Friday, June 13, 2008

PUC bars plan to shut down utilities

West Molokai could have lost services in August

By EDWIN TANJI City Editor
7 July 2008, The Maui News

WAILUKU — The state Public Utilities Commission has advised GUOCO Group's Molokai Properties Ltd. Chief Executive Officer Peter Nicholas that the company cannot shut down its utility companies providing water and wastewater services in west Molokai.

The notice came in letters from the PUC and from state Consumer Advocate Catherine Awakuni responding to a May 30 letter from Nicholas saying the three utilities operated by the Molokai Ranch owner would be terminated in August.

A letter dated Thursday from the PUC advised Nicholas that “utilities have a duty to provide service to their customers; and as such, they are required to provide service unless and until the commission approves a transfer or surrender of their certificates of public convenience and necessity (CPCNs).

“While the commission is cognizant of the utilities’ present financial conditions, it cannot and will not approve a surrender or transfer of the CPCNs unless and until another public or private entity can be found to operate the water and wastewater systems.”

Nicholas had written to the commission May 30, as a director of Wai‘ola O Molokai, Molokai Public Utilities Inc. and Mosco Inc., advising that the companies intended to terminate services at the end of August ...

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