Staffing issues and dated technology bog down PUC, audit finds

The Public Utilities Commission is coping with high staff turnover and some obsolete technology as it tries to regulate more than 1,700 entities in what can be extremely complex proceedings, according to a new state audit.

The report by the Hawaii State Auditor released Wednesday concluded the PUC is struggling to keep up with its workload, and “has not devoted the time and resources toward long-term planning to address its critical issues.”

“The PUC’s work is as important as it is complicated,” according to the report. “Yet institutional knowledge at the commission appears to be in short supply, with the overwhelming majority of its staff with a tenure at the commission of five years or less.”

The audit also cited problems with the commission’s document management system, which was described by commission staff as slow, obsolete, unreliable and difficult to use.

The $2.8 million system was purchased under a contract that was executed in 2005, and PUC Commission Chairman Randy Iwase told auditors he is “frustrated as hell with it,” according to the audit. The audit found the system does not perform many of the functions that were required in the original solicitation.

The system is so shaky that when the commission issued its much-awaited 2016 order denying the proposed purchase of Hawaiian Electric Industries Inc. by NextEra Energy Inc., the PUC created an outside webpage where the decision could be posted for fear that a flood of people seeking the order would overwhelm its document management system.

The report recommends the PUC act as quickly as possible to replace the document system, and adopt action plans to provide staff with the necessary tools, training and support. It also warns the commission will continue to see high levels of staff turnover if it fails to do so.

In a response to the audit, Iwase said the commission had a staff of 34 people when he was appointed in 2015, but had 65 authorized positions.

“Given the number of pending dockets, all of which have significant importance for the public utility landscape of Hawaii, our first priority was to increase our staffing in order to have the necessary resources to review and issue decisions on pending dockets,” Iwase wrote.

There are now 58 staff members at the commission, including many who have energy and utility experience. Iwase said the agency also plans to solicit proposals from vendors interested in replacing the obsolete document management system.