Plan calls for a five-fold increase, 2 percent profit

If parent company Molokai Properties Ltd. has its way, water rates on the Friendly Isle could go up by five times or more compared with a year ago in order to make a modest 2 percent a year profit.

Of course, Molokai residents have said they cannot afford such prices, especially with island unemployment the highest in the state at more than 12 percent.

Molokai Properties oversees two water utilities. The first, Wai'ole O Molokai, serves businesses, homes, churches and county parks in Maunaloa, Kualapuu, Kipu, Manawainui and the Molokai Industrial Park.

The second, Molokai Public Utilities, delivers water to the Kaluakoi Resort, Ke Nani Kai, Paniolo Hale Condominiums, Kaluakoi Villas, Papohaku Ranchlands, Moana Makani subdivisions and more county parks.

Here's how The Maui News calculated the projected increase, based on initial water rates from less than a year ago:

First, the average Maui County single-family home uses 600 gallons of water a day, said county Water Supply Director Jeffrey Eng. Using that level of water usage, an average household uses about 18,000 gallons in a 30-day billing period.

Before last summer's emergency rate increase, a Wai'ola O Molokai customer paid $1.85 per 1,000 gallons of water. But prices jumped in September to $5.15 per 1,000 gallons. That meant an average Wai'ola customer's monthly water bill went from $33.30 to $92.70 - a 178 percent increase.

Molokai Public Utilities rates went up almost 90 percent last year. Consumers getting water from that utility saw their rate per 1,000 gallons go from $3.18 to $6.04 and the average bill from $57.24 to $108.72.

Just that bump was enough for Mayor Charmaine Tavares to set aside emergency funding to assist Molokai residents pay their water bills. Hundreds of Molokai residents protested the rate hikes at public hearings and meetings.

But Molokai Properties officials have said the increases would allow them to make a small profit as well as much-needed capital improvements to the utilities.

Under the latest Molokai Public Utilities proposal, rates would climb to $192.42 a month for an average family. Molokai Properties is asking for per 1,000 gallon rates to go up to $10.69 a month by sometime in 2010.

A monthly Molokai Public Utilities rate would be about 3.4 times more than last year.

Wai'ola rates would climb to $10.39 per 1,000 gallons in 2010 or $187.09 per month. That's about 5.7 times more than last year.