Hawaii Water Service, a subsidiary of California Water Service Group, filed a request with the Hawaii Public Utilities Commission to raise water and sewer rates in the Kapalua service area. The filing, dated November 20, 2025, seeks a $2.2 million increase in annual revenue to cover higher purchased water costs, operating expenses, and the cost of recent capital investments.
The request is driven by a $3.4 million investment in infrastructure upgrades that included rehabilitation of storage facilities, replacement of valves, installation of new backup generators, and upgrades to sewer pump stations. In addition, the company’s annual purchased water costs have risen to approximately $1.7 million, a figure that will be passed on to customers on a dollar‑for‑dollar basis. Operating expenses are also higher than in prior periods, reflecting increased labor, materials, and maintenance costs associated with the upgrades.
Customers in Kapalua can expect a modest increase in monthly bills as the company passes through the higher purchased water costs. While the exact dollar impact on individual accounts has not been disclosed, the pass‑through mechanism ensures that the cost increase is directly reflected in the rate structure rather than absorbed by the utility’s margins.
The Hawaii Public Utilities Commission will review the request and, if approved, the new rates could become effective in the second half of 2026. The commission’s review process typically involves a public hearing, analysis of the utility’s financial and operational data, and a decision that balances consumer protection with the utility’s need to recover investment costs.
This is the first rate increase filed by Hawaii Water Service since it acquired the Kapalua Water Company and Kapalua Waste Treatment Company in May 2021. The company has previously secured rate increases in other service areas, such as a $4.7 million increase for Waikoloa in October 2025 and a $276,900 increase for Ka'anapali in May 2025, underscoring a pattern of regulatory adjustments to support infrastructure and operating needs.
"We remain committed to providing safe, clean, and reliable water and wastewater services at affordable rates," said Marty Kropelnicki, Chairman and CEO. "The recent upgrades are essential to maintaining service quality, especially in the face of Maui’s worsening drought, and the cost recovery mechanism protects our margins while ensuring customers pay for the actual cost of water procurement.”
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