Maui firm seeks to acquire Kalaeloa water services, boost rates

A Maui-based company is seeking approval from state regulators to take over water and sewer services from the Navy at the former Barbers Point Naval Air Station.

Kalaeloa WaterCo. is proposing to raise rates for customers in the area now known as Kalaeloa to pay for "massive capital expenditures" it says are needed to upgrade the aging infrastructure it would inherit if its proposed acquisition is approved by the Public Utilities Commission.

The company, a subsidiary of Wailuku-based Pural Water Specialty Co., would take over 114 water and 69 sewer customers currently served by the Navy, according to its filing with the PUC. The largest group of water customers, 66, is classified as nonresidential. There are 16 multifamily and three single-family customers. Another 29 customers use water for irrigation.

Kalaeloa Water has applied with the PUC for a certificate of public convenience and necessity, which is required under state law to become a regulated utility.

The company is proposing to raise water rates by 35 percent for residential and irrigation uses, and by 52 percent for nonresidential customers. Even with the proposed increases, however, the rates would still be below those charged by the Honolulu Board of Water Supply, according to its filing.

The federal government’s General Services Adminstration sought bidders to buy the water and sewer systems at Kalaeloa after the Honolulu Board of Water Supply and the City and County of Honolulu’s Department of Environmental Services both declined to take over the services, according to Kalaeloa Water’s PUC application. Barbers Point Naval Air Station closed in 1999.

Pural Water submitted the highest of three bids, agreeing to pay $250,000 for the water and sewer facilities. The sale is contingent on PUC approval.

In the latest development in Kalaeloa Water’s application, the PUC on Friday approved the company’s request for a protective order that will allow it to keep certain proprietary information confidential when it files public documents.