Hawaii Public Utilities Commission Sets New Rates for Hawaii Water Service to Help Keep Ka’anapali Water System Safe and Reliable

Rhea-AI Summary

Hawaii Water Service, a subsidiary of California Water Service Group (NYSE: CWT), has received HPUC approval for a $276,900 annual revenue increase in its Ka'anapali system. The rate adjustment, effective April 18, 2025, reflects the first base rate change since 2016. The increase supports recent infrastructure investments including:

• Upgrades to two storage tanks and reservoirs
• Installation of two additional generators for power outage protection
• Routine pumping equipment replacement

The HPUC also approved a new tiered rate structure designed to promote water conservation and maintain affordability for low-usage customers.

Positive

• First base rate adjustment since 2016, showing long-term rate stability
• Infrastructure upgrades improve system reliability and service quality
• New tiered rate structure promotes conservation while supporting affordability
• Addition of backup generators enhances system resilience

Negative

• Rate increase will raise costs for Ka'anapali customers
• Annual revenue increase of $276,900 may impact profit margins if operating costs continue rising

WAIKOLOA, Hawaii, May 06, 2025 (GLOBE NEWSWIRE) -- Hawaii Water Service (Hawaii Water) has received approval from the Hawaii Public Utilities Commission (HPUC) to increase annual revenue by $276,900 in its Ka’anapali system and adjust water rates accordingly. This increase in annual revenue is driven by recent upgrades to the water system infrastructure and increased operating costs. Hawaii Water, a subsidiary of California Water Service Group (NYSE: CWT), last adjusted base water rates for Ka’anapali in 2016.

Among significant investments made in Hawaii Water’s Ka’anapali service area are:

• Upgrades to two storage tanks and reservoirs to improve water supply reliability;
• Two additional generators to help keep the system operating properly in the event of a power outage or shutoff; and
• Routine replacement of pumping equipment.
  

“We are committed to providing safe, clean, and reliable drinking water to our Ka’anapali customers, and fulfilling that commitment requires regular infrastructure maintenance and upgrades,” said Marty Kropelnicki, Group Chairman and CEO. “At the same time, we work hard to operate efficiently to help keep costs affordable, so that we are well-positioned to provide quality, service, and value to our customers for years to come.”

In the decision, the HPUC also approved Hawaii Water’s new tiered structure for usage rates, which is designed to encourage water conservation and support affordability for lower water-using customers. New rates are effective as of April 18, 2025.

About California Water Service Group
California Water Service Group is the parent company of regulated utilities California Water Service, Hawaii Water Service, New Mexico Water Service, and Washington Water Service, as well as Texas Water Service, a utility holding company. Together, these companies provide regulated and non-regulated water and wastewater service to more than 2.1 million people in California, Hawaii, New Mexico, Washington, and Texas. California Water Service Group’s common stock trades on the New York Stock Exchange under the symbol “CWT.” Additional information is available online at www.calwatergroup.com.

This news release contains forward-looking statements within the meaning established by the Private Securities Litigation Reform Act of 1995 (PSLRA). The forward-looking statements are intended to qualify under provisions of the federal securities laws for "safe harbor" treatment established by the PSLRA. Forward-looking statements in this news release are based on currently available information, expectations, estimates, assumptions and projections, and our management's beliefs, assumptions, judgments and expectations about us, the water utility industry and general economic conditions. These statements are not statements of historical fact. When used in our documents, statements that are not historical in nature, including words like will, would, expects, intends, plans, believes, may, could, estimates, assumes, anticipates, projects, progress, predicts, hopes, targets, forecasts, should, seeks, commits, maintains or variations of these words or similar expressions are intended to identify forward-looking statements. Forward-looking statements are not guarantees of future performance. They are based on numerous assumptions that we believe are reasonable but are subject to uncertainty and risks. Actual results or outcomes may vary materially from what is contained in a forward-looking statement. Factors, uncertainties and assumptions that may cause actual results or outcomes to be different than those expected or anticipated are described in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other reports filed from time-to-time with the Securities and Exchange Commission. In light of these risks, uncertainties and assumptions, investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this news release. We are not under any obligation, and we expressly disclaim any obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.

Media Contact
Yvonne Kingman
ykingman@calwater.com
310-257-1434

FAQ

How much is the revenue increase approved for Hawaii Water Service (CWT) in Ka'anapali?

The Hawaii Public Utilities Commission approved an annual revenue increase of $276,900 for Hawaii Water Service's Ka'anapali system.

When was Hawaii Water's last base rate adjustment in Ka'anapali before this increase?

Hawaii Water's last base rate adjustment for Ka'anapali was in 2016, approximately 9 years ago.

What infrastructure improvements did Hawaii Water Service make in Ka'anapali?

Hawaii Water Service upgraded two storage tanks and reservoirs, installed two additional generators for power outages, and performed routine pumping equipment replacement.

When do the new Hawaii Water Service rates take effect in Ka'anapali?

The new rates became effective on April 18, 2025.

What changes were made to Hawaii Water's rate structure in Ka'anapali?

The HPUC approved a new tiered rate structure designed to encourage water conservation and support affordability for lower water-using customers.