Council rejects Gorak for PUC position

Gov. David Ige’s controversial nominee to the state agency that regulates Hawaii’s utilities was dealt a preliminary setback Friday when he was narrowly rejected by a Senate committee.

Nominee Tom Gorak has been serving as an interim member of the state Public Utilities Commission since Ige appointed him in June — a move that stirred controversy and a lawsuit from a former PUC chairwoman, as it came 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.

The Senate Commerce, Consumer Protection, and Health committee voted 4-3 to not recommend confirmation of Gorak to serve as a commissioner for a term to expire June 30, 2022. The decision is now up to the full Senate, which can confirm Gorak if 13 of the 25 senators vote in favor before May 4.

“I strongly recommend against the appointment of this nominee and encourage the members of this committee to not advise and consent,” said Chairwoman Rosalyn Baker (D, West Maui-South Maui) at a Friday hearing.

Baker said the issue with approving Gorak’s appointment is not about his qualifications, but how the governor made the interim appointment without consulting the Senate.

“The end result (of approving Gorak) would be that the constitutional authority of the Senate to advise and consent would be permanently diminished, and the inappropriate actions of the executive would be legitimized,” Baker said.

Vice Chairman Sen. Clarence Nishihara (D, Waipahu-Pearl City), Sen. Michelle Kidani (D, Mililani- Waikele-Kunia) and Sen. Will Espero (D, Ewa Beach-Ocean Pointe-Iroquois Point) sided with Baker. Espero voted with reservations, saying, “I reserve the right to change my position on the Senate floor where the final decision will be made.”

Sen. Stanley Chang (D, Hawaii Kai-Diamond Head), Sen. Les Ihara Jr. (Kaimuki- Kapahulu-Palolo-Ala Wai) and Sen. Russell Ruderman (D, Puna-Kau) voted in favor of Gorak’s nomination.

“I believe the nominee is extremely qualified,” Ruderman said, noting the testimony before the committee greatly outweighed the testimony in opposition. “We have to evaluate it based on what is before us, not what is whispered behind us.”

Gorak’s 37 years in public utility regulation earned him broad support from the energy community.

More than 30 individuals have submitted written testimony supporting Gorak’s appointment. Some of those in support included PUC Chairman Randy Iwase, former Consumer Advocate Jeff Ono and the Sierra Club of Hawaii.

In his testimony, Gorak said he is committed to achieving Hawaii’s renewable-energy goal of 100 percent by 2045, but doing so without burdening ratepayers.

“Given the high price of electricity here, it is equally important we always consider the impact on consumers in conjunction with keeping these goals,” he said.

At the hearing, Gorak addressed the conflict of Ige appointing him weeks before the PUC issued a decision on NextEra. Gorak abstained from voting on the decision. Many viewed Ige’s appointment of Gorak ahead of the NextEra ruling as an attempt to swing the vote. Ige was outspoken about his opposition to the sale.

“I assure you that the governor never asked what my opinion was on the NextEra proceedings,” he said.

Gorak said he had no involvement with his nomination, other than accepting the governor’s request.

“The way I was raised, when the governor of the state calls you and asks you to do something, you say yes,” Gorak said. “And I said yes.”

Before his appointment, Gorak was chief counsel at the PUC, serving under PUC Chairwoman Mina Morita since 2013.

Morita, who recruited Gorak to work for the PUC, was one of two individuals who spoke Friday against his appointment.

Morita filed a lawsuit against Ige’s appointment, seeking to remove Gorak by alleging he had no legal right to hold the position. A Hawaii First 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.

In her opposition, Morita said she found it difficult to oppose Gorak but believes he aided the governor in improperly ousting former PUC Commissioner Mike Champley.

Morita said when she worked with Gorak, “I found him to be an important team member, pushing forward a very aggressive agenda for the PUC, where I valued his counsel and friendship. … It’s really difficult for me to be here in this position, but I strongly believe in the process.”

After the hearing, PUC Chairman Iwase said the fractured committee vote shows that the Senate might approve Gorak as commissioner.

“Its not over,” he said.