Water customers should expect a double whammy on their bills starting Friday, when planned consumption and standby charge increases coincide with an increase in the fluctuating power purchase charge.
The Water Board on Tuesday unanimously approved consecutive 9.5% increases in standby and usage charges this year and next. That’s on top of a 14-cent increase in the power purchase cost that is a pass-through of electric rates charged the utility.
The bimonthly water bill for a customer with a 5/8-inch meter, using about 12,000 gallons per month, is $145.20. With the 9.5% increases, that would go up to $155.22; and after the second increment, it would go up to $166.10. The average percentage of what the typical customer would experience is about 7%, said Manager/Chief Engineer Keith Okamoto.
The most recent increases for the county were a series of 5% rate increases in 2018 and 2019 and a 13% increase in 2021.
The power purchase charge, which has gone up every two months since March 1, will also increase starting Friday, after a unanimous vote.
The water bill includes an energy charge, a water consumption charge, a set standby charge and a power cost charge that fluctuates with the price of electricity.
The charge last decreased in March, before the price of fuel started sparking increases. Okamoto anticipates another increase in two months, based on the current fuel prices.
Chairman David De Luz said he did not want the rate payer to assume that every time there is a rate adjustment, it is an increase.
“Understand a rate study doesn’t mean an automatic increase. … It could theoretically be a decrease,” De Luz said. “It looks like we just approve rates making them higher, higher and higher. We did have some catching up to do.”
The Water Board has held public hearings before every change in the power cost charge and water rates. It’s been a few years since anyone has testified.
“I’m surprised there’s not more people coming to the board and commenting on the water rates,” said board member Ben Ney.
The Water Board, on a unanimous vote, expanded the scope of consultant Harris &Associates’ contract to undertake a more sweeping study of how the department structures and sets rates. The change order extends the contract end date from June 2023 to September 2024, while adding $105,662 to the contract, bringing the total to $222,662.
“Currently the rate structure is based on meter sizes,” Okamoto said, adding that some other municipal systems are exploring different models. Rates vary according to the use of the water, as well, with agriculture, for example, having lower rate.
“I expect this study to address certain inequities in our current rate structure,” De Luz said, mentioning ag rates and those for resorts in particular.
The water department, a semi-autonomous agency, doesn’t get tax dollars but is funded by charges for its water service.
Email Nancy Cook Lauer at ncook-lauer@westhawaiitoday.com.
