In a letter to the Public Utilities Commission on March 25, Douglas Codiga, attorney for the Wailuku Water Company, reported that the recent severe storms so severely damaged its irrigation and water delivery systems that the company is on the verge of bankruptcy.
“The significant anticipated costs associated with repairing and replacing components of the WWC system damaged by the Kona Low storm are expected to greatly exceed WWC’s current financial capability without regulatory support from the Commission,” Codiga wrote. “Absent [PUC] intervention, WWC currently anticipates that it may be forced to seek bankruptcy protection partly due to the impacts from the Kona Low storm and its current regulatory environment.”
Although evaluation of damages has been hampered by lack of access, Codiga continued, “the current assessment is that many of these facilities, including siphons and important intakes, have been badly damaged or destroyed by the storm.” There follows a list of a dozen such facilities, including the Iʻao intake in the Wailuku River, the Waiheʻe ditch south, several reservoirs, the Spreckels ditch intake in the Waiheʻe River, and “general WWC system-wide ditch debris.”
WWC operations have been “severely and adversely impacted,” Codiga continued, “including the ability to provide non-potable water delivery to customers,” including approximately 85 percent of its customers using water for diversified agriculture or for native Hawaiian traditional and customary practices. Also, WWC has not been able to provide non-potable water to the county Department of Water Supply.
Codiga went on to say that even before the storm, the company’s financial condition was “weak and unstable” as a result of the PUC’s failure to lift a suspension order, which has had the effect of freezing rates charged to customers since 2009. As recently as November 12, he noted, the PUC denied WWC’s motion to terminate the suspension.
“WWC submits that it is reasonable to assume cost estimates to repair or replace critical components of the WWC system will be in an amount that is extremely high – likely in the millions – relative to WWC’s operations and management and capital costs prior to the storm,” Codiga stated. “In addition, a corresponding and significant reduction in utility revenues is expected due to interruption of service to paying customers. As a practical matter, WWC’s weakened financial condition resulting from the … Suspension Order appears likely to hamper and delay any efforts by WWC to restore service to its customers by funding repairs or replacement of damaged components of the WWC system.”
—Patricia Tummons
For further reading in Environment Hawaiʻi:
- “Wailuku Water Rate Case before PUC: Opened in 2008, Suspended Ever Since,” May 2025;
- “Commission Grants Contested Case on Wailuku Water Waste Allegations,” July 2020;
- “Wailuku Water Co. Sells Ditch Water Without Consent of Utilities Commission,” December 2007.