There is an infinite difference between a little wrong and just right, between fairly good and the best, between mediocrity and superiority . . . ~ Orison Swett Marden Success has always been easy to measure. It is the distance between one's origins and one's final achievement . . . ~ Michael Korda The kind of people I look for to fill top management spots are the eager beavers, the mavericks. These are the guys who try to do more than they're expected to do – they always reach. ~ Lee Iacocca

1. THE HAWAII PUBLIC UTILITIES COMMISSION
HAWAII RATEPAYER PROTECTION ACT
ACT 005 ̶ SB 2939 SD 2
Efective Date ̶ July 1, 2018
THE MOON SHOT
SB 2939 was introduced January 24, 2018 by Senator Stanley Chang,
signed into law by Governor David Ige on April 24, 2018 as Act 005. Act 005
requires the Hawaii Public Utilities Commission establish performance incentive
and penalty mechanisms that directly tie electric utility revenues to the utility's
achievement on performance metrics.
In 2014, the public utilities commission issued a landmark white paper
titled “Commission's Inclinations on the Future of Hawaii's Electric
Utilities: Aligning the Utility Business Model with Customer Interests and
Public Policy Goals”. The white paper ofered “perspectives on the vision,
business strategies and regulatory policy changes required to align the
HECO Companies' business model with customers' interests and the
state's public policy goals”.
The legislature fnds that improving the alignment of utility customer and
company interests is critical to ensuring that Hawaii's residents and
businesses do not sufer economic and environmental harm from the
State's energy systems. At the same time, this realignment is critical to
ensure the ongoing viability of the State's regulated electric utilities, as
they face increasing need to rapidly adapt business models and strategies
that enable new innovations and customer choices.
[Emphasis Supplied]
Source: Hawaii Legislature. http://www.capitol.hawaii.gov/measure_indiv.aspx?
billtype=SB&billnumber=2939&year=2018

2. The Hawai'i Ratepayer Protection Act will require the Public Utilities
Commission, the PUC, to develop incentives for local electric companies
to modernize and manage costs. Governor David Ige signed the measure
into law, and said, performance-based rates will allow utilities to earn
profts when they provide cheaper, cleaner energy.
'”New data shows that the faster we move from out oil-based
dependence, the more money we save and the more jobs we create.”
Senator Stanley Chang introduced the measure and said no other state or
state legislature is doing what Hawai’i is doing.
“Frankly, it’s a 'moonshot bill'. For the frst time in the United States, a
electric utility is not going to be charging raters either based on what the
market can bear or based on what they can build, but, on afordability,
reliability, customer satisfaction, public access to data, renewable energy
and timely execution of business processes”. [Emphasis Supplied]
Source: Electricity Ratepayer Protection Act Signed Into Law
By Wayne Yoshioka. Hawaii Public Radio.
April 24, 2018, accessed July 6, 2018
http://hawaiipublicradio.org/post/electricity-ratepayer-protection-act-signed-law
_____________________________________________________
WHAT A GOOD MOONSHOT IS REALLY FOR
By Scott D. Anthony and Mark Johnson
Harvard Business Review
May 14, 2013, accessed July 6, 2018
https://hbr.org/2013/05/what-a-good-moonshot-is-really-2

3. Organizations should have their moonshots. They're a keystone of what
we call a “future-back” approach to strategy, which unlike the “present
forward” nature of most strategic-planning processes, doesn't operate
under the assumption that tomorrow will be pretty much like today, and
the day after pretty much more of the same. In stable times, present-
forward approaches help optimize resource allocation. But in turbulent
times, these approaches can lead companies to miss critical market
infection points.
At the heart of the future-back process is a consensus view of your
company's desired future state. This isn't scenario planning, where you
consider a range of possibilities. This is putting a stake in the ground ̶
specifying what you want your core business to look like, what
adjacent markets you want to edge into, and the moonshots you’ll try
for. And, as Kennedy did, a good future-back strategy goes well beyond
the three-year planning horizons that typify most corporate strategy
eforts. [Emphasis Supplied]
__________________
TAX CUT MEANS BILL REDUCTION FOR OAHU UTILITY CUSTOMERS
HONOLULU, March 9, 2018 - Customers of Hawaiian Electric
Company will see their bills fall as the result of an updated base-rate
adjustment approved by the Public Utilities Commission (PUC) on
Friday.
Changes in federal tax law reduced the corporate tax bill of Hawaiian
Electric and the company announced in January it planned to pass
on the savings to customers.
In February, the PUC approved an interim rate that increased the
typical Oahu monthly residential bill for 500 kilowatt hours by $2.60,
a 2.3 percent increase. It was the frst increase to base rates in six years.

4. At the time, Hawaiian Electric said it was continuing to review the impact
of the new tax law and that an updated rate fling would be made once
the amount to be returned to customers was calculated. Hawaiian
Electric made similar rate reductions in 1987 and 1989 following changes
to federal tax law.
Under the new base rate approved Friday, the impact of the reduced tax
collection is about $3.36 per month, resulting in the typical Oahu
residential bill falling by about 76 cents from what it had been before the
February rate increase.
The PUC will determine the efective date of the new rate for Oahu
customers but ordered Hawaiian Electric to fle its updated tarifs by
March 16 for fnal regulatory review “to timely pass on the benefts to
ratepayers.”
The amounts of the tax impacts for Maui Electric and Hawaii Electric
Light customers are still being determined and will require regulatory
approval. Regardless of when those bill credits take efect, they will
refect the full year of tax savings.
Source: HECO. Accessed July 6, 2018. https://www.hawaiianelectric.com/tax-
cut-means-bill-reduction-for-oahu-utility-customers
THE CRUEL REALITY
THE HAWAII PUBLIC UTILITIES COMMISSION
JANUARY 26, 2018 ̶ PUC OPENS INVESTIGATION OF FEDERAL TAX
LEGISLATION'S IMPACT ON PUBLIC UTILITIES IN HAWAII

5. HONOLULU – The Hawaii Public Utilities Commission has opened a new
proceeding to investigate the impact of the recently signed Tax Cuts and
Jobs Act of 2017 (“2017 Tax Act”) on regulated utilities in Hawaii. The
Commission intends to ensure that Hawaii customers beneft from lower
federal tax rates on their utility bills.
The 2017 Tax Act, which was signed into law by the President of the
United States on December 22, 2017, signifcantly reduces the federal
corporate income tax rate from 35% to 21%, among other changes to
federal tax law.
“This legislation should provide substantial savings to customers of
many public utilities in Hawaii,” said Commission Chairman Randy
Iwase. “The Public Utilities Commission will work with regulated utilities
and the Consumer Advocate to ensure these tax savings are passed on to
customers.” [Emphasis Supplied]
Due to the potentially signifcant efects of the new tax legislation, the
Commission has directed public utilities to immediately begin tracking
any savings incurred from lower tax rates, until the Commission can
issue fnal decisions regarding necessary utility rate adjustments to return
the benefts of the 2017 Tax Act to customers. Each public utility shall
track and record the benefts resulting from the 2017 Tax Act, including
recognition of excess deferred income tax, as applicable.
After review of the amount of tax savings for each applicable public
utility, the Commission intends to issue additional orders and make rate
adjustments in separate proceedings to assure tax savings are passed on
to customers.
Source: PUC. Accessed July 6, 2018. https://puc.hawaii.gov/wp-
content/uploads/2018/01/HPUC_Press_Release_2017_Tax_Act_180125.pdf

6. JUNE 22, 2018 PUC APPROVES RATE DECREASE FOR
HAWAIIAN ELECTRIC COMPANY, INC.
HONOLULU – In a 3-0 decision, the Hawaii Public Utilities Commission
today issued its Final Decision and Order approving a rate decrease for
Hawaiian Electric Company, Inc.
This rate decrease refects the impacts of the recently enacted federal
“Tax Cuts and Jobs Act,” as well as several downward adjustments made
by the Commission earlier in its Interim Decision and Order, issued
December 15, 2017. As a result, what had initially been proposed by
Hawaiian Electric as an approximately $106,383,000 increase in
revenues has been reduced to a revenue decrease of approximately
$603,000. [Emphasis in Original]
In reaching its decision, the Commission noted that Hawaiian Electric
and the Department of Commerce and Consumer Afairs, Division of
Consumer Advocacy had reached a settlement agreement which
addressed all of the outstanding issues remaining in this proceeding.
In addition, the Commission approved a modifcation to Hawaiian
Electric’s automatic fuel cost surcharge to include a risk sharing element,
to more fairly share the risk of fuel price increases and decreases
between Hawaiian Electric and its customers. The fuel cost risk sharing
includes a cap of $2.5 million per year, so Hawaiian Electric is protected
from signifcant unanticipated increases in fuel prices, while customers
will still enjoy most of the benefts of fuel price decreases.
Source: PUC. Accessed July 6, 2018. https://puc.hawaii.gov/wp-
content/uploads/2018/06/2016-0328.Press-Release.mk_.06-22-2018.Final_.pdf

7. DOCKET NO. 2016-0328 FINAL DECISION AND ORDER
The commission approves fnal rate relief for HECO, as set forth in
this Final Decision and Order, including an ROE [Return on Equity]
of 9.50% and corresponding rate of return on average rate base of
7.57%. [Emphasis and Clarifcation Supplied]
Source: PUC. Accessed July 6, 2018 https://puc.hawaii.gov/wp-
content/uploads/2018/06/DO-No.-35545.pdf
_____________________
JUNE 29, 2018 PUC ISSUES FINAL DECISION FOR
HAWAII ELECTRIC LIGHT COMPANY, INC. RATE REQUEST
HONOLULU - The Hawaii Public Utilities Commission, in a 3-0 decision
issued its Final Decision and Order approving a rate increase and revised
rate schedules and rules for Hawaii Electric Light Company, Inc.
(“HELCO”).
In its decision, the Commission found that the resulting test year fgures,
rates and adjustments adequately addresses HELCO's need for rate relief
while protecting ratepayers' interests.
HELCO originally requested approval of a revenue requirement of
$314,791,000.
The fnal revenue requirement of $290,659,000 for HELCO
incorporates downward adjustments approved by the Commission,
including rate reductions due to the recent federal tax cut.
Source: PUC. Accessed July 6, 2018 https://puc.hawaii.gov/wp-
content/uploads/2018/06/Docket-No.-2015-0170-HELCO-Rate-Case_06.29.2018.pdf

8. PENNSYLVANIA
THE KEYSONE STATE
VIRTUE, LIBERTY, INDEPENDENCE
REFUNDS BEGIN FOR PA. UTILITIES; PPL CUSTOMERS WILL
RECEIVE LARGER REFUNDS THAN EXPECTED
By Daniel Urie. PennLive
July 6, 2018, accessed July 6, 2018
https://articles.pennlive.com/business/index.ssf/2018/07/puc_1.amp
Some Pennsylvania residents including some in the midstate will receive
an even larger refund on their utility bills than they expected.
Back in May, the Pennsylvania Public Utility Commission issued an order
requiring a “negative surcharge” or monthly credit on customer bills for a
number of electric, natural gas, and water and wastewater utilities.
The commission announced that the refunds to customers combined
would be around $324 million and are the result of the decrease in
federal corporate tax rates and other tax changes under the Tax Cuts and
Jobs Act of 2017. That number has since increased to around $400
million dollars. The original numbers were based on preliminary tax data
provided by the companies and upon further review of updated
information, the refunds increased for four companies, according to Nils
Hagen-Frederiksen, press secretary for the PUC.
PPL customers will receive a larger refund than originally expected. The
refund will jump from 0.56 percent to 7.05 percent. The company was
originally expected to return $5.7 million and will now return $72
million. The other three companies where the refund increased were
People Gas Company LLC (no refund to $9.8 million), Peoples Natural
Gas Co. ($.2.4 million to $4.1 million) and Peoples Natural Gas Co. -
Equitable Division ($5.7 million to $10.8 million).

9. The PUC's order back in May followed an extensive investigation into the
efects of federal tax reform on the rates charged by commission-
regulated utilities - which, among other things, refect annual taxes owed
both to the federal and state governments.
Since the companies' current rates were approved prior to the passing of
the Tax Cuts and Jobs Act, the PUC said back in May that it was passing
on those savings to consumers.
How much consumers will see varies based on usage as well as the
company's current rates. The charges will decrease from .66 percent to
8.19 percent depending on the company. Consumers will continue to see
the credit on their bill until the company comes back to the PUC to ask
for a change in rates which in some cases could be multiple years.
Utilities not required to take immediate action because of the continuing
analysis of tax reform impacts on their current or pending rate cases
include UGI Utilities, Inc. (Electric), Columbia Gas of Pennsylvania, Inc.,
Duquesne Light Company, PECO Energy Company (Electric), York Water
Company, Suez Water Pennsylvania, Inc. and Aqua Pennsylvania, Inc. In
each of those situations, any tax savings will be considered as part of the
broader evaluation of their rates.
HAWAII PUBLIC UTILITIES COMMISSION
SPINNING WHEEL
By Blood, Sweat & Tears
On YouTube
https://youtu.be/kK62tfoCmuQ