After 9 weeks without water and sewer, Hawai'i residents move to take over utility

A push to take over Punaluʻu's private utility is growing urgent as some Hawaiʻi residents, still without regular water and sewer service nine weeks after Hurricane Lala, keep hauling jugs, renting portable toilets, and worrying about elderly neighbors.

Here's what to know

At a meeting in Pāhala, state utility regulators were told that the private utility has no insurance and still cannot say when drinking water service will return. 

Residents from the Colony I condominium complex and nearby Kalana Estates also told the Public Utilities Commission that dozens of people are still living without normal water and sewer service, according to Civil Beat.

Don Barnett, a part-time Colony I resident, told commissioners, "I've got neighbors who are too old to stay in their units because they can't walk nearly a quarter-mile to a porta-potty or drag their water." 

Kathleen Mumme of Kalana Estates said her family is relying on portable showers and basins so water doesn't go down drains they can't use.

Civil Beat reported that the company sent only three brief updates in nine weeks. Jeff Silva, president of the Colony I Association of Apartment Owners, said, "They have never brought a single bottle of water, not one." 

The utility has raised water and sewer rates by more than 2,000%, and average bills for customers are roughly $500 a month, Silva noted.

More background

The utility's owner, Eva Liu, who is also known as Xiaoyuan Liu, bought 463 acres surrounding Colony I and the small utility in 2019 while pursuing a resort and retreat-center development. Residents fought that proposal, leaving Liu operating a costly water and sanitation system that serves only about 100 people.

Utility worker Daniel "Spud" Drake said flooding destroyed well piping and motors and that the chlorination and motor control building was flooded "top to bottom," part of what utility representatives described as extensive storm damage. 

Co-counsel Colin Sakamuto said that getting a drilling rig in place alone would first take about $500,000, adding, "To be absolutely blunt, there is no projected timeline."

Residents also questioned Liu's broader financial decisions. Liu made a deal to sell the 6.8-acre parcel around Punaluʻu Black Sand Beach to Hawaiʻi County for $1.46 million through a separate entity. Kalana Estates resident Rosalinda Reiss asked why that money was not being committed to the broken system, saying, "At least fix the fire hydrant."

What's being done?

Commissioner Naomi Kuwaye visited the service area in August. She told the utility's co-counsel to develop immediate and long-term plans for essential services and customer communications. Communications officer Deborah Kwan said the company has provided some updates but still hasn't provided all the information the commission requested.

Silva said residents have created the nonprofit Ninole Wai Community Association in hopes of taking over the system. According to Civil Beat, he has utility experience, and the group's board includes a former Montana mayor, an ex-fire captain, and members with financial expertise. 

"A local community-based nonprofit is the solution," he said.

Michael Angelo, the state Department of Commerce and Consumer Affairs' consumer advocate, supports the effort. Angelo asked whether the utility would consider transferring ownership and whether affiliated entities could help fund repairs. He also pointed to a 2020 filing saying the utility would depend heavily on an affiliated company's financial contributions, as well as what Civil Beat reported was a $2.5 million buyer's credit in 2020 meant to cover utility maintenance needs. State law also allows the commission to appoint a receiver when a regulated utility fails to provide adequate service.

Colony I owner Tammy Goesch captured the stakes at the meeting: "Residents of Hawai'i are living in conditions one expects to find in the rural global South, not these United States."

Where can I learn more?

Elsewhere, residents have fought similar battles over water access, utility decisions, and the strain that comes when basic services are at risk. 

• In Texas, residents said a $4,500 meter demand put basic water access out of reach.

• In Pennsylvania, a retiree asked who was responsible after nearby data-center pumping left her dry.

• In Utah, locals warned that water was being sucked away as new data centers advanced.

• In western Pennsylvania, some families turned to rainwater tanks and livestock to escape utility bills.

• Long-time preppers urged households to collect and use water before shortages hit.

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