<strong>Public</strong> <strong>Utilities</strong> <strong>Commission</strong> <strong>Annual</strong> Report <strong>2011</strong>-<strong>12</strong> State of Hawaii Page 1 Introduction The <strong>Public</strong> <strong>Utilities</strong> <strong>Commission</strong> (“<strong>Commission</strong>” or “<strong>PUC</strong>”) of the State of Hawaii submits this <strong>Annual</strong> Report pursuant to §269-5, Hawaii Revised Statutes (“HRS”). This report summarizes the <strong>Commission</strong>’s accomplishments, states its goals and objectives and tracks data and trends in a comprehensive way. Although the statute only requires that the report cover the fiscal year from July 1, <strong>2011</strong> to June 30, 20<strong>12</strong>, as this is one of the few opportunities for the <strong>Commission</strong> to publicly share and shed light on the inner workings of the <strong>Commission</strong>, this report reflects the most current information where possible. Therefore, the summarization of key regulatory dockets, discussion on other proceedings before the <strong>Commission</strong> and other narratives are as of October 20<strong>12</strong>. Regulated utility reports, financial, and budget information reflect the State’s fiscal year ending June 30, 20<strong>12</strong>, i.e., Fiscal <strong>Year</strong> (“FY”) 20<strong>12</strong> unless otherwise indicated. This year’s <strong>Annual</strong> Report also includes a section on the history of the <strong>Commission</strong> as 2013 marks the 100 th anniversary of the passage of Act 89, Session Laws of Hawaii 1913, which established the <strong>Commission</strong>. The <strong>Commission</strong> is responsible for regulating all chartered, franchised, certificated, and registered public utility companies that provide electricity, gas, telecommunications, private water and sewage, and motor and water carrier transportation services in the State (see Figure 1). The <strong>Commission</strong> has statutory authority to establish and enforce applicable state statutes, administrative rules and regulations, and to set policies and standards. It also oversees the administration of a One Call Center that provides advance warning to excavators of the location of subsurface installations in the area of an excavation in order to protect those installations from damage; and the <strong>Public</strong> Benefits Fee surcharge which is used to fund and support energy efficiency programs and services implemented by an independent third party administrator on the islands of Oahu, Maui, Molokai, Lanai and Hawaii. <strong>Public</strong> utilities, like the customers they serve and the society and economy in which they operate, continue to undergo significant changes due to rapid developments in technology, markets, economic conditions, consumer needs and environmental concerns. The <strong>Commission</strong> acknowledges the dynamic nature of the operating environments of public utilities and thus sets as a priority the cultivation of skill sets necessary for adaptive regulatory practices and approaches within its staff and commissioners. The <strong>Commission</strong> strives to encourage regulated entities to perform and function in ways that serve the public interest in the most efficient and cost-effective manner, ultimately, providing customers with reliable services at reasonable rates. In addition to the <strong>Commission</strong>’s traditional duty to oversee and regulate public utilities to ensure the provision of essential and reliable service at just and reasonable rates, the Legislature has entrusted the <strong>Commission</strong> with increased authority and discretion in implementing the State’s clean energy policies. Three major legislative mandates, the Renewable Portfolio Standards (“RPS”), the Energy Efficiency Portfolio Standards (“EEPS”) and the <strong>Public</strong> Benefit Fee (“PBF”) are key energy policies driving Hawaii’s clean energy transformation. Given the State’s overall desire to stabilize Hawaii’s economy and move towards energy independence, the majority of the <strong>Commission</strong>’s time and resources are devoted to this sector.
<strong>Public</strong> <strong>Utilities</strong> <strong>Commission</strong> <strong>Annual</strong> Report <strong>2011</strong>-<strong>12</strong> State of Hawaii Page 2 Figure1. Diagram of responsibility of the <strong>Commission</strong> HECO U-li-es HELCO MECO Electricity KIUC RPS EEPS Telecom Legisla-ve Mandates Hawaiian Telcom 174 Wireless and Wireline Companies PBF NEM Young Brothers <strong>PUC</strong> Water Carriers Sea Link Hone Heke Pasha Motor Carriers Water and Sewage 743 Passenger Services 555 Property Carriers 38 Private Water and Sewer Companies Gas HawaiiGas One Call Center