HomeMy WebLinkAboutCOM 0480.009 1998-2000
DEC-14-99 02:49 PM WRIKOLOrH-DEVEL~VTILITIES 808H868565 P. 01
WEST HAWATT T~,L~TX. COMPANY
December 14, 1999 ~ y9 UEC 1`i P(tl 2 `f 7
~ Via Fax
(808) 961-8912
County Council ~Oi r~ ~ ~ i'., ...,°.11
County of Hawai i
Hawari County Building
25 Auppuni Street
Hilo, Hawaii 96720
RE: West Hawaii Utilities Testimony on HI County Bill 143, Draft 2
Second Reading December 15,1999
Chairman Arakaki and Hawaii County Council Members:
This testimony is written on behalf of West Hawaii Utilities (WHU). WHU
is comprised of three com anies; West Hawaii Water Company, West
Hawaii Sewer Company andpWest Hawaii Utility Company. These utilities
provide water, sewer, and sewage treatment utilrties to the Waikoloa Village
and Waikoloa Resort area customers.
We recommend the County pursue its litigation with the State over the
sharing of PSC tax revenues without passage of Bill 143. Passage of Bill 143
will impose additional burdens on WHU and our customers, even if the
monies are placed in an escrow account until the litigation with the State is
settled, Because our utilities are large electrical power users, our customer
utility rates will be affected by both the increases in electrical rates due to real
property taxes imposed on HELCO and the real property taxes imposed
directly on our utiliries,. If Bill 143 is passed, it wiA impose sigruf~cant
burdens on WHU and it's ratepayers, including:
• An estimated utility rate increase of about 590,000 per year
• Additional County and WHU administrative costs to establish real
property tax values
• PUC filmg for increased rates
Subsequent PUC filing to decrease rates, if the County is successful in its
litigation with the State
These costs will be paid for by our customers through hi her water and sewer
rates. Let me reiterate that the most efficient way to deal with this situation is
for the County to settle this with the State, m or out of court, without
involving the utility Companies and their customers. Thank you for the
opportunity to offer testimony on this matter. p
Sincerely, / Comm. No. Q • /
~,~r `~!J - ,~~~r Ftile No. C c,~R P'/'
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