Dozens on Moloka'i tell PUC they can't afford water rates
Advertiser Staff
KAUNAKAKAI, Moloka'i — Several dozen Moloka'i residents told the state Public Utilities Commission last night that a water rate increase of up to 385 percent proposed by two Molokai Ranch utilities would pose a heavy financial hardship.
More than 100 people attended the nearly 4 1/2-hour hearing at the Mitchell Pauole Center, with most of the 42 testifiers expressing concern about families squeezed by 16 percent unemployment and some of the highest food, gas and electricity prices in the state.
No decision is expected until later this year, although that could be delayed. The county intends to file a petition to intervene in the case, which would mean more proceedings.
Molokai Ranch, which has two water utilities serving about 1,200 customers on the western side of the island, applied for the increase this year after shutting down its ranching and resort operations in 2008. The company says it must eliminate $750,000 in projected losses for its Molokai Public Utilities and Wai'ola O Moloka'i subsidiaries and earn a "fair" return of 2 percent.
The shutdown followed years of struggle to win support for a plan to develop 200 lots for luxury homes at La'au Point in return for conveying 50,000 acres to a community land trust for perpetual protection. After abandoning the plan in the face of intense opposition, and laying off 120 employees, Molokai Ranch told the PUC it would shut off water if another operator couldn't be found by August 2008.
Maui County has sued, saying the company must maintain the utilities as part of development agreements.
As an emergency measure to allow the ranch to continue utility operations, the PUC initiated temporary rate hikes of between 90 percent and 178 percent.
The ranch utilities are seeking another 60 percent to 74 percent in increases, for a total rate increase of 202 percent for Molokai Public Utilities customers and 385 percent for Wai'ola O Molokai customers.
If the higher rates are approved, a typical Wai'ola O Molokai customer 's monthly bill would jump from about $41 before the temporary hike to $197. Another $32 would be added to the monthly bill of most customers for meter reading and fire hydrant fees.
