Hawai'i Kai challenges sewage rate hike
By Suzanne Roig
Advertiser East Honolulu Writer
HAWAI'I KAI — Residents unanimously opposed a proposal for a 18.6 percent increase in sewage rates during a hearing Thursday night, saying that it was too high and the city should take over the area's private service.
About 50 people attended the Public Utilities Commission hearing at Kaiser High School cafeteria. The speakers agreed that Hawai'i-American Water, the company that provides sewer service for about 10,000 customers in Hawai'i Kai and parts of Kuli'ou'ou, should put forth a more detailed justification than it provided in its 350-page document explaining the need for the increase.
The new rate proposed for a single-family home would be $57.47 a month — a $9.01-a-month increase. The rate for condominiums would go from $38.77 to $45.98 per month. The fee does not include water charges, which come in a separate billing from the Honolulu Board of Water Supply.
"I was shocked by the amount of the increase," said Harry Blanchette, a Mariner's Ridge resident. "The flat rate fee penalizes people needlessly. Just because the company hasn't sought an increase in seven years doesn't mean it deserves one now."
The city, which provides sewer service for the rest of Honolulu, charges about $35.35 a month for an average family of four living in a single-family home. Hawai'i Kai residents pay a flat fee for sewer service instead of a fee based on use; the city charges a base fee plus a fee calculated according to use.
The company said it must raise rates to keep pace with the growing needs to upgrade a 40-year-old sewer system. The last increase in rates was in 1996.
The next step is for the commission and the company to answer questions during a period of discovery, said Cheryl Kikuta of the Hawai'i Division of Consumer Advocacy. The testimony gathered Thursday will be summarized by Kikuta, who represents the customers, at a meeting in December before the Public Utilities Commission. Kikuta will make an independent finding to the commission on behalf of the rate payers.
Harry Anderson, a condominium owner, said the company provided little information in the way of justification for the rate increase.
With new homes coming on line, that means additional revenue for the sewer company, Anderson said. That means the costs for upgrades are being shared by more rate payers.
"Improvements should be built out of reserves," Anderson said. "We don't know anything how they've improved the services. There are ways to make improvements without having to increase the rates. An 18.6 percent increase isn't right."
Reach Suzanne Roig at sroig@honoluluadvertiser.com or 395-8831.
