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Ms. Myhre reported that XXX <br /> E. MONTHLY PROGRESS REPORT: <br /> XXX <br /> F. REVIEW OF MONTHLY FINANCIAL STATEMENTS: <br /> XXXXX. <br /> G. POWER COST CHARGE UPDATE: <br /> A Public Hearing on the Power Cost Adjustment Clause was held today. The Public Hearing <br /> Notice was published in the Hawaii Tribune-Herald and in the West Hawaii Today on <br /> August 31 and September 2, 2009. <br /> The Department's power cost charge (PCC) formula allows updating of the PCC as often as <br /> every two months. The PCC was changed to its present $1.83 per 1,000 gallons effective <br /> July 1, 2009. The Power Cost Adjustment for August 2009 was $1.68 per 1,000 gallons. <br /> The Manager recommended that the Water Board approve the proposed cost of the Power <br /> Cost Adjustment to $1.68 per thousand gallons based on the August 2009 calculations, <br /> effective the first day of the month after the proposed establishment of the rate by the Water <br /> Board. <br /> H. WATER RATE STUDY: <br /> The Department selected RW Beck to conduct a five-year rate study and is seeking approval <br /> of a contract totaling $94,700. A budget of$100,000 was set aside for the rate study in Fiscal <br /> Year 2010. The contract provides for the following tasks: <br /> Task 1 —Request for information, $5,400. <br /> Task 2—Develop revenue requirements, $17,500. <br /> Task 3 —Prepare cost of service analysis, $12,600. <br /> Task 4—Develop rate options, $15,700. <br /> Task 5 —Water Board workshop and Public Hearings. $27,000. <br /> Task 6—Draft and final reports, $15,800. <br /> Task 7—Hawaii excise taxes, $700. <br /> If the contract is approved, RW Beck and the Department will commence with Tasks 1-3 <br /> (October 2009—January 2010). <br /> RW Beck will present the results of their revenue requirements and cost of service analyses to <br /> the Water Board, and seek input for providing three (3)rate options for the Water Board to <br /> consider(February 2010). <br /> The Water Board selects which of the three rate options to take to public hearing <br /> (March 2010). <br /> RW Beck returns to provide technical support for the selected rate option at public hearings in <br /> Hilo and Kona on consecutive days (April 2010). <br /> Page 7 of 9 Water Board Minutes-5-25-09 j <br />