<strong>Public</strong> <strong>Utilities</strong> <strong>Commission</strong> <strong>Annual</strong> Report <strong>2004</strong>-<strong>05</strong>State of Hawaii Page 24master planned community, (3) the Manini’owali subdivision, and (4) the State ofHawaii’s Kua Bay Beach Park. The <strong>Commission</strong> 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 <strong>2004</strong>, the <strong>Commission</strong> approved the transfer of Obayashi HawaiiCorporation’s (“OHC”) and Marriott Ownership Resorts, Inc.’s (“MORI”) respective interests in thePWRF to HOH <strong>Utilities</strong>, LLC (“HOH”). The <strong>Commission</strong> 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. (“<strong>PUC</strong>I”).In January 20<strong>05</strong>, the <strong>Commission</strong> approved the transfer and sale of <strong>PUC</strong>I’s stock fromPrinceville Corporation to Princeville <strong>PUC</strong>, LLC. The <strong>Commission</strong> also approved the terms of theloan agreement between Princeville Associates, LLC and Princeville <strong>PUC</strong>, LLC, in an amount notto exceed $4 million, to finance the acquisition of new water facilities. <strong>PUC</strong>I provides water andwastewater utility services within the Princeville resort and community service area on the islandof Kauai.5. COMMISSION APPROVES HWSCI FINANCING.In August <strong>2004</strong>, the <strong>Commission</strong> 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 <strong>2004</strong> 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 20<strong>05</strong>, the <strong>Commission</strong> 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 <strong>Commission</strong> 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.
<strong>Public</strong> <strong>Utilities</strong> <strong>Commission</strong> <strong>Annual</strong> Report <strong>2004</strong>-<strong>05</strong>State of Hawaii Page 25By law, certain transportation services, including, without limitation, taxis, school and citybuses, ambulance services, refuse haulers, farming vehicles, and persons transporting personalproperty, are exempt from <strong>Commission</strong> regulation.Many of the State’s motor carriers are members of either the Western Motor TariffBureau, Inc. (“WMTB”) or the Hawaii State Certified Common Carriers Association (“HSCCCA”).WMTB and HSCCCA are nonprofit organizations engaged in the research, development, andpublication of motor carrier tariffs. The two organizations represent their members in ratemakingproceedings before the <strong>Commission</strong>.In accordance with its statutory requirements, the <strong>Commission</strong> performs the followingfunctions in the regulation of motor carriers: (1) certification and licensing; (2) ratemaking; and(3) business regulation. During the Fiscal <strong>Year</strong>, the <strong>Commission</strong> issued many new certificatesand licenses, reviewed requested rate increases, and extended the zone of reasonableness pilotprogram for motor carriers.a. COMMISSION APPROVES NEW MOTOR CARRIERCERTIFICATIONS.The <strong>Commission</strong> regulates 531 passenger carriers and 384 property carriers in the State.During the Fiscal <strong>Year</strong>, new certificates or permits were issued to 98 motor carriers—61 passenger carriers and 37 property carriers.In this Fiscal <strong>Year</strong>, the number of authorized property carriers increased slightly over theprevious fiscal year, as shown in Figure 4.Figure 4Regulated Motor Carriers60<strong>05</strong>00Number of Motor Carriers40030020010002002-03 2003-04 <strong>2004</strong>-<strong>05</strong>Property Carriers 385 375 384Passenger Carriers 530 533 531FY