Reported by Star-Bulletin staff & wire
Tuesday, March 11, 1997
Reported by Star-Bulletin staff & wire
Tuesday, March 11, 1997
The Public Utilities Commission has ordered Hawaiian Electric Co. to explain why it is earning a higher rate of return than authorized by the commission and why the PUC shouldn't force the company to lower rates to its Oahu customers. Heco asked to explain
higher rate of returnThe company, a unit of Hawaiian Electric Industries Inc., said the utility's rate of return on equity was 11.9 percent in 1996, compared with the 11.4 percent that the PUC deemed reasonable in a 1995 ruling approving a rate increase.
At the higher rate of return, the company earned roughly $2.5 million more than what it would have earned at the lower rate, HEI said.
If the company was forced to lower its electric rates to reflect the lower return, the decrease would be slight, a PUC spokesman said. The company also would have to refund any excess earnings.
A company spokesman said Heco will argue that no decrease or refund is warranted.
Heco had better-than-expected sales last year, largely due to one-time factors, spokesman Chuck Freedman said. The company doesn't expect similar sales this year and anticipates its rate of return to be closer to 11.4 percent, he said.
PrimeCo Hawaii plans to upgrade the state's microwave telecommunications links between the islands as part of an agreement that enables the company to complete its wireless phone network here. PrimeCo to upgrade
state's telecom systemThe carrier has agreed to pay up to $1.5 million to replace three microwave dishes on Oahu and Kauai and two on Maui and Molokai, the company said. It also plans to replace two state Civil Defense dishes on Oahu at a cost of $776,000.
The upgrade will convert an aging analog system to digital technology, providing more versatility to the state's network, PrimeCo local general manager Jeff Brennan said.
The deal frees up spectrum space that the state used for a portion of its microwave system, enabling PrimeCo to run its network in that same spectrum without potential interference from the state network.
Neiman-Marcus Group Inc. plans to build a 33,200-square-foot service center at Kapolei Business Park. Neiman-Marcus plans
Kapolei service centerNeiman Marcus yesterday said it reached an agreement with landowner Campbell Estate to lease the location, which will be used for storing goods that will be sold at the planned Neiman Marcus department store in Ala Moana Center.
Construction will begin in September and will be completed by March 1998. The new location will occupy 1.7 acres and will house 11 employees.
Neiman Marcus said it plans to open 160,000 square-foot department store at Ala Moana Center in November 1998.
