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

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<strong>Public</strong> <strong>Utilities</strong> <strong>Commission</strong> <strong>Annual</strong> Report <strong>2011</strong>-<strong>12</strong><br />

State of Hawaii Page 10<br />

Figure 2. History of the Hawaii <strong>Public</strong> <strong>Utilities</strong> <strong>Commission</strong><br />

Organizational History Regulatory Changes<br />

1913- <strong>Public</strong> <strong>Utilities</strong> <strong>Commission</strong><br />

founded as an independent agency of<br />

the territorial government with its own<br />

staff<br />

1913 – Regulation of utilities<br />

under quasi-judicial body rather<br />

than through courts and<br />

Superintendent of <strong>Public</strong> Works<br />

Landmark Developments<br />

1933- Change in commissioner count<br />

from three to five part-time<br />

commissioners<br />

1951 - Granted right to hire<br />

investigator<br />

1931 – Regulation of interisland<br />

shipping companies ruled by<br />

Supreme Court is under<br />

jurisdiction of <strong>PUC</strong><br />

1937 – The <strong>PUC</strong> began issuing<br />

CPCNs for buses<br />

Late 1930s – The <strong>PUC</strong> began<br />

regulating long term financing<br />

matters of interisland airlines<br />

1939 – Expert hired to<br />

determine rate base for fair ROI<br />

in utility property, giving <strong>PUC</strong><br />

some basis to determine rates<br />

1959 – Reorganization Act restricts<br />

the number of executive departments.<br />

<strong>PUC</strong> is placed under the Department<br />

of Treasury and Regulation<br />

1961 – General requirements for<br />

formal hearings and rulemaking<br />

established<br />

1963 – Department of Treasury and<br />

Regulation becomes Department of<br />

Regulatory Agencies, <strong>Commission</strong><br />

staff becomes <strong>Public</strong> <strong>Utilities</strong> Division<br />

and serves the Director<br />

1969 – Creation of the Office of<br />

Consumer Protection<br />

1972 – <strong>PUC</strong> able to hire an attorney<br />

for the commission rather than using<br />

the AG as the attorney<br />

1976 – 3 full-time commissioners<br />

serving 6-year overlapping terms. <strong>PUC</strong><br />

moves from the DRA to Department of<br />

Budget and Finance. PUD becomes<br />

DCA and <strong>PUC</strong> hires commission staff<br />

1994 – Reestablishment of the <strong>PUC</strong><br />

special fund for the operation of the<br />

<strong>PUC</strong> and DCA<br />

2007 – <strong>PUC</strong> reorganization<br />

approved by legislature, pending<br />

implementation<br />

1961 – Motor carrier safety<br />

placed under the jurisdiction of<br />

<strong>PUC</strong> by legislature. <strong>PUC</strong> rules<br />

that it has right to regulate air<br />

transportation between islands<br />

1970 – Cable TV put under<br />

Cable Television Division in<br />

the DRA, with the potential to<br />

be moved to the <strong>PUC</strong><br />

1974 – Private sewer<br />

companies added<br />

1977 – Exempts producers of<br />

Non-Fossil power from definition<br />

of the pubic utility but <strong>PUC</strong> has<br />

oversight of rates. Motor Carrier<br />

Safety transferred to DOT<br />

1981 – Eliminated regulation of<br />

aerial transportation enterprises<br />

2001 – RPS and NEM<br />

legislation passed<br />

2002 – Gas cap legislation<br />

passed, repealed 2006<br />

2004 – One Call center<br />

established, RPS set<br />

2008 – EEPS and PBF<br />

established<br />

1965 – Minimum standards of<br />

service for electric, gas, phone<br />

utilities go into effect<br />

1966 – General Order No. 1<br />

issued prohibiting ex parte<br />

communication<br />

1970 – Telephone company<br />

decision issued with PUD acting<br />

on behalf of the director of<br />

Regulatory Agencies<br />

1987 – Start of creation of IRP<br />

process by the <strong>PUC</strong>; Supreme<br />

Court decision over apportioned<br />

costs for inter- and intra-state<br />

telecom<br />

1993 – Plan to establish<br />

telecommunications framework<br />

for Hawaii<br />

2003 – Competitive bidding<br />

framework for new generation

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