Hawaii Water Service purchasing Kapalua water companies

System supplies 1,000 connections in the Kapalua area

Hawaii Water Service has received approval to purchase two water and waste treatment companies that supply homes, hotels and other properties in West Maui.

The Hawaii Public Utilities Commission earlier this month gave the go-ahead to Hawaii Water Service to acquire the assets of Kapalua Water and Kapalua Waste Treatment companies from Maui Land and Pineapple Co., according to a news release.

Hawaii Water, a subsidiary of California Water Service Group, will provide water and wastewater service to about 1,000 connections in the Kapalua resort area, the company said. The utility systems serve homes, hotels, condominiums, golf courses, restaurants and other resort amenities. Hawaii Water will also serve the expansion areas of Kapalua as they are developed by ML&P.

“We appreciate the Hawaii Public Utilities Commission’s diligence in reviewing and approving this agreement and look forward to working with Maui Land and Pineapple Co. to complete this transaction,” said Martin A. Kropelnicki, group president and CEO of California Water Service Group. “We also look forward to providing the same quality, service and value all of our Hawaii Water customers expect and deserve to ML&P’s Kapalua customers.”

Yvonne Kingman, a spokeswoman for California Water Service, said she could not disclose the purchase price but added that there will be upgrades made to the Kapalua systems over the next couple of years.

The state Division of Consumer Advocacy said in an email Tuesday that the PUC granted a protective order in August on the request of the applicant that keeps the purchase price of Kapalua Water and Kapalua Waste Treatment confidential.

However, the consumer advocate, who reviewed the acquisition information, concluded “that the proposed purchase price was reasonable and in the public interest.”

Kingman said upgrades for the system include purchasing a portable generator to keep the systems running in the event of a power outage, making ladder improvements to an existing tank for employee safety, replacing valves and pumps for a lift station within the wastewater system, replacing pressure relief valves within the water system and replacing altitude relief valves within the water system.

The sale does not include the Honokohau ditch system, which is not part of Maui Land & Pine’s PUC-regulated assets, company officials have said.

Hawaii Water has about 50 employees and currently provides water, wastewater and/or recycled water utility services to 5,000 customers, including large resorts and condominium complexes in Kaanapali and Pukalani as well as Kapolei on Oahu and the communities of Waikoloa, North Kona coast and the Kohala coast on Hawaii island.

California Water Service Group also includes wholly owned subsidiaries in California, Washington state and New Mexico.

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