PUC Annual Report–Fiscal Year 2011-12 - Public Utilities Commission

Public Utilities Commission Annual Report 2011-12
State of Hawaii Page 5
business: transportation of passengers, transportation of freight, telephone, telegraph,
wireless telegraphy, light, power, heat, cold, water, gas, oil, storage and warehouse
business.” 3
Fees were set at one-twentieth of one percent of the gross income of the public
utility business during the preceding calendar year. Additionally, if the public utility is a
corporation whose principal business is in the territory, one-fiftieth of one percent of the
par value of the entire stock issued by such corporation. In their first year of operation,
the Commission required the reporting of the income from railway and transport,
telephone, lighting, water, and oil companies from the previous year to begin computing
and collecting the fee. 3 Some companies denied the jurisdiction of the Commission, in
which case the Commission began proceedings to consider whether the company was
doing a public utility business in the Territory. 3,4
After getting organized, the Commission immediately began investigating the
utilities it regulated, producing a series of investigative reports on individual utilities.
These reports covered electric, telephone, gas, ice and cold storage, and interisland
navigation utilities. The Commission reviewed the operations and finances of the utility
under investigation, held public meetings, and pointed out improper practices and
charges. 5 In addition to these investigations, the Commission’s proceedings consisted
of rate analyses and complaint handling and safety investigations. 6
Not long after its creation, the public doubted the effectiveness of the
Commission and critiqued the usefulness of the Commission. 4 This lead up to a
reorganization in 1933 which gave way to five part-time commissioners, two from Oahu
and one from each of the neighboring counties. The Commission was responsible for
electric, gas, telephone, and privately owned water companies. The Commission also
had authority over railroad operations and Honolulu Rapid Transit. A quorum of a
majority of commissioners had to be present at all hearings and a majority of the
quorum was necessary for decisions.
Statehood (August 21, 1959) decreased the Commission’s autonomy greatly as
the newly instituted state constitution required no more than 20 executive departments.
The Commission was moved under the Department of Treasury and Regulation, which
meant that the director of the Department now represented the PUC in communications
with the Legislature and Governor and controlled the purchasing by the Commission.
The 1961 Hawaii Administrative Procedure Act set forth the general requirement for the
formulation and adoption of rules and the conduct of administrative hearings. Soon
after, in 1963, the Department of Treasury and Regulation became the Department of
3 Public Utilities Commission. 1913. First Annual Report of the Public Utilities
Commission of Hawaii For the Year 1913.
4 Public Utilities Commission. 1914. Second Annual Report of the Public Utilities
Commission of Hawaii For the Year 1914.
5 Public Utilities Commission. Report of Investigations of the Public Utilities
Commission of Hawaii. Report No. 4-11.
6 Annual Reports of the Public Utilities Commission 1915-1922.