Consumer Advocacy – Public Utilities (DCA)

In an interim decision and order, the Public Utilities Commission (PUC) approved a stipulated rate increase for Maui Electric Company, Limited (MECO) on an interim basis. The PUC approved an interim revenue increase of $12,481,000 or approximately 3.82% over revenues at current effective rates, based on a total revenue requirement of $338,897,000. The interim rate increase went into effect on August 23, 2018.

MECO’s application requested an increase of $46,558,000 (approximately 14.3%) over revenues at current effective rates asserting that rate relief is required in order to provide a reasonable opportunity to recover its prudently incurred costs of providing electric services to its customers.

The Consumer Advocate (CA), in a settlement agreement with MECO, requested that the commission approve the interim rate increase and rate design in a Joint Statement of Probable Entitlement. MECO will be required to refund its customers, together with interest, any excess collected under the interim decision and order if the final rate relief ordered in the PUC’s final decision is less than the total interim increase that has been recently approved.

The PUC held public hearings on Maui, Lanai, and Molokai in late January and early February. The CA testified at each public hearing. In general, testimonies expressed concerns with, or opposition to, the increases in rate proposed by MECO.