HomeMy WebLinkAboutCOM 0796.001 1998-2000
JUN-19-2000 09:47 KPMEHPrEHR IIJUESTMENT9 °P'952 P. 01I02
KEAUHOU COMMUNITY SERVICES, INC.
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For.lore Information Contact. _
Volery O'Brien, KIC, (808) 535-3524 or(808)322.0088, Ext-120
Joan Bennet, Joan Beano and Associates, (808) 531-60£7, Ext. I r
Sewage Rate Increase Sought To Cover New Plant :'-,;,s
At Keauhou Treatment Facility
First Rate Increase Proposed in Six Years
Sr immediate Relcasc: 'Honda,, Jane 1 9. 2000
Kona, Big Island - Keauhou Community Services, Inc. (KCSI) is r :<a: ing
approval from the Hawaii State Public Utilities Commission (PUC) to inere:r_c its rates
for the first time in six years for the Heeia Wastewater Treatment Plant, v" provides
sewage treatment sen'iccs for the Keauhou Resort area.
The notice of intent to file an application for a rate increase - which was filz.i' t,vith the
PUC today - seeks to increase rates by 50%, which equates to approximare:iv $15.00
increase in a typical residential customer's monthly bill and approximately Sl 7,50 per
room increase in a typical hotel's monthly bi',l.
KCSI's application will be reviewed by both the State's Consti ner Advocat, , ~s well as
the State's Public Utilities Commission, before any increase will be allow r'. TIC
approved, any new rate increase is not expected until sometime next year.
"Although we've been able to postpone raising rates to our customers for dears, we
unfortunately must now bring our rates more to line with what it actually ~'rts us to
deliver quality, envirotnnentally-sound sewage treatment services to the rgym~W.,tWd ,
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businesses of Keauhou," said Louis Kau, President of KCSI_ File No. ~p
Ref. To: T
Ref. Date q 0 2l/A?
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JUN-19-2000 09:47 KRMEI-PMEHP INUE9TMENTS "?5952 p.02102
The rate increase is needed to help pay for Keauhou's new sewage tream,~~~ r Iant
completed in 1994 to treat wastewater more safely, efficiently and cost-e1 `;.,c,iv-ely,
according to Kau. The new plant was also needed to replace the old facie t : that was the
source of odors in the neighborhood and which had deteriorated to an tmaca,aable level
"We think it's important to note that KCSI has not made a return on its S 1F_3 illion
investment in the new plant for six years, and has continued to operate the savage
treatment facility at a loss," explained Kau.
Kau explained the utility has also focused on cutting costs and operating as =_.'iiciently as
possible for the last six years, which has helped avoid having to increase r 'e;. "Cutting
our energy costs through demand side management and delaying additional cal~ital
improvements until they are absolutely essential arejust two of the ways ti:e T:t been able
to keep our costs down and our rates low," said Kau,
"We will be working closely with the community to explain why the rate incrr,-ase is
needed, and how the new rates will allow the plant to continue delivering qTi:dity,
environmentally-sound sewage treatment services," Kau added.
Keauhou Community Services, Inc. is a regulated public utility providing. ~ste water
treatment services for the residents in the Keauhou resort.
TOTPL P.0-2