PUC Annual Report–Fiscal Year 2004-05 - Public Utilities Commission

Public Utilities Commission Annual Report 2004-05State of Hawaii Page 24master planned community, (3) the Manini’owali subdivision, and (4) the State ofHawaii’s Kua Bay Beach Park. The Commission also approved Kukio’s requestto establish a bulk rate for the sale of water from Kukio’s system to the Kukio Golfand Beach Club.3. COMMISSION APPROVES TRANSFER OF POIPU WATERRECLAMATION FACILITY (‘PWRF”).In September 2004, the Commission approved the transfer of Obayashi HawaiiCorporation’s (“OHC”) and Marriott Ownership Resorts, Inc.’s (“MORI”) respective interests in thePWRF to HOH Utilities, LLC (“HOH”). The Commission also approved the amendment of HOH’sCPCN to expand HOH’s service territory to cover the properties controlled, or previouslycontrolled by OHC and MORI. HOH’s expanded service territory includes two (2) hotels, theKauai Sheraton Resort and Marriott Resort. HOH provides wastewater treatment services in thePoipu area on the island of Kauai.4. COMMISSION APPROVES TRANSFER AND SALE OFPRINCEVILLE UTILITIES COMPANY, INC. (“PUCI”).In January 2005, the Commission approved the transfer and sale of PUCI’s stock fromPrinceville Corporation to Princeville PUC, LLC. The Commission also approved the terms of theloan agreement between Princeville Associates, LLC and Princeville PUC, LLC, in an amount notto exceed $4 million, to finance the acquisition of new water facilities. PUCI provides water andwastewater utility services within the Princeville resort and community service area on the islandof Kauai.5. COMMISSION APPROVES HWSCI FINANCING.In August 2004, the Commission approved HWSCI’s financing request to issue $556,000and $2.2 million in long-term debt. The loan amount of $556,000 will be used to fund testyear 2004 capital improvements. The $2.2 million in loan amounts will be used to fund additionalcapital improvements and to maintain a reasonable capital structure of both debt and equity.6. COMMISSION APPROVES WAIKOLOA RESORT UTILITIES, INC.DBA WEST HAWAII UTILITY COMPANY (“WHUC”) FINANCING.In April 2005, the Commission approved WHUC’s request to enter into a $4,550,000construction and term loan with HomeStreet Bank and to mortgage or encumber certain assetsassociated with the proposed financing arrangements. The loan proceeds will be used to financethe costs for the construction of two (2) 2.5 million gallon potable water storage tanks. The tanksare needed to meet storage capacity requirements for the Waikoloa Resort complex. WHUC isauthorized to provide water (including irrigation water to two (2) golf courses) and wastewaterservices to the Waikoloa Beach Resort area on the island of Hawaii.F. TRANSPORTATION CARRIERS PROCEEDINGS.1. MOTOR CARRIERS.The Commission regulates passenger and property motor carriers. Passenger carriersare classified by authorized vehicle seating capacity. They include tour companies, limousineservices, and other transportation providers. Property carriers are classified by the types ofcommodities transported and the nature of services performed, namely: general commodities,household goods, commodities in dump trucks, and specific commodities.