PUC Annual ReportâFiscal Year 2004-05 - Public Utilities Commission

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Public Utilities Commission Annual Report 2004-05State of Hawaii Page 4III.GOALS AND OBJECTIVES OF COMMISSION.A. PRIMARY PURPOSE.The Commission’s primary purpose is to effectively, fairly, and impartially ensurethat regulated utilities efficiently and safely provide utility customers withadequate and reliable utility services at just and reasonable rates, while providingregulated utilities with a reasonable opportunity to earn a fair rate of return.B. LONG-TERM GOALS.Modernize and re-organize the Commission as needed to adapt to changes intechnology, markets, economic conditions, consumer needs, and environmentalconcerns to improve the efficiency and effectiveness of the Commission.Foster and encourage competition or other alternatives where reasonablyfeasible in an effort to provide consumers with meaningful choices for services atlower rates that are just and reasonable.Promote and encourage efficient and reliable production and delivery of all utilityservices.Promote and encourage efficient and reliable electricity generation, transmissionand distribution.Promote and encourage the use of alternative or renewable energy resources forthe production of electricity to increase the efficiency, reliability, and sustainabilityof electricity generation and supply for consumers.Assist in creating an environment conducive for healthy economic growth andstability in the public interest.C. SHORT-TERM GOALS.Increase the transparency of the regulatory process and public access to theCommission to ensure that the Commission efficiently, independently, fairly, andimpartially regulates public utilities.Streamline and modernize the regulatory process whenever reasonably feasibleto increase the efficiency of the Commission and regulated utilities.Re-evaluate and update internal Commission staff procedures to increase theefficiency and effectiveness of Commission activities.IV.ADMINISTRATIVE UPDATE.During the Fiscal Year, the Commission continued to implement initiatives that aim tomeet our strategic plan’s short and long-term goals, which include increasing the transparency ofthe regulatory process and public access to the Commission, streamlining and modernizing theregulatory process, and improving services to the public by increasing operational efficiency. Allof the aforementioned goals will be accomplished with the initiation of an information technologyservices contract in the Fiscal Year that will result in development and implementation of a stateof the art document and docket management system (“DMS”) to serve as the electronic backboneof the Commission’s operations. Once fully functional, the DMS will enable the Commission to,among other things, electronically consolidate and store historical information in one database,
Public Utilities Commission Annual Report 2004-05State of Hawaii Page 5share relevant information with the Department of Commerce and Consumer Affairs, Division ofConsumer Advocacy (“Consumer Advocate”), increase the efficiency of internal documentdevelopment and distribution, and allow the public to access public documents in real time via ourwebsite. Additionally, staffing initiatives to fill six (6) existing position vacancies and the creationof two new Commission positions, i.e., Chief Engineer and DPSA (Data Processing SystemsAnalyst) IV, occurred in the Fiscal Year.Major administrative points of focus for Fiscal Year 2005-06 will continue to includepersonnel recruitment and training, technological and regulatory process improvements, andpublic education and information transparency enhancements.V. REGULATORY ISSUES AND PROCEEDINGS.A. MAJOR REGULATORY ISSUES.The Commission is responsible for regulating 257 utility companies or entities (4 electric,1 gas, 216 telecommunications, and 36 water and sewer companies), 4 water carriers,531 passenger carriers and 384 property carriers in the State. During the Fiscal Year, theCommission opened 371 new dockets relating to those regulated utilities and transportationcompanies, completed and disposed of 575 dockets from its total case load and issued792 decisions and orders relating to new dockets and to those carried over from prior years.During the Fiscal Year, key proceedings in the electric utility area included theCommission’s review of Hawaiian Electric Company, Inc.’s (“HECO”) request for a general rateincrease. The Commission separated from the rate case docket HECO’s request to modify itsdemand-side management programs and cost recovery. The Commission also opened aproceeding to examine Kauai Island Utility Cooperative’s third integrated resource plan.In the telecommunications area, the Commission reviewed and conditionally approvedthe proposed sale of Verizon Hawaii Inc., now known as Hawaiian Telcom, Inc., toTC Group L.L.C., dba The Carlyle Group. The Commission also approved the merger of SprintCorporation and Nextel Communications, Inc. The Commission also granted a certificate ofauthority to Time Warner Cable Information Services (Hawaii) LLC to provide local and longdistance Internet Protocol voice services (aka, Voice over Internet Protocol or VoIP).During the Fiscal Year, a key water carrier proceeding related to granting HawaiiSuperferry, Inc. a Certificate of Public Convenience and Necessity (“CPCN”) to operate ascommon carrier of passengers and property.Other key proceedings related to establishing the One Call Center advisory committeeand examining the issues and requirements of the gasoline price cap law, Chapter 486H, HRS.The following sections highlight the significant proceedings of the Commission.B. ELECTRICITY AND ENERGY PROCEEDINGS.The Commission regulates four electric utility companies or entities engaged in theproduction, purchase, transmission, distribution, and sale of electric energy in the State: HECO,serving the island of Oahu; Maui Electric Company, Ltd. (“MECO”), serving the islands of Maui,Lanai, and Molokai; Hawaii Electric Light Company, Inc. (“HELCO”), serving the island of Hawaii;and Kauai Island Utility Cooperative (“KIUC”), serving the island of Kauai. MECO and HELCOare wholly-owned subsidiaries of HECO, which is in turn a wholly-owned subsidiary of HawaiianElectric Industries, Inc.
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PUC Annual ReportâFiscal Year 2004-05 - Public Utilities Commission