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Big Isle water
rates to rise 42.5%

The increase will phase in over
five years; the rates for agriculture,
already lower than the general
rates, will rise only 18.5%

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By Rod Thompson
Star-Bulletin

HILO -- The Hawaii County Water Board has approved a 42.5 percent rate increase over five years for most customers, but continued a discount for agricultural users.

Agricultural rates, already lower than general rates, will rise 18.5 percent over five years. That would cover just rises in the cost of electricity to run pumps.

The board approved the increases yesterday 6-2, with board Chairman Yukio Takeya and member John Tolmie voting against it.

"I don't think it's fair to every other business in the county," said Tolmie. Other industries, the elderly, low-income users and residents in general will pay more, while farmers get a break, he said.

Through two public hearings and a series of regular board meetings, farmers had asked for their increase to be minimal. No one from the public or other businesses testified during the hearings, Tolmie said.

The first nonagricultural comment came just before the vote yesterday from Allan Kroll, Hawaii Island Board of Realtors representative, who said the agricultural discount would be unfair.

The rate increase will have a double effect on commercial and industrial water users, because their sewer rates, linked to water rates, also will rise, he said.

The water rates have three parts, a standby charge which will go from $8 to $10, a power charge, and a volume charge.

Milton Pavao, head of the county Department of Water Supply, said the volume charge will be used to pay three costs: improvements mandated by the the U.S. Environmental Protection Agency which do not result in more water being available, repair and maintenance, and other new projects.

The department planned to spend about $60 million on these costs during the next five years, Pavao said. The agricultural rate approved yesterday will yield $1.2 million less than the department requested, Pavao said.

That means the department will still have enough to pay for most of its projects, but it also means that general users will pay more than their share for those projects, he said.

For a typical household using 10,000 gallons every two months, a bimonthly bill will go to $44.91 from $32.50 in five years.

For a small agricultural user of 20,000 gallons every two months, the bimonthly bill would go to $62.73 from $52.50 in five years.