The private company that provides sewer service to Hawaii Kai residents is seeking approval from the Public Utilities Commission to raise its monthly rates nearly 17% over the next two years.

Many Hawaii Kai residents feel the proposed rate increase is too high, but the manager of Hawaii American Water says the increase is necessary.

No doubt it's expensive to live in paradise.

And it could get even more expensive for Hawaii Kai residents if Hawaii American Water's proposed rate hike is approved.

"The consensus was that everyone thought it was too high. They thought a rate increase was justifiable but not so big an increase," said Hawaii Kai resident Robert Ubersax.

Ubersax attended the PUC's public hearing back in January. The PUC is having another one next month to get feedback from residents.

Hawaii American Water is proposing a nearly 17% percent rate increase per month for its residential customers in Hawaii Kai over the next two years.

"It is very necessary. Again the infrastructure out in in the early 1960's is reaching the end of its useful life. We're continuing to upgrade our plant facilities, provide more reliable service," said Hawaii American Water Manager Lee Mansfield.

The sewer bill for residents in single-family homes would increase to about $63 per month. Those in condos would see their bill go up to about $53 per month.

The company has about 11,000 customers.

"Well it's not something I couldn't afford, but it's just the tip of the iceberg. As you said everything else is going up also," said Ubersax.

"We think it's reasonable. And again we'd like the community to know that at least half of that is going towards improving the system," said Mansfield.

The initial reaction is kind of skeptical and a little negative. We also feel some previous rate increases haven't been fully implemented. We haven't seen the improvements we've been looking for as well in terms of really containing the odor," said Hawaii Kai Neighborhood Board Chair Greg Knudsen.

Keep in mind, the proposed rate hike comes at a time when the City is also increasing its sewer fees -- that affects a lot more residents on Oahu.

City sewer rates will increase 18% this summer and next year, and 15% in 2010, bringing the average bill up to nearly $100 a month by 2011.