David F. Andrew Joel D. Kam

Kent D. Morihara Diane Yuen Praywell Scott D. Radovich

Robert F. Schneider Tod Z. Tanaka

Tracy D. Tanaka

Schneider Tanaka Radovich

Andrew & TanakaA Limited Liability Law Company

1100 Alakea St., Suite 2100, Honolulu, Hawaii 96813 Telephone: 808.792.4200 Facsimile: 808.792.3920

Website: www.stratlaw.com

February 1,2021

Counsel:

Lianna L. Figneroa Gary S. Kerwood

Jamie C. Yoshikane

The Honorable Chair and Members of the Hawaii Public Utilities Commission

465 South King Street Kekuanaoa Building, Room 103 Honolulu, Hawaii 96813 Attention: Caroline C. Ishida, Esq.

RE: Docket No. 2020-0209 {in the Matter of Public Utilities Commission Proceedingto Gather Data to Inform Commission Decision-Making Regarding Suspension of Utility Disconnections and Related Issues as a Result of the COVID-19 Pandemic): Quarterly and Monthly Report for Hawaii-American Water Company rHAWC’1 due on February 1.2021

Dear Commissioners and Commission Staff:

HAWC hereby files its quarterly and monthly report due on February 1, 2021, pursuant to Order No. 37506, issued on December 22, 2020, which, among other things, opened Docket No. 2020-0209 as a repository for information filed by relevant utilities on the financial effects of the disconnection suspension and related issues on utilities and their customers, and customer outreach efforts, as a result of the COVID-19 pandemic.

If you should you have any questions, please do not hesitate to contact the undersigned.

Very truly yours,

/s/ Lianna L. FigueroaKENT D. MORIHARA LIANNA L. FIGUEROA JAMIE C. YOSHIKANE

Schneider Tanaka Radovich Andrew & Tanaka, LLLCAttorneys for Kauai Island Utility Cooperative

c: Division of Consumer Advocacy

186303.1

QUARTERLY REPORT

Hawaii-American Water Company

Quarterly Report

February 1, 2021

1) Background

On May 4, 2020, the Commission issued Order No. 37125 requiring all utilities to suspend utility service disconnections (other than for public safety concerns unrelated to the non-payment of services) during the pendency of the Governor's Emergency Proclamation and until otherwise ordered by the Commission. Order No. 37125 also prohibited imposition of late fees until otherwise ordered by the Commission. The Commission also authorized utilities to establish regulatory assets consistent with Order No. 37125. Pursuant to item 5 on pages 5-6 of Order No. 37125, Hawaii-American Water Company ("HAWC") filed its first report on May 20, 2020. On May 28, 2020, the Commission issued Order No. 37153, which, among other things, (1) extended the suspension of utility service disconnections through June 30, 2020, and (2) authorized utilities to establish regulatory assets consistent with the authorization provided in that order or in Order No. 37125.

On June 26, 2020, the Commission issued Order No. 37189 extending the above suspension of utility service disconnections through July 31, 2020 and encouraged utilities not to charge customers late fees. As part of Order No. 37189 (item 2 on page 3), the Commission instructed any utility that booked regulatory assets consistent with the authorization provided in Order Nos. 37125 or 37153 to "file a short report (1-2 pgs.) with the Commission by July 24, 2020, regarding the utility's financial condition." HAWC filed its short report on July 24, 2020. Order No. 37189 also provided that any utility that booked regulatory assets consistent with the authorization provided in either Order Nos. 37125, 37153 or 37189, must also file a quarterly report, beginning on July 31, 2020. On July 31, 2020, HAWC filed its first quarterly report detailing the amounts of the costs incurred and any savings realized. As part of Order No. 37251 issued on July 31, 2020, HAWC filed its short report on August 24, 2020. fSee Order No. 37251, item 2 on page 4).

On August 24, 2020, the Commission issued Order No. 37284, which further provided that to the extent a utility booked regulatory assets, as authorized in Orders No. 37125, 37153, 37189, 37251, or 37284, the utility must also file a quarterly report on October 30, 2020 detailing the amounts of the costs incurred and any savings realized, which have been booked to the regulatory assets. (See Order No. 37284, item 4 on pages 4-5). The utility must also provide a "list of the measures the [ujtility has in place to assist its customers during the COVID-19 emergency situation." Pursuant to said order, HAWC filed its quarterly report on October 30, 2020.

On December 22, 2020, the Commission issued Order No. 37506, which, among other things, opened Docket No. 2020-0209 as a repository for information filed by relevant utilities on the financial effects of the disconnection suspension and related issues on utilities and their

186287.3

customers, and customer outreach efforts, as a result of the COVID-19 pandemic. Order No. 37506 also provided that any utility "that books regulatory assets consistent with the authorization provided in either Order Nos. 37125, 37153, 37189, 37251, 37284, or this Order," file quarterly reports and that those reports shall be filed in the instant docket, beginning with the quarterly report due on February 1, 2021. This report is beingfiled in compliance therewith.

2) Costs Incurred and Savings Realized - February 1, 2021 Updated Report

On March 4, 2020, Hawaii's governor declared a state of emergency related to COVID-19 and its impacts to the state. On March 21, 2020, the governor issued a mandatory 14-day self-quarantine for all visitors to Hawaii, effectively shutting down the state's tourism industry. As a result of the COVID-19 pandemic, the state implemented the State of Hawaii Safe Travels Hawaii Program, which is a multilayered process designed to mitigate the spread of COVID-19, including but not limited to, a 10-day mandatory quarantine for all trans-Pacific travelers arriving without a confirmed negative COVID-19 test taken within 72 hours before departure of the final leg of their trip to Hawaii.

HAWC has deferred financial impacts associated with the COVID-19 emergency including the following:

a) Late Fees

The lost revenue associated with the foregone late fee calculations were based on the Company's late fee policy as it would have been applied to past due invoices during the moratorium period. During the moratorium period of March through December of 2020, HAWC has foregone the collection of $39,797 of late fees.

b) Uncollectible Expense

HAWC has recorded $13,475 of uncollectible expense through December 2020. HAWC will continue to analyze uncollectible expense and will provide an update in the next quarterly report.

c) Additional Debt Carrying Costs

In March 2020, American Water Capital Corporation secured a $750 million term loan facility and borrowed $500 million under the loan to ensure adequate liquidity to American Water operating subsidiaries including HAWC. The associated interest related to the portion of the term loan provided to HAWC is $16,028 through December 2020.

d) Other Additional Costs

HAWC created a specific tracking number to capture certain HAWC and Service Company increased costs related to COVID-19, such as facility preparedness, PPE, sanitizers, signage, rental equipment, etc. The costs associated with these other additional expenses total $6,619.

186287.3

e) Cost Savings

HAWC has identified cost savings related to travel and conferences for both HAWC and Service Company costs that would have been allocated to HAWC. This calculation was done using a comparison of actual costs for expenses related to travel and conferences for the periods of the state of emergency ($14,353) compared to the same period of the prior year ($60,395) to determine the cost savings related to travel and conferences for Service Company expenses. The savings total $46,042 and are representative of the period of March through December 2020.

3) HAWC Customer Protections

In accordance with Orders Nos. 37125, 37153, 37189, 37251, 37284 and 37506, HAWC suspended imposition of late fees and has not disconnected any of its customers.

4) Lost Demand Revenue

HAWC continues to compile and analyze the trailing data necessary to determine reduced lost revenues due to lower volumetric sales associated with tariff provisions for our commercial customers (which serves as a surrogate for commercial wastewater flows). Sewer revenues in Hawaii are $158,983 lower from March to December 2020, when compared to the same period of the prior year.

5) Unanticipated Impacts

HAWC will continue to track and identify the financial impacts of the COVID-19 public health emergency that the Company must incur to continue to provide safe and reliable wastewater service to its customers during this time. The Company believes that the full scope of incremental COVID-19 costs cannot be known with complete certainty at this time and will continue to update its deferral and the Commission as more data and information becomes available.

186287.3

MONTHLY REPORT

Order No. 37506 Docket No. 2020-0209 Reporting RequirementsUtiiity Name: Hawaii-American Water Company (HAWC) Reporting Period : January 2021 Date: 2/1/2021

No. Data Point Data1 Total Number of Utility Customers, by applicable customer classes 11,621

2

Total dollar value of all customer late fees that have been waived pursuant to this Order since March 2020 by applicable customer classes (or, after the Utility's Initial report filing, since the Utility's last report);

$39,797

3

Total dollar value of all customer Interest charges that have been waived pursuant to this Order since March 2020 by applicable customer class (or, after the Utility's Initial report filing, since the Utility's last report); Not applicable, as HAWC does not collect Interest charges from Its customers.

4

Tariff provision that governs Utility threshold for customer disconnection*(*required for Utility's initial report filing only)

HAWCTarlff No. 1 (Hawaii Kal) - Rule VI. 1 - ...If any bill Is not paid within the due date of thirty (30) days after deposit In the United States mall or presentation to the Customer, the sewer serviced shall be

subject to discontinuance without further notice.

HAWCTarlff No. 2 (Mauna LanI) - Rule 6.1 - ...If any bill Is not paid within the due date of thirty (30) days after deposit In the United States mall or presentation to the Customer, the Company may disconnect

service after the Company has given the Customer written notice that the Customer has five (5) business days within which to settle the Custom eh s account or have service disconnected, and the Customer falls

to pay within such five (5) business day deadline.

HAWCTarlff No. 3 (Kamuela) - Rule VII - ...Sewer service may be discontinued for nonpayment of a bill within thirty (30) days after the mailing or presentation thereof to the consumer.

5

Total number of customers that became eligible for disconnection due to nonpayment of bills, but were not disconnected because of the disconnection suspension, since March 2020 (or, after the Utility's Initial report filing, since the Utility's last report)

Under the rules of the tariffs, there were 1,019 customers eligible for disconnection.

6

Number of customers re-connected due to the suspension of any and all rules and provisions that prevent or condition re-connectlon of disconnected customers since March 2020 (or, after the Utility's Initial report filing, since the Utility's last report)

0

7Number of customers In arrears by vintage (30/60/90 days, etc.) by applicable customer classes.

<30 days: 60 days: 90 days: 120 days: 150 days: ISO days: 210 days: >240 days:1330 497 584 568 565

8 Total dollar value of unpaid balances by vintage, by applicable customer

cl asses

<30 days: 60 days: 90 days: 120 days: 150 days: ISO days: 210 days: >240 days:$261,390 $38,457 $36,441 $65,386 $179,041

9 Number of payment plan agreements Utility entered Into with Itscu stomers:

2

9a Since March 5, 2020, and the average repayment term of those agreements* (*required for Utility's initial report filing only); 12 Months

9b Since the Utility's last report was filed with the Commission, and the average repayment term of those agreements;

See Response to 9a for Initial filing

9cTotal number of successfully completed payment plan agreements (I.e., customer eliminated past due balance under the payment agreement)* (*required for Utility's initial report filing only);

1

9d Number of successfully completed payment plan agreements since the Utility's last report was filed with the Commission.

See Response to 9c for Initial filing

10

Number of customers engaged by the Utility with Information about potential payment plans and other assistance since March 5, 2020 (or, after the Utility's Initial report filing, since the Utility's last report).

In order to keep Its customers Informed during the COVID-19 emergency, HAWC's website Includes a dedicated COVID-19 Response page (https://www.amwater.com/hIaw/Customer-ServIce-BIIIIng/covId- 19-response) where customers can find Information on HAWC's response to the COVID-19 emergency

and ways to contact HAWC If a customer Is experiencing financial hardship. HAWC does not track website traffic to quantify the number of customers.

11

Amount of CARES Act funding (or other COVID-rellef funds) that have been used to assist customers with bill payments since March 5, 2020 (or, after the Utility's Initial report filing, since the Utility's last report)

HAWC has not received CARES Act funding or other COVID-rellef funds. As a result, no such funds are available or can be offered by HAWC to assist customers with their bill payments.

12A description and utilization statistics related to the Utility's customer assistance programs (other than Information that Is already captured by the

ab ove)

HAWC does not have targeted customer assistance programs. However, pursuant to Order No. 37506, HAWC has established payment plans to assist customers experiencing financial hardship due to the

COVID-19 pandemic.

Doc# 1 86285 2 Page 1 of 6

Hawaii AmericanTotal Number of Utility Customers, by applicable customer classes

Customer Class Residential Commercial Other Public Authority Total

Customer Count as of December 31,

2020 11,544

68 9

11,621

Doc #:186285.2 Page 2 of 6

Hawaii American Late Fees Waived

Mar-20 Apr-20 May-20 Jun-20 Jui-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 TotaiResidential $4,239 $5 $4,180 $1,034 $4,425 $490 $5,315 $413 $5,492 $25,592Commercial 310 2,560 1,389 2,368 1,218 1,722 1,464 516 1,368 1,242 14,159

Other Public Authority 23 17 7 46Total S333 $6,816 $1,394 $6,548 $2,252 $6,147 $1,954 $5,831 $1,788 $6,734 $39,797

Doc #:186285.2 Page 3 of 6

Hawaii AmericanCustomer Eiigibie for Disconnection but Not Disconnected

Hawaii AmericanMar-20 Apr-20 May-20

45 539 4

Jun-20120

Jui-20 Aug-20132

Sep-2014

Oct-2092

Nov-20 Dec-2067

Totai1,019

As a practical matter Hawaii American does not perform disconnection of sewer service.

Doc #:186285.2 Page 4 of 6

Hawaii AmericanCount of Customers in Arrears

ACCOUNT CLASS Current <61 <91 <151 >=151ResidentialCommerciai

Other Pubiic AuthorityTotai

62559

8692

63260

638

4943

0497

58220

584

56620

568

5623

0565

Arrearage counts do not represent individual customers; depending on the aging customers may have baiances in each arrearage bucket.

Doc #:186285.2 Page 5 of 6

Hawaii American Balance of Customer Arrears

ACCOUNT CLASS Current <31 <61 <91 <151 >=151 TotalResidential $42,264 $40,938 $23,491 $34,200 $32,254 $124,960 $298,107Commercial 115,303 12,188 14,966 2,240 33,132 54,081 231,910Other Public Authority 50,697 0 0 0 0 0 50,697TOTALS $208,264 $53,126 $38,457 $36,441 $65,386 $179,041 $580,714

Doc #:186285.2 Page 6 of 6

FILED

2021 Feb 01 PM 13:47

PUBLIC UTILITIES COMMISSION

The foregoing document was electronically filed with the State of Hawaii Public Utilities

Commission's Document Management System (DMS).