Section 6-17-15 - Estimate of benefits(a) Each project party that has entered into a project agreement with the department shall prepare an estimate of the benefits to be derived from financing the project with the proceeds of a loan. The benefits shall be the amount projected to be saved by consumers of the services of the project party over the life of the bonds to be issued to fund the loan as a result of financing the project with the proceeds of a loan rather than by alternative means. The following shall be elements of any estimate of benefits:(1) The interest rate to be assumed on the bonds proposed to be issued to finance the project shall be the interest rate supplied to the project party by the department;(2) The interest rate to be employed in calculating the cost of alternative financing of the project shall be: (A) In the case of a proposed refinancing through a loan, the interest rate on the existing financing; or(B) If the loan is to be the initial financing of the project, the interest rate that would be charged to the project party by a financial institution with which the project party has a continuing relationship or the interest rate supplied by another source, in either case, as approved by the department for use in the estimate of benefits.(b) The estimate of benefits shall demonstrate a savings in interest expense that will result in a savings to consumers of the services of the project party by reducing the amount of allowable costs that would otherwise be incurred by the project party, and consequently a reduction in payments by consumers using the project. In addition, the effect of decreased interest expense shall be reflected in lower charges by the project party to consumers than would be the case if bonds were not issued to finance the project. The foregoing shall be demonstrated by calculating:(1) The interest expense to the project party if the project is financed at the interest rate set forth in subsection (a)(1); and(2) The interest expense to the project party if the project is financed at the interest rate set forth in subsection (a)(2).(c) The department may furnish the project party with the format to be used in making the calculations required by subsection (b).[Eff APR 11 2005] (Auth: HRS § 39A-271) (Imp: HRS § 39A-271)