Saturday, November 03, 2018

(no longer) poles apart

Unnecessary utility poles are all over Hawaii because two companies that share most of them often disagree about their responsibilities. Now that problem has been resolved.

In a move that will eliminate 14,000 unsightly poles, Hawaiian Telcom agreed to let Hawaiian Electric Cos. have sole ownership of about 120,000 utility poles on Oahu, Hawaii island, Maui, Molokai and Lanai.

The agreement ends nearly a century of joint pole ownership between the electrical utility and its longtime partner that was once just a phone company.

Under the new arrangement, Hawaiian Telcom will lease pole space for its telephone, internet and TV transmission lines. In return, Hawaiian Electric will provide Hawaiian Telcom with a $48 million credit, though $26 million of that covers disputed past costs of jointly owning poles.

John Komeiji, Hawaiian Telcom president and general manager, called the deal a win for both companies and the state.

“With this change, Hawaiian Telcom joins many other communications providers that lease space on poles, enabling us to channel more of our resources toward investment in fiber and expansion of next generation services statewide,” he said in a statement.

Sharing utility pole ownership historically was done to minimize the number of poles in communities and reduce expenses for companies that needed such infrastructure. On Oahu, joint pole ownership dated to 1922 with Hawaiian Electric, Mutual Telephone Co. and streetcar operator Honolulu Rapid Transit Co., according to Hawaiian Electric.

In more modern times, however, joint pole ownership was a source of discord for Hawaiian Electric and Hawaiian Telcom. Problems included how much Hawaiian Telcom should pay for new poles or even whether new poles were necessary.

As a result, sometimes two poles carried lines when only one was necessary. This occurred in cases where Hawaiian Telcom disagreed over the need for a new pole. Hawaiian Electric would install a new pole for its use and cut off the top of the adjacent old pole where its lines used to hang, while Hawaiian Telcom kept its equipment on the old pole.

The two companies figure 14,000 such “double poles” exist. The agreement calls for these old poles kept by Hawaiian Telcom to be removed within 10 years, with Hawaiian Telcom paying $650,000 a year for the work.

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