Larry Ellison poised to invest another $10M in Lanai utilities
Larry Ellison is proposing big investments into Lanai's utilities.
Larry Ellison, the billionaire majority owner of the Hawaiian island of Lanai, is willing to “freely invest” an additional $10 million or more in the island’s water infrastructure without recovery of any of the cost and/or a reasonable rate of return from customers.
The third richest man in America had already promised to invest $10 million to upgrade the island’s utilities.
In addition, Ellison also is willing to subsidize the expenses of the utilities’ operations.
These latest offerings by the CEO of Oracle Corp. (Nasdaq: ORCL) are detailed in a recent filing with the Hawaii Public Utilities Commission as regulators consider giving final approval of the indirect transfer of the Pineapple Isle’s utilities — Manele Water Resources LLC, Lanai Transportation Co. Inc. and Lanai Water Co. Inc. — the last step in the estimated $500 million sale of 98 percent of the island.
Last June, the PUC granted preliminary approval for the indirect transfer of Lanai’s regulated utilities from Castle & Cooke Inc. to Ellison’s Lanai Island Holdings LLC.
Additionally, the PUC said that within five years from the closing of the overall purchase, Lanai Island Holdings shall invest a minimum of $10 million in the water and wastewater utilities’ respective operations, which Ellison has pledged to do.
It’s not quite clear as to when the PUC will issue its final decision.
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