HAWAI'I KAI — Residents have made it clear to the Public Utilities Commission that they do not feel a proposed increase in their sewer fee is justified.

At a hearing last week, nearly three dozen residents said they did not feel Hawai'i-American Water Co. deserved the requested increase.

Also, residents said, the company was unfairly charging them a flat monthly fee rather than a fee based upon the amount of water used. A home that has two elderly people who are prudent water users pays the same as a multigenerational family of 10 living in one house, residents said.

By comparison, the municipal sewer system charges residents a base fee and a rate based on water use.

Hawai'i-American Water Co. is proposing to raise monthly sewer fees for single-family homes by $6.26 a month — from $50.14 a month to $56.40 a month, a 12.49 percent increase. Residents of multifamily homes such as condominiums and townhomes would see a $7.26a-month increase — from $40.12 a month to $47.38 a month — 18.1 percent more. Business rates also would go up, except for food-service operations.

By comparison, the typical single-family O'ahu household served by the municipal water and sewer system pays $42.85 a month in sewer fees.

The rates that Hawai'i-American can charge will be set by the state Public Utilities Commission, which held the public hearing Thursday to gather community views on the increase sought by the company.

This would be the company's second rate increase in two years for its roughly 10,000 customers in East Honolulu. A 3.3 percent increase was approved by the PUC in 2003.

"We're asking for a rate increase to keep our current excellent level of service and to make upgrades to ensure we continue upgrading our collection system," said Lee Mansfield, Hawai'i-American Water manager.

The higher fees are necessary to pay for improvements to the 40-year-old system, Mansfield said. Many of the pipes are corroded or collapsing, he said. The company is presently relining 6 miles of sewer pipe throughout Hawai'i Kai.

Hawai'i-American also is seeking a ruling from the PUC to change a 30-year-old agreement that required the company to provide free sewer service to city parks, schools, the library and fire stations.

Hawai'i Kai residents such as Christie Adams objected to the flat-fee proposal and urged the PUC to order the firm to switch to a fee based on water use. She said that the way customers are charged now discourages conservation because everyone pays the same.

"I think it's very unfair that we are all billed the same amount," Adams said. "Every resident in my complex pays the same. I am a single woman with a cat, and my neighbor is a family of four, and we pay the same."

Shu Yuan Hseih said the board of directors representing the 423 owners at the Mauna Luan condominium complex voted Wednesday night to oppose the sewer fee increase.

"What happened to the money you raised with the last rate increase?" Hseih asked Hawai'i-American officials.

The PUC sets the rates that Hawai'i-American can charge based upon the public's comments and the state consumer advocate's recommendation.

John Cole, executive director of the Division of Consumer Advocacy, said the company handed over two 4-inch-thick binders full of information that his staff is studying. His recommendation probably will be ready in February.

Reach Suzanne Roig at sroig@honoluluadvertiser.com.