Hawaii Public Utilities Commission Sets New Rates for Hawaii Water Service’s Waikoloa Systems to Help Keep Utility Service Safe and Reliable

Rhea-AI Summary

California Water Service (NYSE: CWT) subsidiary Hawaii Water received Hawaii Public Utilities Commission approval to raise annual revenue by $4.7 million across five Waikoloa systems and to adjust water and wastewater rates, effective October 9, 2025.

The increase covers capital investments, inflation, and higher operating costs. Since the last rate change in 2019, Hawaii Water invested approximately $33 million in Waikoloa: ~$17 million on wells, pump stations and backup generators; >$8 million on transmission and distribution pipelines; and ~$8 million on treatment plant upgrades. The HPUC also approved a fixed conservation charge for non-residential water customers.

Positive

• HPUC approved $4.7M annual revenue increase
• Company invested ~$33M in Waikoloa since 2019
• ~$17M spent on wells, pump stations, generators
• >$8M invested in transmission and distribution pipelines
• ~$8M for water and wastewater treatment upgrades
• New rates effective October 9, 2025 (regulatory clarity)

Negative

• Customers face higher costs due to the $4.7M revenue increase
• Introduction of a fixed charge for non-residential water customers
• Rate action driven by inflation and operating cost increases

Insights

Utility regulatory and financial analyst

HPUC approved a $4.7 million annual revenue increase for Hawaii Water's Waikoloa systems, effective Oct. 9, 2025.

Hawaii Water will collect an additional $4.7 million annually across five Waikoloa systems to offset capital and operating costs. The company reports roughly $33 million of investments since 2019, including nearly $17 million for wells, pump stations and backup generators, > $8 million for transmission and distribution pipelines, and almost $8 million for treatment plant upgrades. The decision also authorizes a fixed charge for non-residential customers tied to conservation activities.

The business mechanism is direct: regulator-authorized rate relief converts past capital and operating expenditures into recoverable revenue, improving near-term cash flow for the regulated utility. This approval reduces immediate regulatory risk around cost recovery but depends on continued compliance with service and environmental standards stated in the decision.

Key dependencies and risks include the company’s sustained delivery of the described upgrades and meeting any ongoing HPUC reporting or performance requirements; failure to meet regulatory conditions could affect future recoveries. Watch for any HPUC-mandated compliance filings, tariff schedules implementing the rates, and near-term reporting that quantifies how the $33 million of investments map to service improvements; monitor those items over the next 3–12 months.

WAIKOLOA, Hawaii, Oct. 14, 2025 (GLOBE NEWSWIRE) -- Hawaii Water Service (Hawaii Water), a subsidiary of California Water Service Group (NYSE: CWT), has received approval from the Hawaii Public Utilities Commission (HPUC) to increase annual revenue by $4.7 million across the five systems that make up its Waikoloa service area, and to adjust water and wastewater rates accordingly. This increase in annual revenue is necessary to account for investments made to maintain and strengthen the Waikoloa Resort and Village water and wastewater systems, inflation, and operating cost increases.

Over recent years, Hawaii Water has completed numerous capital investment projects to help provide safe, reliable service, including:

• Almost $17 million for drinking water well and sewer pump station improvements, along with backup power generators, to improve supply and system reliability—even during power interruptions.
• More than $8 million in transmission and distribution pipelines to reduce leaks and increase reliability.
• Almost $8 million for water and wastewater treatment plant improvements to continue meeting water quality and environmental standards, and increase treatment capacity.
  

In total, Hawaii Water has invested approximately $33 million in its Waikoloa systems since its last rate adjustment in 2019.

“We take our responsibility to provide safe, reliable drinking water and wastewater service to our Waikoloa Resort and Village customers seriously, while working to protect the environment,” said Marty Kropelnicki, Group Chairman and CEO. “Making proactive infrastructure upgrades and maintenance, along with operating efficiently, are important to fulfilling that duty and keeping costs affordable in the long term. This enables us to provide quality, service, and value to our customers.”

In the decision, the HPUC also approved a fixed charge for non-residential water system customers for conservation-related activities. New rates are effective as of October 9, 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 regulated operating utilities held by Texas Water Service through a 96-percent-owned joint venture. 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.

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

FAQ

What did HPUC approve for Hawaii Water Waikoloa (CWT) on October 9, 2025?

HPUC approved a $4.7 million annual revenue increase and adjusted water and wastewater rates effective October 9, 2025.

How much has Hawaii Water (CWT) invested in Waikoloa since 2019?

Hawaii Water invested approximately $33 million in Waikoloa systems since 2019.

What major Waikoloa capital projects did Hawaii Water (CWT) complete?

Completed projects include ~$17M for wells/pump stations/generators, >$8M pipelines, and ~$8M treatment upgrades.

When do the new Waikoloa rates for CWT take effect?

The new rates became effective on October 9, 2025.

Will non-residential Waikoloa customers see new charges under CWT rates?

Yes. The HPUC approved a fixed charge for non-residential water system customers for conservation activities.

Why did Hawaii Water (CWT) request the $4.7M annual revenue increase?

To cover investments to maintain/strengthen systems, inflation, and higher operating costs.