Ranch will not end water service
A Molokai facility accepts rate hikes charged to users
WAILUKU » Molokai Ranch said it will continue water service beyond its announced shutdown, in light of a state Public Utilities Commission increase in water rates.
Ranch official Peter Nicholas, in a letter to commission Chairman Carl Caliboso, said its lack of financial resources seems to be temporarily resolved but, he does not know how long the rate increase will be sufficient because of future fuel and labor cost increases.
The ranch, also doing business as Molokai Properties Ltd., said the temporary rate increases are a "stop-gap measure" and that the company will not operate the utilities indefinitely.
Parts of West Molokai will receive a 178 percent increase in water rates.
Gov. Linda Lingle said the rate increase is not an ideal situation, but will ensure the continuation of water service until another entity can take over the operation.
"We recognize that this is a difficult situation for everyone involved, and we especially understand residents' concerns regarding increases in water rates," she said.
"We will continue to work with the county to ensure uninterrupted water and wastewater service to protect the health and safety of the island."
Lingle said the commission took the "appropriate action" in raising the rates to ensure that health and safety of residents are not compromised by a disruption of service.
Lingle said in the absence of a private entity, the basic responsibility for operating and maintaining water and waste-water systems rests with the county.
Walter Ritte, the Molokai group coordinator of Hui Ho'opakele Aina, said his organization filed a complaint about the commission Wednesday with state Ombudsman Robin Matsunaga.
Ritte charged the commission increased the rates above affordable levels and shut down the process of public participation.
"What's bothering the community is that ... this whole process was rushed and convoluted to the point where the PUC was asking for the rate increase and not Molokai Ranch," Ritte said. "No one was allowed to intervene."
Ritte said his group wants to make an appointment to speak with Lingle at the state Capital.
The ranch, which was sustaining losses and failed to get approval of a luxury development at Laau, announced in March that it planned to shut down virtually all commercial activities and the water and sewage utilities.
The state Public Utilities Commission said it granted the rate increases on Molokai to stave off a shutdown.
The commission granted a rate increase starting Sept. 1 for the ranch's Molokai Public Utilities to $6.04 from $3.18 per 1,000 gallons of water and Waiola o Molokai Inc. to $5.15 from $1.85 per 1,000 gallons.