March 16, 2013

PRINCEVILLE UTILITIES CO. TO ADDRESS ORGANIC CHEMICAL FINDINGS

BY REPAIRING WATER TANK

Water Remains Safe for Drinking As System Undergoes Cleaning, Testing;

Utility Asks Customers to Help Conserve Water During Repair Work

PRINCEVILLE, Hawai‘i (March 16, 2013)—Princeville Utilities Company, Inc. (PUCI), an investor-owned utility on Kaua‘i, today announced that the company will install a temporary bypass system so that its 1.5-million-gallon main tank can be taken off line, repaired and tested to remove the organic chemical found in the main tank’s caulking, and possibly its lining. Extensive laboratory testing by PUCI and by the Hawai’i Department of Health (DOH) confirmed that the system’s water remains safe to drink, and does not pose a health threat.

See full press release here: PUCI MARCH 16 2013

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Effective December 12, 2008, in accordance with our tariff, PUCI is increasing the required deposit for tenants who have a utility account in their name from $120 to $150. This amount is equivalent to approximately two months' water and sewer billing.

Please call Debra Drayton at 826-6100, extension 11, if you have any questions.

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A postcard containing the following information was mailed to all PUCI customers on October 21, 2008:

Dear PUCI Customer;

We thought it best to share a brief note with all our valued customers before you receive your next bill from us in early November.

PUCI is an investor-owned utility, regulated by the State of Hawaii Public Utilities Commission (PUC), and as such, we operate according to rules approved by the PUC, which govern, among other things, our billing practices. As you may know, our tariff includes an Automatic Power Cost Adjustment (APCA), which allows PUCI to automatically pass through the power cost adjustments it experiences to its customers. With the peaking of oil prices in late summer, PUCI’s electricity costs likewise peaked, and the APCA charge on customers’ upcoming bills will be unusually high, since according to our tariff, the APCA is calculated based upon the preceding two months’ electric costs.

The benefit of the APCA for both PUCI and our customers is that PUCI can continue to recover its electric expenses without having to pursue additional, expensive rate cases, the costs of which ultimately are borne by our customers.

Rest assured that PUCI continues to operate as efficiently as possible to provide you with reliable service. If you have any questions, please contact Debra Drayton at 826-6100, EXT. 11.

Thank you for your understanding.

Aloha,

Michael Loo

Secretary & Manager

Jess