Verizon asked the Hawaii PUC for expedited hearings on the propos...

ensure a smooth transition and minimize uncertainties for customers and employees. But PUC staffers said it would be very difficult to complete an investigation in 6 months because of the deal’s complex structure and the fact that it involves Hawaii’s only incumbent local exchange provider. The 29-page petition outlined the general terms of the transaction. Verizon and Carlyle said the deal will involve creation of 4 corporate operating units for running the company. They would operate under a new Carlyle holding company called Paradise Mergers that would involve a consortium of Hawaiian banks as investors with corporate board seats. The filing didn’t name the investors. Carlyle said the Hawaiian operation would be run locally and the carrier’s payroll of 1,700 might grow to handle administrative functions Verizon had moved to the U.S. mainland. It promised that the company’s senior management would all be Hawaii residents. Carlyle said it won’t seek rate increases to pay for costs of the sale transaction, but may seek a boost to recover the “tens of millions of dollars” in anticipated capital costs associated with re-establishing back-office functions in the state. The filing made no mention of infrastructure investment plans. Verizon Hawaii operates under rate-of-return regulation. PUC staffers said there’s no set deadline for completing review of the sale. But they said the review would take longer if there’s significant opposition to the sale, which would trigger more extensive discovery. The state Consumer Advocate Div. said it plans to hire a consultant to review the complex deal, plus assign a third of its staff on a part-time basis to review the sale. The division has until July 16 to file its preliminary opinion. The deal also needs FCC approval, but since it doesn’t involve Verizon’s wireless or federal- service business units, the state’s verdict is expected to be the crucial decision.