MPL letter reaffirms position on utilities
By HARRY EAGAR, Staff Writer
July 1, 2008
The Maui News
In a letter to the Public Utilities Commission, Molokai Ranch has repeated its position that without outside money it will have to shut down its Molokai utilities Aug. 31.
The June 23 letter presents balance sheets showing actual and anticipated losses at the two water companies and the sewage treatment system. It says Molokai Properties Ltd., owner of the ranch, has had to inject almost $1.2 million in cash into the utilities over the past two years to cover losses and capital expenses.
The letter was a response to a PUC demand on June 13 for information about the utilities' application for a temporary rate increase.
In its own letter to the PUC, attorneys for Maui County argued that the utilities should be forced to remain in operation, and rejected the proposal that the county acquire the aging sewer and water systems. The county repeated its contention that it is not able to and not legally required to provide utility services.
The county response also noted that despite claiming to be insolvent, the utilities have not filed for bankruptcy.
"Should MPL continue to fail to comply with the PUC's orders, monetary and criminal penalties should be assessed," argued the county in its response,...
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