Senators reject governor’s PUC nominee

Tom Gorak, Gov. David Ige’s controversial nominee to the state agency responsible for overseeing Hawaii’s energy landscape, was rejected by the Senate on Friday night.

In a 15-10 floor vote, senators opted not to confirm Gorak’s appointment to serve as a member of the Public Utilities Commission.

“I’m disappointed that the people of Hawaii will lose his service,” Ige said after the vote. The governor sat next to Gorak and PUC Chairman Randy Iwase in the gallery during the Senate debate. “He certainly, in the 11 or so months he has served at the commission, has been an outstanding member.”

Senators on both sides of the vote agreed Gorak was qualified.

The senators who favored Gorak’s appointment referenced his resume of 37 years in public utility regulation and the overwhelming public testimony in support of his nomination — more than 60 individuals submitted supportive testimony and three submitted opposing testimony.

“He’s exactly the kind of person we need in the state of Hawaii to move us forward in our renewable energy portfolio,” said Sen. Gil Riviere (D, Kunia-Schofield Barracks-Haleiwa-Kaneohe). “We’re not knocking him out; we’re hurting the people of Hawaii.”

The denial comes after Gorak was narrowly rejected by a Senate committee April 22. In a 4-3 vote, the Senate Commerce, Consumer Protection and Health Committee ruled against recommending Gorak to serve as a commissioner for a term to expire June 30, 2022.

The three members of the PUC regulate the state’s major utilities from the electric sector to water carriers, such as Hawaiian Electric Co., Hawaii Gas and Young Brothers.

Gorak has been serving as an interim member of the PUC since Ige appointed him in June. The appointment came just days before the PUC’s decision to reject Florida-based NextEra Energy Inc.’s $4.3 billion bid to buy Hawaii’s largest electrical utility.

Ige was an outspoken opponent of the NextEra deal. The PUC voted 2-0 to reject NextEra with Gorak abstaining.

Sen. Russell Ruderman (D, Puna-Kau) said those who voted against him were doing so because of hard feelings left over from the failed sale.

“There is a great desire for payback,” Ruderman said. “Mr. Gorak is a scapegoat for a decision he did not control. After a 40-year stellar career, this man’s reputation is being dragged in the mud.”

Sen. Laura Thielen (D, Kailua-Waimanalo-Hawaii Kai) echoed Ruderman, saying the vote against Gorak was misdirected.

“I understand there are limited ways to express our displeasure. But I think it is a completely different thing when you’re dealing with the nomination of a person,” Thielen said. “Looking at all of the evidence that is in front of me, I’m coming down to the fact that every single person, including the committee chair, that there is not a question that this gentleman is qualified to serve as a Public Utilities commissioner.”

At the committee hearing that rejected Gorak’s nomination, Chairwoman Rosalyn Baker (D, West Maui-South Maui) said the issue with approving Gorak’s appointment was not about his qualifications. She “strongly” recommended against him because of the precedent set by the governor making Gorak’s interim appointment without consulting the Senate.

Baker said approving Gorak would diminish the constitutional authority of the Senate to advise and consent on gubernatorial appointments.

Former PUC Chairwoman Mina Morita filed a lawsuit against Ige, seeking to remove Gorak, saying he had no legal right to hold the position. The 1st Circuit Court ruled in August that Ige’s appointment of Gorak is valid. Morita’s appeal of the Circuit Court’s decision is pending with the Hawaii Intermediate Court of Appeals.

Before his appointment, Gorak was chief counsel at the PUC, after serving under Morita since 2013. Morita recruited Gorak to work for the PUC.

The rejection comes as the PUC is reviewing major cases regarding the state’s energy landscape.

Jeff Ono, former Consumer Advocate for the PUC, said if Gorak’s seat remains vacant for any length of time that could be problem.

“You’ll only have two commissioners. That will create potential logjams,” Ono said.

Ige said he doesn’t have anyone lined up to take Gorak’s spot.

“We’ll start the search tomorrow.”