its Kapalua water and wastewater systems. The rate adjustment — the first since Hawaii Water acquired the Kapalua systems in 2021 — reflects capital improvements, higher operating costs, and inflation. New rates take effect this month.
- The HPUC adopted a settlement between Hawaii Water Service and the Consumer Advocate, authorizing roughly $1.94 million in additional annual revenue — about $1.47 million for the water system and $469,000 for the wastewater system.
- The decision recognizes $5.86 million in capital improvements made to enhance water quality, system reliability, and sustainability in the Kapalua area.
- Infrastructure upgrades include: upgraded potable water storage, replaced aging valves and backup generators, improved sewer pump stations, and replaced lift station pumps to reduce risk of future wastewater leaks.
- Higher operating expenses — including approximately $1.7 million annually for purchased potable and non-potable water, increased labor costs, and inflation — are also factored into the rate increase.
- Purchased water costs are passed directly to customers on a dollar-for-dollar basis.
- This is the first general rate increase for the Kapalua systems since Hawaii Water acquired them in 2021; new rates are effective October 2026.
- Company CEO Marty Kropelnicki cited Maui’s recent drought conditions as an increasingly urgent environmental priority driving infrastructure investment. (Business Insider)
Sources
- Lincolnjournal: Hawaii Public Utilities Commission Issues General Rate Case Decision for Hawaii Water Service’s Kapalua Water and Wastewater Systems
- Business Insider: Hawaii Public Utilities Commission Issues General Rate Case Decision for Hawaii Water Service’s Kapalua Water and Wastewater Systems
Share this article
