Confusion, suspicion and delay. That is the situation following Gov. David Ige’s recent move to replace one of the three Public Utilities Commission (PUC) commissioners at the last stage of the review of the proposed Hawaiian Electric Industries/NextEra Energy transaction.
Despite that commissioner’s participation in 17 months of procedure, hearings and review of over 100,000 pages of filings — and with a decision imminent — he was replaced. Why?
The governor certainly wasn’t required to take this action, especially if he wanted the process to come to a timely conclusion. It is specifically allowed that a sitting commissioner shall hold office until he resigns (this did not happen) and is “held over” until a successor is appointed and qualified by the state Senate (this also did not happen). This “hold over” situation occurred with the previous PUC chairperson just a year ago.
It seems the administration didn’t plan to replace the commissioner before the final decision, or it surely would have submitted the new candidate for confirmation by the state Senate during the legislative session. Instead, the governor made a surprise change, asserting that his new appointee doesn’t require confirmation until the next legislative session, presumably long after a decision on this case. His assertion is being challenged by citizens concerned with good government and questioned by the state Senate. So why the surprise move?
Many guess that the governor didn’t like the decision that was coming down on the transaction. In his own words, “it’s just about finding people who are aligned more personally with my views.” The governor has been open in expressing his opposition to the transaction.
Three of the PUC’s seven strategic goals focus on the integrity of the regulatory process, committing to “increase the efficiency and effectiveness of,” “foster greater understanding of,” and “inspire confidence in” the regulatory process. In his inauguration speech, the governor spoke passionately about the hard work that government must do to nurture a sustainable economy and reach our goals: “It means doing the people’s business in a business-like way; being honest and transparent.”
This action goes against those goals. It damages our business climate and anchors Hawaii’s position as one of the worst states in which to do business. Whatever your position on the HEI/NextEra transaction, we should all be united to fight this kind of behavior. Regulatory integrity and transparency matter. Hawaii is better than this.
Rich Wacker is president/CEO of American Savings Bank; Steve Colon is president of Hawaii Region development, Hunt Companies; Stanford Carr is president of Stanford Carr Development.