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The Manager-Chief Engineer said DWS has an obligation to charge the customer what it costs DWS;he <br /> did not think DWS could go beyond that. <br /> Mr. Meierdiercks said that it is an actual cost. <br /> The Manager-Chief Engineer said yes, DWS has to go with the actual cost, but DWS cannot anticipate <br /> something and tack it on to customers' bills. <br /> Mr. Meierdiercks said that DWS has a track record of that. <br /> The Manager-Chief Engineer countered that it would not be actual. <br /> Mr. Meierdiercks countered that they are actual costs. <br /> The Manager-Chief Engineer said they are anticipated actual costs. He asked Ms. Garson if DWS could <br /> tack on anticipated actual costs. <br /> Ms. Garson said that DWS would have to revise the formula that the Department is using for the Power <br /> Cost. <br /> Mr. Meierdiercks said that is what he meant. If DWS has the statistics that substantiate it, DWS should <br /> be able to charge the anticipated cost, because DWS keeps losing it. If DWS keeps losing it,then at <br /> least DWS has a track record that it is losing it. In other words, if DWS is not charging enough, DWS <br /> had better charge what it can, at least to cover its costs. That, Mr. Meierdiercks said, is basically what it <br /> is all about. <br /> The Manager-Chief Engineer noted that sometimes, DWS puts the Public Notice in the paper, and in the <br /> process of advertising the Public Hearing,the Power Cost goes up again and DWS is stuck with the rate <br /> it advertised. Unfortunately, DWS cannot adjust the Power Cost Charge more frequently, because the <br /> timing of the Public Notice will not allow it. <br /> Mr. Kaneshiro said that eventually, DWS will get its money back;the recouping is delayed by about <br /> three months, but the money does come back. He asked Ms. Garson if there is a possibility of doing <br /> away with the Public Hearings on the Power Cost. <br /> Ms. Garson said no. <br /> Mr. Kaneshiro said the reason he was asking is that no one testifies at the Public Hearings on the Power <br /> Cost, and it is wasting the Board's time. He asked if there is a way to tweak the Rules so that DWS can <br /> adjust the Power Cost more frequently, without holding Public Hearings. <br /> Ms. Garson said that the requirement to hold Public Hearings is a Statute. <br /> Mr. Kaneshiro noted that his Oahu water bill never mentions any Power Cost increases. As he said <br /> earlier, DWS eventually gets its money back. However, the bottom line looks bad for DWS and the <br /> delay is not helping DWS, he said. <br /> The Manager-Chief Engineer said that because the Power Cost Charge is considered a rate, and because <br /> the Statute says that whenever DWS adjusts rates, DWS must hold a Public Hearing. The solution <br /> might be if DWS can factor the Power Cost out from the rate, and not call it a rate. If the Power Cost is <br /> not a rate,then DWS will not need to hold a Public Hearing, he said. <br /> Mr. Taniguchi said the Power Cost is just a pass-through. <br /> Mr. Kaneshiro said it is a pass-through of whatever HELCO charges DWS. <br /> Page 14 of 21 10-25-11—Water Board Minutes js <br />